Do I Hold 'Em or Do I Fold 'Em?

I hope that this post is appropriate for the Stock Tip Forum even though it is not directly a stock tip I feel that it has relevance to the stocks that we all invest in. If it is not appropriate then I will not be offended if it is removed or relocated. I have posted similar content on the Economic Forum.

I don't worry about gold and silver correcting anymore. From this point forward, I expect to see massive gains in the metals and the shares of gold and silver companies. I just placed my second largest silver metal buy (bars in terms of quantity) that I have made in 15 years! I paid more than I have ever paid for silver! I wish I had bought more! This market is getting ready to explode in my opinion. I don't have any cash position at this point! I am fully invested in stock and metal! Do you think I am foolish?
I have literally bet the farm on this move exceeding my wildest dreams to the upside. The stock shares in my portfolio have lost about 10% in the last few days but I am not worried!
I note that the volumes of my shares have been small for the most part. About 1/3 of my portfolio had fewer than 12 trades each day for the last three! That is incredibly low volume and does not indicate panic selling! About 2/3 of my portfolio had fewer that 100 trades a day in the last few days! Only 5 or my 35 companies had more than 100 trades for the day! That is not indicative of panic (fearful) selling! Only a few of my shares had any volume and they were down a few percent. The market is telling me that the weak hands are selling out ridding us of the last vestiges of fearful people while the strong hands are not budging in the face of downward pressure! That is encouraging to me as a bullish investor. This is probably the last correction in the mining shares we will see for some time as the precious metal stocks really start to get some long overdue attention!

Evaluating the volume and number of trades for all of my shares (mostly Canadian junior exploration) I conclude that the market is tiny and undiscovered by the general public. Just wait till the average guy and gal on the street decides to move their money into the hot resources sector. The price explosion will blow our minds as the sector is just too small to absorb the levels of buying that is sure to take place as gold and silver appear on the radar screens of desperate investors trying to preserve their nest eggs. They will realize that they need gold and silver eggs in their baskets to preserve wealth! I am looking forward to very Merry Christmas this year in the precious metals sector. Cheers.

Quote :

I don't have any cash position at this point! I am fully invested in stock and metal! Do you think I am foolish?

Dan,

If I understood you right, all your equities in your portfolio are mining stocks ??

I do not put all the eggs in my basket..

I also own oil stocks, Coal stocks, a little financials ( NO exposure to junk ) , some food and shipping stocks, Land stocks, Aus $ and more.

My Resources companies make about 30% of my portfolio.

Dan,

I went to Albern Coins, a coin shop here in Calgary yesterday. I was looking to buy a mere 600 Silver Maple Leaf coins. For the first time ever, I was told "we don't have any." I asked if he could sell me 100 so my visit had not been made waste. He said "if I dig around in the back, I may find ten or so". I could hardly believe my ears. Apparently the Canadian mint is way behind. The excuse I was given was, that because of the Olympics commemorative coins being minted the Maple leaf production was being put on hold. I found it interesting that I could buy gold Maples, but no Silver Maples.

I called Stan Wright next (Diverse Equities) here in Calgary. I got routed to his cell phone because he is in Edmonton for the weekend. I got the same story from him. He said he had no reason to expect to have Silver Maples for the next 30 days or so. He did tell me he had made an order directly from the mint. Stan offered me 100oz bars but did not have Engelhard, Johnson Matthey or even Canadian mint brands.

By the way...I now have to pay $2.00 over spot for Silver Maple Leafs! Spot price is full of it! I was able to buy at $1.25 over spot only 3 months ago.

danamas wrote:

This market is getting ready to explode in my opinion. I don't have any cash position at this point! I am fully invested in stock and metal! Do you think I am foolish?
I have literally bet the farm on this move exceeding my wildest dreams to the upside. The stock shares in my portfolio have lost about 10% in the last few days but I am not worried!

Dana,
I just bought some Silver Eagles. I liked what I read here:
http://www.investmentrarities.com/11-06-07.html (The last couple of paragraphs)
and in more detail here:
http://www.investmentrarities.com/12-04-06.html


I am very intentionally in the same position as you. I'm fully invested in mining (Primarily, PMs) and the physical PMs. My physical holding is about twice my stock holdings. My physical holding is in 5, 10, and 100 ounce silver bars, and of late, several hundred Silver Eagles. I only have 15-20 ounces on gold (Eagles and Maple Leafs).

The only investment exception is my 401k which I have little control over the sectors I'm invested there. Obviously, I agree with you. About the only thing I would do differently is to have some "energy" in my portflio, but I've been unable to find a place where I'm confortable in energy to place my money. So, for now, I am very confortable with my money sitting where it is, despite a reduction of 7-8% in value in the last few days. You & I are right!! I'm sitting tight.

Cheers

My local coin shop wants $ 18.7 for a silver eagle ( buy 100 )


Crazy !

But only $ 1650 for an 100 OZ Enghard

If you don't mind internet purchases, I recommend www.ColoradoGold.com
About $1.75 over spot. Not outrageous for Silver Eagles.
Don Stott is a pretty good guy and has provided good prices. Until things get crazy, I trust him and don't mind puchasing on the net from reputable dealers. (DON'T buy from NWTMint, if you want your metals anytime soon)

Cheers

Bought Gold and Silver fom BullionDirect.com

No problems with them so far. Takes a couple day for my check to clear, other than that they are pretty quick. You price is locked in once you hit the order button.

I am hoping there will be one more pullback with PM's so I can buy more.

Canada (Silver Dollars) 1958 - 1967
Almost Unc - Uncirculated - Each coin has .600 oz of Silver! Only .49 over Melt Value! More
Quantity: Add 1 to Cart
Sell Price: $9.76
Item #: 8564
Availability: In Stock

I hope this is an appropriate request, but does anyone know of a quick primer on buying gold/silver bullion?

I might be able to get you guys generic 1 oz silver rounds for about $1.25 over spot. I'd have to check my source first, but please reply if you are interested and how much you might want and I will see what I can do. You would deal directly with my source and he is extremely reputable. I have bought from him for many years.
Garry

Thanks guys for the response. It is encouraging. I prefer Camino Coin(also called Blumert's Gold or Lew Rockwell.com) near San Francisco, CA for my metal buys. Last I heard was that Ron Paul buys his metal here! Their number is 1-800-982-7070 ask for George or Parker. They also have a web site at http://www.lewrockwell.com/blumert/burt-gold2.html
They have been reliable over the years for me. Mention my name if you like as a reference. I do not gain anything from it other than good will for my next order. I just want them to know that I appreciate their service. They sell silver eagles at $1.80 above spot and 100 oz bars at $0.55 over spot. Silver rounds go for $0.75 above spot! I just bought 90 eagles along with a number of bars this week. This is a bargain for all of you Canadians! The price includes shipping I think. I agree that you should avoid NW Territorial Mint as I have had two bad experiences with them delaying my order for over 1 month!

As far as putting all my eggs in one basket(pm mining stocks) I agree that a single sector investment is not wise under normal conditions. These are extraordinary times and we seem to be on the cusp of dramatic financial changes. I am sure that money will be made in energy as well but I feel that the big gains are coming to the junior exploration stocks as the big guys look for targets.

Look at Rio Tinto, up 1/3 overnight and it is not over yet. Look at Seabridge Gold with almost all their resources in the inferred category up from $2 to $35 in 2 1/2 years! They haven't produced one ounce of gold! There are many examples of this and the general public doesn't even know anything about this sector! I am fully invested and will remain so until the conditions change to warrant reinvestment somewhere else. Best wishes and happy trails to you!

Generic rounds - You mean not Engelhard - just an unknown vendor ??

Thanks

Yes generic rounds from various vendors. Examples are: Hoffman & Hoffman, International Trade Unit, American Argent Mint, Engelhard, A-Mark, Mundinero, Southeast Refining Panama City, Fl, The International Universal Trade Unit, etc. Many simply have patriotic slogans on them (like Rebellion To Tyrants Is Obedience To God) with no vendor name. All fun to look at and hold!

I even have some that are engraved "Minted From U.S. Strategic Stockpile Silver" 1981. Formerly stored at U.S. Assay Office San Francisco. How's that for cool?

It could be alocal problem, like for bull.

One can buy as much silver eagles as you want on the internet.

For example :

Qty Item Price Ext. Price
1000 1 oz (.999) Fine Silver Rounds $15.84 $15,840.00 Remove
4000 1 oz Silver American Eagles - Brilliant Uncirculated $16.95 $67,800.00 Remove

Sub-Total: $83,640.00
Lowest S & H: $0.00
Total: $83,640.00

Silverman:

$16.95 for American Silver Eagles is a steal! Buy 'em!

I will buy 'em right away !

Thanks

Edited Nov 12 - Price is 0.5 $ lower today - $ 16.43 per bright and shiny

Silver eagle!!