Gold/Silver- don't buy.

[6933]

Not going to get into the weeds on this. Most people(average investors) glaze over b/c they use one or two metrics of dubious nature when making financial decisions. They simply do not know what they do not know. Have seen several posts saying buy gold/silver now. Now is not the time to buy. Using a single metric for any financial decision is unwise.

Gold/silver will most likely go lower in the short term. When the euro weakens, the dollar strengthens. The sovereign debt crisis plaguing the EU means the Euro is going to continue to stay weak/weaken further. When the dollar is strong, most commodities in general drop in price. This is the case I see happening with both gold and silver, at least in the short term. I sold majority of both today and expect to pick up same amt. plus more in the near future at a lower price.

If I have the time, I will put together a beginners financial primer to post soon.

Anyone reading any post of mine in regards to financial matters knows I do not claim to know it all. If any advisor says they do, turn and run. All I can do is make informed decisions based on the best info. I feel is relevant. Also, I do put my money where my mouth is. Stock advice- General Mills. Financials have been hammered and may be a good buy depending upon personal risk tolerance.

Right now, for the individual investor, go with index funds. This is not an individuals market. We are in a traders market.

My advice is to not buy any type of investment, but to pay down debt and accumulate cash as a hedge.

[Dave L.]

Gold/silver will most likely go lower in the short term.

I agree. I don't think silver will change as rapidly as gold. The Euro situation has many investors nervous, but the mainstream media will continue to tell you that everything is ok.

The dollar is only getting stronger against the Euro by default. When Congress decides to raise the debt limit another 1.5T and also help bail out Europe, gold and silver will go back up.

My advice is to not buy any type of investment, but to pay down debt and accumulate cash as a hedge.

My only argument to this is that people who haven't bought, should start buying some physical metal to keep around. Fiat currencies seem to be leveraged to the max on a global scale.

[6933]

My only argument to this is that people who haven't bought, should start buying some physical metal to keep around. Fiat currencies seem to be leveraged to the max on a global scale.

I am simply saying do not buy right now. Watch commods. closely and when you(the individual investor) feel you cannot handle the stress of wondering when it will start back up, then buy.

[Caeser25]

There are many reasons for the drop in prices. I always buy when it dips, overall it will lower your cost to holdings ratio. I'm not buying to make money. I'm buying as a hedge against future inflation so ymmv. It would be different if we fixed our currency problem or our debt problem. Since we didn't, I don't care if it drops back down to $8.00. Those FRNs will eventually be worthless. Our base money supply has tripled just since Obama took office.

Fiat currencies always collapse. PMs are the best storage of wealth judging by history, however TPTB want a one world electronic fiat currency b/c it's much easier to manipulate. You can't just print PM's.

[Caeser25]

From what I've seen over the last couple years, when there's dips you mysteriously see out of stock signs until it goes back up or the over spot price increase. Dealers have to make money to stay in business but unless you're friends with a dealer, that's something else to think about.

[duece71]

I agree. The time to buy was back in 2000 or earlier. Its too late now. Might as well wait.

[The_War_Wagon]

I'm going to disagree. The time to buy - ALL OTHER PREPS BEING IN ORDER - is NOW. It's ALWAYS "now."

I started buying in '06. I got educated on the topic - I buy on the dips. Silver & gold will ALWAYS spend. Dollars will make GREAT toilet paper, eventually, as ALL FIAT CURRENCIES EVENTUALLY RETURN TO THEIR TRUE WORTH. ZERO.

EDUCATE yourself, and then buy accordingly. Here's a GREAT place to start. http://www.survivalblog.com/cgi-bin/...ogs=2&limit=20

[Dave L.]

I agree. The time to buy was back in 2000 or earlier. Its too late now. Might as well wait.

Wait for what? When a fiat currency collapses, Gold and Silver skyrocket. They don't get cheaper when your country can buy it's own debt to print more money.

Gold was kept artificially low for the majority of the 20th century. It's not like we can artificially increase the dollar values to sell at the old Gold prices.

The current SOP for the US, Europe, and China are to keep continuously devalue their currencies to increase exports and increase domestic poverty through inflationary means. It's not rocket surgery...

[6933]

I'm going to disagree. The time to buy - ALL OTHER PREPS BEING IN ORDER - is NOW. It's ALWAYS "now."

I started buying in '06. I got educated on the topic - I buy on the dips. Silver & gold will ALWAYS spend. Dollars will make GREAT toilet paper, eventually, as ALL FIAT CURRENCIES EVENTUALLY RETURN TO THEIR TRUE WORTH. ZERO. The dollar is not a fiat currency in the sense of others. It is the worlds reserve currency.

Fiat currency? Not likely anytime soon. The dollar is, and will continue to be, the worlds currency. What would replace it? The euro? Not a chance. It has a high probability of disappearing/devaluing in the near future. The dollar is solid. Why do you think int'l $ is coming back to it. Why is the dollar strengthening?



EDUCATE yourself, and then buy accordingly. Here's a GREAT place to start. http://www.survivalblog.com/cgi-bin/...ogs=2&limit=20

See where I said using a single metric or two is not how investing should be done. As for as buying now, why? That makes no sense. Why buy today what one has a good probability of buying later for cheaper. In other words, you can increase the probability of getting more for your money/barter by simply waiting.

As far as a great place to start, that post is full of half-truths. It is also another example of someone not grasping certain fundamentals. He is focused on markups, which is, once again, only one metric, and not that much of an important one at that. I didn't see one mention of margins/marginal curves/marginal costs, ATC's, price elasticity of demand, PE of supply, profit margins, etc.

As I stated in my OP, I don't want to get in the weeds on this b/c most simply do not have the background/care to delve into it. If you are comfortable with your financial metrics and whom you deem as worth listening to, go for it.

total shareholder equity-preferred equity =Book Value per share($8.50)
shares of CS outstanding

Stock is trading at $7.90. Most uniformed would say jump on it. Hold on. Here is where using one or two metrics comes into play. The stock IS NOT necessarily a buy. Other information must also be taken into considertain. Show me the SCF, IS, BS, and SRE. P/E ratio?

Point is, do what the **** you want, it's your money. Just do it with more info. than just one or two metrics. Anyone telling me to buy commods. right now better have some excellent substatiated info. besides, "it's always a good idea." That's how people lose their shirts.

[Dave L.]

This topic always cracks me up because you have people who are totally uneducated on gold/silver purchasing give their opinions.

You don't buy metals to make money, you buy metals to make your money last. You buy it because fiat money is constantly inflated and devalued. The worlds gold supply only increases at a max of 1.5% per year globally. 1.5% is nothing compared to the dollar being inflated by 4-11% a year.

My only regret since I started buying metal was that I didn't educate myself sooner...