Korean Job Discussion Forums

[Palladium]

Whether you believe it or not, gold prices have been suppressed for a long time. The latest and possibly last suppression may come this Friday USA time. I've been buying gold, silver, platinum and palladium for a long time and have learned to watched the cycle. We're in a week that is crucial to the US Government and it explains why gold dropped so quickly this week.

First, the U.S. government�s Treasury debt auctions will sell the greatest amount of debt ever sold in one week. The net debt increase of $153 billion is so high it will exceed the current authorized federal debt limit. Flooding the financial markets with so much debt is a sign of weakness for the U.S. dollar. As the dollars declines in value, the price of gold in U.S. dollars invariably rises.

Second, we will also see the expiration of options contracts in two days. If the spot price at the close of trading on the day that gold (and silver) options contracts expire is higher than the contract price on a call option, the owner will exercise the option to demand immediate delivery of physical gold. The higher the price of gold, the more call options that will be exercised. Conversely, a lower gold spot price will reduce the demand for gold for immediate delivery. There is a major block of call options at $1,050, so expect prices to stay below that level through Wednesday night.

I have previously seen in 2009 with large Treasury debt auctions and options expiration, the price of gold was pounded down before these events, and not allowed to rise quickly until after the last Treasury auction closed on Thursday afternoon. I see no reason to expect a different pattern this week.

Late last week a story appeared that a state-owned Russian enterprise might be selling up to 45 tons of gold. If you read the details, you learn that the sale may be as small as two tons. Classic fake out.

If you want to buy gold, you can find silver and different kinds of gold in Jongno-3 dong. Some shops sell platinum and palladium. There is also a little shop in Insa-dong that sells silver Korean coins. I bought several hundred coins before he raised his prices, but he still has them. They are mostly commemorative 1988 Olympic, 1993 Expo coins and a few other kinds.

If you doubt what I post, come back in a week and mock me. But the price of gold and silver is about to explode as the US market and US$ corrects in the near future! This may be your only warning.

[Palladium]

Told you!

[UrbanStyle]

nice, will the won go up significantly in value compared to the US dollar? or will the won remain above 1000 per dollar?

[qcat79]

wow palladium!!!

you were right!! too bad i didn't have my disclosure statements already signed through my thinkorswim account before that train left the station.

i was looking at it all day yesterday in between classes. at this point in time that i'm writing this it spiked $20 in less than 24 hours. that's $2,000 on a $4,500 gold futures contract for 100oz.

[blackjack]

[qcat79]

no, i mean $2,000. every $10 move on a futures account equals ten times that. so, $1,000. it's moved $20, so that's a $2,000 profit if you put a bid in for one contract worth $4,550.

crazy innit?? that's how futures contracts work. you're going long or going short and trying to predict the movement of currencies/commodities/grains/etc by leveraging the money that you have.

inversely, if you called the wrong shot, then for every $10 move downwards, you'd lose $1,000 or any move $1 downwards, you'd lose $10 in your own money.

that's what millions of people don't understand and why they don't play the market. it isn't for the faint of heart. but if you learn the fundamentals of how markets/economies/political events/fed moves work, then you will have game. this is how a small minority of thousands of people make millions of $$$ each year.

every futures contract is priced different. i was just looking last night, that if you have the balls to trade a futures of natural gas, that's a $42,000 move per $1 that you leverage. but of course each day, natural gas only moves within a range of a few cents each day.

the market is an amazing species.

[qcat79]

oooppss. i typed too fast there.

for every $1 downwards, that's $100 of your own money. so, if you lose .10 (cents), that's a $10 move in real money.

just add 2 zeros and that's the real value of what you owe or get depending on where the market goes.

last night, KST, a lot people around the world got very rich.

[cashpiles]

I have a genuine White Gold Neck chain for sale. 20 grams.

[qcat79]

my mistake again.

that's $42,000 per $1 move for gasoline and heating oil. for natural gas it's $10,000.

if you're interested in silver, which is still quite low considering the last three weeks. we might see another spike in that metal pretty soon.

silver will put you at a $5,000 profit if it moves your way $1. but then again, silver isn't as valuable and doesn't move THAT much. currently it's around $16.50 but could easily go up to $17.50 in the next week or two. the only disadvantage is you should have enough money in your account to cover the loses you might inccur on the ride up, or at least know how buy and sell at the prime times.

[cpolian]

I would buy it but I don't understand this thread at all.

[Reggie]

Is it easy for a foreigner to get a safety deposit box? If so, how much does a small one cost per year? Also, what type of premium is there on gold in South Korea, as a percentage of the spot price?

[bassexpander]

At this point, you'd be going against Warren Buffet's advice of buying when low and selling when high.

You'd be buying high.

Personally, I looked at Gold and found it to be something you use as a safe haven, not as something to make great gains from. Especially when you go to sell and find out that you get less than market value.

[qcat79]

you should always buy low and sell high, unless you're dealing with futures, then you can do something called a "put". a "put" is when you expect the price of a certain commodity/currency/energy/grain/etc to fall in value and you agree to buy that buy that commodity at that price. then you would be predicting it to fall and then capture the profit that way.

and some more parting words:

some people have the philosophy that "slow and steady wins the race". well, do that if you believe it. i don't. what about all those 'slow and steady people' that got screwed in the market in 2001 and again in 2008?? the point is, if you have investments, you should always keep your eye on your investments and always be buying low and selling high. you should learn how to read market trends by doing your own research and know when something is reaching near the bottom, so that you can be there and buy it up before everyone else does. that's the whole idea off which the whole market is based.

and some last words for the day:

i find it funny when there are all these folks here on daves that talk about how much money they earn here at this job, there at that private. i never see anyone writing about how well they did on the market. it rarely comes up on these forums. i think it should. if you live your daily life thinking you're going to get rich being some englishee monkey for 20 years on this peninsula, you got another things coming.

my two cents (plus interest).

[adventurrre]

[ddeubel]