Gold and silver prices are down

Feels like a blip. None of those things is going to pull the plug on the money printing machines, but perception is reality of course. I wouldn't mind seeing the metals take another big dip though.
 
Nothing to see here. Just burping the balloon.
Even if it drops down to $19/ oz. My guess is we will never see $11/ oz. silver again. Just costs too much to produce.
The World deserves $50 silver and $2500 gold. It has worked hard for it.

If it does drop to $19, you wont find a round, bar or coin that will sell for that. It will make 9mm look like it is fall from trees...

I prefer reasonable increases over time. But the party on the way up is fun too... [party]
 
Volatility can be frustrating, but that's where opportunity lies. Better this than week after week of $1 price moves (speaking Au). Penny moves for Ag.

The following is offered for free...
If someone will buy up to ten US Silver Eagles from me, I can virtually assure that my piddly sale will cause the Silver price to explode shortly thereafter (usually within ten minutes time). Here's your chance to control the market!
I'm constantly amazed how the market moves, once I take my crumbs off the table.
 
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Sweet! I could only fantasize about becoming Vlad's SIL!


As for silver, I don't have a crystal ball, but I can tell you that Fortuna Silver Mines, Inc (FSM) shares are 10% cheaper now ($6.03) than yesterday. You can essentially control a thousand shares by buying the 18 December 2020 $5 calls at $1.75.
Caution: option buyers often lose their money! You would be risking $1750 if this position expires worthless.
Unlike common shares, options are a wasting asset, with a limited life span.
If FSM is at $7.50 by expiration (any price above $5 really), you can exercise your right to buy at $5 per share or simply close your position.
If you do nothing and FSM is at $5 or less on 18 December, you will have lost 100% of your position.
If you're convinced FSM is going higher, you can also buy 1000 at $6.03, sit back and be happy!


Perhaps, the DJIA and other indices are ripe for a correction, too. Yippee! Hold on!

Only one position on my watch list is in the green today: F @ 7.23 + 14¢
 
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NavelOfficer said:
Sweet! I could only fantasize about becoming Vlad's SIL!


As for silver, I don't have a crystal ball, but I can tell you that Fortuna Silver Mines, Inc (FSM) shares are 10% cheaper now ($6.03) than yesterday. You can essentially control a thousand shares by buying the 18 December 2020 $5 calls at $1.75.
Caution: option buyers often lose their money! You would be risking $1750 if this position expires worthless.
Unlike common shares, options are a wasting asset, with a limited life span.
If FSM is at $7.50 by expiration (any price above $5 really), you can exercise your right to buy at $5 per share or simply close your position.
If you do nothing and FSM is at $5 or less on 18 December, you will have lost 100% of your position.
If you're convinced FSM is going higher, you can also buy 1000 at $6.03, sit back and be happy!


Perhaps, the DJIA and other indices are ripe for a correction, too. Yippee! Hold on!

Only one position on my watch list is in the green today: F @ 7.23 + 14¢
Click to expand...
Sound advice. I have gotten in a call for 5 positions with KGC, strike price at $10.00 for Jan 2022. Even with the PM correction, I am still in green.
 
richc said:
Business Insider: Mohamed El-Erian warns gold's status as a 'must-have' asset has made it develop a 'bipolar personality'.
www.businessinsider.com

Mohamed El-Erian warns gold's status as a 'must-have' asset has made it develop a 'bipolar personality'

Gold's rapid rise is "another unintended result in a lengthening list of the exceptional involvement of central banks in the functioning of markets."
www.businessinsider.com www.businessinsider.com
Click to expand...

"But they are likely to prove as wrong as those who, before the 2008 financial crisis, erroneously believed they had vanquished the credit cycle.” Fixed it for him.

Not “business”, not “economic”, not “financial”, but “credit” cycle. This can only go on for so long.

 
djbradles said:
"But they are likely to prove as wrong as those who, before the 2008 financial crisis, erroneously believed they had vanquished the credit cycle.” Fixed it for him.

Not “business”, not “economic”, not “financial”, but “credit” cycle. This can only go on for so long.

Click to expand...

I think he indeed means business cycle, cause in 2008 that was the cycle the Fed thought they had licked. Now 12 years later they think they can fix the credit cycle, I guess, or maybe they gave up.

I've heard him talk about the credit cycle, he knows the Fed is now trying to fix that too.
 
new guy said:
Why on earth would I get rid of something that everyone else wants so badly? [smile]
Click to expand...

To buy it back cheaper. The problem with that is that you sell your hot gold stock at say, $8. It drops back to $7 or $6, and you feel good about yourself, but you don't buy right back in, cause it's going down. Then the next day it's $9, and you've the choice of getting back in at a higher price than you sold, or waiting, and hoping it goes back down. It goes to $12, and now you definitely won't get back in. Three years later it's $45 and you're like. :eek:
 
We just visited the grocery store. FYI Roche Brothers has live lobsters on sale for $5.99. Select lobsters (1.5 lbs) are $6.99.

Fresh red peppers were $3.99/lb. Fresh garlic $5.99/lb. A small cantaloupe was on sale for $3. A small four pack of off brand toilet paper was $2.49. The prices were extremely high IMHO. I was rather amazed at how few bags of food we got for $150 (albeit $50 of that was lobster...).

The cost of proteins has gone through the roof. They are becoming a rich man's food. So important for anyone's diet yet priced out of reach of mere mortals. I can't imagine trying to feed a family of 5 these days.

We got takeout last night from a decent local restaurant. It cost $90 for 3 of us. My son got the steak tips with rice and asparagus. There were 4 steak tips included. My wife got fried fish. The piece of fish was about 6" long and 3" wide, along with a side or rice and seemingly rather puny. I got veal parm (which was delicious).

If you go there for dinner and add a few drinks and an appetizer or salad it gets very pricey. We did that a few weeks back and dinner for 3 was up near $175, and then add a tip, and we did not drink much. To be clear, this is not a well known restaurant. It's not a place you would even know exists unless you lived in town. I want to support them but it's getting rather pricey.

We're reaching the tipping point IMHO. Food prices have skyrocketed. Restaurants and grocery stores have increased prices trying to stay in business. And we consumers have choices to make with our hard earned dollars.

The other day the CEO or CFO of OpenTable was on CNBC. She mentioned that they had been predicting about 25% of restaurants in this country will fail. Now she expects that estimate was too low.

Buckle your seatbelts... it's gonna get bumpy. And I fear the final destination will not be fun at all.

Rich
 
Varmint said:
To buy it back cheaper. The problem with that is that you sell your hot gold stock at say, $8. It drops back to $7 or $6, and you feel good about yourself, but you don't buy right back in, cause it's going down. Then the next day it's $9, and you've the choice of getting back in at a higher price than you sold, or waiting, and hoping it goes back down. It goes to $12, and now you definitely won't get back in. Three years later it's $45 and you're like. :eek:
Click to expand...

Absolutely none of us are smart enough to time the market. Nor do we have the inside info that exists among the big firms. Period...
 
Varmint said:
I think he indeed means business cycle, cause in 2008 that was the cycle the Fed thought they had licked. Now 12 years later they think they can fix the credit cycle, I guess, or maybe they gave up.

I've heard him talk about the credit cycle, he knows the Fed is now trying to fix that too.
Click to expand...

I remember an episode of the three stooges when their boat had a leak. Curley starts drilling holes in the bottom of the boat to let the water out.

That's what it seems our government is doing right now.
 

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