Wednesday, November 7, 2007

Gold and Silver are Even HOTTER!!

Well Gold and Silver still continue their climb while the dollar sinks down the toilet. I'm not sure how high is too high but I do know from experience that too high too fast is a way to lose money if you're speculating short term on these metals. I'm going to bet that the silver I put in my booths at $16.50 an ounce are most likely gone if someone happens to notice it and has precious metals fever. The charts on these metals are not sustainable short term and I plan to sell even more of my silver since I think it has more appeal right now and if you want to put some money in precious metals you should start with silver anyways. Gold is king but you have to have a pretty big wallet right now to buy even a small amount of it. Besides Gold is in a buying panic right now and is overpriced short term in my opinion. Be patient and sit on the sidelines for a correction if you want to be a buyer. If you want to sell take advantage of the spike to make a healthy profit but long term I would hold on to gold that you already have since Washington and the powers that be apparently don't want to save the dollar.

I'm just glad I bought as much silver as I did when I could get it for $3.00 and sometimes less and ounce years ago. But I did have to wait quite a few years to take my profits on some of it didn't I? Anyway people who have some money to invest should buy silver even at these levels and set it aside in case the government sets off a hyperinflation bomb to help them cure that huge national debt that they will never stop piling up. Besides the Chinese are getting reluctant to hold as much US Treasury bonds as they now have and will be cutting their holdings of US denominated investments.

Gee when did I get so political and into macro-economics?

Oh yeah, I like to buy stuff cheap and sell it for more I guess is part of the reason. After all the lesson I learned from some old timers who had money when I was a kid was to buy it when everyone hates it and sell it when they love it. There are many variations on this saying but you get the picture. Markets overdue it on both ends. When it's out of favor they dump it as quick as they can and move on to the next "HOT" item and when it's hot they buy without much concern about the value involved. Now smart treasure hunters know that you buy for pennies or nickels on the dollar and sell it for a dollar and pocket the difference. That's what we're here for isn't it?.......hmmm. I Can't Hear You................Anyways it's all about the thrill of the hunt and the feeling you get when you sell it for a good price. Good luck with your treasure hunting this week.

1 comment:

Anonymous said...

IT WAS A GAY OLD TIME

Manipulating markets, we´ve
Done much our own selves to deceive,
Yet since the past none may retrieve
´Tis best illusions wholly leave.

A "meltdown" of economy
Is feared by all; but what you see
Reflects karma of you and me--
Historical record must agree.

Ah well, it was a gay old time,
Albeit that we engaged in crime
Collectively--so you´re and I´m
Not guiltless plunging into slime.