Well, this day after election, many a good man will find he has been replaced because he failed to bring in enough government loot from Washington. Did you ever figure what constitutes our modern representative? It’s the one that can bring home the new Federal Post Office, even it they wasn’t using the old one. Federal aid for roads that nobody may ever drive on, and a government dam. Yes, the height of statesmanship is to come home with a dam, even it you have nowhere to put it. Just raid the National Treasury enough, and you will soon be referred to as a ’statesman.’ – November 5, 1939. Things haven’t changed much, have they?
In Will Roger’s day, the buck would still buy five gallons of gas or a nickel White Castle Hamburger. FDR hadn’t gotten us into WW II, which debased the buck by 50%, (362,000 dead and millions of Americans injured) nor Korea (50,000 dead) which further degraded it, nor Vietnam (59,000 dead) which did it even more. Yesterday, when Bush and Tony Blair got together and announced that they made a mistake in Iraq, it reminded me of Robert Strange McNamara’s book, in which he admitted that Vietnam was a big mistake. That’s OK fellas, it’s not your kids who are getting killed, so we might as well stay a bit longer. Nuts to all of you. Have a great weekend, and closed Monday.
|Z
488|4|2006-05-31|Sell and re-buy?|I spend a lot of time trying to convince you people of the folly of trying to beat a bull market, and mostly I do OK, but you who read this who are not my clients, take note. We are in the beginning of a huge bull market in precious metals. The top in gold may be well over $3,000 per ounce, and hundreds in silver. To attempt to ’beat the market’ by selling at a temporary peak, and then buying when it goes lower, is insane. No one knows what tomorrow will bring, but its a pretty good bet that any decrease in prices will not last long. Think about the cost of doing this. First of all, you have to sell at the ’bid’ price, and re-buy at the ’ask’ price, which may be as much as fifty cents an ounce in silver and a few bucks in gold. Then you have to ship it. For my clients, I don’t charge a commission for selling, but 99% of other firms do, so there is that cost also. Then you have to buy back and pay a commission for that. To even ’break even’ in selling and buying back, you might be looking at a dollar an ounce in silver and maybe $15 or more in gold, counting all expenses. How do you know it will go down enough to even break even? You don’t, I don’t, and no one else does either. All we do know is that this bull market has been a long time coming, the dollar is plunging, and all things tangible are going up in dollar prices. What makes you so smart that you can beat a bull market by selling and attempting to buy again at a lower price? It’s just damned STUPID to do so or attempt to do so. Give yourself a break and buy gold and silver for a long term investment. Will there come a time to sell? Sure, it’s possible, and when that time comes, I’ll do it myself…if it ever comes, but NOT NOW DUMMY!
Everyone says I am kind, considerate, and will spend a lot of time talking and explaining things to new or old clients, and this is true. I am honest, and trustworthy in a field that is full of price gougers and phony guys sitting in little cubicles bothering people and giving advice that will benefit them, and not you. Just buy the stuff from whomever you please, but don’t fall for the idea that you can beat the bull market, because the chances of it are microscopic. Churning,” or taking clients in and out of stocks and even metals is an old game for the crooks. This is for their benefit, not yours. Don’t sell your numismatics, don’t switch gold for silver or vice versa. Just be calm, and watch it all go up. Like silver better than gold? Fine, and I do too, but do not sell one to buy the other. Just use it as a buying guide. Just sit back and watch, and forget buying and selling. It never works.
Another item if you please. It may take two weeks from the time you drop your check in the mail till you receive your goods. Why? Because the US SNAIL may take forever to deliver your check to me, and forever to deliver your stuff to you, not counting the time it takes your check to clear. Be patient! I am honest and will never in any way cheat or steal from you. It’s the fault of the mail, not me. Huge banks can clear checks in a day, but I deal with an individually owned, small town bank and I love it. They will not invest the $650,000 necessary to clear your checks in a day, so it has to go the old fashioned way. Sorry, that’s the way it has to be. I won’t deal with a ’National’ bank.