Skip to content

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

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: