Monday, May 2, 2011

Biiwii on Silver: To Speculate or Not Speculate - Or Are you a real investor in PMs?

Monday, May 2, 2011

Silver 'Insurance' (Biiwii)

Biiwii’s Approach to the Silver ‘Play’ – Insurance

Excerpted from the May 1st Edition of Notes From the Rabbit Hole, which then went on to extensively analyze the precious metals complex as a whole, from technical and fundamental perspectives.

Some blog comments to the Rick Ackerman/FOFOA post highlight something I do not often write about in detail; that being physical metals. Anonymous entities can write all they want about the metals but I, being a real and identifiable human, write things like “see to securing debt-free value whether it be in property, productive enterprise, quality of life and/or monetary metals.”

I have written about personal preparation initiatives like power generation, alternative heating, firearms, a productive ‘other’ business, debt elimination and in a general way, metals as well, with the view that actual metal considerations should be seen to before speculating in gold stocks. As to methods of ownership (ETFs, BullionVault, GoldMoney, overseas physical storage, domestic physical storage, etc.), most NFTRH readers are educated well enough to know which are viable and which are not.

Preamble aside, I will grudgingly admit to owning one bag of 90% silver ‘junk’ quarters, because this bag, bought years ago as a means to barter with the egg man here in my rural New England town in the event of a post-hyperinflationary meltdown (or melt up, crackup boom or whatever you wish to call it) was nearly sold last week in the urge to take some ridiculous profit. In other words, I got a case of casino mentality. But realizing I had paid enough taxes last year, I (for now) decided to hold the quarters for their original intent, while implementing a plan that would work even better, as follows…


Monday, May 2, 2011

CME thoughts - Silver (Biiwii)

You know, real silver bulls - as opposed to momo hopped bubble blowers - should not fear the CME margin requirement hikes.

All this does is mute the ability of speculators to blow silver off. Silver may well be topping out now, but I can tell you one thing; a top now, triggered by the efforts of the futures and options crowd to contain silver speculation, will be healthier at this point than whatever top would form in silver on a blow off left to its own devices.

Silver is in speculation panic mode, not investment mode. That never ends well.

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