People are incredibly stupid

[Gomez]

Read some of the comments at the bottom of this article. Jeez, Americans really are stupid.

http://finance.yahoo.com/blogs/break...&asset=&ccode=

[ttazzman]

buying PMs is still not mainstream......when PMs buying becomes mainstream it will be time to sell....

yes people are attached to what the mainstream median says so yes they are stupid

[Gold Rush]

Love this comment!!!...Buy stocks........Gold is done....

[rampage]

Just had a friend call me and say "Gold has gone down a $100". My first thought was to tell him, its just a sale on metals, get it while you can.

But instead I asked him how he heard that, his reply:
"news app on his phone" The MSM will report when gold goes down but rarely report it going up.

[bemac]

Love this comment!!!...Buy stocks........Gold is done....

[Hope+Change]

There was a NYT article recently on how and why gold is viewed as money. The comments were shocking. A swarm of liberals came out of the woodwork to comment on how it is a worthless metal and that we live in a modern society with a modern economy, and gold has no place it in.


Here, I found it:
http://www.nytimes.com/roomfordebate...-be-a-currency
The article itself was very truthful for the NYT. However, the readership doesn't seem to appreciate truth and historical perspective. View the comments for examples.

Gold, eh? Heck, while we're at it, we should get sheep pelts. Yeah! And slaves too! Why is gold even worth anything? Because it's pretty and shiny?! What are we... cave men?

Buying gold is stupid. You won't be able to sell it for anywhere near what you paid for it, even when it is going up. No one is going to buy gold from you with testing it first, and that costs money, and guess who pays for the tests. You can't use it for currency, even in an all out depression. Name a store that will take gold in payment for goods and services, that is, unless you practically give the stuff away at face value. And suppose you let one of those companies hold it for you, do you really trust them? What happens if the company declares bankruptcy? No FDIC insurance on gold. Poof, there goes all your gold, without a trace. Store it in your house? You got to be crazy. A hundred-thousand in gold is a magnet for thieves. Yes, gold is attractive, but only for jewelry.

[KnowNothing]

Seriously, I heart you GIM.

I seriously have lurked for the past couple months, and been even more of a lurker the past month or so. I have learned so much it is absurd.

I made a small mistake on timing my first purchase of PM's by buy some a wee below silver's peak a few weeks ago. Silver then dropped to ~$37. Let me say, though I could have done better, I did not, and am not stressing one bit about it.

Now gold is behaving similarly, ohhh, but I am waiting for that wicked sale. Not to be a pessimist to everyone's investments but I hope it keeps dropping so I can fill up.

I'm so excited!

PS - A relative said that Gold is in a bubble the other day and will pop. No, it'll correct, but it is far from popping. If anything our economy will pop (or pop more should I say).

[Scorpio]

Hey up Know,

Hang in there, wait for sales, then tread on in,

Don't worry about calling bottoms,

Just get 'er done as time and fiat allows,

We may get a nasty #$@ correction one of these days, yet IMO don't let it dissuade you,

Once you have the physical in your hand, it all becomes real easy to see............

Scorp

[newmisty]

Once you have the physical in your hand, it all becomes real easy to see............

Scorp

I love this line!

[Argentium]

I like this line as well.

...
Just get 'er done as time and fiat allows,
......
Scorp

Good advice for all.

[spathatos]

buying PMs is still not mainstream......when PMs buying becomes mainstream it will be time to sell....

You sir are 100% correct. The Buffet response, when everybody is going all in, its time to get all out.

[Garyw]

UP or DOWN either way is ok with me. I plan to hold til Real Estate holds Bottom. When Gold and Silver goes up I smile. When gold and silver goes down I frown only because I have no more dollars to buy more, but when the dollar crashes I will have the only money.

[REO 54]

You sir are 100% correct. The Buffet response, when everybody is going all in, its time to get all out.

Get out into.....what???

[Shiny]

The articles were clearly written by people with no appreciation for PMs and their role in economic activity.

Gold price is currently volatile - and that is due to real people being scared about the future. The economic press plays on that uncertainty, as do the politicians. The Fed has signaled that they think the economy will be tepid through 2012 though some think Bernanke may use that as excuse to do some form of QE3. Will that fix the economy? Will it lead to a rising market? Will it allow companies to hire the unemployed? WHO KNOWS?

So look at Gold and Silver - you either invest - or not. If you do, you either buy it physical or buy it on margin. If you buy on margin - and are leveraged - you may need to add more capital if the price falls or if margin rates increase. When these happen some may need to sell to raise the capital. While that may drive the price a little - it does little to change the fundamentals.

So if you are buy-and-hold type of PM player - looks at these ups and downs as the normal course. Dollar cost averaging lets you buy more when the price falls. Doubling down also lets you reduce your average price.

So when the press announces that Gold is dead - and the price come down from its temporary highs - it looks like a good time to add a little.

While others run around scared and selling - the unafraid have opportunity.

[spathatos]

Get out into.....what???

Right now it sounds strange to think of getting 'out' (since we are really just getting started). But that time will come and when it does, all the fools who were late to the party, will be there to sell to (the trick is not getting screwed by the premium adjustments and racketeering of the market). Whether we go into another wave of the ‘recession’ or full blown depression (hyper inflation) you must remain vigilant and observe the climate (bull markets last an average of 19 years or so give or take).

I understand this market is driven by many extreme factors that differ from past bull markets (not really, just more globalized revealing the true nature of the beast), but it does not change the fact that all things come to an end (or new beginning). Whether that is a day from now or 20 years. Just food for thought.

Into what, the new platform that stabilizes the markets and drives the prices down. Or, as my grandfather did before me, bought up as much land as possible during the depression. We are all like small time ‘banking families with gold’ to the sheep around us in the coming years (some will choose to hold, I will choose to take advantage). Whether that is liquidating our gold for FRN's to give them or the gold itself.

Do not get me wrong, now is not the time to sell (perhaps not for decades). It is the time to play the ratios.

For instance, on a smaller scale in the here and now, sold a bunch of silver off when it ran up. Waited until gold went down a bit and bought (today at around 1710's). Considering the silver was bought for 8 bucks, it was like gold was having a yard sale.

After 08 I put no stock in silver (minus 90% junk that is ‘emergency’). It is simply bought to be sold at a later date for ‘discounted’ gold.

[wjv]

>> It was fun while it lasted, but it looks as though the gold trade is finally unwinding

One down day of ~5% and it's time to shut down the market, sell all your gold and run away? But yet the DOW can drop almost 500 points in one day and the same people say "in for the long run". "don't panic". "buying opportunity". .

I guess these are the same people who say: "you can't eat gold" OR "You can't walk into Walmart and buy food with gold", completely ignoring the fact that you can't eat Apple stock or walk into Walmart and buy food with your AT&T corporate bonds. . . .

MORONS!

Equally stupid is this guy:
>> I have invested all of my money in gold and bought it at $1885/oz, and I don't know if it will touch this rate again. Any idea please

Not because he bought, but because he apparently bought without doing any research or without knowing what he was doing. . .

I figure if we reach a point where Gold & Silver are worthless, they you can guarantee that ALL paper money will ALSO be worthless and I won't be any worse off.

[Ragnarok]

Posted in GS-PM, but also fits here:

Keep in mind that the prices we are seeing are PAPER prices, not COLD HARD METAL IN HAND prices. If you try to call for delivery on metals contracts, you will very likely get cashed out in FRNs or ETF shares, NOT metal.
IMHO, what this means is we are finally nearing (or are at the beginning of) the point at which paper contract PM prices separate like spent shuttle boosters from the reality: much higher prices if you want the REAL thing, regardless of what the price tickers say.

Physical metals will continue on to the stars while the paper traders bury themselves in paper casino games.

2c, DYODD, R.