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.
6 comments:
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.
I really hope you're fully margined out
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.
http://imageupload.org/?di=1112986614698
http://finance.yahoo.com/tech-ticker/yes-robert-prechter-is-still-worried-about-deflation-535965.html?tickers=^DJI,TBT,TIP,TLT,GLD,SLV,UUP&sec=topStories&pos=9&asset=&ccode=
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.
whydibuy,
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.
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