New American Gold Rush

[Oxygon]

CBSnews link

Why On Gods Green Earth would you sell gold...!?!?!?!?!?!?

I watch commercial after commercial getting people to sell there scrap gold.

~Now is the time to buy gold.

imo.

Financially it makes more sense.

[jim_mich]

Some people do stupid things.

All my retirement savings are in gold and silver related investments. This week was a very good week for gold and silver as my investments gained about $25,000.

Actually this might be a bad time to buy gold. One month ago was a good time to buy. The market manipulators may be able to push the metal prices back down in the next couple weeks, which would be a good time to buy. Gold is going to $1650 an ounce and higher in the long run.

Of course if you need money and have gold to sell then it has served its purpose.

SLV is a silver fund, GLD is gold fund, AEM is a good gold, silver, copper mining company. Beware that many mining stocks are manipulated and do worse than the metals.

[MrTim]

Trouble is, due to inflation etc., gold has to reach about $2000/oz before it's equal in value to when it was trading for ~$850/oz in the early 80's. So yes, buy it NOW while it's 'cheap'! (Or take up gold panning if you live in a suitable area. ;)

[terry5732]

Gold is not an investment.

It has not kept up to inflation.

It is an industrial metal, gets used up in things where it won't be reclaimed, and is relatively scarce compared to other minerals.

There is for the foreseeable future more available than is required for useage. There are vaults full of it just sitting.

I was very happy to sell mine in 1980 for $850/ounce. That was about 850 gallons of gasoline then. Over 7000 First Class letters. Over 2,000 heads of lettuce. 2180 McDonalds hamburgers...

[jim_mich]

Terry,

There are reasons that gold and silver have not kept up with inflation. It's because of US manipulation in the gold and silver markets in an attempt to make the US dollar look strong. But now the manipulation is coming to an end. Today (Thursday) GATA will run a full page ad titled "Anybody Seen Our Gold" in the Wall Street Journal.
A copy of the ad can be seen here or here

For more info see http://news.goldseek.com/GoldIsMoney/1201676580.php

If you do some research you will find that half the world's gold reserves have been loaned out and turned into jewelry that can never be repaid and there's no surplus of silver. All it will take is a rush to buy silver and it will sky rocket. If you look at the chart I'm attaching you will see a strange pattern showing a large price spread in silver developing during the last few hours. This is an indication of a possible pending price spike in silver tomorrow.

By the way, many silver (and gold) charts will not show this price spread as they don't show both the bid and ask price.

[terry5732]

And if there truly were an economic slowdown or recession in place, the industrial usage would be dropping and the prices would be falling.

The currently reported bad economic news is a fabrication of large media outlets just like it was 1992, designed to elect their favored candidates. But if they repeat it enough, enough may believe it to make it true. The only thing more corrupt than the government in this country is the 'free' press.

[jim_mich]

During the last 21 days the price of silver has increased more than $1.00 per ounce. At this rate silver might be close to $30.00 by years end.

The currently reported bad economic news is a fabrication of large media outlets just like it was 1992, designed to elect their favored candidates.

Terry, when you posted your above obviously incorrect statement I bit my lip. But no more. You're full of shit! Michigan has been in a recession almost five years now. Some people still have jobs, but many are out of work and many have left the state. Many homes sit vacant. About one of every eight houses are for sale. There are 1260 homes in Stockbridge Township and 68 have been foreclosed. That is over 5% of the homes. Twelve of those foreclosures were in the Village of Stockbridge, which has only 320 owner occupied homes. About one home out of every 27 has been foreclosed in the Village. (Note: There are about 162 renter occupied homes.)

From our local village newspaper: http://www.thetowncriernews.com/Home_Page.html (This front page story will be changed next week so I'll copy the whole story below.)

Leaving home
Foreclosure trend impacts local families, neighborhoods
By Wendy Wood, News Editor

The wave of home foreclosures sweeping the nation is cutting a path right through the local area. Plummeting home values on the heels of a lending boom has many people living on the edge of financial ruin. Add in a down turned economy and high unemployment and some who may have otherwise limped through the current recession, find themselves in the tough position of having to choose between financial obligations. Record numbers of homeowners are choosing to walk away from mortgages.

Michigan leads this unfortunate trend with the highest rate of home mortgage foreclosures in the country. Waterloo Township Supervisor Everell Huttenlocher shared figures he obtained at a recent board of review training with Jackson County’s Equalization Director, Julie Kolbe. She indicated that there is a 100 percent increase in foreclosures in Jackson County. "In 2004 there were 14 bank foreclosures," reported Huttenlocher. "Since 2005, Jackson County saw over 1400."

According to Mona Webb, the Jackson County Chief Deputy Register of Deeds, since 2005, 42 of those foreclosures took place in Waterloo Township. "In some cases, the homeowner was able to redeem the property at the Sheriff Sale after the foreclosure," explained Webb. A Sheriff Sale takes place after a bank or mortgage company takes possession of a house and auctions it to the highest bidder, usually at a price below market value.

"Many times the value of the house is lower than what is owed," pointed out Huttenlocher. "Banks just kept giving out money because the housing market was so good."

The foreclosures come with a cost to municipalities and surrounding property owners with a loss of revenue to operate public water and sewer systems, as well as fund services. Banks and mortgage companies generally keep up property tax payments to maintain their financial interests, but the overall property values of a neighborhood can be reduced by foreclosures. Unadilla Township Supervisor James Peterson said the abandoned homes become an issue of blight. "The banks don’t keep up with mowing and maintenance," pointed out Peterson.

Unadilla Township currently has over 55 homes in foreclosure. Peterson expressed his belief that the drop in home values has trapped a lot of homeowners who obtained an adjustable rate mortgage. "Their interest rates and payments shot up while the value of their home went way down," said Peterson. "Right now nobody can sell anything, so they walk away when they can’t make the payment."

Kyle Cobe of the Ingham County Register of Deeds reported 68 foreclosures in Stockbridge Township, with 12 located in the village. The village took an extra hit to revenues with the foreclosure of the 56 bed nursing care facility.

"The situation is going to get a lot worse before it gets better," warned Peterson. Several government agencies and lending institutions have created programs to assist homeowners facing foreclosure. Cobe said Ingham Count offers "Hold on to your Home" and information can be found at www.holdontoyourhome.org. The Michigan State Housing Development Authority (MSHDA) has a program to help those with adjustable rate mortgages refinance at a lower, fixed interest rate. MSHDA also provides the "Rescue Refinance" program that will assist individuals who are currently delinquent on their mortgage.

Edward Jones Financial Representative Jim Doty advises homeowners in trouble not to wait until the situation is impossible. "Do whatever you can as soon as you can to hold on to your house," he insisted. Doty advised contacting lenders and explaining the problems. "Most of the time, they will want to work with you," he said. "Mortgage brokers are not in the business of owning homes so they are open to alternative means of paying the mortgage," he concluded.

Once a letter of default is received, note the telephone number to the loss mitigation department and the name of the representative assigned to the case. According to a report from the Michigan Labor and Economic Growth Department (DLEG), the employees in a financial institution’s loss mitigation department are the only individuals that have an incentive to find a solution other than foreclosure. The report further warns against advertisers that claim they can rescue homeowners from foreclosure stating it is almost always a scam. The legitimacy of an offer can be verified by the Better Business Bureau. Finally, DLEG suggests considering bankruptcy prior to an actual foreclosure.

[ovyyus]

During the last 21 days the price of silver has increased more than $1.00 per ounce. At this rate silver might be close to $30.00 by years end.

By years end $30US might be worth a lot less than you think.

[DrWhat]

The Australian dollar is getting close to matching the US dollar 1:1.

[terry5732]

Jim, I moved out of Michigan in 2001. It was depressed then. Not because of external pressures but do to the lack of a good work force. I lived about 100 miles north of you. The majority of the people in the area had no clue about the rest of the world. It took four people to do a job there that took one person in Atlanta, Phoenix or Minnesota. Michigan is stuck in 1927. Ford won't survive unless it changes and neither will Michigan workers. Dow has hired so many international workers because the locals couldn't or wouldn't perform. Michigan people are nice enough ( except for the "you aint from 'round here" bit), they just aren't good workers for the most part. You gotta love the great roads in Michigan. I don't think any state has more whitetails. I think the DNR seriously misestimates their numbers.

[jim_mich]

This morning gold bumped $1000 an ounce then pulled back.
Silver bumped $20.90 an ounce then pulled back.
Agnico-Eagle Mines Limited (US symbol AEM) gained 110% since a year ago.



I fully expect gold will hit $2000 well before the end of 2011 (less than 4 years, probably within 2 years) and silver will hit $50 and might be near $80 to $100.

This world is looking at some very rough financial times over the next 4 to 6 years. Hopefully our countries don't destroy each other during these times of trouble.

[terry5732]

Most of the last month's commodity price increases are actually a result of the falling value of the dollar rather than an increased demand.

[jim_mich]

The volume of the exchange traded fund SLV has about doubled during the last month. The demand for gold has been about steady. Silver is out performing gold. Silver and gold are rising about twice faster than the dropping dollar. The value of the dollar is usually compared to other currencies, and those other currencies are also dropping.

[terry5732]

Glad I sold at $21.00 the other day. I can buy for $17 today or $15 tomorrow. Wanna buy it from me for $25?