Oldtent Archives 2007 - 2008

Damn right I did.

Let’s revisit your initial question:

“If $Gold goes up as panic is drawn to it in a deflationary scare in the general markets, AND if you own only physical Gold, then how can you buying puts on PM stocks be “protection” for you?”

I added the bold.  My answer was if you ‘only’ own physical gold — no worries — do nothing.

As for those in general equities only - in an environment of a deflationary scare - you head for the exits in the most secure forms of money available.  Gold is part of the solution.  Another option is holding the strongest of currencies like the Swissy or something like farmland.

BTW, by my definition you are speculating to assume that gold & related equities explode from here if you are only positioned one direction and holding PM equities - especially call options.

Who is harder to understand by the written word?

A) Goldrunner

B) The Ment

C) Jim Sinclair

D) Alan Greenspan

E) The Ferret

You can only vote for 5……………………..

…..If you own physical Gold and puts on the general markets, now, is a put on PM stocks a hedge?  Wouldn’t calls on the general markets be a true hedge in your case?  Could you not have all of the leverage (but the unleveraged physical Gold) go against you in the short run?

As far as me speculating, it all comes down to what percentages one owns in terms of physical, PM stocks, and call options.  Speculating with a smaller percentage of one’s portfolio is fine, IMO, especially if one has very large gains.  I am not concerned with the ownership of PM stocks with the fundamentals of said stocks so far ahead of price in a major Bull Market, especially when the TA indicators suggest a big upmove coming.

 Let me more concisely state the last issue that I presented.  If one is in general stocks in this environment and those stocks are falling forcing one to flee, does he……….?

A) Flee to money markets with derivative risk and a falling dollar?

B) Flee to Bonds that are getting killed versus inflation?

C) Try to take a crash course in commodity futures?

D) Try to figure out all there is to learn about owning physical Gold and Silver in a nanosecond?

E) Move his money into PM and base metal stocks that he is more familiar with?

F) Buy real estate?

Assuming he has always been a general stock investor……………………

GR

I’m slow  …

2_p

now things should appear less fogged  …  better now

2_p …. I’m happy for the better understandMent

………..shaved down to look like two batts………………

Factsmatter - There was no post from me @18:11.

GR - I answered your questions.  IMO, repeatedly you respond to answered questions as “you didn’t fully answer my question.”  If you don’t agree with my answer to your question — so be it…but I answered your question.

AND I posed a couple of questions for you  - which you seemed to overlook:

Speculation is going one direction — with leverage and this includes PM paper or options.  You own physical, PM paper and are long PM options right?  Who is the real speculator between the two of us?  What is your plan B? 

You seem to think the hard asset bull is just beginning for the institutions.  The gold ETF allegedly holds more gold then most of the world’s central banks — there is wild speculation in all commodity futures right now.  I think the commodities bull run will last for 15-20 years.  Where do we differ on this?  I am looking for mid-cycle slowdown driven a collapse in credit worldwide.  Easy credit which was the primary driver for much speculation and buildout during this initial commodity phase.  I don’t see how you can simultaneously have collapsing debt/equity markets  worldwide leading to massive risk aversion and at the same time have a frothy commodity bull market about to explode to even higher levels when it’s more overbought then it has been in decades — on what catalyst I ask anyone? 

P.S. the answer is NOT on a falling dollar.  No, commodities are exploding even against the world’s strongest currencies.  Of course all currencies are being competitively devaluated…but the primary driver is easy credit which is history for now.

re: “or do you see the little lol that indicate not to take things to serious ”

re: ” … or why not just take at face value what i write instead of jumping to a conclusion. ”

Well I can say that your usage of LOL has never been funny to me, .. that you now indicate that your intention with such LOL is to not take anything seriously is ….  news to me

My Bent humour  is to me different than your Bent Humour

2_p …. Happier now

How very timely and fitting…a classic. 

WWE?” some one trying to pizz in a boot lol

Is this another POLL?      

What pray tell is the “WWE?”

—————-

“Its Goldtent WWE Night“

“One particularly portly sheep-herder was caught attempting to slay an actual sheep because, in his own words, “I’m still hungry and they taste good like raspberries.”