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Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 03/07/2008 : 13:33:54
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We were iced in due to an ice storm and I was talking to my father and brother in law about the price of gold and silver. They asked if I would sell their gold and silver. We aren't talking about all that much. Some 10 ounce silver bars and a one ounce Krugerrand in a 14k setting with a 14k heavy chain.
Mind you, neither one of them needs the money. It is just that they think the price of PMs have peaked and they want to cash in now.
They may or may not be right on this run, but that is not the issue. What is the real issue IMO is that though they have a basic knowledge of what is going on with the dollar, they just can't seem to break away from it. They have lots of money in bank C.D.s They know that the FDIC is a joke, that taxes are getting a lot of their interest, and inflation the rest. But as long as the banks send them a piece of paper each month telling them their money is still there they feel 'safe'.
I'm telling you this because if we see a "correction' in the price of gold and silver it may be, in part, because a lot of people still want to cash out even though they don't need the money.
If they still want to sell I'll buy it myself and return it to them some day. Merry Christmas 2012 Dad.
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Think positive. |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 03/07/2008 : 15:01:29
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It sure doesn't smell like the final peak to me, but we are due for a good gut-wrenching, shake-out, drop. Though I am not sure if happens from here or from higher levels.
The real final blowoff run will happen when your in laws and everybody else are buying and saying that gold will go up forever. :) |
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Gresham
Penny Pincher Member
184 Posts |
Posted - 03/07/2008 : 16:53:43
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Right, I can see these same people that sell silver now, buying back in at 90, Feel good about themselves as the price rockets to 290 then crashes to 50. Where they swear that they will never invest in commodities ever again, because they lost everything.
I think that a much better aproach is to always put some of your profits in to PM's every year. |
Edited by - Gresham on 03/07/2008 18:58:24 |
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Gresham
Penny Pincher Member
184 Posts |
Posted - 03/07/2008 : 18:42:55
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This article gives a historical perspective for various commodities, which all seem to track each other.
You must be logged in to see this link.
To paraphrase the Mogambo Guru (not the author of previous article), If you could buy oil with your gold; and cotton, wheat and livestock with silver your purchasing power would remain constant. Prices of gold and silver are not volatile; the dollar is. |
Edited by - Gresham on 03/07/2008 18:57:50 |
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fiatboy
Administrator
912 Posts |
Posted - 03/07/2008 : 19:45:22
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quote:
What is the real issue IMO is that though they have a basic knowledge of what is going on with the dollar, they just can't seem to break away from it.
My family is kind of the same way. They see the grim economic picture, but they can't break away. It's like they're deer in the headlights. The idea of dumping dollars just seems a bit too much for them, so they do nothing. |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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mickeyman
Penny Pincher Member
Canada
243 Posts |
Posted - 03/07/2008 : 20:52:21
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I don't know how gut-wrenching any forthcoming correction has to be, because the optimism is very fragile.
Spent some time at PDAC (a big mining conference in Toronto) this week. The optimism in the mining industry is nearing a frenzy, with everyone predicting each day that this would be the day that gold topped $1000. That to me implied a short-term top is at hand, but on the other hand everybody had their finger hovering over the sell button when it started to drop. So I think we are a long way from a long-term top.
My in-laws have some old jewellery from Singapore--solid gold! Heavy too, but they say next year if gold is over $1000 they will take it back to Singapore and sell it. Gahh! |
Not all who wander are lost. |
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WilliamC
Penny Collector Member
USA
471 Posts |
Posted - 03/07/2008 : 20:57:07
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Heck I just today cashed out an IRA I had from a job I left last summer to buy another $500 face value bag of junk silver and maybe a couple of krugerands. Sure I'll take the 10% penalty and be taxed on it too, but had I done this in August when I first wanted to I'd have already made back the difference and then some.
And from this I'll have enough to buy the Ryedale and a $1,000 or so of pennies to start doing some serious sorting!
Now if I can just make myself wait until late next week when the deposit clears....
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Sorting In Northwest Mississippi |
Edited by - WilliamC on 03/07/2008 21:11:52 |
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 03/07/2008 : 21:04:55
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quote:
Originally posted by WilliamC
Heck I just today cashed out an IRA I had from a job I left last summer and buy another $500 face value bag of junk silver and maybe a couple of krugerands. Sure I'll take the 10% penalty and be taxed on it too, but had I done this in August when I first wanted to I'd have already made back the difference and then some.
And from this I'll have enough to buy the Ryedale and a $1,000 or so of pennies to start doing some serious sorting!
Now if I can just make myself wait until late next week when the deposit clears....
Sounds like a plan, good luck!
Deal
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Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 03/07/2008 : 21:06:36
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quote:
Originally posted by mickeyman
I don't know how gut-wrenching any forthcoming correction has to be, because the optimism is very fragile.
Spent some time at PDAC (a big mining conference in Toronto) this week. The optimism in the mining industry is nearing a frenzy, with everyone predicting each day that this would be the day that gold topped $1000. That to me implied a short-term top is at hand, but on the other hand everybody had their finger hovering over the sell button when it started to drop. So I think we are a long way from a long-term top.
My in-laws have some old jewellery from Singapore--solid gold! Heavy too, but they say next year if gold is over $1000 they will take it back to Singapore and sell it. Gahh!
Why would they go back to sell it? Plenty of places in-country I'm sure.
Deal |
Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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mickeyman
Penny Pincher Member
Canada
243 Posts |
Posted - 03/09/2008 : 17:17:57
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Originally posted by mickeyman
My in-laws have some old jewellery from Singapore--solid gold! Heavy too, but they say next year if gold is over $1000 they will take it back to Singapore and sell it. Gahh!
Why would they go back to sell it? Plenty of places in-country I'm sure.
Deal
They have a thing about Singapore. They go there every so often anyway. But they don't feel confident about dealers here because they have never dealt with them. |
Not all who wander are lost. |
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NotABigDeal
1000+ Penny Miser Member
USA
3890 Posts |
Posted - 03/09/2008 : 19:56:43
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Ah....I see.
Deal |
Live free or die.
Plain and simple.
"If you love wealth more than liberty, the tranquility of servitude better than the animating contest of freedom, depart from us in peace. We ask not your council or your arms. Crouch down and lick the hand that feeds you. May your chains rest lightly upon you and may posterity forget that you were our countrymen."
- Samuel Adams |
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My in laws are selling
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