Posted by: nepboy789 March 28, 2014
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Sojoketo - as Beautifool mentioned, nobody knows whats going to happen. I was just expressing my views based on what I read and felt. Fed has printed trillions of $ in last few years and printing press in still utilizing its full capacity. I just can't believe that it won't have any impact on monetary system and $ will continue to be strong. I don't believe in most of conspiracy theories but I believe in this one and think that CPI is flawed and real inflation is much higher because I can feel it when I go for grocery, shopping. Its like, fed is peeing in our heads but they are telling us 'Don't worry, its just water'.
BTW, I am not a gold bug who favors for Gold Standard. I think Fed was forced to print money and to some extent it was a right decision to save the economy. However, I believe that it will have a negative consequences on the value of $ once all the printed money circulates in the market and at that time, Gold/Silver will be BHALE :)
I know that the momentum is still bearish on gold but I also believe that best returns are realized before the analyst start touting an investment so I have started putting my bets. I know that all the central banks have power to suppress the gold/silver prices for the time being (as they have been doing now) but I don't think they can continue to do so for long run. I could see ~20% haircut in short term but I am willing to take that risk. Bottom line, no I am not an expert or very knowledgeable about stock market and I could be wrong.
Beautifool - I started reading about mining companies once you posted about IAG in December. I didn't buy it but ended up buying RIOM as it has potential do better and also has some cash to survive even the gold prices goes down for short term. When you posted about PEIX I thought, the draught in California will impact the prices of corn so didn't pay much attention to that market but it didn't (or has not yet). Its great that you made a right call and made decent profit. Perhaps I didn't understand the market. I always thought that once the corn price goes up and affects the consumers (inflation kicks in), there will be some policy changes and they will discourage (or apply taxes) using corn in ethanol. Don't you think so?
BTW, I am not a gold bug who favors for Gold Standard. I think Fed was forced to print money and to some extent it was a right decision to save the economy. However, I believe that it will have a negative consequences on the value of $ once all the printed money circulates in the market and at that time, Gold/Silver will be BHALE :)
I know that the momentum is still bearish on gold but I also believe that best returns are realized before the analyst start touting an investment so I have started putting my bets. I know that all the central banks have power to suppress the gold/silver prices for the time being (as they have been doing now) but I don't think they can continue to do so for long run. I could see ~20% haircut in short term but I am willing to take that risk. Bottom line, no I am not an expert or very knowledgeable about stock market and I could be wrong.
Beautifool - I started reading about mining companies once you posted about IAG in December. I didn't buy it but ended up buying RIOM as it has potential do better and also has some cash to survive even the gold prices goes down for short term. When you posted about PEIX I thought, the draught in California will impact the prices of corn so didn't pay much attention to that market but it didn't (or has not yet). Its great that you made a right call and made decent profit. Perhaps I didn't understand the market. I always thought that once the corn price goes up and affects the consumers (inflation kicks in), there will be some policy changes and they will discourage (or apply taxes) using corn in ethanol. Don't you think so?