muses of the moment

February 11, 2009

Hot Investing Tip

Filed under: Inflation, Long term investing — totallygroovygirlfriday @ 1:43 pm

Hot Tip #1: Buy precious metals to preserve your savings against inflation (the invisible tax that steals the purchasing power of your money).

Hot Tip #2: TAKE POSSESSION OF YOUR METAL INVESTMENTS

The COMEX is the main precious metals exchange in the US. The big banks (those that are took bailout money and cheap loans from the government) have large short-positions on the futures exchange. They are manipulating the market to keep the price of gold and silver from soaring as it should based on physical demand. Please see this article and graph by Gene Arensberg published on 2/9/09 for reference.

But the COMEX is fighting a losing battle. Demand is soaring in every country. People will soon figure out that there are not enough of the physical metal to match the bets on the futures exchange. When the public gets this, they will rush to take possession. There will be a run on the COMEX and it will implode.

Last year , it was a 1-2 month wait for your delivery, now you can’t even get an estimate from CBOT.

Also, in terms of deliveries, I thought you and Jim might be interested in why there may be so few stoppers these days. Below is a message from my clearing firm regarding metals deliveries.

“Anyone who is thinking of taking delivery in metals should avoid the CBOT metals if they are going to take possession of the metals as the process, which took about a month in the past, is now so backed up that getting even an estimated time on getting the receipt is all but impossible.”

By CBOT of course they are referring to the contracts sold by CBOT/CME to NYSE/Liffe.

The above quote is from a post today on Jim Sinclair’s MineSet website.

Rest assured. Gold is still moving as it should along the Elliott Wave pattern that began in 2002, despite the manipulation of the market. From Jim’s site again. We are in Major THREE:

Major ONE up from $256 to $1,015 (actually 4 times the $255 low);
Major TWO down from $1015 to $699, say $700 (a decline of 31%);
Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $500 low);
Major FOUR down from $3,500 to $2,500 (a 29% decline);
Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE)

Buy gold and silver coins.

Don’t do this for a quick buck. Do this so you will have a buck in the future. The rules for investing have changed. Perservation is the goal.

Blog at WordPress.com.