LEAD: The other white metal

[Guest jackdm3]

A comment from the financial site I visit all day, Marketwatch:

"My wife and I just took our annual road-trip from NYC to St. Louis (to see the family for Thanksgiving). Along the way, we stopped at a Cabella's store. (HUGE camping, hunting, fishing, outdoor stores). The parking lot had quite a few cars, more than I expected. However, inside the store there was very light buying in every department except for one. GUNS, you literally had to take a number to get someone to help you in the gun department. And most of the action was at the handgun counters. Every other department in this huge store was doing VERY light business, open registers and plenty of people to help you. But they were selling guns like crazy. In about 15 minutes of standing and watching, I must have seen 20 people buying hand guns for an average price of around $500 each.

I've been investing in physical gold but this made me realize that a LOT of people are also investing in lead."

Nothing new to all of us, but still cool.

[Guest Revelator]

I know what you mean, though I don't see ammo or precious metals as an investment as much as insurance against an uncertain future. Current market conditions notwithstanding, you're not going to make a lot of money off of them but they're sure good to have.

[Guest SUNTZU]

Anyone care to give me information on what the dollar being at 74.30 means to these United States in layman's terms?

[Guest Revelator]

I'm not sure how the dollar index works (I think it has to do with it being compared to a basket of foreign currencies) but that number is not good. Anything below 75 and folks start to get uncomfortable. And it's a big reason why gold is at almost $1200 an ounce.

[Guest Muttling]

Anyone care to give me information on what the dollar being at 74.30 means to these United States in layman's terms?

It means nothing unless you specify the currency that it's being compared to. Stegall is referring to an index which compares it to several currencies, but doesn't take into account China's manipulation of their currency value.

Edited November 26, 2009 by Muttling

[Guest HexHead]

Like Steve McQueen said... "We deal in lead, friend."

:D:D

[Guest mikedwood]

Anyone care to give me information on what the dollar being at 74.30 means to these United States in layman's terms?

In layman's terms it means stock up on lead.

[Guest SUNTZU]

It means nothing unless you tell us the currency that it's being compared to.

I just looked at the Bloomberg dollar index after reading about it on another forum.

Bloomberg.com: Personal Finance

So I don't know what its compared to, Muttling. That's why I would like an explanation.

[Guest jackdm3]

Sun, I wish I could define it in easy terms, but it ain't easy. As a daytrader, the value doesn't concern me as long as the market stays volatile, there are swings that create ranges that I can trade within. I searched many sites since your first post to help those that want to learn, and this expains it the best:

50 Factors that Affect the Value of the US Dollar | Currency Trading.net

PS: Throughout my trading days I've never known anyone to actually buy lead stocks even though there are at least 190 companies to choose from. The comment from the gentleman in the quoted text was simply referring to buying bullets for SHTF.

[Guest SUNTZU]

Sun, I wish I could define it in easy terms, but it ain't easy. As a daytrader, the value doesn't concern me as long as the market stays volatile, there are swings that create ranges that I can trade within. I searched many sites since your first post to help those that want to learn, and this expains it the best:

50 Factors that Affect the Value of the US Dollar | Currency Trading.net

PS: Throughout my trading days I've never known anyone to actually buy lead stocks even though there are at least 190 companies to choose from. The comment from the gentleman in the quoted text was simply referring to buying bullets for SHTF.

Thanks for the link and I understand what you meant about your OP in regards to lead. I'm sorry I hijacked your thread...now I'll never be able to fly again.

[Guest Revelator]

What do you trade Jack?

[Guest jackdm3]

What do you trade Jack?

I short a lot of stocks, long on blue chips, long on oil, long and short nat gas, I even short shorting ETFs if there are any in inventory at my online broker.

[Guest Revelator]

I'm going to be opening up a commodities trading account soon.

[Guest jackdm3]

A good way to simplify things.

[seez52]

I promoted buying black gold 18 months ago. You could have dumped it 10 months ago and doubled your money.

BTW, Black gold= black guns;) And they are more fun to play with.

[Guest SUNTZU]

I've noticed that a two liter is almost two dollars now. Guess that's what 75 cents on the dollar gets you.

[Guest Mugster]

You guys can go right at the dollar if you want to. I'm long DBS and a commodities index that trades as GCC, but have considered trading the dollar bullish/bearish. Available at any brokerage:

DB Commodity Services

PowerShares DB US Dollar Index Bullish & Bearish Funds

I went bearish when we crossed about 8000-8500 on the DJIA. I've been trimming down ever since. I do not like the feel of the market. Feels crazy.