THE SKY IS FALLING: Gold At $825--Remember when I wanted to buy 2 months ago at $550?

Well that didn't take long at all.
:(

Gold ALREADY over 1000 in March contracts.

Holy shit.

:(

KosmicJelli wrote:

so did you listen to yourself and buy gold?

I had to sell my retirement account, and take a bunch of hits on sails & gains on some other stuff,

but as of last week i am 100% out of stocks,

and earlier in februrary i got in to gold (albeit not nearly as much of my $ as i would like is there yet) ... around the $960 mark, i think.

Still can't belive we've run up from $550 to $1000 in 6 months.

Fucking crazy.

Today is KEY for the markets by the way.

If we go even a hair lower than where we are, we could have a MASSIVE sell off.

Be ware.

KosmicJelli wrote:

was just wondering if you took your own advice... should have listened to inner self at $550... bet your kicking yourself

No shit.
I'm also pissed that i was told that cashing out my Roth IRA would cost me an arm and a leg in taxes and penalties ... which was the primary reason i did not go in to gold then. I find out later that this is 100% crap and that i pay absoultely no penalties because it is not a traditional IRA, it is a Roth.

:mad:

oh well.
Live and learn, right?

MasterFramer wrote:

Buy Silver then... duh...

Why?
Silver has had a nearly equivocal move at this point.

Its topped the 20-21 range.
Was trading at 12 in August.

There was a point a few months ago where silver was held back by maybe 20% (give or take) from the move gold had, but in the last month that has changed.

Unless you know something i don't.

And FYI, i'm playing Devils Ad. here, because i am moving that retirement money (a portion of it) in to physical silver ... probably do it tomorrow if the market pulls back good today.

Doing that because i don't care if i take a 10 or 20% loss on it in the short term.

I'm trying to make sure that next year i have SOMETHING to live off of.

MasterFramer wrote:

http://www.silverstockreport.com/2008/squeeze.html

And quit winking like that makes your condescending comments any less condescending... its fucking annoying.

i was winking because fundamentaly i was agreeing with you.
jesus.

I said i was buying silver for fucks sake.

if i wanted to be condescending i would roll my eyes.
:rolleyes:

the wolf wrote:

okay, so i have read this whole thread. ( in one sitting) i actually consider myself a fairly intelligent ( albiet intoxicated ) person.

i wish i understood half of what i just read. i wish i really understood the stock market , the price of gold per oz., i just dont, its not something i can wrap my head around for some reason. which is why i will always be poor.

is the there a "dummies guide to playing the market" book out there?

and if so, would it really help?

I'm just starting to get drunk myself.

Ezra Brooks, fine sipping bourbon. Woo hoo!


Honestly man, and not to be a dick, if you can't understand what is in this thread, you may want to wait a while to start "trading" ... ESPECIALY in THIS market ... it is C-R-A-Z-Y right now. The swings are nuts.

However, you may want to check out something like Reminiscences of a Stock Operator, if only because it is a classic and HIGHLY readable. Great story.

Try some of the "For Dummies" books. There are a few of them, actualy.

Regarding gold,
all you need to really understand is that paper dollars are a commodity that can be created out of thin air, and therefore their value in relationship to other LIMITED assets is dependend on how fast our government (vis a vis the Federal Reserve) is printing more of these paper dollars.

In other words, for example, if there are only 100 dollars in the world and 10 ounces of gold, and every one agrees that therefore 1 of those 10 ounces of gold is worth 10 dollars, if someone had ALL of the 100 dollars, they could buy ALL of the 10 ounces of gold. (did i do that math right? i suck at math, funny as it is).

10 ounces of gold X $10 a piece = $100 ... all the money.

NOW.

WHAT IF SOMEONE PRINTED ANOTHER $100 ?

What happens to the price of gold?
We agreed that, given there were only 10 ounces of gold, and there were $100 chasing that gold, each ounce was worth $10.

But, NOW there are TWO hundred dollars.

Well, NOW the price of gold is TWENTY dollars an ounce.

See?

The AMOUNT of money DOUBLED, but the AMOUNT of gold is still THE SAME.

Therefore, all things otherwise being equal, the PRICE of gold must DOUBLE.

Otherwise there is an imbalance in the market.


It is only confusing because you are not used to even thinking of money as being a "commodity" or of thinking that the SUPPLY of money could\would\does and IS increasing ... when the economy gets shitty, the Federal Reserve cuts the interest rate and that means banks borrow a shit ton more money ... basically a whole bunch of NEW money gets created out of thin air ... thus INCREASING the SUPPLY of paper dollars ...

but there is still the same amount of gold ...

except the result actualy gets compounded in reality, because people KNOW the Fed is increasing the money supply and they go running and screaming for gold, becaues the SMART people don't want to lose the value of their "dollar" so they trade them for GOLD which is and always will be limited in number ... and if you catch the train early, you have a commodity in your possession that will continue to be worth more in relation to the supply of money.

Of course, when the supply of money starts to DECREASE, so to does the "value" of gold.

Got it?