Gold & Silver Q & A

[Kris Riley]

Originally Posted by sky

Hi Zynox,

Great idea! Thanks a lot for starting this thread and offering to answer questions. It indeed also relieves Michael St Clair well for this particular topic.

I am also a goldbug and following the developments closely since about a year. It's been an emotional rollercoaster also though with spot prices going up and down, althought rationally I know, one '"shouldn't" only look at it this way..
Yesterday I received Mahendra"s (financial astrologer) newsletter and he is predicting metals might loose up to 50% of their value from here! Hard to believe, but often he is been right in the long term. Do you know him?

I also want to keep some cash for now and am considering to exchange part of the euros in CHF, because I believe there might also come a meltdown of the euro. What is your opinion on the CHF, might that be a good choice also?

Namaste,
Sky

Even though I'm no expert, I can see where the potential of such a scenario could happen. With everyone scooping up the gold and silver, everyone will be waiting to see when it will rise to such great heights in price and perhaps rush to sell and acquire cheap properties and such. That is if it were to reach the predicted market value. If for some reason there is a scene where things don't go as predicted. There will be a lot of sell back, because of course everyone that has bought will have bought to avoid short term losses instead of securing long term investment. At this point this may drive the value down. Any thoughts?

[Zynox]

What Form of Precious Metals to Buy Questions

Gold and Silver and Platinum and Palladium and Coins and Bars, oh my!

Yes, initially the decisions may seem overwhelming. The choices are directly influenced by the intent.

For simple wealth preservation, I have settled on the following, for which I will add my recommendations afterwards.


Type of Metal

I have settled on a mix of silver and gold, with minor holdings also of platinum and palladium.


Type of Coins or Bars

I have settled on around a 60% gold, 40% silver ratio.

I have settled on only US Eagles and Canadian Mapleleafs, in both gold and silver coins, with a few recognized and fully 'branded' 10 ounce silver bars.


Size of Coins

I have settled on a wide mix of sizes in gold coins, including 1/25, 1/10, 1/4, 1/2 and 1 ounce sizes, and 1 ounce sizes in silver.


Reasons for Selections

I used to have some 100 ounce silver bars. What I found with these is that when selling them, many (most?) dealers will reduce the buy price per ounce to a value below spot price. They have told me that even name brand silver bars are sometimes (counterfeited?) not 99.99% pure silver, and I have also found that upon weighing them, they are not always 100 ounces as labeled on the bars! So, I have elected to rid myself of such unknowns and simply with just coins and a few more 'popular' labeled and recognized 10 ounce silver bars.

I now feel no bars are really prudent from the above, but they are still slightly more compact and convenient to store as compared to coins.

I have selected to mix the size (weight) of the gold widely, to provide future flexibility should we find ourselves in barter mode in the future, no different from carrying singles, fives, tens and twenties around currently.

I have selected to mix the type of metals I hold simply for diversity. Some folks trade back and forth between gold and silver when one spikes or declines versus the other, but I have found this also leads to much loss of premium (the cost over spot that is paid to the vendor to buy, or at times, the cost below spot which some dealers take as a fee when you sell) in transactions. It is like day trading, some want/enjoy, some don't.

I also have a minor amount of old US coins in 40% and 90% silver, left over from coin collecting days. I find them interesting, and some folks feel large quantities of these are a good deal. If we ever get to a point where we wanted to melt coins for industrial uses (which would technically be illegal per US defacing regulations), then these would require special processing to separate silver from other metals in the mix.

Some people hold older US and other countries coins, like from the 1800s through the 1930s, for a variety of purposes. These coins are generally much more expensive, and I no longer have any. There is some discussion that these might prove to be immune from any future confiscation, because they may have been exempted in the US 1933 wealth transfer game. I have watched long enough to feel nothing is certain, or 'insured', so I don't subscribe to the extra protection theory.


Please ask any specific questions on this post if something remains unclear.

Namaste!

__________________________________________________ _______________________________
Please be advised that I am not any form of a professional or paid investment adviser and each individual reading or posting questions or answers is responsible for their own investment decisions.

[jonathan Burke]

I trade Gold, Silver, Crude, a few Forex pairs and have started an Elliottwave Thread here on the forum. If anyone is interested in talking gold shop as a trader and Project Avalon participant.

http://www.projectavalon.net/forum/s...ead.php?t=2555

Jonathan

Please be advised that I am not any form of a professional or paid investment adviser and each individual reading or posting questions or answers is responsible for their own investment decisions.

[Zynox]

Some perspective on recent gold movements, detailing 'historic' proportions, as the economic house of cards falls:


http://www.kitco.com/ind/nadler/sep172008B.html

"Forty-eight hours ago we wrote that "gold, it must prove that it is made of the hard stuff and it is under direct gold bug pressure to quickly recapture $800 and then at least $845.

If in fact this is the TEOTWAWKI scenario for which they were loading up of late, then the time has come -and then some -to reap such benefits."

A near 12% ($90.00) meteoric rise in the metal today should more than validate any such expectations, as it represents the single largest one-day move in dollar and percentage terms as well.

The day began on a positive enough note, but things quickly spiraled into a storm larger than any in recent memory. As well, as any in not-so-recent memory. Like that of January of 1980. As then, we have a combination of outside, and outsized events coming into the picture at once. As then, we will have renewed calls for $1600 or $2200 gold. Unlike then, there is no inflation spiral but more like the opposite process.

We cannot address or base findings on trading room rumors and would rather wait for confirmation on particular stories, but the trigger for today's move may well have been the talk on the street that UBS was looking for 'help' from the Swiss National Bank. SNB has denied the story. Market psychology now has people starting to mention names that they have ever had grudges against and that is quite dangerous. Take that kind of potential headline, couple it with a money-market fund halting redemptions, add the Russian markets crashing, and top it off with the Dow losing 451 points at one point during the day, just after AIG's demise was averted yesterday. Proposed stiffer rules on 'naked' short-selling may have had quite a bit to do with equity position unwinds as well.

Tiny market such as gold's only needed a relatively small injection of buyers' money to make the type of move which we have been witnessing today. As we wrote the other day, the surprise was that it took so long to see a move of this magnitude."

Got Spirituality and Gold for Flexibility?

Namaste!

[jonathan Burke]

Here's where gold is headed in reference to the Elliott Wave technology I use...



$940 I would say by Mid day Monday. Most likely a gap opening on Sunday night too.

We are in the early stages of a 3rd leg Zig Zag Wave C pattern, which is the fastest, most prevalent, most profitable trades one can have of all the waveforms.


The histogram at right shows likely price, the dark cloud shows time. The rating is akin to odds at left so 162.2:1 that this will happen this way.

Hope this helps,

Jonathan

Please be advised that I am not any form of a professional or paid investment adviser and each individual reading or posting questions or answers is responsible for their own investment decisions.

[TAXMASTER]

it is truly amazing how momentum can change directions on a dime. the price of silver flirted with $13 an ounce for severall hours and gold was well over $900 and then at the end of the day plumeted. right now silver is under $12 and gold is under $850. trading volume is down at the end of the day and market manipulation is easier to accomplish. i look for both to go up over the night as asian and european markets open.

there have been rumors of a price disconect in these markets for some time. the large banks who store gold are not audited for their supplies and if they state that they got 10 million ounces in their vault, then their word is taken as gospel. they then can allow someone else to lease this gold and sell it on the futures market. everyone that understands supply and demand knows what happens when there is more supply than demand, the price goes down. now just think if you were one of the lucky guys that got to lease the gold from the bank and sell it on paper on the futures market. the bank actually pays you to do that. (they discount the gold lease) then as you drive the price down on the market since there is a tremendous increase in the supply, you then buy it back at the lower rate and replace the gold to the bank...except that the gold is never moved, it is only done on paper...unaudited with no doublechecking on if the gold actually exists.

many of the mints that produce silver bars and rounds have a 2-3 month backlog of orders. they take your money but cannot guarantee delivery by a certain date. there is now a greater shortage of actual supply of silver than there ever has been. this is why most dealers charge a several dollar surcharge over the spot price because that is what the real value is based upon supply and difficulty to get.

Namaste'

ps, a good day trader can make money on any kind of market...you just have to stay on your toes and not go to the bathroom.

[astraya]

Zynox,

Thanks for taking the time to answer all of these questions.

I'm in Canada and I ordered some gold yesterday and had a hard time getting the small denominations. I'm also trying to buy some silver today.

I'm wondering if the small denomination gold that is not stamped (ie: is not Maple Leaf coins etc.) is tradeable? It doesn't have the premium that the stamped bars/coins have but thought I would order some and trade later if necessary.

And regarding the silver, the maple leaf silver 1 oz. apparently has all been issued for 2008 but I have a chance to buy a large quantity of maple leaf coins but it's at close to 40% premium on the spot price. Watching the prices on maple leaf coins on e-bay, this deliverable price is still about 25% below that. I figure I can probably sell some of these maple leaf coins if necessary.

From your previous interviews (if I'm correct about who you really are) and your posts, I'm taking into account that gold in your hands is worth quite a bit more than the spot price which seems to be mostly influenced by "paper" gold...maybe worth two in the bush :-).

Also, what do you think about the theory put forth by Fulford that Japanese Gold may flood the market to back the United States Economy?

Again, thanks for your time.

Astraya

[Zynox]

Originally Posted by astraya

From your previous interviews (if I'm correct about who you really are) and your posts, I'm taking into account that gold in your hands is worth quite a bit more than the spot price which seems to be mostly influenced by "paper" gold...maybe worth two in the bush :-).

Also, what do you think about the theory put forth by Fulford that Japanese Gold may flood the market to back the United States Economy?

Astraya!

Please, I am a Leo and can't afford a stroked ego, then I'd have to go back through all those lessons of grandiosity!

I really am, just me, whom else might I be! Practicing poet, that uses precious metals as a tool to achieve my aims, which from two weeks on Avalon have led me here:

http://www.projectavalon.net/forum/s...ead.php?t=1944

... and here ...

http://www.projectavalon.net/forum/group.php?groupid=16

I really am just an electrical wiz, wanting to connect on the ground with folks choosing a new paradigm, and acting to fulfill that vision. I have never publicly written on precious metals before, but it feels right NOW, especially with so many wanting a slice of the truth from my experience.

I am gaining more here on Avalon than I give, but I keep trying to give back in reciprocation.

I have gone down the rabbit hole of the sequestered gold in the Philippines,black gold, Vatican gold, where is that confounded bridge and the troll's gold?, and come up for a breathe of air, and sigh, 'tis like the 911 complex wave, I DUNNO!!!!

~ Namaste ~

[astraya]

Originally Posted by Zynox

Please, I am a Leo and can't afford a stroked ego, then I'd have to go back through all those lessons of grandiosity!

Zynox,

Your picture is so mysterious for a Leo, you must have Scorpio Rising or something and perhaps some Uranus influence accounting for your "electricity".

I'm an Aquarius, so forever busting the Leos it seems...but very much appreciating the entertainment value .

At the risk of stroking your ego anymore, it seems that you are doing more practical work than the "person" I thought you were. Besides buying gold & silver, I'm also contemplating the best off-grid location to put down roots.

Not to get too much off topic, and back to my interest in what Benjamin Fulford is saying. He implies that the Sept. 30 U.S. Fiscal Year end will be the start of the unraveling of the U.S. economy. Which is the main reason I wanted to get into metals before that date. What does everyone else think?

Astraya

is this a good buy?

http://www.apmex.com/Product/44578/2...2009_9_24.aspx

its around 15.50 and the spot price of silver now is 11.90

[Zynox]

Originally Posted by astraya

I'm an Aquarius, so forever busting the Leos it seems...but very much appreciating the entertainment value .

... my interest in what Benjamin Fulford is saying. He implies that the Sept. 30 U.S. Fiscal Year end will be the start of the unraveling of the U.S. economy. Which is the main reason I wanted to get into metals before that date. What does everyone else think?

Astraya,

Oh No! (best Home Alone face), not an Aquarian, my heart and fire can't be quenched! Linda Goodman warned me, Harr!

Zy, straightens back up and onto topic -

I do see 09/30/2008 (reduced to 22) as pivotal, the books have to be inked and whilst we still have any resemblance of adhering to the quickly re-written 'laws' and '(de)regulations', for inconvenience sake, I suspect there shalt be MUCH fallout. On one Level! On another level, this still seems to be totally a wealth transfer, but I feel it is now adhering to chaos theory, and out of the 'master's' control. We shall see very soon!

Side note, please e-mail/message me a contact point if you would be willing to run my natal chart interpretation for me, it feels you have that background.

~ Namaste ~

[kopenhagen]

Originally Posted by astraya

Zynox,
Not to get too much off topic, and back to my interest in what Benjamin Fulford is saying. He implies that the Sept. 30 U.S. Fiscal Year end will be the start of the unraveling of the U.S. economy. Which is the main reason I wanted to get into metals before that date. What does everyone else think?
Astraya

you're absolutely right, buy before end of Sep,may I ask from who do you purchase in CAnada? could you please provide the link?
thanks

I"m a Gem

[astraya]

Originally Posted by kopenhagen

you're absolutely right, buy before end of Sep,may I ask from who do you purchase in CAnada? could you please provide the link?
thanks

I"m a Gem

Hi Gem,

I bought from Bank of Nova Scotia but they are out of Silver Maple Leafs until 2009. So I'm looking elsewhere for those.

Hope that helps...

[Rocky_Shorz]

Hey Taxman,

I took your advice after seeing the market stabilizing, and went back to the coin shop and sold them all back at $12.75/oz.

Not bad for 2 days, I can see why you enjoy doing this for a living...

[TAXMASTER]

Originally Posted by Rocky_Shorz

Hey Taxman,

I took your advice after seeing the market stabilizing, and went back to the coin shop and sold them all back at $12.75/oz.

Not bad for 2 days, I can see why you enjoy doing this for a living...

rocky,

next week you might regret doing that. however if your fast, you can run out and buy some more while the price is down. i don't think it will last for long. the market is like a bouncing ball, it depends on how high up from the floor that you catch the ball, the trouble is, the floor moves up and down too!

Namaste'

[Rocky_Shorz]

Originally Posted by TAXMASTER

rocky,

next week you might regret doing that. however if your fast, you can run out and buy some more while the price is down. i don't think it will last for long. the market is like a bouncing ball, it depends on how high up from the floor that you catch the ball, the trouble is, the floor moves up and down too!

Namaste'

Luckily, I'm only a few miles from the coin dealer, when I cashed them back in today and made $500 I asked how he made his money and he laughed and said he depends on the little guy like me to watch the market for him, he bought $65K when I walked in a few days ago and was planning on selling out again after I left...

I told him he might see me again tomorrow, he said he hoped so...

[Zynox]

Crimson and Clover, Dollar Rolling Over ...

"I advise establishing a position that allows you to hold through any downturns. The recent volatility in the fluctuating price of gold and precious metals equities has taught many investors a very painful lesson. Hopefully you have your cash position located in a place that will at least retain its nominal face value. There are other investment strategies you might consider to hedge yourself which you should discuss with your investment advisor, but ownership of gold is now a must and should play a major role in your overall portfolio."

http://www.321gold.com/editorials/ka...sun091808.html

[Trishsgate]

Quote:
Originally Posted by GregorArturo
My parents have a half mil in the stock and bond market right now. They're pretty confident it's safe and secure. I've been trying to convince to at least invest in $10k worth of gold and silver and store it at our house. How should I go about actually convincing them in my rational? Any valuable resources that my do the trick?

GregorArturo,

Welcome ... to my world ... I had this very conversation today with my mother. She lived through the depression and realizes this is a different economic event, even that it is more severe, but we are talking about conditioned serious issues. How long have we all been blitzed with the meme to trust the system, prosper with the system, feed the system? I have not found any answer beyond gently encourage and move forward, as all folks come around to their decisions from within their perceived inner universes.

Funny thing was, while I was there, she gave me several updates on the gold price surge today, I hadn't checked, so, perhaps she might exit some before the rush.

Here is one imaginative idea, borrow some of their funds, and convert it to metal for them, and then all share some smiles later!

Namaste!

__________________________________________________ _______________________________
Please be advised that I am not any form of a professional or paid investment adviser and each individual reading or posting questions or answers is responsible for their own investment decisions.


-- ------------------------------------------------------------------------------
Last edited by Zynox; Today at 01:09 PM.


Please help from a poor soul who walked away from wealth at an early age. I too have been trying to get my parents to please reinvest into something tangible for them, with some success last year my dad pulled his stocks but still has quite a bit tied up in the banking system and refuses to budge, I have no choice but to let it be. My question is I have never been materialistic and find it hard to get up the nerve to go for this, any suggestions? I can survive on very limited means and have always done so. You had also mentioned somewhere and forgive me for not locating your words that gold worn provides a sense of help can you elaborate further on this as well, a friend of mine has also told me this but I have always declined to do so?

[Waterman]

If you can get them to call these people. You will have to google their site to get the phone number.

Pat Kiley - Forex trading about 45 years
great advisor.

Then just good info who will take calls and refer your parents to someone FOR FREE is Bob Chapman of The International Forecaster.

[Zynox]

Originally Posted by Trishsgate

Please help from a poor soul ... My question is I have never been materialistic and find it hard to get up the nerve to go for this, any suggestions?

You had also mentioned somewhere and forgive me for not locating your words that gold worn provides a sense of help can you elaborate further on this as well, a friend of mine has also told me this but I have always declined to do so?

Greetings Trishgate,

My feelings are that many attitudes regarding gold have been imprinted upon us, the masses, with an agenda to discredit it, instilling the thoughtforms that it is either a barbaric relic or a nefarious and evil item. To me, it is a tool to be used like any other, maybe this will help, maybe this will never be a tool you will resonant with.

Michael St.Clair and many others have noted that there is a vibrational aspect to gold, and other precious metals, that may influence our 'being', and, I agree. I haven't really gone down this rabbit hole much, just note I feel good with it in my presence.

~ namaste ~

[Trishsgate]

Thank you so much for your reply it is indeed something to ponder, I won't know until I try. I have some tri-color that I do not wear I bought it for the colors is that the same thing? Then again it may not be my thing I do have crystals which I find I resonant with.
Peace and Love

[Zynox]

Originally Posted by Trishsgate

I have some tri-color that I do not wear I bought it for the colors is that the same thing?
Peace and Love

Only you and thy hairdresser know for sure, but tri, and white gold, are my favorites, based on colors!

~ namaste ~

[Zynox]

Spiritually Golden

When we come face to face with babylon and question the spiritual prudence of supporting gold and precious metals, it may be helpful to equate peace with spirituality, and then to equate a relationship between gold / sound money and peace. Yes we have had wars while on a gold standard, but it feels to me that the standard was abandoned when the desire for war was increased, gold money became restrictive, and inconvenient.

Ron Paul:
http://www.house.gov/htbin/blog_inc?...ngdetail.shtml

In Government We Trust? Part 1

"Many who agree with me on a lot of other issues, do not understand my enthusiasm for gold and sound money or why I spend so much time studying and talking about monetary policy. It's true that I talk about money differently than most, but the fact is sound money offers many benefits. For example – peace.

Can sound money really bring about peace? Actually, it plays a big part in peaceful international relationships. Money based on commodities, rather than paper, is not subject to government manipulation, and is a key component to free and honest trade. History shows that if countries engage in trade with each other, their governments tend to find ways to get along for the same reason you do not kill your customers at your place of business, even if they occasionally annoy you. If someone outright cheats you, however, you may engage in “war” by taking them to court, for example, and the relationship will sour. Governments and central banks with unfettered power to manipulate currency also have the ability to cheat their creditors. One way they do this is to simply create enough currency to pay off debts. This devalues the currency and “cheats” the recipient out of what they are owed. It would not be fair if you watered down your product the way our government waters down its currency, so it is not hard to understand, in these simplified terms, why loose monetary policy contributes so much to ill will and war around the world.

Sound money, on the other hand, simply is what it is."

~ Namaste / Got an Honest Politician, Supporting Gold? ~

[Rocky_Shorz]

I jumped into Wamu Yesterday with what I had from selling the coins.

just about died when I read it was going to tank today, but waited for it to climb and dumped it off.

Turned my 2 into 4 in a week...

That was a fun ride...

The short sales are postponed until Oct 3rd, what are the experts predicting will happen after that?

After the US fiscal year ends, are they going to let it free fall again?

[Zynox]

Folks,

I have been informed from trusted source (to me) that the following dealer is available to ship immediate stock to US and Canadian addresses:

http://www.tulving.com/goldbull.html

Also, I have been informed that it is important to request a tracking number e-mail, as it is not an automated function, but they will upon request. Apparently they ship with insurance via Llyods of London, but I am unsure if they (Llyod's) may be interwoven with the AIG conglomerate or not.

As always, please do your own due diligence on this information. I have no association with this firm, and, no direct experience with them.

~ namaste ~

__________________________________________________ _______________________________
Please be advised that I am not any form of a professional or paid investment adviser and each individual reading or posting questions or answers is responsible for their own investment decisions.