Oldtent Archives 2007 - 2008

they used a no-till drill (planter). they don’t plow the wheat field after harvest, they just spray for weeds and plant beans in the wheat stubble.

rno

 has been getting crushed like this volcanic explosion

Two of nature’s most spectacular forces produced an incredible brew in  the skies of Chile as a volcanic eruption met a lightning storm. Tons of dust and ash from the eruption of the Chaitén volcano poured into the night sky just as an electric storm passed overhead. The resulting collision created a spectacular sight as lightning flickered around the dust cloud amid the orange glow of the volcano. The eruption was all the more spectacular because the Chaitén volcano,800 miles (1,290km)south of Santiago, has been dormant for hundreds - if not thousands - of years. The Patagonian volcano began erupting on Friday and the 12-mile-high plume has left vast tracts of land coated with a layer of ash.

” Parrots Cove on a Thursday night, now Thats a Party! ”

Shooooooooosh What goes on in Belize stays in Belize
FGC @23: 36 No one would sell me any silver 10 ozers today dang !

……I’ll buy all your Gold for 750 right now……

I was so tee’d off when all the goldbugs blew off the Viva $500 Party, that I gave up on Au Price Parties (APPs).  I had planned for years to really celebrate $500 and then Vonskie and all just gave it the boot.  Parrots Cove on a Thursday night, now Thats a Party!  Just ask Cosmic Train!

…the good news is you can now buy gold for 800 an ounce and Silver for 14 dollars an ounce…

….The bad news is we dont have any to sell…

The ROI has to be a lot better…..

Just park me at the draught tap…..and i will drink myself silly

Might as well laugh about it.

Winedoc

I made physical silver purchases 4 times in the last 6-8 weeks.  Mostly in the 17-18 range I was way too early.  I remember you posting that you were waiting.  Good for you.  Now I’m tapped out on free cash to buy on this great dip.

I didn’t think we would see silver in the $13-14 range ever again….so the markets dealt me a lesson.  I still got my silver.

Winedoc

From a Cafe member:

Well, there are some who admit that TA is pretty useless in the face of this kind of intervention: Peter Degraaf doesn’t mind admitting it–

from his Friday evening email:

Featured is the daily gold chart. Gold closed just above the 850 support line during a washout caused by the performance of a US dollar that defies belief. Without any improvement in fundamentals, the dollar rose 132 points today. The largest gain in years! Despite a banking crisis, low interest rates, huge deficits, money supply running in double digits, housing sector in shambles, the US dollar has now risen 8 out of the last 9 days. Someone please convince me that this is not rigged. Meanwhile at $855.00 the gold price is back at $323.00 expressed in 1980 dollars!

Late in July a central bank dumped 30 tonnes of gold, without apparently caring much about the price, (whereas a savvy trader would have trickled to gold into the market during rallies). This may have started the avalanche in gold, at about the time the dollar began its rally. With this kind of tinkering it becomes almost impossible to apply technical analysis. [bold added]
JT

Something to keep in mind…

Hi Bill:
We must remember that although Central Banks are running out of Gold they still have huge reserves. They are obviously using part of their Reserves right now. The size of the intervention is a measure of the stress they are feeling both economically and geopolitically.

What we are witnessing is a new and dangerous chapter in the GREAT GAME. Russia may soon control the Baku-Tiblisi-Ceyhan pipeline which carries a million barrels a day from the Caspian to Europe and the US and Israel.

The US and its allies have more than enough Gold to print any Gold price they want.

But consider this:

China now has $1.8088 TRILLION of foreign exchange reserves (up 36% from last year)
This can now buy 69,000 tonnes of Gold at $820/oz
Russia has $600 BILLION which can buy 23,000 tonnes of Gold.

Who control the price of Gold? Those with 15,000 tonnes to sell.
Or those with the Dollars to buy 92,000 tonnes at today’s prices.

I’m sticking with my Gold.

Cheers from Auckland, Ed Wener

Bill H over the weekend…

A review of supply and demand…

To all; this past week was another very tough week for “hard assets”. It is very important during times like these to remember why we own Gold as a portfolio foundation. Years ago I realized that paper creation had to go exponential just to keep the “game” going. In fact what we are now watching is the end game. Virtually any and all news this past week was Dollar negative. Actually the worse the news became, the more the Dollar rallied and commodities sank. The past month smells of massive government intervention.

We are truly at THE momentous financial moment in world history. We continue to receive bad and worsening news almost daily regarding financial companies and the macro-economic situation. The solutions offered to all these problems are always the same, print more. I always believed that when we got to this point of over leverage that the government would try to print its way out of the problems. In fact, it looks like most all facets of our economy are or shortly will be receiving life support from either the Fed or Treasury. The money supply and deficits are exploding and have only one direction to go. Whether it be exploding deficits or money supply, the bottom line is more Dollars outstanding or more federal liabilities. It would be a neat trick if you could create exponentially more of something yet have its true value rise. This is what we are being told now about the Dollar.

If we were to believe CNBC and the other Wall Street cheerleaders, then we would expect the Dollar to gain value while gobs of extra supply are hitting the markets. Supply and demand does not work like this. Mother nature will not allow this for more than a short period of time. With virtually $Trillions needing to be created just to make good on past losses, the Dollar will have its purchasing power destroyed. This looks like the biggest potential whipsaw in history. The government has no choice but to print Dollars with abandon as they try to “save everything”. I assure you that the laws of supply and demand cannot be repealed by world governments. As hard as it has been to watch precious metals go thru this latest correction, it is very important not to loose sight of why we own them. We own them because unlike paper, they cannot be created digitally out of thin air. They take real capital to create, and once created, they ARE REAL CAPITAL. We will shortly find out just how close to Monopoly money the worlds paper currencies really are. I know this past month or so has been very difficult, however now is the time to sit back and reflect as to what you might like to own during a financial panic. My personal choice is anything precious metals related. Again this is a supply and demand decision, I want to own it before the financial panic begins. For metals supply will dry up and demand will explode overnight. As for dollars, they might as well do as Mr. Bernanke said and drop them from helicopters. You must be positioned ahead of time. Regards, Bill H.

And Jennifer over the weekend…

Wachovia to cut 600 more jobs than earlier planned- APWachovia Corp. said Monday it plans to cut 600 more jobs than it previously expected as it works to reduce expenses in the face of staggering losses tied to mortgage debt.

a planter or are they blowing them in.  I worked on some trials where we blew the soybeans in with an air seeder at around 200K/acre

Peter Schiff

at 76.490, +.175. (delayed)

rno

PM stocks, but so far we are not dunping any of these holdings.  With our currently sad portfolio in the uraniums and the PMs, the only thing I can say that we did right recently was to hold off in the recent intent to buy more physical silver when I said it seemed best to wait to buy any more silver until gold got below $900 and oil down to $100 or lower per barrel.  I am glad we waited for our physical silver purchase and will be ready to act on it sometime soon.  But I’m still waiting for a TA guru to state that POG (and therefore POS too) will go down “one more time” before we get the big curve up to the right [G].  Sometimes it seems worthwhile to wait for “the one more time” drop in the PMs.   If only I could figure out how to recognize when there are not going to be any more “one more time” downers  on the horizon for the PM stocks and the uranium stocks {G}    Cheers.  Equiz.