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...


  1. Only Silver and Gold are allowed to be bubbles....all equities are solid investments all the time....

  2. paper assets = bubble? what bubble?

    tangible assets = if that's not a bubble, then I don't know what is.

  3. 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..."

  4. 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.

  5. LinkedIn is setting the stage for these secondary private markets to blossom will be similar to comp sales was to real estate..only juicier. This plays into the mark to model way of valuing 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 any ideas?

  6. 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.

  7. 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.

  8. First they smile, then they laugh and then the burst into laughter and then they laugh away to the BANK

  9. 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.

  10. 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.

  11. 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.

  12. 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:$cdnx:$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.