Thursday, August 11, 2011

Thursday Links ($GLD, $PPLT)

Most of the time, platinum has been worth more per ounce than gold, but gold has suddenly traded through platinum. This is likely to be mean reverting, which would argue for a long platinum, short gold trade. There is a platinum ETF, the ETFS Physical Platinum Shares (PPLT).

The notch in the yield curve.

Most Americans don't have $1,000 saved for emergency.

"On Thursday, AOL moved to help bolster the stock, announcing that its board had approved a plan to buy back $250 million in shares over the next 12 months."

Buffett on Treasuries: "U.S. Treasuries are still triple-A in that there is no question that we will repay the interest and the principal. Every contract will be repaid. So our bonds are triple-A. Our currency, the dollar, is not triple-A. Our bonds are." I would say that I agree with that.

How to play an oversold relief rally: "A better way to play an oversold bounce consist of the following: Wait for the oversold condition; Buy when the market exits the oversold condition."


dabler said...

GLD is the biggest bubble happening in the world. The government keep devaluing gold every now and than to show to world a healthy balance sheet but when compare my salary in gold rate than it has been consistently declining steeply. Wonder when this stupid, motivated and manipulated bull run in gold will stop. OR world should give up currency and go back to gold standards. That way I will not be under false belief that I get increment after years work. The ideal question would be how much depriciation after years hard work????

WSM said...

First I must point out that the comment from 'dabler' is one of the most horrific grammatical displays I have ever seen. After reading that eye-rake, I literally have no clue what message dabler was attempting to convey.

Now for the actual question/comment I wanted to make: do you see any significance or draw any conclusions from the "notch in the yield curve" post to which you linked?

I think it is an interesting chart, but the guy just leaves it there and does not even attempt to draw any conclusion.