Gold: Past, Present, and Future

analogharbor44 said:After months of getting hammered, gold finally snapped like a coiled spring! Once the Federal Reserve Bank of New York confirmed the "recovery" is officially toast, everyone realized the Fed basically has zero options left besides hitting that print button.

😂

Man, those guys over at Goldman Sachs seriously know how to crack me up.

I bet the cartel's algorithm already figured out a way to cap today's rally at 2%.

I am curious to see how the market will react to tomorrow's Facebook IPO....

nimblepanther18 said:I am curious to see how the market will react to tomorrow's Facebook IPO....

Fair enough. Someone playing the one-day volatility could walk away with a massive profit if they have a million dollars☕ ready to deploy tomorrow. It’ll be a goldmine.

The S&P 500 is down 1%, while the silver mining sector stocks are up over 5%. These miners are ridiculously undervalued right now—it feels just like when gold was sitting at $700 back in 2006. I honestly think this massive surge in miners will be what carries the bull market forward. If we follow the pattern, they could potentially pull a 5x gain before the bull run ends sometime in 2014. Just a reminder: between October 2008 and September 2011, they saw a 3.7x increase.

quiettrucker12 said:The S&P 500 is down 1%, while the silver mining sector stocks are up over 5%. These miners are ridiculously undervalued right now—it feels just like when gold was sitting at $700 back in 2006. I honestly think this massive surge in miners will be what carries the bull market forward. If we follow the pattern, they could potentially pull a 5x gain before the bull run ends sometime in 2014. Just a reminder: between October 2008 and September 2011, they saw a 3.7x increase.

Could you provide some insight on which specific miners you believe offer the best profit potential?

Honestly, I hope the stock market hits rock bottom soon so it doesn't drag precious metals down with it. This gold run is still pretty fresh, and there’s a chance we see a rally up to $1,600 before the final crash. I’d say there's a 20% chance of that happening, but an 80% shot that we've already hit the floor at $1,526—that $1,523 level held up well enough. nimblepanther18, people have been talking a lot about picking individual miners here, but there are ETFs that bundle them together. If one miner in the group tanks, it won't wreck the whole portfolio. Miners are risky business on their own, and frankly, I think ETFs help mitigate those specific risks you get when you try to play the "individual stock picker" game. The HUI is the index for miners, and since SPDR Gold Shares tracks it closely, you might as well look at either the HUI or SPDR Gold Shares. Personally, I find SPDR Gold Shares to be the more liquid option. Then there's the junior version, GDXJ, which has been facing some negative rumors lately. My take? Juniors will likely be the stars once we hit the third phase of the bull market. I actually like GDXJ best for a couple of reasons: it holds small stakes in a massive number of miners, and it includes silver mines too. For silver specifically, there's SIL. Buying individual miners is a headache—you'll end up buying a solid company right when it peaks, while some undervalued gem starts mooning without you. Plus, trying to buy ten different small-cap miners is just impractical. I won't get into leveraged ETFs, but if you want to do your own homework, look into TGLDX. You also have royalty companies like RGLD and Wheaton Precious Metals. They aren't traditional miners, but they might actually be better plays. If you're skeptical about ETFs, these could be a great way to go.

We'll see how gold handles the 10-day moving average (sitting at 1587 now, probably hitting 1585 tomorrow).

it's all starting to clear up 😁

Warren Buffett

placidlynx43 said:I bet the cartel's algorithm already figured out a way to cap today's rally at 2%.

Let me guess—it's a coordinated strike from both internal and external threats? 😍

There’s no such thing as some evil cartel. That said, we all know there’s a bit of manipulation sprinkled in here and there.

crimsonranger38 said:Warren Buffett

Let me guess—it's a coordinated strike from both internal and external threats? 😍

Nah. Among gold bugs, "the cartel" is just the standard term for the manipulators. And those manipulators are basically just JPMorgan Chase, HSBC, and to a lesser extent, Goldman Sachs.

nimblepanther18 said:Could you provide some insight on which specific miners you believe offer the best profit potential?

If you are searching for a high-performing silver miner, here is my breakdown:
Wheaton Precious Metals—my personal pick, though perhaps not the one with the absolute highest ceiling
Silver standard mining sector stocks—a more conservative play
Great Panther—aggressive
Silvercorp—aggressive
First Majestic—in my opinion, the greatest profit potential

There are plenty of other options if you have the inclination to do the research.😉

In the event you prefer to act as a bold 😍 speculator, consider these:
AGQ silver ETF, 2x long (I picked this up yesterday)
USLV silver ETF, 3x long

You just have to realize that mining stocks are a dangerous game. People underestimate them now, but that's changing—theoretically, they can always tank even harder.

BlackRock and United States Leveraged are basically silver plays with leverage. dustyheron5 wasn't super clear about it, so let me set the record straight: these aren't miners, they're just boosted silver exposure.

Generally speaking, leveraged ETFs are incredibly dangerous if you don't know what you're doing. Someone who actually knows the ropes takes a tiny slice of their portfolio and usually holds it for a very short window. Beginners, on the other hand, go all in and risk wiping out their entire account in one go.

There’s also this super popular leveraged instrument that is pure mining play—NUGT, which is 3x GDX. That is straight-up playing with fire. It's designed specifically for day trading.

Leveraged stuff works fine when things are moving up, but once the trend reverses, volatility decay kicks in and eats your value alive.

quiettrucker12 ... leverage is strictly for the bold 😍
I mentioned that BlackRock and United States Leveraged represent silver at 2x and 3x exposure—whether we're looking at a rally 😁 or a price drop 🙂

I'm surprised you aren't holding any Taylor Swift... she's pretty much the only one in this game worth betting on.

Something big is brewing behind the scenes. I’m about 90% sure we hit the long-awaited bottom at $1,526 this past Wednesday, May 16th. Anything can happen in this market, obviously, so we really need to clear 1,630/1,640 to get actual confirmation. If things fall into place, we should be looking at 1,900 by the fall. From there, it’s just a matter of how many shots it takes to break through that 1,920/30 resistance level—you know, that peak from last summer.

quiettrucker12 said:The S&P 500 is down 1%, while the silver mining sector stocks are up over 5%. These miners are ridiculously undervalued right now—it feels just like when gold was sitting at $700 back in 2006. I honestly think this massive surge in miners will be what carries the bull market forward. If we follow the pattern, they could potentially pull a 5x gain before the bull run ends sometime in 2014. Just a reminder: between October 2008 and September 2011, they saw a 3.7x increase.

Is this basically your roadmap for where we're headed through the end of 2014 or 2015?

http://www.munknee.com/2012/05/golds...peaks-by-2015/

quiettrucker12 said:You just have to realize that mining stocks are a dangerous game. People underestimate them now, but that's changing—theoretically, they can always tank even harder.

BlackRock and United States Leveraged are basically silver plays with leverage. dustyheron5 wasn't super clear about it, so let me set the record straight: these aren't miners, they're just boosted silver exposure.

Generally speaking, leveraged ETFs are incredibly dangerous if you don't know what you're doing. Someone who actually knows the ropes takes a tiny slice of their portfolio and usually holds it for a very short window. Beginners, on the other hand, go all in and risk wiping out their entire account in one go.

There’s also this super popular leveraged instrument that is pure mining play—NUGT, which is 3x GDX. That is straight-up playing with fire. It's designed specifically for day trading.

Leveraged stuff works fine when things are moving up, but once the trend reverses, volatility decay kicks in and eats your value alive.

That is correct. I am in agreement with the points raised...
For a stable portfolio—specifically for those who lack the desire or the time to stare at a Bloomberg terminal all day—it is sufficient to take positions in "physical"
SPDR funds like GLD, SLV, and others...
Positions in mining companies, or ETFs tracking the underlying mining stocks, are equally hazardous and function much like leveraged positions in the metals themselves...
For those who crave adrenaline and active trading, leveraged ETFs are certainly interesting toys...

Melissa Sanchez17 said:Is this basically your roadmap for where we're headed through the end of 2014 or 2015?

http://www.munknee.com/2012/05/golds...peaks-by-2015/

Look at how the dollar is moving. This looks like a "chance" to wrap up a bull market that’s already been dragging on for 15 years. Every analyst out there is yapping about how undervalued mining stocks are right now, but nobody actually wants to touch them because they’re still stuck in a brutal downtrend. If you believe this bull market isn't dead yet, miners are where the action is. It’s basically a high-stakes play: try buying the dip with tight stops at these recent lows. You're essentially betting that prices will break above current levels so you can finally reach "strong hand" status once the volatility settles down. You can only make moves like this when you think you're at the absolute bottom, but...

dustygardener43 said:That is correct. I am in agreement with the points raised...
For a stable portfolio—specifically for those who lack the desire or the time to stare at a Bloomberg terminal all day—it is sufficient to take positions in "physical"
SPDR funds like GLD, SLV, and others...
Positions in mining companies, or ETFs tracking the underlying mining stocks, are equally hazardous and function much like leveraged positions in the metals themselves...
For those who crave adrenaline and active trading, leveraged ETFs are certainly interesting toys...

The problem is, most of these ETFs aren't actually backed by physical precious metals. Anyone diving into them without knowing that deserves to lose every single Dollar they put in.