Dump your PMs and buy stocks? NO! This wont end well.

[jim4silver]

Dump your PMs and buy stocks? NO! This won't end well.

Looks like the nikkei and dow and S and P are on fire. The momentum folks are going to be pouring in soon if they haven't already. I like listening to the pundits on cable financial stations try to justify the markets hitting new highs.

Some of my acquaintances who I preached to about gold and silver over the years are having fun reminding me how my PMs are down and their stocks are up. Although I hate to admit it, I will have a bit of schadenfreude when the stocks finally tank and PMs go up. I have not been preaching PMs and never will again (except on this site). Those that I know well (like family and friends) who refuse to take the red pill will be on their own.

I hope they knock silver and gold much lower so we will finally see a break in the physical and paper prices.


Jim

 

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[TreasurePirate69]

I can't figure out why the markets are so high either. But I bought low a couple of years ago so I'm sitting with a nice strong hand. I stopped buying PM's as they skyrocketed and this just happened to coincide with the market being at a low point so I bought stocks instead. But I currently have my finger on the trigger so that I am ready to jump out at the first signs of the bubble bursting. I've made my expected profits and just need to decide when I'm ready to take them. In fact, I've already dumped a couple of stocks that I was weary of and I haven't looked back. I don't care if those same stocks double from here. I made my decision and took my profit when I was ready.

As for PM's... well, I don't know what to tell you. We obviously have different viewpoints. I too have friends who I talked about PM's with that are razzing me right now. But that was back when I was "a believer". When we talk now I tell them that I feel I was wrong and I own up to it. Ultimately, I may be wrong again but that's the chance we take. At this point it is a coin flip for me.

The trends seem clear to me right now so in the short term I do not intend to buck the trends. The stock market is going up and PM's are going down. Until that changes I'm going to stay the course.

 

[jim4silver]

I can't figure out why the markets are so high either. But I bought low a couple of years ago so I'm sitting with a nice strong hand. I stopped buying PM's as they skyrocketed and this just happened to coincide with the market being at a low point so I bought stocks instead. But I currently have my finger on the trigger so that I am ready to jump out at the first signs of the bubble bursting. I've made my expected profits and just need to decide when I'm ready to take them. In fact, I've already dumped a couple of stocks that I was weary of and I haven't looked back. I don't care if those same stocks double from here. I made my decision and took my profit when I was ready.

As for PM's... well, I don't know what to tell you. We obviously have different viewpoints. I too have friends who I talked about PM's with that are razzing me right now. But that was back when I was "a believer". When we talk now I tell them that I feel I was wrong and I own up to it. Ultimately, I may be wrong again but that's the chance we take. At this point it is a coin flip for me.

The trends seem clear to me right now so in the short term I do not intend to buck the trends. The stock market is going up and PM's are going down. Until that changes I'm going to stay the course.

As the old saying goes, "the trend is your friend". I guess the question is whether the 11 or so year bullish trend in PMs is officially over, or this is just a longer than normal consolidation? Remember, it "ain't over till it's over".


Jim

 

[FreedomUIC]

As the old saying goes, "the trend is your friend". I guess the question is whether the 11 or so year bullish trend in PMs is officially over, or this is just a longer than normal consolidation? Remember, it "ain't over till it's over".


Jim

I personally don't care if it is over. I have 14 more years until I can start living off my SS and assets. Fourteen years of buying 10 oz a month for a stash with some gold mixed in.
14 X 12 X 10 = 1680 oz from my play money or roughly $84,000 if silver hits $50.00 in the next fourteen years, which it should.

 

[TreasurePirate69]

As the old saying goes, "the trend is your friend". I guess the question is whether the 11 or so year bullish trend in PMs is officially over, or this is just a longer than normal consolidation? Remember, it "ain't over till it's over".


Jim

Amen!

 

[TreasurePirate69]

As the old saying goes, "the trend is your friend". I guess the question is whether the 11 or so year bullish trend in PMs is officially over, or this is just a longer than normal consolidation? Remember, it "ain't over till it's over".


Jim

I guess I would say though that the trend has been down for two years. So I don't know if you can officially call this a "consolidation" anymore. It may just be semantics. But if gold does go back up again I think it would constitute a "new trend". The 11 year run should be considered officially over since the price has been steadily falling for two years. At some point you have to agree that two years is more than enough time to constitute a new trend and not just a consolidation. Again, maybe it is just semantics.

 

[jim4silver]

And they say that PMs were in a bubble? Check out this Nikkei chart. Japan started QE not too long ago and look how the chart looks. This is why the US stocks are up as well (due to our own QE and zero interest rates for savers). Looks like the powers that be are corralling investors into the stock market. I suppose they are doing that because they wanna help everyone get rich. Or, maybe we will witness one of the largest transfers of private wealth if/when these stock markets head south. Gonna be a sad day when these stock bubbles pop and the average joe's IRA/401K gets decimated. I believe the Nikkei will pass the DOW very shortly and could hit 20,000 before summer ends. This market (chart) reminds me of silver's rise in 2010 to 2011.

However, if someone is nimble enough they could ride these stock indexes as far as they are going to go. Maybe they have another year left? Probably less.

http://www.tradingeconomics.com/japan/stock-market

Just my opinion.

Jim