Gold $1600 an ounce!

[villain_the_foe]

My financial guy is telling me, has been for awhile, to snatch up Silver.

I snatch it up buy the boat load. Working as much over time as I can and I buy silver with the money.

I agree with your financial guy. Its funny, most brokers wont tell their clients about Gold and Silver because if their money is in precious metals then it isnt available for the brokers to play with.

[villain_the_foe]

[villain_the_foe]

My financial guy is telling me, has been for awhile, to snatch up Silver.

I snatch it up buy the boat load. Working as much over time as I can and I buy silver with the money.

The Govt officially raised the debt ceiling alittle under 2.5 trillion. Because of that our U.S. debt just went up 238 billion OVER NIGHT to pay back the fed pensions that was used to run the govt (that was the biggest one day jump of U.S. debt in history by the way).

While the stock market took a pretty good hit yesterday/today given the news, Gold exploded by over $40 at a high of $1,672 and Silver made a 4% move to the upside since Aug 2nd. lol...you just cant make this sh*t up!

Pat your financial guy on the behind and tell him "great play" lol

http://www.zerohedge.com/news/gross-us-debt-surges-240-billion-overnight-us-debt-gdp-hits-post-world-war-ii-high-972-official

[#27TheDominator]

The Govt officially raised the debt ceiling alittle under 2.5 trillion. Because of that our U.S. debt just went up 238 billion OVER NIGHT to pay back the fed pensions that was used to run the govt (that was the biggest one day jump of U.S. debt in history by the way).

Gold exploded by over $40 at a high of $1,672 and Silver made a 4% move to the upside during since Aug 2nd. lol...you just cant make this sh*t up!

Pat your financial guy on the behind and tell him "great play". lol.

http://www.zerohedge.com/news/gross-us-debt-surges-240-billion-overnight-us-debt-gdp-hits-post-world-war-ii-high-972-official

If your figures are correct the gold did better than the silver.

[villain_the_foe]

If your figures are correct the gold did better than the silver.

Gold and Silver did better than the dollar. Thats my main concern.

I like silver better because its undervalued against gold. The normal ratio S/G should be around 12/1 given whats in the ground. The Silver to Gold ratio today is 40/1, though thats not an accurate reflection of G/S above ground. This is why I like Silver. It has alot of catching up to do in the long run. I techinically get it on sale everytime I pick up just given the reality of the physical market.

Gold is going to break out first of course because at the moment it is the only international hard currency but more importantly it holds a high concentration of wealth while being able to maintain its value better than any other precious metal, so its good to have some. Once the masses begin to exit the stock market and hit Gold you're going to see the price get ridiculous....thats when you cash out of your gold and then put it in Silver, because when the price gets too expensive for the masses they're going to look right at silver and thats when you'll see that ratio drop like a bad habit.

This is why I like Silver better, also for the fact that im not rich. Buying an oz of Gold today for $1,700 I cant do. I maxed out at 1,250 and started buying halves and quarters. Silver though,....on top of the fact that its a consumed metal? Fireworks...im telling you. Gold will have its day first, but Silver is going to have the biggest, longest and last laugh when its said and done.

[#27TheDominator]

Gold and Silver did better than the dollar. Thats my main concern.

I like silver better because its undervalued against gold. The normal ratio S/G should be between 12/1 to 16/1. The Silver to Gold ratio today is 40/1. This is why I like Silver. It has alot of catching up today in the long run.

Gold is going to break out first of course because at the moment it is the only international money, so its good to have some. Once the masses begin to exit the stock market and hit Gold you're going to see the price get ridiculous....thats when you cash out of your gold and then put it in Silver, because when the price gets to expensive for the masses they're going to look right at silver and thats when you'll see that ratio drop like a bad habit.

This is why I like Silver better, also for the fact that im not rich. Buying an oz of Gold today for $1,700 I cant do. I maxed out at 1,250 and started buying halves and quarters. Silver though,....on top of the fact that its a consumed metal? Fireworks...im telling you. Gold will have its day first, but Silver is going to have the biggest, longest and last laugh when its said and done.

Just saying the silver had a higher percentage rise than the gold is all.

[JerryK]

I've ignored this thread thus far, so forgive me if my thoughts are old news...

My impression has been that cyanide-leach mining is very efficient and has made gold easy to obtain in large quantities at the 400-600 level for years. (forget environmental issues, I'm just talking cost for now)

So how does oil doubling in price bring it to 1600? Sure, mining uses oil, but their costs have to have a large percentage of labor and legal variables. Given that, I'd un-scientifically expect maybe a 25% gold increase on doubled oil costs.

I wouldn't buy one speck of gold right now. It has 'unsustainable huge bubble' written all over it.

Edit: But since I don't believe the mining COSTS are up proportional to gold's price, the mining companies are probably making a killing. Their stocks are probably worth buying.

[jgb]

Makes no sense why something with no intrinsic value has became the "safe" place to put your money. When the economy collapses I want canned goods and ammunition. Not shiny metal.

[Green Jets & Ham]

Makes no sense why something with no intrinsic value has became the "safe" place to put your money. When the economy collapses I want canned goods and ammunition. Not shiny metal.

You and me both brother. You and me.

You know when I feel safe?

Really safe?

When I know that I am standing in front of the cash underneath my mattress. When I have the boxing gloves on and I know that nobody is taking it from me. If the money is behind me and I am looking forward then my money is safe.

You clowns worrying about options and shorting stocks have it all wrong.

A hard days work for an honest buck. That is what it is all about.

Make a buck, save a buck. Never look back.

Protect that money with your life. I wear my boxing gloves to soften the blow for any would be attacker. I have mercy on them, for they know not what they do.

This old cat that I knew growing up always told us kids, "a fool and his money are soon parted".

From that day on I said, "well then I ain't gonna be no fool".

That is why my money is safe. Well that and my lethal left \ right combo.

[villain_the_foe]

Makes no sense why something with no intrinsic value has became the "safe" place to put your money. When the economy collapses I want canned goods and ammunition. Not shiny metal.

So, do you have any storage food now?

[villain_the_foe]

You and me both brother. You and me.

You know when I feel safe?

Really safe?

When I know that I am standing in front of the cash underneath my mattress. When I have the boxing gloves on and I know that nobody is taking it from me. If the money is behind me and I am looking forward then my money is safe.

You clowns worrying about options and shorting stocks have it all wrong.

A hard days work for an honest buck. That is what it is all about.

Make a buck, save a buck. Never look back.

Protect that money with your life. I wear my boxing gloves to soften the blow for any would be attacker. I have mercy on them, for they know not what they do.

This old cat that I knew growing up always told us kids, "a fool and his money are soon parted".

From that day on I said, "well then I ain't gonna be no fool".

That is why my money is safe. Well that and my lethal left \ right combo.

That "buck" isnt honest. Wake up to the fact. Your work may be an honest respectable job, but that buck isnt honest. How could it when its backed by debt?

As for your boxing gloves and your stack of cash behind you....Bernanke robbed you before you even put the gloves on. That stack doesnt buy the same amount as it did 10 years ago, yet you're standing right there defending it.

I dont protect my dollars with my life because I no longer hold on to them sh*ts. I defend my purchasing power with my decision making. And I decided a long time ago that the metal that people talk sh*t about and dont want today will be the winner tomorrow. I think its good that no one wants it. thats more for me. When everyone wants it, I'll be right there to sell it. But I wont be looking for income (cash) I'll be looking for property...Land and most importantly food. Gold will be the first wave, and I'll jump out right into food because people will have a tough time eating during these times. I think I'll be able to make more in food in the LONG long run.

Oh, and the Dow dropped over 500 pts today, and over 1,300 pts over the past two weeks. That impacts the dollar as well.

[bitonti]

Oh, and the Dow dropped over 500 pts today, and over 1,300 pts over the past two weeks. That impacts the dollar as well.

gold went down 40 bucks in 1 day as well. It's a volatile commodity and buying now is buying at a high. gold is bubble-licious.

[THE ILK]

So what's it at now? $1700.00

[villain_the_foe]

gold went down 40 bucks in 1 day as well. It's a volatile commodity and buying now is buying at a high. gold is bubble-licious.

A month ago Gold was sitting at about $1,490, right now the price is $1,657. A month ago the Dow was nicely over 12,000, right now the Dow sits at 11,260 and you're talking about volatility in Gold???? Yeah, to the "upside" that is lol. And speaking of highs, the same people who said buying at $900 was buying at an all-time high was correct....but gold keeps making all time highs doesnt it?

You only state bubble because to you "think" the price is very high, thats not what creates bubbles bit. You have to show evidence of a bubble, which you never do. How in the world is Gold in a bubble when its the paper markets that are slowly crashing? lol. If anything is overbought that'll be the stock market.

[bitonti]

You only state bubble because to you "think" the price is very high, thats not what creates bubbles bit. You have to show evidence of a bubble, which you never do. How in the world is Gold in a bubble when its the paper markets that are slowly crashing? lol. If anything is overbought that'll be the stock market.

what do you think of JerryK's comment about cyanide leach mining?

[villain_the_foe]

So what's it at now? $1700.00

$1,657.

[villain_the_foe]

what do you think of JerryK's comment about cyanide leach mining?

I'll have to read it. I'll do so and get back to the both of you. About to help the wife out with something.

What up though? Hope all is well man.

[villain_the_foe]

what do you think of JerryK's comment about cyanide leach mining?

I think that JerryK's entire comment is partially correct. Golds rise isnt based solely on another commodity (oil). Granted, miners have to cover cost to drill, but not every mining company is the same or successful. You can have gold go up in price and particular mining companies go down in price given management, lack of production (meaning the mine itself) etc. The cost of mining shares fluctuate given the risk that the particular mine could be a bust or a bonanza. You can have gold in the area but not be able to get to it....that doesnt reflect negatively on the price of gold overall, but the mining company having a project that they cant get to will cause their stock to go down, the dont have a product. Gold's rise (and oil's rise for that matter) is based on the economic environment of the planet, and I can say that because our dollar is the international currency of the world. Im not saying that there's not one percent of the price of gold that isnt attached to the price of oil....but you have to see that the gold mined 2000 years ago still has the same currency value and intrinsic value of the gold that came out of the ground yesterday. Gold is Gold and its all relative in that respect.

He said that Gold has bubble written all over it. I dont see how. I'd like him to explain it to me. Better yet, he said that he sees mining stocks being a good buy. How would gold stocks be a good buy if the product that they're retreiving is in a bubble? Wouldnt you suggest that if gold popped that the miners would pop as well? Not to take away from Jerry's poing about the miners, I think miners in general (depending on the company) are incredibly undervalued given hedge funds shorting them directly and ETF's exposing people to the price action but not the commodity itself (this is two ways to control the price bit).

It doesnt make sense to me. People say bubble because they're looking at the nominal price of Gold in comparison to the price back in 1980....but they continue to leave out the most important thing which is "purchasing power". In respects to purchasing power, 1980's Gold is much more valuable than todays gold. That has to change given the economic environment.

Now to be fair, I do see a potential drop in the precious metals coming in the future, not because of it being in a bubble, but for the fact that the future's market (which is a paper market) still controls the physical price and I expect a temporary deflationary event. This is how they can control the price. There is a possibility of a manufactured pull back to cool down the metals, but what happens when people realize that 80% of the Gold floating around the world being traded on the market is simply paper with no physical attached to it?

You see, Gold isnt in a bubble because the price tag of gold doesnt cover the debts of the planet. Remember, Gold is money (whether you believe that or not isnt the point). All above ground gold comes to about $7 Trillion. yet this country alone has a national debt of over $14 trillion, and thats just national debt. The price in my signature is based on the fact that 80% of traded gold is paper gold which is one way of diluting the price. Gold isnt paper, though the markets have treated it as such which kepted the price low which gave strength to the fiat currencies. When that game comes to an end it will be about physical. Thats when you'll see prices that will make $1,700 look dirt cheap....which it is. This is why you see every major country buying "phsycial" gold and silver. Its not a bubble dude, though the powers that be would like you to think so.

Lastly, im talking long term. Given the nature of our markets I do understand when something is "over bought", but that isnt in relation to the physical. How many people do you even know who own physical investment grade gold? Thats the difference. And because I understand this, I see that there is an opportunity to create alot of wealth by holding on to something that is by definition "wealth" and that no one wants right now because they cant read the writing on the wall.

Im not talking income, im talking property. Mining stocks arent property...they're not even private financial assets.

[Jetlag]

So, do you have any storage food now?

Lol, I ******* hate when people give me that answer. "You can't eat gold and silver." You can't eat paper with green ink on it either but it doesn't stop you from using it as a medium of exchange.

[Plus One]

Lol, I ******* hate when people give me that answer. "You can't eat gold and silver." You can't eat paper with green ink on it either but it doesn't stop you from using it as a medium of exchange.

Money isn't paper, it's actually closer to a type of cloth than it is paper.

But, nevertheless, you probably couldn't eat it and survive for very long.

[villain_the_foe]

Lol, I ******* hate when people give me that answer. "You can't eat gold and silver." You can't eat paper with green ink on it either but it doesn't stop you from using it as a medium of exchange.

+1

[villain_the_foe]

what do you think of JerryK's comment about cyanide leach mining?

To add to my point of Gold not being in a bubble. The U.S. credit rating was just downgraded.

http://www.foxnews.com/politics/2011/08/05/us-official-says-sp-reconsidering-us-credit-downgrade/

Alittle insight. The downgrade is going to eventually push interest rates up, causing for more of the debt that we owe to be put to the forefront.

This will trigger deflation first, inflation second.

Watch.

[visajets]

$1700 an ounce today!

[Plus One]

The downgrade is going to eventually push interest rates up, causing for more of the debt that we owe to be put to the forefront.

Not sure what you mean by that.

If I issue debt at 5%, and you purchase the debt, then I owe you 5% until that debt matures.

If interest rates go to 10%, I still owe you 5%. If interest rates go to 1%, I still owe you 5%.

What does "debt that we owe to be put to the forefront" mean?

Sounds like another mumble jumble of financial terms.

[villain_the_foe]

Not sure what you mean by that.

If I issue debt at 5%, and you purchase the debt, then I owe you 5% until that debt matures.

If interest rates go to 10%, I still owe you 5%. If interest rates go to 1%, I still owe you 5%.

What does "debt that we owe to be put to the forefront" mean?

Sounds like another mumble jumble of financial terms.

The downgrade indicates higher risk. The higher the risk, the higher the interest rate on what you borrow. The U.S. would have to pay billions more in interest every year because of the downgrade.

mumble jumble?....im not Timothy Geithner.

[Plus One]

The downgrade indicates higher risk. The higher the risk, the higher the interest rate on what you borrow. The U.S. would have to pay billions more in interest every year because of the downgrade.

mumble jumble?....im not Timothy Geithner.

That's not what you said.

You said, "...causing for more of the debt that we owe to be put to the forefront."

Which, strictly speaking, is jibberish. It's a mish-mash of words that make no sense.

Had you simply said it would cause future borrowing costs to rise, your point would have been clear.

And, I would have agreed with it.

[Plus One]

The downgrade indicates higher risk. The higher the risk, the higher the interest rate on what you borrow. The U.S. would have to pay billions more in interest every year because of the downgrade.

mumble jumble?....im not Timothy Geithner.

You do understand that changes in interest rates have nothing to do with the servicing costs of debt outstanding, right?

Changes in interset rates only affect new debt.

Strictly speaking, we (the US) should be borrowing as much as we can at current rates. If other countries are willing to lend us money for 10 years at 2.5%, we should be gobbling up as much as we can while we can get it.

[villain_the_foe]

That's not what you said.

You said, "...causing for more of the debt that we owe to be put to the forefront."

Which, strictly speaking, is jibberish. It's a mish-mash of words that make no sense.

Had you simply said it would cause future borrowing costs to rise, your point would have been clear.

And, I would have agreed with it.

Thats not "ALL" that I said. which strictly speaking, is half stepping my words.

I said "The downgrade is going to eventually push interest rates up, causing for more of the debt that we owe to be put to the forefront." We borrow money everyday.

That's cause and effect....meaning AFTER THE FACT.

Had you simply not attempted to knit pick my statement my point would have been clear.

And you would have agreed with it.

[Plus One]

Thats not "ALL" that I said. which strictly speaking, is half stepping my words.

I said "The downgrade is going to eventually push interest rates up, causing for more of the debt that we owe to be put to the forefront." We borrow money everyday.

That's cause and effect....meaning AFTER THE FACT.

Had you simply not attempted to knit pick my statement my point would have been clear.

And you would have agreed with it.

Are you from another country? Is English your first language?

I mean that seriously, because I actually agree with the points your trying to make. But, the way you phrase things is just bizzarre.

But, I do agree with you.

[villain_the_foe]

Are you from another country? Is English your first language?

I mean that seriously, because I actually agree with the points your trying to make. But, the way you phrase things is just bizzarre.

But, I do agree with you.

Im from this country, but I went to government funded public schools, so pardon my grammer.

[Plus One]

Im from this country, but I went to government funded public school, so pardon my grammer.

LOL

I think we're on the same page.

Different paragraph maybe, but same page.

[villain_the_foe]

LOL

I think we're on the same page.

Different paragraph maybe, but same page.

You're cool Plus.

[Jetlag]

I might not be able to eat gold, but at this point I could trade an ounce of it for 2 cows. I certainly could eat those.

[villain_the_foe]

I might not be able to eat gold, but at this point I could trade an ounce of it for 2 cows. I certainly could eat those.

Great point.

And I love the Gold/Silver haters always making that ridiculous comment of "you cant eat gold". Yeah, like you can eat inflated $100 bills. Well, technically you can, but you get my point

[Jetlag]

Great point.

And I love the Gold/Silver haters always making that ridiculous comment of "you cant eat gold". Yeah, like you can eat inflated $100 bills. Well, technically you can, but you get my point

Plus everyone knows dollars are made from GMO's. **** Monsanto.