Just released this one 5 minutes ago: http://www.youtube.com/watch?v=_jV9iZtxnPo Serious food for thought...any comments?
I like mike. Hes not asking me to send him money. He has valid points and there is not a ton of people trying to argue his points. I just wished I had 1000 ounces instead of what I have. Im stacking as hard as I can but I am also dabbling in a lil shtf stuff too.
Makes sense. I always like to break things down in the most simple parts to decide if something is going to have negative or positive impacts and try to compare apples and apples as best I can. When you compare metal to stock, you are always comparing something of intrinsic value to worthlessness (in essence), and stocks have even MORE volatility than silver price. But at least you know it is a commodity and people will use it. On the other hand, companies are literally a dime a dozen. Anyone can walk into ASIC and start up a company (in Australia). Been there done that. It's very easy. Slap down $1100 and you can call yourself pretty much what you want. Talk yourself up, turn it into a publicly listed company and you have investors before you even have a product to sell. That spells danger. That's why Mike said to seek professional help (both from a psych and a stocks expert ! ) lol. Gambling is illegal in private residences. So what makes it that much different to trading on the stock market? Not a lot. Like I said, many companies don't even have a product yet and are looking for you to invest in them by making the stocks cheap. Ok ok.. so he's talking about established 'blue chip' mining stocks (I would have thought).. but when you invest in the mining activity itself, you have to understand that environmental legislation is getting harder and harder and now, even approvals to continue mining is taking much longer with much more fire to submissions and more community and university involvement making response to submissions harder. When approval was sought from the department of planning (in Aust.) a decade ago, it wasn't taking much longer than a couple of months to maybe 4 months for a major project to be approved. Now, developments assessed under the Environmental Planning and Assessment Act 1979 under part 3A are taking in excess of 12 months with the occasional company ditching their efforts and withdrawing their application. These are facts. Major projects in mining activities are getting hammered by government due to environmental concerns of the community (who vote governments in). Another interesting fact while we talk about gold, when gold is mined, it is found alongside silver in the form of an alloy called electrum (so silver is found with gold..so what?) The process of extracting gold from ore is one of the MOST environmentally damaging mining processes known to man as it requires large amounts of aqueous cyanide to extract the gold from the ore. If environmentalists don't like like this going on, and governments follow suit, gold mining is slowed. If the silver is a byproduct of the gold mining operation, chances are it, too will slow until the company determines whether it is worthwhile continuing operations just to mine the silver reserves or not or if they are able to use another extraction method (very doubtful). Id rather stick to holding my wealth so I can see it. It's never going to be worth nothing and it's good for the lazy investor... well actually, I wouldn't call a metal holder and investor (the way most ppl think of investors..trying to make a million bucks). I'd call them smart and not letting the govt. steal their money through inflation. I didn't study economics, but did anyone here? I want to find out if econ1001 (or equiv) tells you how to HEDGE against inflation? My gf is studying ECON and she told me she asked the lecturer, but he said they don't cover it. I want to know if other uni's cover it. Seems pretty important wouldn't you think?
Yeah it would be interesting to see how many SS'ers out there actually study economics @ Uni or are in the game itself.Be great to hear their views on Hedging against inflation
I don't think Maloney thought through this video. By stating that he sold mining stocks about 2 years ago, he is admitting that he sold at or near the bottom of the 2008/2009 crash and he would have had losses. For example, SLW, bottomed below $3 and is now above $40. Those losses would prejudice his advice to others regarding mining stocks. And using the large mining indexes as a comparison to physical gold and silver is deceptive. The gains in a pm bull market move in the following order of physical, then large miners, then mid-tier miners, and lastly juniors/explorers. I would post more, but this is my busy season and I have to get back to work.
I hate stocks. I've speculated on a few and come out on top a couple of times, but mostly things just get screwed up because of interfering governments changing the fundamentals and what should happen doesn't, small caps diluting equity holders through capital raising and all sorts of shenanigans and then when you start talking about African and Bolivian miners (let alone Gillard and the RRT) you just don't know what kind of sovereign risks, claims and lawsuits are going to hit. It's a bloody minefield and only for the full-timers I reckon. And I realised that the counter party risks are so great they are just unmanageble, for me. Precious metals and much more honest and trustworthy.
ATM I am only on 2 ASX listed companies. Got into AXM @ 40c under 6months ago. Got in @ 40c per share. Only got 3000 gone from 40c to $1.00 Was only 7c under 1 yr ago. Got 143% increase in that time.!!!!! Not a BIG stock market player as you have no real control. bit of a punter who enjoys a bit of rock & roll. But this one has been a FUN ride!!!!!!!
Thanks for posting Dan, I'm always on the outlook for appropriate future exit signals and would love to see more indicators. History doesn't always foretell the future. Those minning index's only go back to te 90's/70's and if things go pear shaped, half the stocks in those indexes may be gone. The world has changed a lot since the Wiemar republic, Argentina etc so the lessons on what to watch out for are may no longer be valid (perhaps they are ?) Some more of these kinds of vids would be good to whet the appetite!
He mentioned this in his book and talks about being spooked by technical analysts. He was forced to buy back in at higher prices then what he'd sold. Big deal, his human. Thats why he makes a point that what he says are just his views of the world only.
As part of my studies, I had econ classes, several of them. The teaching does not cover hedge inflation and any financial intelligence for sure... 2 things, firstly, having had econ classes does not at all translate to knowledge of bullion, especially coins...Coins is an entirely different game that I am trying to learn...However, bullion in general, it is just common sense to me, if you got the volume and some luck combined with knowledge, there is a chance for wealth generation...But I like precious metals, and am in the game, because there is no dobut whatsoever in my mind about its wealth preservation capacity... Secondly, about the inflation hedge thing. I have experience living in Europe in high inflation scenerios, decades, IMF influence etc etc...Hyper inflation, super inflation etc etc scenerios, SHTF etc are so very much exaggerated...Times of inflation are hard, but people adjust, and adjust quickly...Selling your bullion stack during inflation will not give you the dream house you want, you will be at an advantage, if lucky, will do well, but beyond that anyone who thinks he is gonna get rich in a hyperinflation scenerio is dreaming...Inflation, its hyper, super or normal versions do not discriminate...You will still have to pay for year 12 of your kid, whatever the private school dictates...In super, hyper, chronic, long standing etc inflation, do not forget that you will still need to pay fiat for daily expenses...In a sense more fiat is the inflation hedge of the common...
