The Golden Truth: Thought For The Day, As I Watch LinkedIn Trade To Another Galaxy

Thursday, May 19, 2011

Thought For The Day, As I Watch LinkedIn Trade To Another Galaxy

How come no one is equating the LinkedIn IPO with an investment bubble? But it occurred to me as I lift my leg on any notion that gold and silver are in a bubble: Someone show me one stock in the mining sector that has done what LinkedIn did today, in one day. In fact, I'm not sure there have been any mining stock private-to-public IPO's this year. Remember how many internet/tech IPOs there were per day back in 1999-2000? We can't even BEGIN to discuss whether or not there is "over" investment in the precious metals/mining stock sector until everyone is discussing their favorite penny mining stocks...

15 comments:

Hyman RothThursday, 19 May, 2011
Only Silver and Gold are allowed to be bubbles....all equities are solid investments all the time....
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AnonymousThursday, 19 May, 2011
Amen!
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Dave in DenverThursday, 19 May, 2011
LOL x 2
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AnonymousThursday, 19 May, 2011
paper assets = bubble? what bubble?

tangible assets = if that's not a bubble, then I don't know what is.
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Dave in DenverThursday, 19 May, 2011
LOL
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Dave in DenverThursday, 19 May, 2011
I got in the elevator with this total meathead in my building and he says "you see Linked In today? I think it will hold." I said: "I see it but I don't really pay attentions." I was being diplomatic. What I wanted to say was "ya that's as retarded as CMRC was when it ran from $10 to $600 and then went to zero." But he wouldn't know about the internets. Then he says "I see silver is way down." I said "ya, but it's still a double from August." And then he said sarcastically "I guess you think gold is going to $5000." I said "It's going higher than $5000 and if you don't understand why then you'll probably go broked trading Linked In..."
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AnonymousThursday, 19 May, 2011
absolutely ridiculous, I wish I could have shorted it today.

anybody remember Myspace? yea, that's what I thought. LinkedIn will be but a distant memory in a few years.
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AnonymousThursday, 19 May, 2011
LinkedIn is setting the stage for these secondary private markets to blossom ...it will be similar to comp sales was to real estate..only juicier. This plays into the mark to model way of valuing assets....no substance..all skim.

I keep trying to figure out what will be the catalyst to end these low life contrived games...(as if we didn't have enough reasons)...but other than common sense...I can't find one....got any ideas?
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JettaRedThursday, 19 May, 2011
Jim Cramer said that the LinkedIn IPO was manipulated by the brokers and he seemed pretty PO'd that the regulators allowed it to happen. He said it really discredited the market. I wish he'd come out against silver the same way, but I guess he doesn't think it's worth his life to do so.
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Dave in DenverThursday, 19 May, 2011
LOL. It's okay for Cramer to make his riches manipulating the market like he did when he ran a hedge fund. He's such a hypocrite.

RE: when will this nonsense stop: when the dollar collapses.
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AnonymousThursday, 19 May, 2011
First they smile, then they laugh and then the burst into laughter and then they laugh away to the BANK
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AnonymousFriday, 20 May, 2011
Drifting back to gold standard

China, Russia, India, Mexico and Thailand have undertaken sizeable
increases in their gold holdings in the last three years — this is a
prudent policy. China increased its gold holdings from 600 tonnes to
1,050 tonnes and India increased its holdings from a little less than
360 tonnes to 560 tonnes. Gold still accounts for only 7.5 per cent of
India's total reserves.

The major developed countries with a high proportion of gold reserves
have reaped a bountiful harvest as much of their gold purchases were
at prices as low as $35 per fine ounce. With the structural weakness
of the US dollar as a reserve currency, the role of gold will become
more important.

Countries with a low proportion of their reserves in gold would be
well advised to gradually step up their proportion of the yellow
metal. In recent years, the Reserve Bank of India (RBI), in a
brilliant move, was the first country to undertake a large bulk
purchase of 200 tonnes from the IMF; India should gradually increase
its holdings of gold.

The International Monetary Fund (IMF) must give up its strong aversion
for the precious metal. The SDR basket should include gold with an
initial weightage of, say, 15 per cent and this should be
progressively raised over the next five years to a third. Gold is no
country's liability and it does not suffer the inherent disadvantages
of other reserve currencies.

http://www.thehindubusinessline.com/opinion/columns/s-s-tarapore/article2032360.ece?
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AnonymousFriday, 20 May, 2011
Poor cnbc...they're about to be trampled

Hey Gold Bugs There's Strength In Numbers

1.3 billion Chinese and 1.1 billion Indians are buying physical gold. The game of perception uses labels such as gold bugs and ‘out-of-touch morons’ (read between the lines on F-TV or similar) to create an emotional response despite the message of the market. It’s an effective game that discourages physical ownership through the human tendency/desire for group acceptance.

Emotions have nothing to do with interpretation the message of the market. Often the difference between connected and retail money is knowledge and discipline. The later lacks both.

http://edegrootinsights.blogspot.com/2011/05/hey-gold-bugs-theres-strength-in.html
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AnonymousSunday, 22 May, 2011
precious metals/mining stock sector until everyone is discussing their favorite penny mining stocks...
Dave $peaking of penny stocks,I have never been more disguested with the movement of these stocks in relation to Gold/$ilvers climb to fame.Its come to the question,why even bother to buy them? Is it shorting,is it ETFs,or is it my imagination that these penny stocks are mostly without heartbeats.
Love to hear your opinion,no one seems to be speaking on this issue.
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Dave in DenverSunday, 22 May, 2011
The juniors are ridiculously cheap vs. the price of gold and silver, vs. where the juniors were trading in 2006.

Having said that, from their bottom in October 2008, the juniors have provided great returns, several 100% if you were in the right ones.

A lot of times you have to step back and look at a longer snapshot. This chart shows the performance of the Toronto Venture Exchange Index, which is heavy with junior mining stocks, vs. the price of gold:

http://stockcharts.com/h-sc/ui?s=$cdnx:$gold&p=D&yr=3&mn=0

You can see the juniors have nicely outperformed gold over the last 3 years. They are in a pullback, and unless there's a big market correction in general, it looks like the juniors are poised to start moving again.
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.