Commentary - 12/17/2012

Bubble??? Apple Inc. Vs Precious Metals

Sometimes, the only way to explain that gold/silver is not in a bubble is by examining an actual real-time bubble, which happens to be Apple Inc. at this moment. Why do I say that?

While investigating the wholesale dumping of gold/silver mining shares by Blackrock in a previous commentary (here), it seemed logical to see just where they WERE putting the biggest share of their funds. Turns out it was Apple Inc.!

Looking a little deeper, not only was Apple stock Blackrock's #1 position, but 414 other institutions had made it their #1 investment, too.
That! I would call a "bubble."

You will find an alphabetical list of these institutions, along with the total value of their investments, here (PDF).

You will find the same list, sorted by the total value of their investment, here (PDF).
In this list, I've also inserted the portfolio position and the ticker symbol of the largest precious metal investments of those companies with over a $1 billion invested in Apple.

Perhaps it's now obvious that precious metals are far from being in a bubble, at least a bubble as compared to Apple Inc.

What's now even more interesting is that by the time these SEC filings were available to the public, Apple's stock price had started to fall. As of this writing, the stock price had fallen 23.58% from 9/30/2012 to 12/14/2012. This means Blackrock, as a group, could have losses up to $7.75 billion, depending on when they unloaded their shares since the SEC filing. As a group of #1 position holders, the loss could be as high as $74.66 billion. Wow!

Perhaps holding onto physical gold and silver for long-term investment isn't such a bad idea,
because Sometimes The Dragon Wins

2012 by Edward Ulysses Cate
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