Thursday, June 18, 2009

GOOD AS GOLD

People have asked me how to invest in this market over the past year and a half and my answer has varied but always with the caveat that they can't trade the market without being locked onto a computer screen and awful ammount of time..in fact last year as many of us trading this market can remember like yesterday ....leaving the computer with the ultra etf's even to go to the potty was dangerous...hehehehhe ....oh the good old day's...glad they are gone for awhile. Now here is my suggestion.. don't fight these scum....begin averaging down in a basket of gold mining and silver mining stocks...again do your own research but I have been picking up auy ssri gg slv....they have had a correction and may go down further but you can start accumulating.....I don't have a favorite ...and remember they can correct even further so I will go heavy if they pull back another 20 %.....here is another reason I like um.........thnx Palmer..

http://www.contrarianprofits.com/articles/gold-stocks-in-a-depression-2/17632

10 comments:

  1. Hi Kli,

    EWI says silver has started a huge decline and that gold will soon follow silver down. As you know, EWI emphasizes this depression is going to be highly deflationary. So, why buy precious metals and miners if deflation, not inflation, is the intermediate future?

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  2. SRS player,

    I just read the link kli posted, read it and look at what happened to Gold stocks during highly deflationary depression of 1930s, I did not know,very interesting. So far gold stocks have acted like the previous depression. Kli, thanks for posting the link.

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  3. What makes you think deflation is in our immediate future? FED is monetizing the debt and price of goods are going up, that's stagflation coming our way. I live in West coast, everything is going up while unemployment is still on the rise, oil is up, taxes up, food prices not coming down, get real dude.

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  4. I do not think deflation is on the immediate horizon.....in fact you are one hundred percent correct.....we are in asset deflation but in actuallity we are in an essential services and goods inflation........so I agree ...Palmerjoe has emphasized this over and over......buy gold ehhehehehehe..........you misread me

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  5. kli,

    My post & the statement of "get real dude" was not toward you, it was meant for SRS player.

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  6. kli,

    I hope gold stocks get hammered so I can buy, missed the previous run. I agree with you, like to see gold at 800 and the stocks you mentioned much cheaper. Gold is the way to go. Dollar is shit.

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  7. The gold and in some respects silver/platinum play is a non decaying call option against the last policy option left on the table available to the FED/Treasury: the monetization of all US debt and banking shares. Miners have always been valued as a call option based on in ground reserves and operating costs. Go with a portfolio approach to minimize single company risks, only go unleveraged and long to not be shaken out. In the gory end deflation will win in 3-5 years, but the current US dollar Federal Reserve currency will be ripped to shreads before then.

    The FED/Treasury has to keep the 10 year well under 5.5% or all lending will collapse in the US along with massive unemployment.

    It will not be a free ride by a long short, FED/Treasury/Sock Puppet will discourage investments in alternatives to Treasuries and select banking and equity shares by brutal washouts, manipulation and policy which may include extra taxes or ownership restrictions.

    I am still expecting a brutal decline in gold to bottom out the daily and weekly stochs and rsi, hard question is where does that decline start from here or a little higher. For now as long as the 10 year is 3.5% or higher, gold will be rangebound or down. Gold will start moving hard up when either the 10 year goes well below 3.25% or the US dollar index is around 75 or lower (numbers are loose could be lower), the signallig of serious monetization or devaluation is about to take place.

    You essentially will have to plan to cash out before the big deflation wave starts or when equities start to be repudiated or selectively confiscated. Take the money and buy essentials and/or convert into the possible new currency.

    Private Banks will not be nationalized until the last penny is stolen and privatized along with new unpayable leveraged debt and other liabilities heaped upon them.

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  8. Anon,

    No need to get rude dude.

    If you were paying attention, I did not say I disagreed with Kli or with buying precious metals.

    What I did was state what EWI is saying, and then asked a fair question.

    So get off your high horse -- dude.

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