Thursday, February 24, 2011

More Color on the Gold and Silver Market (SLV, GLD)

I visited a precious metal broker in person today to get more color on the market.

This operation was unbelievable. It occupied several thousand square feet of expensive class A office space. The inside was a cube farm, basically set up as a call center. It was a boiler room.

The good news is, I have figured out what happened to the mortgage brokers from 2005. They work in precious metals now.

You know how it's possible to look terrible wearing a suit, if the style is sleazy? That was these guys. And the phone headsets and the slick hair and total lack of product knowledge.

Anyway, I overheard some of the phone conversations the brokers were having. It sounded like they were basically pumping old people to buy gold and silver. Here are a couple snippets I heard:

"right, hyperinflation... no I don't think you'd be crazy to put it all in gold and silver"
"country needs a miracle, but I don't think God is too happy with us... yep, I'm born again. Got saved a few years ago... all my money's in gold and silver."

Seriously! It was tragic - these metals are being billed as a risk free investment, and these naive retail people are going to get killed when the silver price collapses.


whydibuy said...

Look at the market surge higher.

Must be that lack of shorts who wouldn't be able to put a bid in to stop the crash, lol.

Bears are such stupid creatures, reaching for any scheme to justify missing a great bull market.

LangoneRedStudyGroup said...

I really hope you're fully margined out

whydibuy said...

What is it like being short to the gills on a day like today, Red?
Its great to be margined long, I have to say. Those 3 day discount prices are all but gone.

JamesDavid said...^DJI,TBT,TIP,TLT,GLD,SLV,UUP&sec=topStories&pos=9&asset=&ccode=

whydibuy said...

Oh, man. Now the bears bring out the king of bearish idiots, Bobby prechter.

Yes, I remember him on Louis Rekysers show telling, no, warning everyone that the dow would hit 400 back in '98, I think it was.

I don't think lou ever invited him back on. Lou call him out on what a ridiculous call that was and how it was not worthy of serious discussion.

We bulls love it when they trot out bobby. Hes always good for a laugh.

LangoneRedStudyGroup said...


I'm 75% long 25% cash(see previous post on ATPG.) 0% short.

You've been an incessent bull since 2005. How did that work out? Most investors I know worry about the rally. But people like you, who are clueless cheerleaders, offer nothing.