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Gold and silver conundrum

January 23, 2011

I find it rather fascinating the indicate charts people produce to project their gold and silver prices. This past week when silver experienced a sharp selloff uninformed people issued dozens of fibonnaci retracements and the like – only to find out the CME changed margin requirements.

There are many reasons to own gold and silver. I have bought two rounds – the first with futures at 19 and the second with silver around 28.50. Should the dollar really tank – you will be glad you own it. Should the dollar rise you will get hit. Intraday and even multiday price movements are controlled by forces you can’t possibly understand or predict – on information you don’t have access to. There are conspiracy theories galore claiming artificial price depression and other gaming.

The bottom line is this: if you believe that the dollar is truly going to tank – and you should – then you should own some gold and silver. Put it in you closet an wait for the rainy day.

If you question golds value in the times of trouble then read this from Egypt

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