Re: playing with penny stocks
as for investing i will say stay away from stocks, they are expensive and risky, buy stuff like ETFs, and commodites,
S&P 500:
a very juicy head and shouldars seem to have formed, with the bear rally continueing this seems like a good buy and gives a good indictation where the rally may go up to before droping again:
**silver will most likly cross the $50 mark due to these reasons i belive:
**- Inflation will destory the value of the dollar, gold/silver will rise
- Highest ever number of u.s mint silver coins sold this year, (7 million)
- goverments going crazying in printing money, will make you poorer and poorer unless you hold something with real value in it. gold/silver have intrinsic value in it.
- gold is the favoirte right now, where it hit $1000 a few times and is testing resistance, once it breaks through it will fly up. this is golds biggest highs and is looking for an all time high now.
- silver is very cheap and is no where near its all time high of $50s, its a bargain at $13
- its very cheap compared to gold, the gold/silver ratio has gone past 70, which shows how cheap silver has become to gold.
- about 71 ounces of silver buys 1 ounce of gold, its out of bounds completly compared to past data and would not stay like that.
- during the great depression in 1930s the ratio hit the same amount and suddenly droped down to less then 20 ounces per gold.
- the ratio has gone high because of a craze to own gold, people never think of silver, just like during the great depression, when when gap closed down, silver flew.
- lastly gold/silver is the best hedge against inflation, with hyperinflation approaching both will fly, but i will rather buy silver as its near its lows while gold is at its highs.
if you get it right in silver this time, youll probably never have to work again, it can give you over 500% returns while gold will most likly not be more then triple of what it is and that may take a few years to happen.
all indicators are showing signs of gold going way past $1000.
the ratio is only for how many ounces of silver you need to buy one ounce of gold. both silver and gold are cosins and are banded togeher.
71:1 is a huge ratio its gone out of reach i dnt see it going higher anymore, it just doesnt seem right.
both assets will continue to rise due to a deeper and deeper crisis coming in the economy. we will have more stimulus packages and bailouts, the stock market bear rally may go on for sometime longer spurred but all the money pumped into the system by the fed, central banks will print more money to buy US treasuries for the time being keeping interests rates artificaly low and giving the illusion of stability and a recovery.