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I've lately been hearing a lot of radio advertisements urging listeners to invest in silver and gold. Someone who wants people to buy a commodity, so much that he's willing to pay for advertising to encourage, it, isn't someone who wants to buy it himself; that would be someone who wants to sell it. That would be someone who thinks it's going to go down in price, and wants people to buy it from him before that happens.
Not necessarially.
Those ads have been running for years now.
Could also be someone who is making a comission off of the sale of the commodity, which is probably more likely the case for a radio advertisement.
Those ads are generally selling gold with a ridiculous markup. Because the market for gold is generally propped up by gullible suckers.
Goldline doesnt sell bullion unless they are desperate.I guess it depends on the outfit, so you may be right that "in general" they have ridiculous markups.
The one I'm most familiar with is Goldline (Glen Beck and Mark Levin shill for them).
Their markups, at least for bullion, at 5% are actually pretty reasonable.
Most of the U.S. Mint’s authorized purchasers (the folks you actually want to be buying gold from) charge in that neighborhood (3% to 7%) for retail sales, though most have manditory minimums that put purchases out of the reach of nickle and dime "save for a rainy day" and "TEOTWAWKI" type investors.
Just an observation.
Not necessarially [sic].
Those ads have been running for years now.
Could also be someone who is making a comission [sic] off of the sale of the commodity, which is probably more likely the case for a radio advertisement.
Bob Blaylock said:Someone who wants people to buy a commodity, so much that he's willing to pay for advertising to encourage, it, isn't someone who wants to buy it himself; that would be someone who wants to sell it. That would be someone who thinks it's going to go down in price, and wants people to buy it from him before that happens.
Let me make sure I understand you; I'd hate to put words in your mouth. By advertising a product, the seller believes the price is on its way down and wants to bail out. Yes?
So we can assume that Ford thinks its vehicles are getting cheaper. General Mills thinks its cereal is getting cheaper. Pfizer and its drugs, Exxon and its gas, Whirlpool and its appliances, et cetera ad infinitum all believe the price of their products is declining.
Are you sure it has nothing to do with attempting to gain market share?
You seem to be trying very hard to misunderstand me as thoroughly as possible. I don't see that there's any point to trying to correct your error, in this case, as I am sure that any correction I might offer, you'll just twist into something that bears as little recognizable connection to what I actually said, as what you already posted has.
If the motive for these ads was commission-based, then they'd be as happy to encourage people to sell as to buy. The middleman would make the same commission regardless of which direction the transaction was taking.
It looks like PMs have bottomed out for now, down 40 to 100% of their highs during the panic.
Interestingly, there is virtually no junk silver for sale at the major dealers and thy list it as unavailable but even then $2 over spot when it used to be below spot.
How strongly do I feel about this? I would buy junk at $1 over spot today if I could find it.
Yes, it seems the speculators are giving up, but those that understand the precious metal fundamentals (which are monetary instability/inflationary concerns) are beginning to go all in.
DA60 said:The fundamentals of precious metals are much better then they were (IMO) when gold was almost $2G's per ounce...and are getting better every day.
And when the western world/Japan can no longer prop themselves up with masking CPI's/artificially low interest rates/government debt/central bank money 'printing'...those fundamentals will be (imo) made clear for all to see.
Well said, and agreed.
There are many people who seem to be anti-precious metal advertisers. "Only morons buy gold!" "What good is gold? You can't eat it!" You get the idea. And yet there are many very savvy investors who are joyfully buying up precious metals left and right as the typical armchair investor bails out in terror. (George Soros, for instance, has $240 million in gold investments alone.)
Throw in the actions of many foreign nations (i.e. China, India, etc.) and you have a nice little precious metals party going on with nowhere but up to go.
If you really think about it, those who poo-poo precious metals are the same people who defend government monetary policies which have the proven track record of destroying personal wealth. So it really makes sense that they would be hostile to commodities which retain wealth.
I expect prices to go back up as soon as stock values correct to reflect the state of the economy. Of course, most economists foolishly use the stock prices to judge the state of the economy, which is why we keep building the Tower of Babel over and over again.
From Marc Faber:
'Gold is down 30% from its 2011 peak of $1,921, but has far outperformed financial assets since 1999. A correction was overdue. I have about a 25% allocation to gold and buy some every month. I want to have some assets that aren't in the banking system. When the asset bubble bursts, financial assets will be particularly vulnerable.
Gold is easier to carry than a Lamborghini.
Most of my gold is in a safe-deposit box in Switzerland, but I am shifting it to Asia.'
Marc Faber: "People With Financial Assets Are All Doomed" | Zero Hedge
Personally, there are few (if any) people whose financial opinions I respect more then Marc Faber's.
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