BleepingComputer.com: I am a commodity broker and giving any investors here a tip

I am a precious metals broker and feel that I can give back to the community in this way. If there are any investors on this forum WATCH THE PRICE OF SILVER!. I am taking my clients out of Gold and positioning them into Silver. Here are a few reasons that my research department has givin me. There is currently 6 times more Gold available on this earth than Silver. We have the worse Silver shortage since 1937. Silver is used in almost everything even socks and film. The government is printing massive amounts of money out of this air with nothing to back it up and injecting it into the economy. This is important because this weakens the US dollar which drives us back towards the Gold standard. Other countries are getting rid of the US dollar as the reserve currency. My most important reason. China for the first time in its history are allowing their citizens to purchase Silver as an investment. They are running ads on TV encouraging it's citizens to do so. They did this with Gold in 2005. That year the price of Gold shot up 18%, 23% in 06 and 31% in 07. I will check back here occasionally to answer any questions you may have. People here have been very helpful and I just wanted to give back in any way that I can.

Thanks for the info chugg, but how do you go about buying silver? It's not like I can run down to Walmart and buy a bar or 2..

Why, you speak to a commodities broker who specializes in precious metals.

O.K. I'll take you up on this and buy a 10oz. bar and see where it goes.
I'm keeping my eye on this, and today silver didn't fare to well-
http://www.kitco.com/market/

You can buy silver in the form of coins at coin shops or bars at some jewelry stores or where I get mine, at a pawn shop.
No special deal there just market price.
Never buy precious metals from a commodity broker as you don't actually have the goods but pay a fee to have them handle it for you, IMHO.

Remember when the Hunt brothers tried to corner the silver market?

I am not taking a side on this only to advise any one that considers.
There is a risk of losing here. Past performance is not indicative of future results.
Only use discretionary income.

I remember Corn last year, everyone swore by it till it was Harvest time then the bottom dropped out. The farmer who planted soybeans in his regular rotation instead of going with the crowd made out fairly decently (no where near what it would take to recoup the exaggerated cost of Lime). Same with winter wheat early this year too. Going with the crowd often leads to more lost money.

I hold no love for Commodities Brokers.

chugg, on Oct 1 2009, 07:56 PM, said:

I have to pick you up on this chugg but the main reason for the dollar being weak isn't the printing money, it is certainly part of it but not all, you have to take into account at the moment with this recession investors moved there investments into the safest possible currency which is said to be the USD so this strengthened the Dollar against most other currencies plus investors always move to Gold as a commodity during a recession since that is seen as the safest commodity so I can see your point about moving from Gold now the worst of the recession is over because it will be sold when investors move to more risky commodities which will start rising in prices but it isn't guaranteed that they will move to Silver some will but not all so you might see a little price rise on Silver in that respect but don't expect anything massive like Golds price rise from something like $600 before the recession to around $1000 now which is around a 66% rise, Silver has risen at a similar rate as well since last year.

I wouldn't advise anyone on what to buy on the markets since they are so unpredictable but I'll just tell this everyone, look at the 12 month change for Silver prices - http://newsvote.bbc.co.uk/1/shared/fds/hi/...welve_month.stm, 12 months ago it was around $9/oz now it is $16 and peaked sometime last month at around $17.50/oz it might hover around $16/oz for a while but by the looks of it Silver has more chance of going down than going up now the recession seems to be nearing an end.

Back to other reasons for the Dollar weakness (At least before the recession), think of the interest rates in the US they have usually always been lower than other countries (Normally something like 1-2% behind the UK, around 1% behind Euro rates and at least 3-4% behind Aussie rates on average), which means investors like to move to more risky currencies which offer higher returns because of the higher interest rates this leads to the Pound Sterling and Euro being stronger currencies on the market (The Aus Dollar would be a stronger currency but more Euros and Pounds are held as currency reserves in other countries, around 26% and 4% respectively).

I was going to comment but don't feel like getting into a rant. They say "silence is golden", but maybe it should be 'silvern'. hehe. (Excellent post Booper, been down that road, eh?)

Wow didnt think I would get so much resistance. Just trying to help. I will just let the market speak for itself. Gold broke its all time high today. When Gold goes up, silver shoots up faster FYI. And for the guy that stated you never buy precious metals from a commodity broker, you said never buy because you cant take physical posession? YOU ARE WRONG. You may be referring to ETF's maybe?

BlackSpyder, on Oct 2 2009, 11:54 PM, said:

Corn? You cannot compare that to Gold and Silver. The world is trying to get rid of the american dollar as its reserve currency. Our dollar is losing its value. This will push us back towards the Gold standard.

chugg, on Oct 6 2009, 08:47 PM, said:

It's not resistance chugg just opinions, I thought what I thought and the market proved differently on both our opinions, you thought Gold would go down when it went up and I thought Silver might go down when it ended going up, Albeit Golds' price went up on speculation about the World Economy and the decline last week in the USD which made investors in other currencies move to Gold since it's traded in the USD.

As for the USD losing it's reserve status that certainly looks on the cards, but why would you think because of that countries would return to the Gold standard? I would assume we can have more than one reserve currency? In which case the USD wouldn't be the single reserve currency like now, maybe a basket of currencies like the SDR's of the IMF are based on now (USD, EUR, GBP and YEN) is what might work? although 4 reserve currencies causes quite a problem, it might diversify the assets but having that many would certainly cause some sort of problem.

Hello,
With all due respect to a commodity broker,these recomendations are only fundamental,not the technical.
As I have some experience from commodity futures, here are my two grains of salt:Only parameter that will show when to buy or sell is a trend in the chart.Old saying is:The trend is your friend!
So, for me to buy or sell,I need two parameters-fundamental,which I consider less valuable,and technical with more value.The reason behind is that the market will take all into the price and the chart will show it!
This is my opinion,not the ressistance!It is completely ok that people think diferently!

woodyblade, on Oct 12 2009, 04:00 PM, said:

I just wanted to answer the question as posted why do I believe other countries will move to Gold? Well, India just purchased 100 metric tons of Gold and are in line to buy 200 more. If they dont buy it looks that China will. They are trying to get a new oil trading currency. They are leaning toward a basket of currencies including Gold. I believe we will see one heck of a PM run come the first quarter. This is a marathon not a race when you deal with PM's.

Yeah I heard about India buying 200 metric tonnes of Gold a few weeks back, half of what the IMF was selling.

http://www.telegraph.co.uk/finance/economi...f-IMF-gold.html

http://news.bbc.co.uk/1/hi/world/asia-pacific/8352739.stm

Not sure where the other 100 tonnes came from, any links?

Isn't the main reason for the gold buying by Asian countries to diversify away from the USD or at least trying to build up their reserves a bit less based on the USD.

I guess you are on about OPEC in regards to getting a new oil trading currency or basket of currencies?