Gold Prices Drop 3.3% After Fed Minutes Suggest Quantitative Easing Could Cease "Well Before" End of Year

[20Mil]

Mr. 20,

Thanks for putting your thoughts down. I do want to say that neither I nor anyone I know would recommend putting 100% of your capital into pm's. I actually can't think of anyone that I have read who thinks you should have anymore than 30% of your holdings in pm's. I agree with that. Let the record show that for now I also love dividend paying stocks from blue chip companies with healthy earnings statements, no debt, with plenty of cash, a strong expansion strategy for the future, and a good management team. My favorites are KMP, RDS-A, MCD, and LINE. I also love the CAD.

It's important to state that I think you and I are in 2 totally different situations. My understanding is you invest for a living and are waiting for the day when your income stream from investments allows you to retire, so to speak. My hat's off to you. I'm waiting for that day myself when my house is paid off, my unsecured debt is gone, and I have a healthy income stream. But alas for me, at this stage in life, investing is something I do on the side. I have a very good job with excellent pay and benefits with a pension plan along with a 401k. This probably gives us each a slightly different perspective as to how we approach investing in general.

As I stated in my above post, I don't think it's wise for anyone to just buy physical gold and sit on it. Silver is a little bit of a different animal but I wouldn't recommend anyone just buy physical silver, either. As I stated above there are many ways to profit from pm's.

1. Double leveraged ETF's like AGQ are great. You don't have to hassle with trying to buy and sell the physical stuff; it's as easy as buying a share and selling it. It's all done on the internet from your computer at home. The transaction is over in about 30 seconds and the money is transferred from your brokerage account to your checking account. Done. It's awesome.

2. Engaging in the future's market. Same thing here. You are trading paper futures contracts based on future pm price action, or what you think will happen in the future. For someone who likes swing trades this should be right up your alley. These positions, whether long or short, are closed out at anytime within a day after you agree to a contract all the way up to the end of a contract which could be 6 months down the road, it's up to you. And again, once you cover the money is in your account. Done.

3. What about mining stocks? I just read an article the other day about a mining company, during the gold bull market in the 70's, that went from $.05 to $375 per share in just a few years! That is just ridiculous.... Several of the good mining companies even pay a dividend like Goldcorp Inc. (GG) and El Dorado Gold (EGO) which are both found on the HUI. So you are making money while you wait for gold to hit, it's beautiful!

In conclusion while we may have different perspectives it seems like there's a lot we agree on. I contest, however, that the different vehicles for investing in pm's give the trader/ investor many different avenues for making money. Whether it's double leveraged ETF's, futures contracts, dividend paying mining stocks, or just plain old physical there are plenty of ways to foster a healthy portfolio. Just don't forget about KMP (lovely, lovely dividend), RDS-A (when the world stops running on fossil fuels let me know; great dividend as well), MCD (have never been to a McDonald's and not waited in line; pays a nice dividend), or LINE (natural gas is the future, also pays a fantastic dividend) while you are on your way to fiscal health.

Thanks again.

WW.

Great post and I completely agree with what you're saying WW. Best of luck in all of your endeavors. I'm going to add the companies you mentioned above to my watch list.

[WallyWeaver]

Great post and I completely agree with what you're saying WW. Best of luck in all of your endeavors. I'm going to add the companies you mentioned above to my watch list.

Thanks 20. I would tend to think you and I are on the same page on a lot of things when it comes to investing.

Make no mistake, though, I am definitely a gold/ silver bull. But I guess it's important to clarify to anyone who may read this that I get pumped when pm prices go up because I'm making money with my double leveraged silver play, AGQ: http://www.marketwat...esting/fund/AGQ.

When silver goes up $1, AGQ goes up $4; when silver hits $50, AGQ hits $200. This is why I'm practically doing cart wheels in the street when silver goes up: I am making money with AGQ. To realize that profit it's as easy as clicking my mouse a few times and that money is transferred from my brokerage account to my checking account.

I doubt I would be as excited if I only had physical. Don't get me wrong, I have physical, but I view my physical the same way I view equity in my home: putting money towards an asset/ building my net worth.

If silver ever moved closer to a 15:1 ratio with gold then I would get excited about my physical. But until then it's just a hedge against inflation.

Hope this thread has been helpful to anyone interested in developing a healthy portfolio.

WW.