Mike Maloney on Recent PM Movements- Hour Long Interview

  • Thread starter Thread starter House
  • Start date Start date
H

House

Guest
Well, 59mins and 2 seconds :D
[youtube]http://www.youtube.com/watch?v=0Tw0ASnU7HA[/youtube]

What most people do not understand is that the price of gold and silver are not determined by how much gold and silver is being sold. It is how many gold and silver IOUs are being sold. And you can write as many IOUs, futures contracts and options, as you want. Those are unlimited. The supply, though, of physical gold and silver is quite limited, and so when people actually start asking for it and they want the physical, then there is a divergence of the paper price versus the physical price, and we are seeing that right now.

We are in a back-order situation with all of the suppliers. Spreads are going up. Silver eagles cost about fifty cents over spot more than they normally cost because all of the suppliers have had to raise their price to try and find the supply/demand equilibrium that the markets are for. The markets are there to try and find a supply/demand equilibrium, so then price is the arbitrator. Price rises; that draws more supply and reduces demand. Price falls; that reduces supply and increases demand.

So the price discovery mechanism of the markets is what is supposed to ensure that things are in equilibrium. We have this broken system where there are a few big players that manipulate the market, and it always shows up when shortages start developing in the physical market. You know that the price of gold and silver right now are too low to be realistic. And the good thing about that is that it cannot last.
Click to expand...

You do not want to stay in just one investment class your whole lifetime. But it is a very powerful tool to be able to measure these classes against each other and then jump from an over-valued asset class to an under-valued asset class at the appropriate time for the road to true wealth. And it only requires a few big decisions during your lifetime.

Now, when I discovered wealth cycles, I was looking at the Dow Gold ratio and thinking this thing has a cycle. I made another check of the Gold Dow ratio instead the Dow Gold ratio, and put them on top of each other. Lo and behold there is a cycle. It has a positive side and a negative side. If you are doing a Dow Gold ratio, you jump from being invested in paper assets like stocks and then back to gold for the long investment waves. I would say it is somewhere between 8 and 20 years you spend in an asset class, and you can do this with anything. If you measure your house in how many barrels of oil it is worth over a century and you jump back and forth from being invested in oil wells to being invested in real estate, it is the same thing as being invested in gold or the Dow. It is a very powerful tool that I believe has a high degree of predictability and safety to it, if you do not let the short-term noise flush you out.

Right now we are in consolidation. Gold has been chopping sideways for 19 months now, and it has worn people out. But basically gold is up. It is not up from 19 months ago when it was nearing $2,000, but it sure is up over the last decade. So I do not let the short-term noise affect me now that I know that we have not reached the point where the price of gold equals the points on the Dow. Right now gold's value is one-ninth of the Dow, and so I know that it needs to rise by a factor of 18 against stocks before I need to get worried and start watching gold.

So I am very comfortable in these pullbacks. It gets a little aggravating, but still it does not bother me that much and is definitely not going to flush me out.
Click to expand...

Full transcript available here
 
Does the phrase "silver under $30 is a gift..." still apply? [sarcastic smiley]

4088_01_20mike20maloney222.jpg
 
Peter Schiff also said he thought we would never see Silver under $30.
Just more proof to not take these experts statements as fact.
 
I think you need to keep in mind this was 2 self interested banks selling impossible contracts in a paper market. Just wait until paper silver goes to $9. Try and buy.
 
JulieW said:
I think you need to keep in mind this was 2 self interested banks selling impossible contracts in a paper market.
Click to expand...
I appreciate that, but I think Mr Maloney is the one who should have kept that in mind.
 
I did listen, but it was time for a nap.

Soothing, but words that he has sprouted in the past.

Had a good quite time & dozed off while listening.

Interesting times, but for this member, just white noise on the PM highway.

I look at years not days....
 
Re: Hidden Secrets of Money


Mike Maloney: There are six episodes in the can. We do not have an established schedule. There is a tremendous amount of cost that went in this. We sort of need the markets to participate with us when we release them to get any of our investment back. So the release schedule is going to have to be somewhat fluid. Unlike most productions, we did not make this to sell it; we made it to give it away. We are an education company that funds itself by having a precious metal dealership arm.

And I like this bit...in the hour long interview ...


Right now we are in this consolidation that you originally asked about when we started this conversation. Gold has been chopping sideways for 19 months now, and it has worn people out. But basically gold is up. It is not up from 19 months ago when it was nearing $2,000, but it sure is up over the last decade. So I do not let the short-term noise affect me now that I know that we have not reached the point where the price of gold equals the points on the Dow. Right now gold's value is one-ninth of the Dow, and so I know that it needs to rise by a factor of 18 against stocks before I need to get worried and start watching gold.

So I am very comfortable in these pullbacks. It gets a little aggravating, but still it does not bother me that much and is definitely not going to flush me out.
 
what do they say "trend is your friend" ? if so, it's time to really consider another direction perhaps. I'm wondering am I one of the band members of SS'ers on the titanic... :|

or if I hear that saying "it's a bull market" in the future I'm going to erupt. Yea right any market would appear to be a bull market if you go back long enough. As you can sense with my tone, I'm starting to wane here
 
You must log in or register to reply here.
Back
Top