jim4silver
Silver Member
- Apr 15, 2008
- 3,662
- 495
As somewhat of a PM bull (LOL) I was kind of mad at myself for not being in stocks over the couple years or so as they made good gains. However, it is nothing short of amazing to me how much some of the "big dog" stocks have been dropping lately.
Apple has gone from a high of over 700 to 535 or so right now. That is around a 24% decline since September of this year. I know much probably has to do with the "fiscal cliff" that you keep hearing about, and when they come up with some type of tax/budget agreement the market will probably start to rally again. Google stock is down around 11% from its highs from earlier this year. I consider the products from both companies to be top notch, and both obviously have good earnings, PE ratios, etc.
But having said that, I would be slightly worried if I had a large holding in such stocks right now as we approach this "fiscal cliff". What if there is some type of gov agreement but the stocks don't recover? In my opinion, it will be the repubs who give in and not the current administration, and that the end result will be higher tax rates and other assorted gov revenue increases with not much done at all to cut spending. This will lead to more layoffs and talks of a "recession". All of the QE should be helping push up the stock market and maybe it will starting in 2013? I hope for all the stock holders out there that the prices recover, because if we do see another 2008 style crash ever again, it will knock out the 401Ks of many people I know who are smarter than me and refuse to hold any PMs.
We all know with PMs you get all the volatility and manipulation, etc, but at the end of the day a person still owns the individual metal that had to be pulled from the Earth and refined, etc. Even if it goes to 1 dollar an ounce, you will always have a very valuable metal re: with respect to industrial use for silver.
Rising costs associated with mining should help to put a floor under gold/silver bullion prices as the costs to mine/refine such metals continues to grow year after year. Further, next week is another Fed meeting. It is anticipated that Bernanke will announce some type of continuation of Operation Twist, which is set to expire in Dec this year. This would be, if it is announced, in addition to the 40 Billion per month of mortgaged backed securities purchases that the Fed announced a couple of months ago (and which caused silver to jump from the mid 20s to where we are now).
All my opinion.
Jim
Apple has gone from a high of over 700 to 535 or so right now. That is around a 24% decline since September of this year. I know much probably has to do with the "fiscal cliff" that you keep hearing about, and when they come up with some type of tax/budget agreement the market will probably start to rally again. Google stock is down around 11% from its highs from earlier this year. I consider the products from both companies to be top notch, and both obviously have good earnings, PE ratios, etc.
But having said that, I would be slightly worried if I had a large holding in such stocks right now as we approach this "fiscal cliff". What if there is some type of gov agreement but the stocks don't recover? In my opinion, it will be the repubs who give in and not the current administration, and that the end result will be higher tax rates and other assorted gov revenue increases with not much done at all to cut spending. This will lead to more layoffs and talks of a "recession". All of the QE should be helping push up the stock market and maybe it will starting in 2013? I hope for all the stock holders out there that the prices recover, because if we do see another 2008 style crash ever again, it will knock out the 401Ks of many people I know who are smarter than me and refuse to hold any PMs.
We all know with PMs you get all the volatility and manipulation, etc, but at the end of the day a person still owns the individual metal that had to be pulled from the Earth and refined, etc. Even if it goes to 1 dollar an ounce, you will always have a very valuable metal re: with respect to industrial use for silver.
Rising costs associated with mining should help to put a floor under gold/silver bullion prices as the costs to mine/refine such metals continues to grow year after year. Further, next week is another Fed meeting. It is anticipated that Bernanke will announce some type of continuation of Operation Twist, which is set to expire in Dec this year. This would be, if it is announced, in addition to the 40 Billion per month of mortgaged backed securities purchases that the Fed announced a couple of months ago (and which caused silver to jump from the mid 20s to where we are now).
All my opinion.
Jim
