Silver and Gold

J.P. Morgan or JPM is the custodian of SLV the etf and HSB bank is the custodian of the etf GLD. Both of these companies are accused of shorting silver and gold. Some are concerned about statements in the etf prospectus and the safty of the etf.  There will be a Sprott silver fund coming out with better conditions, it is recommended to sell the SLV and buy the Sprott silver fund. Some etf s are better allocated than others-- it is best for the fund to hold silver bars in their possession to back all of the etf.
    Metals and maybe markets may back off some this week which is another chance to buy into the metals markets. Stock markets should be profitable for the rest of the year. The European debt crisis is not solved.

US mint / Euro

The US mint started selling the 25thth Anniversary  silver Eagle set today for $299.95 for the 5 coin set. It completely sold out by 3:30 pm. The website went to a slow crawl. They are completely out of the 100,000 sets -- there will only be 100,000 coin sets made.  Who said there is a low silver demand? Silver is over $35 at close today. The US mint put a limit of 5 sets to be bought by any household so no one can get more than 5 , period.  Goldmart.com is offering  $400 for each unopened set and APMEX is offering $425.  They are also pre-selling them on Ebay.com for around $440 or more.
     The Euro will crash by 2016, temporarily it is fixed at least for a few days. The European Union is doomed to fall apart.

AGNC

AGNC has $1.39 per share earnings and after hours makes secondary offering. Silver is 33.55 at midnight.

Silver position limits

The CFTC  is imposing silver position limits and also short limits.  Some large holders may have to sell plus some shorts may have to buy. Greec's debt may be higher than what we previously believed so there may be a rough week for stocks. Silver is already down some, we could see a drop in price but also some volatility in both directions. REIT stocks are quiet. CIM is up 10% from a few weeks ago.

Silver could come down but invintories are falling

This link is a chart of silver inventories over the last few years; they are falling:   http://www.24hgold.com/english/interactive_chart.aspx?title=COMEX%20WAREHOUSES%20REGISTERED%20SILVER&etfcode=COMEX%20WAREHOUSES%20REGISTERED&etfcodecom=SILVER

in the short term silver could come down more but in the long term it is no way but up.

Gold legalized in Nevada

Here are the details on how it can be used; it can be diposited in a vault and a debit card can be issued against it.       <iframe width="420" height="315" src="http://www.youtube.com/embed/xYSIQR7F6SU" frameborder="0" allowfullscreen></iframe>

Also Seeking Alpha interviewed Gary Kain of AGNC and they were quite impressed. Here is a link to the article:  http://seekingalpha.com/article/298768-an-interview-with-american-capital-s-gary-kain

2012 Obama to be re-elected

I do believe this is all silver will fall. If it falls further all the physical will get bought up anyways so no one will be able to get silver anywhere near the price anyways. I think the upper 20s is as far as it will go, it has been in the mid 20s but was bid back up real soon. I think $30 is a real good price to buy silver. It will resume the upward progress after a month or so. I think stocks will follow it up. I do not believe we are re-entering another recession or double dip. 2012 will be a good year and employment will improve as well as house prices. President Obama is trying to help people refinance and other programs are in place and I think it will get him re-elected. CIM is at $2.57. Even if people refinance and the Twist program goes through CIM may not be affected by it. CIM book value is 30% higher than what it is trading at. I feel AGNC is the best REIT as far as the people running the company. I personally have diversified away from REITs but have some AGNC and $1035 worth of CIM. I sold the VPLM and I do not feel like re-entering it so CIM replaced it.

Markets are down;AGNC comments on prepayment risk

AGNC is down 6% this morning and ARR took a huge 80 cent drop yesterday from $6.80. Here is a link to what AGNC says about the risk involved:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTA3ODQzfENoaWxkSUQ9LTF8VHlwZT0z&t=1

AGNC claims they have loans that will be less impacted by prepayment risk.

Some may say to ride this out and collect the dividends but only if you will not need some of the principal investment soon. PSEC will not likely be impacted by the Twist program, in fact some say they will benefit and their share price is down less than 1% today so far( 8:46am) The days of having a portfolio full of REITs is over, they should only be kept in small portions now. 2010 was sure a nice ride.  I do think AGNC is the best run REIT.

11:55 AM 2011-10-4
RSO was down a lot today but now it is in the green!

I was thinking of selling half of my position of RSO but Indianastro has a financial astrology on its daily astrology and it said not to do stocks today.  I decided not to touch anything because in the past they were right when they made a suggestion.  It did take a drop yesterday and my astrology said it was good to trade so I did and I bought it all back at a lower price. This does not mean I suggest you check your astrology before going to the brockerage page but often I do. The markets are also in the green as well I do believe the market will recover but REITs have their problems currently. IVR and CIM are getting hit the hardest; ARR is down too. I just checked ARR, it is down $.01 on the day. Somebody got some ARR and RSO at a deep discount.

3:52 talk about a twisted day!  The following are the closing price charts for PSEC, AGNC, and RSO.

RSO

AGNC

PSEC

What is opertation Twist

The government plans to buy longer term bonds and sell short term bonds. This will drive long term yields down. AGNC makes money on long term housing loans.  The money the government raises on selling short term debt will go to purchase long term debt notes.  The bond year duration is not yet known. Here is a video that explains how the Operation Twist works or how they intend for it to work:

<iframe width="560" height="315" src="http://www.youtube.com/embed/IQJpXR5RnY4" frameborder="0" allowfullscreen></iframe>

US Debt clock; markets down

RSO is down 9% today. All REITs are down and things do not look good with pending discussion about the same changes that have been hanging over us for a while now( that I already discussed).   Here is an interesting link to a live feed to US debt. As long as this is running like this silver and gold will be good long term assetts to hold.

http://www.usdebtclock.org/