jim4silver
Silver Member
- Apr 15, 2008
- 3,662
- 495
I'll stick with PMs (silver and gold)
I was talking to some relatives over the weekend who know about my PM bug status. Of course, I heard how PMs had already peaked and will basically be worthless in the future. I also heard how their 401Ks are doing "great" and are basically back to where they were before the 2008 crash and some a bit ahead. These are some of the same people who were asking me about buying silver back when it was in the mid 40s and right before the big crash in May 2011. The usual buy high, sell low, investment chasing types.
I have long given up trying to "convert" the uninitiated to the world of PMs and other than my pontificating on this site I basically stay quiet about PMs unless I am talking to another "bug" or someone who honestly is interested in knowing about PMs. So when these folks were going on about how great their stocks were I just sort of nodded my head and said "you might be right, we'll just have to see". Because PMs are down now with respect to the past year or so, I could not get on my soap box with these folks like I used to back when PM gains were outpacing all other asset classes.
But when I see how some stocks are doing now, like the Facebook IPO dropping and even JP Morgan's stock (one of the most respected "bank" stocks out there) taking a big hit, I don't worry at all about where PM prices will eventually end up compared to "paper" investments.
I probably won't see these folks again till the Christmas holidays, but I really hope by then PMs have turned around and while I don't wish for this specifically, if their 401Ks have dropped considerably while PMs have risen, I will rub it in this time unlike last time.
PS Kind of interesting on this JP Morgan derivatives loss. Even though they reported only a couple of billion in losses on the position, their stock has lost a large percentage so far. I wonder how much market cap their stock has lost since the derivatives loss became public? Don't know if this is true or not, but I have read that said derivative position is still out there and they cannot "unwind" it all at once. If that is true, one would expect to see further losses on that position as time goes on.
All just my opinion.
Jim
I was talking to some relatives over the weekend who know about my PM bug status. Of course, I heard how PMs had already peaked and will basically be worthless in the future. I also heard how their 401Ks are doing "great" and are basically back to where they were before the 2008 crash and some a bit ahead. These are some of the same people who were asking me about buying silver back when it was in the mid 40s and right before the big crash in May 2011. The usual buy high, sell low, investment chasing types.
I have long given up trying to "convert" the uninitiated to the world of PMs and other than my pontificating on this site I basically stay quiet about PMs unless I am talking to another "bug" or someone who honestly is interested in knowing about PMs. So when these folks were going on about how great their stocks were I just sort of nodded my head and said "you might be right, we'll just have to see". Because PMs are down now with respect to the past year or so, I could not get on my soap box with these folks like I used to back when PM gains were outpacing all other asset classes.
But when I see how some stocks are doing now, like the Facebook IPO dropping and even JP Morgan's stock (one of the most respected "bank" stocks out there) taking a big hit, I don't worry at all about where PM prices will eventually end up compared to "paper" investments.
I probably won't see these folks again till the Christmas holidays, but I really hope by then PMs have turned around and while I don't wish for this specifically, if their 401Ks have dropped considerably while PMs have risen, I will rub it in this time unlike last time.
PS Kind of interesting on this JP Morgan derivatives loss. Even though they reported only a couple of billion in losses on the position, their stock has lost a large percentage so far. I wonder how much market cap their stock has lost since the derivatives loss became public? Don't know if this is true or not, but I have read that said derivative position is still out there and they cannot "unwind" it all at once. If that is true, one would expect to see further losses on that position as time goes on.
All just my opinion.
Jim
