Buy Gold?

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In the news I keep hearing two things, buy gold and it hit another all time high.

Why would you buy gold while it is at an all time high? I thought the secret was to buy low and sell high. Gold will probably keep going up in the near future, but buying gold now gives you little upside and a huge downside.

Can somebody give me a sound reason why now is the time to buy gold?

Gold's current price: $1861.30

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spicoli
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I was sitting on quite a bit of Gold that I bought in late 80's when it temporarily fell "artificially low". I paid between $352 and $378 an ounce for Krugerrands. Again, just after crash of 2008 I took a chance and bought more Krugerrands, American Eagles and Canadian Maple leafs for about $970 an ounce. Well, when Gold topped $1,500 I sort of lost my nerve and sold 3/4ths of my Gold for a large profit. Had I held on to it I could now sell it for $1,882 an ounce (August 23rd 2011). I would have made an extra $380 an ounce had I not lost my nerve at $1,500! Now the question is will it top at $2,200 an ounce? If you knew for sure you could buy 10 ounces right now for a mere $18,820 and sell it next year for $22,000. A pretty nice return. However, if it tops out next week and falls back to $1,400 an ounce you'd lose $4,800 Bucks. Not a pleasant thought... It's really a simple as that. How high do YOU think it's gonna go??

Good Luck! -Randy-

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Randy95023
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Oct. 20, 2010 3:13 am

Look upon it as a store of value. A retention of purchasing power should hyper-inflation develop. Hold it whether it goes up or down as a long-term family asset, like a farm..

My own family didn't buy gold seeking a financial return...though if they sold it now, the returns would be really high. Currently, they aren't buying gold. Nor selling it. It's a family asset. for this generation and the next.

If the world finds itself in a resource/environmental collapse, the greater asset may be a bag of bean seeds.

Retired Monk - "Ideology is a disease"

polycarp2
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Jul. 31, 2007 4:01 pm

"If the world finds itself in a resource/environmental collapse, the greater asset may be a bag of bean seeds." poly

That was my calculus after a short sojourn with conspicuous consumption. Stocked up on heritage seed stocks, reproducing animals, and fail safe water and energy supplies...

Not sure... but gold probably leaves a bitter taste when swallowed....

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norske
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Jul. 31, 2007 4:01 pm

Here's a good reason to buy gold: because traders are bidding up its price. Put a small piece of your portfolio, whatever you can afford to lose 30%, so maybe 2% of all your stuff, and just gamble. You can buy GLD, an exchange traded fund, and put in a stop order if it starts to lose money. But like I said, bubbles like this can crash at record speed (recall the 1,000 point drop in the DOW in May 2010?), so if your stop allows for a 10% loss, there's no guarantee your sell order will be placed before you lose 30% (or more.)

Or you can look at this way: you ARE actually buying gold, in that once these trades blow up in the face of the Wall Street behemoths, your tax dollars will go to make them whole again. Have a Coke and a smile.

chilidog
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Jul. 31, 2007 4:01 pm

It looks like my post effected the market... lol. The next day gold dropped $104 an ounce.

Gold prices plunged 5.6 percent Wednesday as investors grew more confident about the global economy.

Gold dropped $104 to finish at $1,757.30 an ounce. It was the steepest percentage drop since March 2008. Gold is still up 24 percent for the year.

http://www.google.com/hostednews/ap/article/ALeqM5jGoTmmVylBFAaTNfcZHmYy3n1xvw?docId=7d770965b53b43b6b9bb013f7d92fcc2

Gold's current price: $1,757.30

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spicoli
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Gold keeps dropping. I am not sure which direction it is going, but in my opinion, it doesn't seem like a good investment because there is little upside.

Gold Prices Tank as Quarter Nears End

Gold prices plummeted Wednesday as traders rejiggered their portfolios ahead of the end of the third quarter.

Gold for December delivery closed down $34.30 at $1,618.10 an ounce at the Comex division of the New York Mercantile Exchange and were accelerating losses in after-hours trading. The gold price traded as high as $1,672 and as low as $1,617.40 an ounce, while the spot gold price was down $45, according to Kitco's gold index.

Gold's current price: $1,618.10

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spicoli
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I think it is increasingly dangerous to be holding gold.

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leighmf
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It depends on the price you paid for it..It's probably just as dangerous to hold fancily engraved paper.

In a resource, environmental and economic collapse, I'd opt for a bag of bean seeds and a well-prepared garden bed. with a reliable water source.

Retired Monk - "Ideology is a disease"..

polycarp2
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Jul. 31, 2007 4:01 pm

I am talking about buying not holding. If you are holding gold then it depends on what price you paid for it. Personally, I would sell because it looks like a bubble. There has been a lot of pumping of gold the last couple of years, so the dumping will be coming soon.

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spicoli
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If the intent is to speculate on gold, either buy it or short it.

If the intent in buying it was to make a fancily engraved paper profit....sell some. Buy some arable rural property with a reliable water source with the proceeds..

If the intent was to provide a financial safety net for yourself....hold it.

It will probably buy a lot of foreign curency down the line if you're looking at abandoning a sinking ship.

Retired Monk -Ideology is a disease"

polycarp2
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Jul. 31, 2007 4:01 pm

Buy the dip in silver and gold!

John Embry - Silver is Completely Flushed out to the Downside

The Gold Price on the Brink - 4 October 2011

ITM Trading is advertised here. I only buy dead weight silver bars and coins, but not rare collectors' coins because it is a specialized area. If you stay in the stock market, you are going to lose your butt.

Robin Griffiths - Silver to Go Up Hundreds of Percent From Here

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Antifascist
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Extreme Increase in Demand for Physical Gold & Silver Globally

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Antifascist
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Probably down the line, an ounce of gold will buy a nice bag of beans. and you can use the fancily engraved paper as fuel to cook them with.

Will hoarders of beans end up with all the gold? I'd opt for a small plot of arable ground. with a reserve of precious metals to convert into paper to pay taxes with.

Retired Monk -"Ideology is a disease"

polycarp2
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Jul. 31, 2007 4:01 pm

people I know keeps asking me the same question...

If you like gold, buy it at the price you like. If you want it as an investment, think twice. How will you unload it? Commision buying and selling... Are you going to take posession or are you having some one hold it, or will you buy paper from a company who deals in gold?

smilingcat
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Sep. 23, 2010 9:14 am

Yes, always research and never accept one opinion.

Physical silver running out because its spot price does not reflect true investment demand

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Antifascist
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Why you need to buy gold and silver.

Harry Markopolos the Whistleblower (audio interview) who brought down Bernie Madoff’s $65 billion Ponzi scheme reports between Bank of New York Mellon and State Street, these two institutions have stolen between $6 to $10 billion from tens of millions of Americans retirement savings accounts.

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Yes, now that you mention it, I have changed my mind based on Mr. Magwire's newest cast- whatever you have, don't let it go.

http://www.thomhartmann.com/users/leighmf/blog/2011/10/secret-golden-cal...

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leighmf
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By accident, because of following the silver market, I found the economic analysis is much, much better than the mainstream media. You can hear metals dealers all over the world give their narrative and it is interesting indeed because the metals markets have been kept suppressed for decades; it is a open secret that the metals markets are manipulated so they give names and what to watch out for. I don't agree with all their economic theories and they side-step sensitive political issues by just calling the problem "money printing." What I like about the metals dealers is they speak plain English and even cuss up a storm. Like this interview October 8, 2011.

Ben Davies: Co-Founder & CEO of Hinde Capital - Ben is recognized as one of the top up and coming fund managers in the gold, silver and commodities arena. (audio recording MP3 button on the left).

He said "Balderdash?" So be prepared.

Shush! about the Golden Calf!

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You can watch the prices fluctuate at kitco.com or download the kitco ap for a smartphone. Than you can chart the progress of silver and/or gold and buy low and sell high if you're inclined. Personally, I'm not selling at all right now. And, I prefer buying silver at the moment. I trust that more than I would ever trust any stock or 401K holding. I don't expect that money to be there when I get older.

I try to just buy the raw bars, not the coins so much, because you'll pay more for the added "value". And i don't buy or sell at more than about 3 to 5 % cost difference. People doing crap like gold for cash are getting completely ripped off.

jonanderson
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Jul. 31, 2007 4:01 pm

Anti, because of you, I started buying up silver. Anyone who thinks holding vast sums of cash is the answer, clearly isn't paying attention to what is happening with currencies all over the world.

But why does anyone else care what another person is investing in? It's *my* choice. Personally, I have made a tremendous amount of money buying gold back in 2005.

My advice. If the mainstream media says one thing, do the exact opposite...

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meljomur
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Jul. 31, 2007 4:01 pm

One thing I find sad for the USA government and people who live in the USA is that the government stopped using gold and silver ages ago, before I was even born. This is bound to have devastating consequences for the USA and the people of the USA in general. I say that the USA government should get into gold and silver, to help the USA dollar be more "real," for lack of a better term. Otherwise, like Polycarp2 said indirectly, the dollar is only fancily engraved paper.

micahjr34
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Feb. 7, 2011 4:57 pm

There are many reasons why you should NOT be on gold/silver/platinum/paladium or any metal standard. The concept of money is the agreed valuation and the trust we place in the currency at given point in time. That's it. Basing it on any kind of standard is a very very bad thing. I don't know of any economists who will tell you that we should be on gold standard...

I think I've tried to explain it on another thread recently (well I just started posting here not long ago) as to why this is so.

In simplist of terms, basing money on standard is that it is not only restrictive and does not allow Feds and the treasury to guide inflation, deflation, soft landing... but it also does not the money supply to reflect the real valuation of the economy. Economy expands and contracts along with its total valuation. so if the economy grows, how do you reconcile the difference between a larger economy with fixed money supply?

Retired monk is very correct to say that dollar is only fancily engraved paper. And I have no problem with it because its valuation and trust is unconditional and universal for now.

smilingcat
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Sep. 23, 2010 9:14 am

Smilingcat,

Thank you for your response. It allowed me to see a big problem with what I was thinking.

The big problem with using gold or silver to help prop up the dollar is that gold and silver can actually go down in value. If the dollar was based primarily on gold and their was a crash in the gold markets, the value of the dollar would immediately go down proportionally.

However, what should the dollar be based on? The problem with using "the full faith and credit" of the USA is that with out some major reforms, people all over the world are going to lose all faith in the credit of the USA. While this is true, I concede that being impulsive and trying to use measures that are only half way thought out will make things worse.

micahjr34
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Feb. 7, 2011 4:57 pm

It is amazing. The stock markets are so manipulated (this is why silver prices are suppressed) that the shadow markets could write their name with the market graph!

The Latest In The Broken Market Chronicles: Explaining Last Friday's Ridiculous Market Action:

Tyler Durden on 10/10/2011 at Zerohedge.com

During this event, Nasdaq quotes into CQS became delayed at least 800 milliseconds (800,000 microseconds). Other exchange quotes feeding into CQS also became delayed.We found many symbols with trade executions that appeared several hundred milliseconds before the quotes that could have produced them....The next time the market receives a shocking news story, or undergoes unusual stress, the only traders who will have accurate market prices will be those co-located at the exchange.

Just take a look at this Nasdaq graph October 7, 2011 beginning at 12:03:39.950, a massive surge of quotes in SPY, IWM, DIA and other market index ETFs, along with many symbols in the Dow Jones Industrial Average, caused an overload in CQS that lasted several seconds.

If you are into paper stocks, you are a sucker because it's a Rig Job.

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Antifascist
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Quote Antifascist:

It is amazing. The stock markets are so manipulated (this is why silver prices are suppressed) that the shadow markets could write their name with the market graph!

...

Just take a look at this Nasdaq graph October 7, 2011 beginning at 12:03:39.950, a massive surge of quotes in SPY, IWM, DIA and other market index ETFs, along with many symbols in the Dow Jones Industrial Average, caused an overload in CQS that lasted several seconds.

If you are into paper stocks, you are a sucker because it's a Rig Job.

When there is a panic sell as it did the other day with EK (Eastman Kodak) and AMR (American Airline), stop-loss order on your stock would not have saved your butt. Cause by the time your order is activated and ready to sell, the market would have zoomed past and dropped like a rock. Or if you believe in some conspiracy stuff AAR stock dropped like a rock too because some "analyst" said that it may go belly up. What he meant was AMR and not ARR, a REIT company. He may have shorted the stock.

Yup there are those who are gaming the system to fleece you of your last dollar.

smilingcat
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Sep. 23, 2010 9:14 am

This is how to pull the trigger: Go to your bank and withdraw all of your IRAs, CDs, and Savings. Some of these accounts will take weeks to cash out! Take the penalty. Amazingly, some banks need three days to pay out more than $5,000 of cash. The banks are going down and you will lose all of your money if you wait. Don't take my word...research it.

If you go to the bank after the crash to withdraw your money, you will get the Boston Police treatment so get it now. Their power is contextless violence and authority so it doesn't matter to them that you can't get your savings. I would take at least one fifth of my cash and convert to silver and/or gold even if it amounted to one ounce of silver.

If you leave your money in the banks and they crash--you are going to be very, very upset. The banks already are bankrupt so it shouldn't take very many persons to trigger the dominoes falling. It is an important catalyst for change..

....Or go to a demonstration and get your teeth knocked out, sweep them up, and shake the hand of the officer the just Effed you up.

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Antifascist
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Robin Griffiths , Tuesday, Oct. 11, 2011.

Says Gold at $2300 by December 2011 is possible. Silver volatile and called a "10 bagger" or 10 times increase.

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"I am concerned that a materially adverse disruption to the financial markets is increasingly likely in the near future."

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Part 1 of 5, The Great American Bubble Machine

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James Turk - More Bank Collapses to Cause Gold & Silver Spike

And Reggie Middleton, thinks activist depositors should withdraw their money from the banks-he's good!

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Antifascist
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Jul. 31, 2007 4:01 pm

Germany is fine. France could be in trouble, because they won't get paid by Greece, Spain, and Portugal. JP Morgan has some French debt on their books, and they probably won't get paid back.

I had just read about Harrisburg, right before I read about American Inferno also in PA. Harrisburg is the capital. Santorum should be asked about Harrisburg in the next debate. He's from The Keystone State. Harrisburg is filing chapter 9, Cain's 999 won't help them.

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douglaslee
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Jul. 31, 2007 4:01 pm

One point that I would like to make here is that in investing (which can and does include saving...), isn't there this concept known as "portfolio diversification," or "don't put all of your eggs in one basket?" I think that it is very much implied when talking about buying low/selling high, and "keeping it in the family," but no matter how good anything gets, especially precious metals (and especially gold...), it is a good idea to have a multiple approach. Invest in savings, tax deductible charities, metals, bonds, and maybe some stocks. This is just speculative advice, I must admit, because I am mostly a "starving college student." I can create a portfolio only in my dreams.

micahjr34
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Feb. 7, 2011 4:57 pm

TGLDX gold fund offers diversity, and has been knocked down over the last year. Even after the 2007 crash, you would still have two and a half times your original investment. 20% a year is not too bad. 25% a year over the last ten years. 10,000 would be a 100,000 now, a little better than S&P index.

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douglaslee
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Jul. 31, 2007 4:01 pm

Thanks douglaslee,

I found a post of your's from 2006. Great information.

Big Banks Refuse to Let People Close Accounts.

Some persons are closing their accounts from online instead.

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Antifascist
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Jul. 31, 2007 4:01 pm

The stock market is being ran by pre-programed computer algorithms which distort trading activity independently of actual market conditions and all historical patterns.

Dan Norcini - Central Banks Collapsing the Financial System

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Antifascist
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Jul. 31, 2007 4:01 pm

The silver dealers are so accustomed to being ****ed in the *ss everyday by Wall Street that they talk about it like it's the **** weather. This is what happens when you let Right-Wing Fascists slap you around everyday---the crimes after that are just a bonus for them.

Flash Fake Silver Sell Orders:Manipulation caught on video.

Heading into another weekend like 2008 by Peter Boockvar - October 20th, 2011.

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Antifascist
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Jul. 31, 2007 4:01 pm

James Turk Report - Why Gold Will Go Above $11,000

October 24, 2011.

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Antifascist
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Jul. 31, 2007 4:01 pm

Stock market manipulation, need for new paradigm, China buys massive amount of gold last Thursday, Oct. 20, 2011.

Eric King interviews Jim Rickards: Dollar, gold and #CURRENCYWARS

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Antifascist
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EU bank failures will crash Wall Street — again: Commentary: 8 warnings for Washington and Occupiers

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Nomi Prins and Wesley Legrand on Market Manipulation, Silver, and Gold. Oct. 21, 2011.

"Gold and silver offer a way that lies slightly outside of the chaos that’s occurring in that printed currency market."-Nomi Prins.

"...The JP Morgan’s and HSBC’s [London Bank] are in effect the expansion arms of the Federal Reserve and the US government. They can create paper gold, which is obviously different to physical gold, and they can create as much paper gold as they like to short sell. They short more gold and silver than actually physically exists."- Fund Manager Wesley Legrand from Australia

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Antifascist
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Gerald Celente - Gold & Silver Bull Market Will Continue to Roar

Currently, a bank run in Greece.

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Antifascist
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Jul. 31, 2007 4:01 pm

Go for it baby!!! This is sooooo much f&*^ fun.

Weldon - This is What Will Move Gold & Silver Higher

Gerald Celente is pulling his hair out! (Just on top however).Wednesday, October 26, 2011 Good news, the entire fascist clusterfuck is about to crash.

James Dines - Government’s Theft Forcing Violent End

What's that sound? It must be your 401k.

Foreigners [China] Sell Second Largest Amount Of US Bonds Ever In Past Week, Record $93 Billion In US Paper Sold In Past 2 Months

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Antifascist
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The European Non-Bailout Explained.

ALERT: Talking Silver Bears Alert 7!

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Antifascist
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James Turk - Silver Formation Projects Spike to $60 - $75 Level

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Antifascist
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Jul. 31, 2007 4:01 pm

Robin Griffiths - Silver is a Ten or Twenty Bagger From Here

"Bagger" is a baseball term for bases. Mike Mahoney says in five years you could buy a median priced house ($200,000) for 200 ounces of silver. LOL.

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Antifascist
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Jul. 31, 2007 4:01 pm

The conscientious regulators are speaking out against the status quo.

U.S. Commodity Futures Trading Commissioner Bart Chilton: "There is Manipulation in the Silver Market."

Nov. 4, 2011

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Antifascist
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I just love these King World reports on precious metals. I can understand what they are saying because it's in plain English! And no bullshit! And they are smart.

Ben Davies - Gold & Silver to Hit New Highs Within Months

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Antifascist
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Jul. 31, 2007 4:01 pm

Jamie Dimon (JPM’s) mortgage portfolio about to blow JPM’s stock to hell.

Get ready for a haircut.

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Antifascist
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Where is Greece's 111.7 tons of gold and Germany's 3,401.0 tons of gold? Greece thought Germany had it and Germany thought the United States had the gold. Germany moved all it gold reserves to the United States after WII for fear the nasty Russian communists might steal it. Guess what? I am not a Ron Paul supporter but he is looking at this issue.

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Antifascist
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If you want the price of gold to go down then have me go buy some. I'll assure you that whatever I invest in always goes down not up. <grin>

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