Tuesday, December 25, 2007

While We Slept..

The Central bank devils - ECB, Fed, BOE, BOJ - stuffed somebody's stocking full of cash! About $750 billion plus and that is all we know about. Between the ECB's jamming the stockings to ripping point with over 500 billion Euro, and the Fed offering to fill all the tin plates from as many as 93 separate banks, they are having a very merry scam on all of us indeed.

The gift they are getting is called Inflation for the rest of us.
That may be why the watchdogs from G-d, called Gold and Silver, bellowed and rose quite a bit. Then the holiday quiet settled in and they dropped back.

But we watch...they will roar this 2008. If Ron Paul wins they will go up 10 fold, if he loses that will take longer. but look for gold over $1000 and silver in the $20's.
Not stuffed stockings like the bankers, but much more honest at least and never going to zero.

A happy holiday to all!

Thursday, December 20, 2007

The Printers are Working 24/7

Otherwise known as central banks, the Fed, or the greatest scam artists ever are busy creating money and credit out of thin air at a rate that defies the imagination.
From a low of around 5% to the Ukraine's 50% or Zimbabwe's unmeasureable amounts, the monetary fireworks are here!

Inflation is awake and kicking and it's all of our butts in the crosshairs. Ouch...when you pay your next gas bill. Ouch..when you buy the same groceries and pay 5% more one month to the next - if you can get the food. Ouch...when your childs tuition bills come due. Ouch...when you decide to fly somewhere for vacation. Especially when you have to pass through the Gestapo TSA at the airports knowing that these nimrods work for the same government and clan that has made your ticket so expensive, taxed you to harass you and made the whole experience all but miserable.

Gold and silver are still in their resting phase, but not for long. Once the realization hits early next year that the U.S. has no intention of paying debts with anything other than worthless script, the lift off will begin in earnest. Money will attempt to run through like a river into a shot glass - the market will be overwhelmed and fortunes will be made.

More fortunes will be lost by those who did not protect themselves or who bought into the generalized myth of U.S. economic invicibility. The lessons will be taught whether the student is ready or not. Depressions lead to self-examination. Both economic kinds and the resulting spiritual kinds.

Here is hoping that everyone catches some early understanding and avoids the avalanche of crushing bad paper, safe in their financial house built of gold and silver.

Monday, December 17, 2007

Platinume Setting the Stage

For a rise in both its lesser siblings, gold and silver.
Not like they haven't tried to keep up, but the liquidity crunch and manipulation crunch have kept them sidelined.

Don't even talk about the PM stocks - they are in ICU with clergy waiting in the winds.

That's just where we want everything. They launch when the last former bull has decided to trade in his horns and dawn the bear wear. Then the rumble will begin and the move toward a $900+ gold surge and perhaps an $18 print on silver will end.

Meanwhile, the SIV's, CDO', MBS's and all manner of faux securities are getting cut-off at the knees by rating agencies and even moreso, by the market.

Couldn't happen to a nicer bunch of guys...the Investment banks the nightmared these concoctions then Ponzi schemed them onto people who probably don't speak much english and certainly not the invented tongue of the IBanks. Whatever dictionary they look up these paper promises in, the translation is always the same. Massive Loss.

Much of the financial world will be crashing around us in about 18 months.

Almost any currency but the dollar - favoring CHF, Singapore $, CAN$, even the Yen if they get some juevos, or the Euro. The ultimate currency now as always, gold and silver.
Have some, get some sleep.

Saturday, December 15, 2007

When Black is White, Up is Down

I think it was a Bloomberg quote "Dollar Strengthens against Euro because Inflation Numbers Rise"

It may as well have said, "Impoverished, Bankrupt Nations Currency Rises in Value against a Profitable Nations currency because the Bankrupt Nation Prints More Currency!"

We - as in planet earth - are so far down the rabbit hole of insanity, we are losing touch with the light. Not only is the U.N. close to imposing a worldwide carbon tax based on their blood thirst for control with environmental issues as the excuse, but we are begging China to guillotine us by raising the value of the Yuan.

Adding to the ridiculous landscape, gold and silver took a thrashing. It boils down to liquidity being crushed by the SIV's and alphabet soup products being revalued to their intrinsic worth - closer to naught, than what they bought!

A few trillion in derivative write downs can take a lot of central bank intervention to balance the books. Numbers like $49 billion at Citibank even catch their attention. That's how much they may lose from their books. Considering that amount of money could sink the PM markets, it certainly had an effect.

Pro's are smelling deflation.

Their wrong of course. We will have inflation and we will drown in it, but that comes later. Now the deflation threat captures their attention and inflation rears back to deliver a stunning blow in the first quarter of 2008. Oil will lead the leg up and gold and silver plus their base metal brethren will follow. They will run hard and fast before the early summer breather.

This mortgage bailout fiasco is equivalent to Soviet central planning and is destined to destitute many. Mostly the new buyers who will no longer qualify under the necessarily stricter standards, and the investors who are getting their hands shackled by big brother.

Welcome to the Orwellian Zone...where gold isn't money, the dollar goes up in value with each new one printed, the government thugs can rewrite any of your contracts, and the U.N. can both pollute more countries than any person or company with depleted Uranium yet impose a useless and demonic global carbon tax - on life itself - for no reason but control, and have people celebrate it.

Time to find a new planet to colonize. This one's headed for the crapper..

Wednesday, December 12, 2007

Are There any Safe Havens?

Certainly the U.S. is no longer one. Ditto Asia, Europe, or S. America. Safe means keeping what you have. Anywhere you go in the financial universe, the fiat tiger can rip you to pieces.

Ask anyone who survived the Ruble crises, or the Peso crises - Mexico or Argentina, your pick, can tell you how fast and ferociously the fiat tiger rips apart your net worth and standard of living.

While gold and silver can provide complete safety in terms of ounces owned, they cannot guarantee purchasing power and certainly not fiat currency security. They both rise and fall with the Comex waves.

Where then can someone escape the wheel of unfortune?

The answer my friend, is blowing in....
Your local superstore, hardware store, property office, sporting goods store where they sell items of the lock and load variety, and your mega-food store.

Buy the tangibles and you will have bypassed all the commissions, in/out exchanges and concerns about returns.
You will have your returns! Food to eat, products you need, items to protect all the above, and freedom from concern about what government stupidity and dishonesty will ravage your hard earned lifestyle come the new day.

Most of the times, the above advice is a recipe for disaster. Now that disaster is in our time, it is a recipe for living well.

Yes, buy gold and silver. Yes, own rare items of value and use like firearms, magazines and ammo which have provided solid returns on capital for several years now and look to do even better in the future. Yes, load up on food, storables, and items that are imported. Keep your productive, dividend paying non-financial stocks, and let the rest go back into the pool, before someone empties it.

Most importantly, I am taking my own advice in spades and could not be happier with the returns so far.

Tuesday, December 11, 2007

The Abyss is Open Wide

And the financial markets are blind, staggering drunk, with their shoes untied.

Not until the last major bank gets a life support shot from an SWF that is just barely off the terrorist watch list - as almost anyone of note is on - will we declare that we really have a problem with our financial system.

299 points down in half a session! That is the loudest Fed barf I've heard in a while.
Cramer and his minions are demanding more and the Fed gave little. Some, but not what the screaming child of financial markets demanded. Hence the tantrum.

Gold and silver fell hard on the news, not because we aren't in an inflationary environment, but because we are only in 3rd gear and throngs want the turbo's kicked in just as we have crested the hill and are nearing a downhill run with worn brakes.
Serious doesn't begin to flesh out this situation. Apparently the banks will not be able to stuff their coffers full enough with the spreads the Fed is decreeing for them - they need that extra 1/4 percent or their script may be called.

Gold and silver never get called. Not even by those that hate them, they are still useful without being a claim on anything other then themselves. The banks are not so lucky to be dead metal. Instead, they are closer to dead meat. WaMu has a life threatening stock collapse and financial flesh wound that is going to force it to seek loads of outside capital to get back to a sound gallop if even for no race at all. Real estate races aren't held any more in case they had not noticed. Citi already found its Suga Daddy SWF.

Were the derivative books settled to market - whatever remains of one, and all the Enron like accounting brought to light, not only would the Fed have to goose the money supply with more credit, but they would also have to slice the rates by closer to full point. That would hasten the dollar slide to windy ride down.

Gold and silver are digesting this news. There time is here and as soon as the money gets scared of the stock market, disappointed in the bond market, flailed in the falling emerging markets, the commodity/PM sector is going to look very tempting.
Shinny as a matter of fact.

Gold and silver will do what they always do in times of turmoil - rise beyond the occasion.

Monday, December 10, 2007

PreFlight Check for Gold and Silver

Tomorrow, Tuesday December 11, 2007 the Fed will declare a drop in interest rates of some magnitude - .25, .50 - and the crowds will gather on either side cheering or cursing.

The silver and gold markets will vote. UP!!

With 1.5% and 2% plus moves for the precious twins, they early votes are in.
Hyperinflation this way comes.

All the indicators - RSI, Bollinger, Stochastics, EMA's, are shouting to get ready for a significant 2 - 3 month move up in the PM's with silver potentially outpacing its big brother.

Be on board.

Thursday, December 6, 2007

Before They Take Your Gold and Silver, They Come For..

Your guns. Guns and the D.C. vs Heller case now coming before the SCOTUS (Supreme Court of These United States) in February with a summer ruling expected have stolen my focus temporarily from the precious metals and commodities markets.
Seems Kramer has just become inflamed with miners like Freeport because he was ranting very persuasively about how much cash flow has and how bright there prospects are with China demanding ever more moly for stainless steel. Wrong buddy. Moly hardens steel, acts as a great lubricant, wonderful for missile and aircrafts making parts light, strong and offering reduced friction. Chromium, nickel and a few others are useful elements for stainless, but moly is not primarily used in stainless. But he sounded convincing and he is a brilliant guy who deserves respect, if not also a wide path.

Guns again. They use moly. Based on the likelyhood that SCOTUS will spank the 2nd amendment into subserviance to the New World Order league of the CFR, U.N., Bilderberg, and the taser happy goons leveling every 73 year old grandmother they already have handcuffed, I think moly will not be in much demand from the civilian firearms industry. I think all he gun owners of America are about to be gaveled into criminalhood come this June.

Gold and silver will not save us then, though lead, copper, brass, and some steady nerves might buy us some time.

Talking with semi-like minded friends - and that asks a lot of their minds - has revealed a similarity of how they are accepting this potential SCOTUS ruling to how many are viewing the fall of the dollar.

Utter disbelief and decided ignorance. They do not want to consider the options for what might happen to them if they are ruled criminals by New World Order robed criminally minded judges. They swear this will all pass with nary a dent to their world.

A dollar crash already underway has brought forth a loud yawn from the Americanus Boobus. Reality has a cold and harsh lesson for those choosing the suspended animation of denial. History shows the faces of the desperate children begging from their more desperate and confused parents for food, shelter and explanations. Little do they realize that the explanations, along with the food were all there for the taking had their parents really looked and prepared.

Deciding not to look leads down the path of not preparing.

Anyone caring to analyze the U.S. fiscal situation or the political misdeeds from an historical perspective knew the dollar was doomed. Buying gold and silver back in 2001 has more than preserved our wealth - speaking as one who was informed - it has multiplied it.

Now the same application of foresight and planning leads me to a far starker conclusion.

They are coming for our guns. Then they come for us.

Plan your escape now and act on it before the end of May. All the gold and silver in the world will not open the jail cell, nor the minds of the judges.

America will be over with thunder of the SCOTUS gavel.

Wednesday, December 5, 2007

Me, Gold and Silver all Flying High

Just returned from a knowledge packed conference in Las Vegas. A room full of multi-millionaires and soon to be multi-millionaires. Good, intelligent, hard-working company of all races, creeds, colors, personalities, ages, and temperments. All of these folks make their living with business in one form or another. No healthcare, lawyers, doctors (though many Ph.D.'s in physics, CS, etc.), construction, etc. All were serial entrepreneurs, so you can imagine the energy of the audience.

Interestingly, most of them where familiar with the dollar dropping and gold and silver soaring, but had not focused on it as the opportunity of a life time that it is.

While I was flying high from the conference and physically flying high from Las Vegas back to my city home base (as opposed to my farm home base) in Atlanta, I pondered what their lack of interest meant.

It meant that the rocket isn't even on the launching pad!

People this sharp being only moderately interested in the biggest story on the planet can only mean that the penetration of the publics consciousness has only just begun the second phase.

Phase One - $235, $3.50 silver
Phase Two $640 gold, $8.00 silver
Phase Three $1000 + gold, $18 + silver, hopefully $20 This is when we will quickly rush up to dizzying heights of perhaps $5000+ gold, and $100+ silver. Then eventually the word might get out on silver being really scarce, and we could vault up to $1000 silver. That would make me and many of my advisees very happy- and wealthy.


So hang on folks, the ride has really only begun.

Tuesday, December 4, 2007

The Pause That Refreshes

As I foresaw then foretold, both of our metal guideposts to the death of the fiat world have been retrenching since the options expiry worked the legs-out-from-under trick on both gold and silver. As it has been, as it will be for the near future, the large traders will rule the roost.

The roost still moves higher though. That's what I focus on and how I explain to those who ask my advice when the perennial question of - "Should I buy now? Is it too late, or is this the best time to buy?" All variations of the "I want to make money on this purchase instantly and for the price to sail ever higher from here, never a dip below!"

My answer is always "In a year, these prices will seem cheap."

Thus far, for the most part, that answer has been correct. The last year and a half have been treading water more or less, but still with an upward bias.

Treading or consolidation phases are there to shake out the weak hands so that just before the real action begins, all the profit skimmers have fled to suppposedly greener pastures while the stalwarts hold tight and ride to the financial heavens.

Buy late and sell early can work wonders for the right minded, calculating investor. Most of us though are better off buying early, then selling before the crowd fills the segment up. Not too early, but earlier than the crowd. The crowd still has no idea what gold and silver are doing nor do they understand why they should care.

I can do nothing but express my thoughts and be detached if people chose not to listen or decide not to participate. At least my voice and thoughts are clear on the reasons why gold and silver are destined for the pinnacle of power in the financial world once again. So long as those I try to reach have their reasons for not participating in this tectonic shift, may there plans work well for them.

Reviewing the top 3 reasons for owning gold:

1. It always holds some value, never reaching zero like every other fiat currency.
2. It is no ones debt instrument unlike all fiat currencies which are debt units.
3. It is a worldwide, redeemable, transaction unit, universal currency in all places at all times throughout history. Even when it has been outlawed, it was recognized as having value.

Reviewing the top 3 reasons for owning silver:

1. It always holds some value, never reaching zero like every other fiat currency.
2. It is no ones debt instrument like all fiat currencies.
3. It is historically undervalued and very likely to increase in inflation adjusted value much faster than most commodities.

With these slighly different considerations in mind for the dynamic duo, there is timing strategy that makes the most of these differences.

Like a rhymning song, the strategy goes:

Little bit of gold, heavy on the silver
Ride silver high, sell out for gold
Ride gold higher still.

This pattern seeks the optimal value increase from the rhythm of hyperinflation, the stagflation, then deflation. The timing is not exact, just close is all you need to be. Silver will at some point drop relative to gold. Gold will end up supreme in the currency heap. Silver will be highly valued, but not have the upside.

We are years away from needed to employ this strategy, but when the time comes, those who do ride these ways will have orders of magnitude higher returns.

Let the waves roll on!

Thursday, November 29, 2007

The Options Day Smash Comes Through - Again

These predictable trends are things of beauty. The options expire = the price gets smashed. Gold down below $800, silver with one nostril above the $14.00 line and holding.

When this contract driven train wreck is dragged away next week, I think the fire works will begin to the upside in a large way.

Larry, my local trusted coin dealer, could barely spare 5 minutes to talk with me because he so busy filling orders for physical gold and silver. Eagles and maple leafs of all metals are hard to come by - extremely hard. With the U.S. Mint essentially out of the PM business for the moment, those prices are only headed North.

Terminal stupidity and dishonesty have so gripped the government and the populace, that only the few who are grabbing the last remains of gold and silver have much hope of escaping with much of anything. The rest will be scrapping buy on whatever the government or gangs leave for them - and that won't be much.

The next President, if it is anyone but Dr. Ron Paul, will finalize the demolition of These United States. Bill of Rights, soveriegnty, financial independence, will all be done away with under Fuhrer Hitllary or any of the other crooks. A grim time indeed.

Have to pack for my trip. More later....Back up the truck and get another truck and back it up too!

Wednesday, November 28, 2007

The Markets Agreed with My Predictions on Gold And Silver

They both took a heavy blow, just in time for Comex options expiration. Such a beautiful thing to witness the manipulation as it weakens more and more.

Though the crooks have been able to lighten up a bit from their outsized short position, they are not even close to being in the clear. That would require heading to the $12.80 level or there abouts in Silver and probably $728 in Gold. I don't see that happening. What I do see is a rocket rise into the new year.

That's what I want, so perhaps my vision is clouded.

Off to my farm for a quick check in and tool drop off before I head to a conference in Las Vegas.

Till the next prediction...

Tuesday, November 27, 2007

Breather Time While the Markets Implode

Just a few moments ago, a smartly dressed, confident sounding woman with last name of Bennett running a fund by that name sounded almost exactly like yours truly on CNBC.

The Yen carry trade is the thing to watch.
Commodities are the place to be - along with fixed income (this part I disagree with).
The U.S. is imploding from every angle, and gaining speed.

Both Gold and Silver are tucking tails in and running this morning - down. Strange considering the upside signal from the futures, but in a market with declining liquidity, perhaps not so strange.

With the Yen carry trade unwinding with the rise in the Yen's relative value, along with the Europeans pounding the table on the Yuan revaluation, we have all the makings of a dollar route. The stock market may just take the bait and route along side the dollar as everybody loves to kick a market or a nation when it is down.

While I never like to see gold and silver head south, I do like a bargain!
There are bargains a'plenty in the junior mining stocks and they will seemingly become more inexpensive as they follow the tide to lower lows. Rough business that mining world is. The only time these guys - and most of them are guys - get to clean up is when they are begging Wall Street to recognize they exist, and then they are invited to the toniest clubs because the Streeter's never quite want those around who are doing real work. Mining is as real as work gets.

So we will patiently wait while the market recorrects - even those sectors where the correction lies to the upside, not the downside - taking everything lower. Possibly in a month or two, we can sweep in a grab handful of silver, gold, and the stocks that produce them.

Meanwhile, get yourself ready for the economic earthquake of all time.
With Citi begging worldwide for some stay-afloat funding and getting it from Abu Dhabi, this signals the end of the U.S. financial clout post haste.
Hopefully we will be cleansed of our sinners, leaving only saints. But that's not the way to bet...
Gold and silver care less who sins or claims to be a saint. They are 100% guaranteed either way. Kinda makes you sleep better, yes?

Saturday, November 24, 2007

What Thin Trading Days Tell Us About Silver and Gold

First - I hope a Happy Holiday celebration was had by all. You might want to check out the real story of Thanksgiving on www.dailypaul.com It's a lesson in the power of real capitalism for putting food on the table versus the starvation caused by socialism back in the 1620's.

That they want to rocket higher!

The crooks are home getting even fatter, and the real market plays out at least a bit.

Today, gold launched around $20 and silver stepped up around $0.25. These numbers represent a 2.37% and 1.65% increases respectively. Gold outscaling silver now means that big money was moving the market, money from foreigners possibly, or money that was seeking safety more than appreciation as silver holds the fireworks excitement on the upside, but gold is the bedrock of the precious metals market because of it monetary role. Silver has a monetary role to play, and that will later, if it comes at all.

Opposite movements that we see in gold and silver also play out often in the main stock market indices - for more or less the same reason.

Stocks head down when the Plunge Protection Team takes a break. Sometimes aggressively down.

The message I get is that trends will pull the various markets dictated from the wise ones focused on their portfolios during the slow trading days.
During the rush days, with huge trading volume, the masses are more involved as are the big banks and the criminal manipulators from the government or their henchmen.

Ways to trade this:
Catch a quick price rise on the slow days in the metal market.
Catch a quick price drop for your short sales on the major stock markets.

Richard Russell, the 80 year old analyst who has seen it all and more importantly - foreseen it all - says that he has never witnessed a more disjointed stock market.
Both the Dow transports and industrials registered Dow Theory bear signals, but the S&P 500 and Wilshire have not confirmed this.
Manipulation does not even explain it. A sick financial patient - the U.S. - explains it.

Make the most of your resources and invest in - hard metal resources.

Thursday, November 22, 2007

Gold and Silver Stocks or Just the Metal?

The answer depends on whether or not you want to make money fast and lose it fast, or make it slowly, but have almost no overall loses. Gold and silver stocks will go up and down fast. The metals rise and fall, but the cost of selling them is so prohibitive, that your best bet is simply to buy and hold through all the ups and downs.

Then when the metals hit your price or you decide you have a better place to rest your wealth, then sell off part of your holdings. Since in my opinion both gold and silver have numbers like $5000 and $200 ahead in the not to distant future, I sell the stocks with the market trends and bank on the metals to keep my coffers full.

The play looks like this.

Convert your FRN's - the name of the paper script coming out of the communist manifesto bank known widely as the Federal Reserve - into gold and silver.
25% of your desired amount of your wealth into gold, and 75% into silver.
Watch the gold to silver ratio as it bounces from as high as 60 (gold:silver), down to as low as 16 or even lower. Now the ratio stands just over 55, so silver has MUCH more upside than gold....

until gold takes over again for a variety of reasons.

Silver may lurch towards $20+ in the next 2-3 months, probably taking the ratio to around 48-50. That would put gold comfortably near $1000.00 Possibly gold will not move as much, but silver is poised.

Both gold and silver will rise beyond levels that we can imagine now, all the while the dollar and the health of the U.S., from political to economic to social measurements will all decline rapidly. Wealth amidst sorrow may be one way to look at it. Prices will rise for everything, but the precious metals will keep our heads well above water, perhaps even increasing our wealth by life changing amounts.

Then silver will drop from popularity and the ratio will spike in golds favor. This is the time to exchange your silver for gold. Among the many reasons to do this - portability of gold as you might want to get out of the land of totalitarian government, massive crime, starvation, crushing taxes, travel restrictions, and gangs. Like Bond with his 50 gold sovereigns, we all may need to parachute into a safer, freer land. Silver will be too heavy, and gold will be more easily converted, even though by then it will be so precious that you might be able to buy a very respectable home with only 20 of your soveriegns and use the other ones to support your staff of 19 year old wives!


Both gold and silver will be your providers, protectors, escorts, tickets to freedom, and insurance against the nearing fiat currency collapse. Knowing when to lean on silver and when to switch to golds monetary shoulders could separate those that make it through and those that thrive on the way to owning far more after the collapse than before.


Pick your security guards carefully..and they will serve faithfully.

Tuesday, November 20, 2007

Get Your Guard Up!

With the Liberty Dollar Nazi like assault, the dollar collapse promoted as good for us, drought in much of the country and key areas in the world - not having anything to do with the global warming dictatorship, but a consequence of the coming ice age - 1. Food

2. Water

3. Means of self defense - especially as the Supreme Court will rule, and possibly dismiss, on the second amendment - the right to keep firearms.

4. Transportation and fuel.

5. Health support.

6. Communication and transactional plans.

7. Friends and family who are coordinated.

8. Resources outside the grasp of the U.S. criminal authorities.

9. Gold

10. Silver

Precious metals or jewelry given as bribes by the Jews escaping the Nazi guards worked then and they may well work again as the dollar loses all value and the ignoramus population gives away all liberties.

Food shortages are popping up everywhere and will get worse. Farmland in the Southeast has become dry and barren with one of the deepest droughts ever. Perhaps it is the U.S. government HAARP program, or chemtrails, or simply a cycle. No matter the cause, the effect has crushed food stocks and economic activity in a formerly robust section of the U.S. Agri-exports will be down and income with it.

The dollar has more reasons to collapse than to stand up and the Fed, with cheering by all the political crooks, is kicking the crutches out from the flailing currency.
Already our foreign task masters have spoken. They are issuing a verdict of death.

The dollar will be destroyed and our standard of living with it. No quick recovery. No rescue. No soft landing. More like a skeleton being crushed.

Gold and silver may go supernova, but who cares when the penalty for being intelligent and saving yourself is being tasered, shot, jailed, fined and accused of being an economic terrorist. It sounds surreal. The proof lies fresh in history books under FDR when he jailed those with gold.

The government has no brakes being put on it by the people or laws, or adherence to the constitution. Arms may have an impact but no one wants the conflict, because all parties lose, most of all the ideal of the U.S.

Meanwhile, back on the commodities front, as predicted, there has been a seesawing of prices as we cruise into options expiration on 11/27. Once past that time I think we will begin to see a rocket launch of the metals with the real flames trailing silver.
Silver has held up especially well with quick 43 cent bounces back from plunges.

5 cent moves used to impressive. Now we are only impressed once we see over 50 cents, and soon we will have $1.00 up days. Yes, soon to follow will be a $1.00 down day, but those will be gifts as we begin to balance the currency torrent, with the drip of metal supply.

Silver - get it while you can.
Gold - get some of it while you can afford it.

Monday, November 19, 2007

Where There are Salesmen, There Will Be Sales of Silver and Gold

When I come to method of making an accurate tally of how many gold and silver dealers there are, that will be the best single indicator of the rise in gold and silver. Calls or searches for gold and silver are a close proxy, but not as accurate as knowing how many people are pushing the investments.

The federal government has become a full fledge terror force by attacking the Liberty Services group that provides the Liberty Dollar and stealing everything. We have gone from words to weapons in this battle for financial and speech freedom.

All the more reason to own gold and silver.

Saturday, November 17, 2007

Ho Hum until Options Expire

Nov. 27 or so, i will have more to comment about. Until then, all we have is an exchange market, where the tug from both sides long and short does not move the market much, until the shorts yank especially hard and their is a brief downward flush of their underwater contracts. Then the market will resume with a rush, their upward trend.

The end of the year and the first quarter should be profitable and thrilling.

Gold and silver blasting off soon..

Thursday, November 15, 2007

TIC data and the Road Runner Off a Cliff

Road Runner always suspended in mid-air ever time he went off a cliff ..BEEP BEEP!
Then he plunged..Yeeeeeoooooooo! He always made it to the next scene, but the dollar may not.

The Treasury International Capital flow - TIC data - are shouting that we have lost dollar support. It's flat lined from $64 billion to -$160 billion. Game over.
Gold and silver are going to be life boats with one major proviso.

The U.S. government goon squad will go after anyone remotely challenging the dollar hegemony as amply demonstrated today with the raiding of the well known Liberty Dollar offices and safe.

No one and nothing is safe from the government. They may just taser you which of course will not kill you, unless you happen to be killed by it like so many have, then ooops. We are sorry. Payed administrative leave for the 19 thug officers that pounded you took your money and your life, then no findings of wrong doing. Story has become old hat already. The police and the government are the greatest danger to U.S. citizens. Period.

Gold and silver stand in the way of tyranny, always have. The government and the banks want to have their way with you and your money, so gold and silver have to squashed, along with those who purvey it and own it.

This is getting ugly.

All we want is constitutional government, money, and to be left alone. Ron Paul supporters are now becoming terrorists according to the news operatives. They are actually calling anyone who supports Ron Paul a threat?!!! That of course means anyone calling for honest money is a threat.

Get ready or get out. The U.S. is screwed. Hate to be the one to tell you, but the facts are shouting too loudly, and the screams from dead taser victims are drowing out the psyop from the TV.

Loved the little freedom we had while it lasted..oh well.

Wednesday, November 14, 2007

Volatility Shows Manipulation in Gold and Silver

Debates rage around the net and in conferences that focus on investments and government policy as to whether or not the precious metals markets - specifically gold and silver futures and options traded on the Comex - are manipulated by a few deep pocketed and politically connected banks or agents. Without having to dig too much, the answer is boldly apparent.

Extreme volatility almost defines that manipulation exists in silver and gold. Not necessarily an indicator in stocks or bonds where the company supporting the security could have significant news that impacts the price either up or down, volatility in gold and silver ipso facto shows manipulation exercised by a few parties acting together agains the masses.

Gold and silver production neither jumps nor decreases dramatically day to day. Neither does demand for gold and silver jump dramatically day to day. While some days have more or less buying or selling when there is no manipulative force at play, the changes are moderate and trending up or down slowly in general.
Only when a central bank drops their gold inventory or a massive order comes through can the price escalate or drop dramatically. The nature of a mined commodity is that huge finds or sources are rare, demand tends to be steady, inventories are trackable, weather has minor and short term impacts, and baring the heavy weight of illegally concentrated short selling, a mined commodities price will increase with the level of fiat currency printed with a drag time, balanced by fundamentals of supply and demand.

So we could expect gold and silver to only move moderately in price over time. Instead, what we have are dramatic price swings like 5% up or down from one day to another!! Ask yourselves-

1. Are new mines being discovered that will bring demand online right away?
2. Is demand dropping off equivalently that day or is anticipated that day?
3. Did a mass of market participants randomly decide to liquidate their positions that day?

The answer to all the questions in case you are wondering...is "NO." Nothing changed fundamentally in the gold and silver market.

The heavy handed, illegal manipulation by a few deep pocketed, politically connected groups. Naming names - and this is all Ted Butler's research not mine - would be AIG or Scottia Mocatta, plus Goldman, and the other heavy hitters in the Comex.

This is all the more reason to get into this market because the manipulation always ends at some point. Then the prices rocket for the shorted commodity.

Until then, watch the volatility with disdain and know the origin of it. Pure illegality, pure manipulation, and pure corruption.

Invest with wisdom and watch the manipulation make you rich!

Monday, November 12, 2007

Washout Here for Silver and Gold

As predicted, the shorts overran the longs and a the $.75 drop in Silver was a major retracement of the up lunge. Gold has yet to fall back as far equivalently, but the prospect remains. Liquidity is the main story.

Japan's Yen supplies the hot air lifting the markets - almost any market - to the point that the shorts can load up and the Yen gets unweighted and counters the trend.

With the Yen trading at an 18 month high relative to the USD, the coffers have to move in reverse. Yen gets repatriated, other markets get sold.

When financials lead an uptick - including Citi of the financial hospice category - then this is a suckers uptrend, to be shorted with gusto. The other side of the bend is taking longs on the current downdraft in PM's and related resource stocks.

Anyone going long from here with either core silver or gold options, warrants on mining stocks, or ETF's will find themselves wealthier by a healthy measure come this time next year. Not only do I believe it, but I am following my own advice. These are precisely the moments where you discover your metal - character of strength and decision.


While everyone else runs for the supposed safety of U.S. script or that of any other government for that matter, the wise ones, the Ron Paul supporters, know that the only real safety now involves tangibles - gold and silver foremost.

I am even lightening up on my PM stocks, before I load up heavy in the next upleg.

The lesson is that liquidity is the driver, not a rush into gold and silver. We need liquidity to soft it influence, fear to reassert, and gold and silver to become NEWS.

My theory is - and I will document it soon - that the number of dealers will determine the strength of this gold and silver bull market. If enough avenues open up, then investors will march! More salesmen and women will get the message out to the younger, less informed populace and the rush will begin.

Be the one leading the rush, not the one wondering where it is going.

Friday, November 9, 2007

Separation from the Markets by Gold and Silver

While the Dow and S&P were putting Olympian swan dives, both gold and silver and their related equities held steady. Not rising, not falling much, simply assuring their holders of A RETURN of capital - whether or not appreciated.

Unlike the markets that have been treading water and finally have begun gasping and going under, gold and silver are above the water and returning 30% plus annually, depending on how you are allocated. My own stock picks have included 10 bangers and a few 10% under performers but no big money losers in the resource sector.

How could you go wrong with gold and silver now?

As Buffet has often said - and I am no fan of mr. new world order - pick the right sector and getting great results comes easily.

The right sectors have been and will be:
Energy
PM's
metals
agriculture
water
alternative energy
resource based currencies
foreign real estate


The U.S. is a short - top to bottom, inside out - unless Ron Paul takes the white house. And I do mean takes the white house because it will not be given to him.

Ride this gold and silver bull for the profits of a lifetime, founded in honesty, and fear of man-made promises from those who have shown dishonesty at their core.

Gold and silver money is the way it was always supposed to be and will be again.

Be early, be rich. Be late, be irate.

Thursday, November 8, 2007

Gold and Silver more important than Water?

Much of the Southeastern United States has been drought stricken for over 2 years. Lakes are 15 feet below normal and heading down the drain fast. Watering bans in each county and city presage the complete climax of a dry state, a dry region, and thirsty populations.

While chatting with my good friend and fellow Libertarian, Chris B., I told him I was more concerned about water supply than the dollar crashing and economic issues. Once aboard the gold and silver lifeboat, they do the rowing to safety for you. Water on the other hand, has a more cloudy solution. Either we get a torrential rain, or go dry in 45 days.

4.5 million people without water. That would be a calamity of epic proportions and it is here and in living color- all brown.

Whether it was a political issue with the states fighting the Army Core of Engineers, or poor planning is just so much idle speculation. WE ARE OUT OF LIFE GIVING WATER.

My possible solutions include:
Moving
Using dehydrators with filters
Setting up catchment systems for a living.
Hoarding a huge supply of water - as I used to do in my hot tub. 360 gallons will hold you for a while.


Now that I look at all the ways to solve the problem, I realize that gold and silver is more important than water in that they can be used to get the equipment and the labor and the engineering talent to get the system working and providing the H20.
Should you find a man dying of thirst, I am certain he would part with much of his gold and silver fortune for the water. That is so rare an event that it only makes a parable, not a strategy.

With gold and silver, you have power in reserve. You have stored time and resources that can meld into almost all the functions you might need to overcome adversity, as in this case, such as drought. Or food shortages. Or medical needs.

At all times, in all places, gold and silver function as money. Perhaps not with the government, but then a criminals behavior is not worth emulating anyway.

So gold and silver are more important than water.

That's more than important enough for me to get some more.

Short-term outlook:
I expect a pullback/consolidation before we smash higher. Could be the options expiration date on 11/27 where we see a collapse in price, but that will be short lived. All bets are off if we attack anybody, including Iran.

Super-models are leading the exit from the smoking theatre where everyone watches the great Epic Dollar Swan Dive Triple Feature. Dumb blonds - NOT!

To all - a gold and silver day.

Wednesday, November 7, 2007

Commercial Signal Failure in Silver or Gold?

The vaunted commercial signal failure refers to the market functions locking up in the Crimex - known in the ill-informed circles as the Comex. The commercials are heavily short and in serious pain while attempting to force their usual sell off. Some serious money is taking the other side of the bet, with the possibility of SWF's or Sovereign Wealth Funds from oil producing or surplus producing countries like the BRIC - Brazil, Russia, India, and China. Add to that Turkey and the middle-eastern countries and all the furnaces are stoked for more upside.

While they will eventually get a breather and some downside pullbacks, the momentum is so high and the light shining on the banks so intense that they will eventually have to clear out their shorts at higher prices. A small loss is better than a big one, while all loses hurt.

Speaking of loss - I have to confess to miss timing my options trade with Silver. I was right on about the call I purchased 270 or so days ago while Silver was at $13. A $15.75 call for November seemed a long shot and was priced accordingly. I bit. I held on and saw its time value go to nothing at the beginning of this month. Silver trades in the back rooms - not electronically. So getting quotes is taking a step back in time to making a phone call to Guido and getting the bid/ask spread for the option. Stinks to high heaven. Fortunately, I have made money with my options in the past and was willing to put up with the tiny silver market shennanigans.
This time I folded my tent to early, because I could have tripled my investment as silver has tapped my target and then some. The money lost was small. The lesson learned was large.

When you have taken most of your hit already on an investment, and their is an outside chance of riding a current favorable trend into profit - as there definitely was with Silver going higher weekly - be bold and risk the entire option for the potential profit.

I was not bold, I was defensive in trying to save the last remaining value in the option.

My only money losing option trade. Well, more profitable ones will follow.

Silver at $25 next year? I think so, as Ron Paul talks about silver and gold and ads appear everywhere. Then we are cooking with gas.

Tuesday, November 6, 2007

LIFT OFF FOR THE GOLD AND SILVER ROCKET! AND 10 Fallouts from All Candidates except Ron Paul

You read it here...the metals would rest, then they would launch. They did exactly that. Silver is heading for $25 an ounce so there is time before it rests. Gold will take a bigger breather. The ratio is already down to 53 from 55 and heading towards 40 while gold hits around 850 or $900. That leaves us over $20 per ounce. Sweet times indeed.

Now for some political points about what happens if anyone but Ron Paul is elected:


1. The SPP - Security Peace and Prosperity Pact will go into full force ending the sovereignty of the U.S. - including ending our constitution and bill of rights. Google it - see what Lou Dobbs of CNN has said about it.

2. The NAFTA super-highway tollway has already begun and will strangle all the links around the U.S. restricting movements with $65 tolls (Austin, TX to Dallas, TX - a 3 hour drive!), with all the tollways owned by companies in Spain, Australia, China- holding us hostage. Already being built in Austin and coming here.

3. A control grid with video cameras everywhere focused on faces and walks that can identify anyone instantly. Notice the cameras pointing at you in intersections, not at your license plates. Already in place in London, NYC, Chicago, Atlanta is finishing it now. Look up the Pentagon control grid plans or the domestic terrorism legislation controlling all media and calling for a police state control grid.

4. Socialized medicine enforced - including compulsory vaccinations, compulsory yearly inspections, and no vitamins or minerals sold without prescription. Check the Codex Alimentarian legislation (google this - unbelievable the restrictions!) and Hillary's plan - it's in black and white.

5. Destruction of the U.S. dollar and the start of the Amero - forcibly merging without approval Canada, the U.S., and Mexico into one worthless paper currency. Read what the Council on Foreign relations along with the SPP legislation and Lou Dobbs on CNN all have to say about it. Happening in broad daylight.

6. National ID act where we are required to present "papers" at check points including crossing state lines. Every communist and totalitarian government does the same thing. Lookup National ID act. See how the federal government will have to approve you for any and all jobs you apply for.

7. Destruction of the 2nd Amendment - the right to self-defense and to keep and bear arms. Your opinions may vary on this. No one can argue the facts of an unarmed populace is the first step to a complete police state - including Japan where they have a 99% conviction rate for anyone accused of a crime (accused = guilty = jail), or England where crime has soared with the complete gun ban and anyone who fights back against a burglar is arrested - including 75 year old women. Many reports of this - ixquick search for England victim punishment or crime increase.

8. Ending of Internet freedoms - multiple pieces of legislation attacking this including the domestic terrorism bills. Ixquick it and you will see.

9. Federal property tax for "Carbon and environmental rescue" for anybody with a certain size house or property value. Forgetting the bogus non-science behind the carbon tax issues, anyone who taxes your property owns it. It is a government control grab, nothing whatever to do with the environment. Even with a payed off mortgage, they take your property if you do not pay your tax.

10. All waterways - including the creek behind your house, or that pond in your golf course - go to the United Nations control. This is already in the works with the Law of the Seas treaty. Any sailing you want to do, or cruises will require you to comply with the United Nations. If you are a fan of the U.N. then you have little hope.

You can have only three opinions about these illegal acts coming our way:

Should you decide that you like the above legislation and totalitarian control already here and getting more invasive, may your slave chains weigh lightly on you.
Should you not care about the above legislation and totalitarian control already here and getting more invasive, may your slave chains weigh lightly on you.
Should you find the above legislation and totalitarian control here and planned completely unacceptable - then you must support RON PAUL with your time, your funds, your friends, and your spirit.

All the other candidates will bring all of these to pass, no matter what they may claim. Hillary, Obama, Thompson, McCain, Romney, Edwards, Guiliani, etc. will all march these totalitarian and illegal acts to your front door.

You are now fully awake. Welcome to the battle.
Let's March!

Monday, November 5, 2007

The Markets are Whispering - Can You Hear Them?

As gold rises and silver falls or treads water, the markets are whispering a telling message.
Stagflation this way comes. That tart cocktail of rising produces and reduced economic activity with recession or even depression level statistics while prices rise in many of the key areas of food, energy, travel, health care, education, insurance and even in the normally docile imported electronics, and clothing sectors.


Silver finds its way into multiple industrial goods and responds to industrial slowdowns - anticipated or real. Gold is primarily a monetary metal and will soar with inflation expectations and/or fear. Both will fall in general with a declining belief in catastrophic occurrences, or a rise in belief of business as usual.

So we are headed towards catastrophes, have lost most of our belief in business as usual, and expect higher costs with lower industrial or economic activity. Pretty much spot on with what is really happening day to day in the world.

The banks are imploding - faster the better for the health of the world and each of us.
Governments are distrusted corner to corner, their totalitarian hands have grabbed our collective throats from the marble foyers of state houses across the globe.

The metals with 5000 years of wisdom are whispering. Hoarse with age, powerful with insight. Heed their wisdom and prosper. Ignore them and perish.

Silver's Plan to Reach Parity with Gold in 5 years

By now many of us would have expected Silver to have ridden along with gold to an equivalent point in it's historic cycle, such as the $800 spike in Gold taking silver to around $40 in the 1980 Hunt brother's rush. Unfortunately, we are no where near that level and not threatening it anytime soon?

Why?
Supply and demand, and heavy shorting are the culprits. When those limits are cleared, silver will soar faster then gold, and more forcefully from a volume standpoint. We are only going to see that when there is a pervasive acknowledgement that Silver is more rare than gold. When that happens, we might even look for parity, making anyone with a few silver bars and instant millionaire, in almost any currency.

Take a 500 oz grub steak of silver at current prices, you have a mere $7000 stashed away. Enough for a months rent in Manhattans less tony areas. But if we went to parity between gold and silver, then that same 500 ounces would give us enough to buy a third of the condo, or more as the real estate market sinks. With gold at $1500 per ounce, probably a 2009 occurrence, we will be on our way to a millionaire in uninflated dollars. Silver wealth building abilities will be once in a lifetime for those in now or earlier.

Dreaming is easy. Profitably calling trends is tough. This one will only come to pass when we see advertisements and general acknowledgement of the value of Silver.
Militarily, Silver might even be classified as a strategic commodity, then all bets are off. It probably already is classified, but no policies are enforcing it and forcing the market higher. Once we see some more shortness in the supply end, where first 1000 oz. bars get scarce, then down the line to 100 oz, and finally coins - probably a 2008 or 2009 phenomenon, then we will be close to awareness of the rarity of silver.

Awareness comes long before the metal will catch up with the reality pricewise. With a penetration of the old highs at $50, when there is still a deficit, perhaps because of nationalized mines, more technologies in the solar arena or militarily, or bioscience needs, then we will see the dramatic launch just when people are think we are in a commodity bubble, Silver will soar in all currencies.

For those of us with many thousands of ounces, we will enjoy a wealth kicker we could not of even dreamed of . Hopefully, dear reader, you believe some of what you read and invest accordingly.

Thursday, November 1, 2007

Believe the Words on Gold and Silver

Predicted yesterday here, happened today. There was a major downdraft of both gold and silver, just anticipated. The next updraft is also predicted. The timing is less exact but not far off.

One concern is the overall liquidity driven nature of the up and downturn of the metals along with the stock markets. Not what we want, but works for the upside. Gold, silver and the related stocks must decouple from the overall stock market, not travel in the same wagon.

Gold and silver are fundamentally competitors to the stock market. In the zero sum game with metals, there will be a pull of the funds from the stock markets to the metals complex and the related equities. Unfortunately, most of that has yet to occur.

My expectation is that gold will have to run past $800 and the dollar will have to blow through 70 before people notice. Not sure, but a major spanking will have to occur.

Then gold and silver will be the story. We are not far off. Early next year with an attack on Iran. There are almost no more horrific financial stories out there to shake the dollar tree, they have already happened. The next leg down will be geopolitical and it will probably be Iran related.

Be in the metals before then or be prepared to learn how to beg.

Wednesday, October 31, 2007

Mission Control - Gold Silver Rocket Countdown Begins!

We have tapped $800 for Gold and Silver is eyeing $15. The momentum is almost too much for them to be pushed down. Those forces short at $660 - and they are consolidated, conspiratorial forces - are bleeding $14,000 per contract, multiplied by 50,000 short or more and you have enough dead cargo to sink a ship even as large as Scottia Mocatta or any number of fool hardy shorters, along with GS, JPM, Chase, and the grandfather of silver shorts, AIG.

Merrill is in ICU and is about to get plenty of company. No matter how much script the bullion banks throw at the market to short gold and silver into the dust, the power levers now point to the Asian shores and the oil revenue countries can launch a gold and silver salvo that could oust more chairman from their posts, should their trading desks be caught net short while the craft Precious Metals launches heaven bound!

There will be some breathing room now after the $17.00 rise in gold and the $.25 jump in Silver

The ratio is now at 54.9 No movement there and a disappointment for all silver bugs, like me.

The grand man of all things silver, Ted Butler, has stoked the flames with the thought that there is nothing behind the Silver ETF - potentially. I think there are comex delivery slips and not much else. Maybe some other paper claims, but certainly they could not move silver at the rate they would need to to keep the silver behind the paper, instead of the paper far ahead of the silver.

My price target now for silver is a jump up to $15, then a downward run, before a massive run past it, possibly to $18.00

Now is the time to pick up some hot stocks - EDV is a raging great buy, as are Tyhee, ECU, Pediment, Gold Resource, not to mention Pinetree Capital. Rarely do you hear mining mentioned on Bloomberg and that is exactly as I want it at this time in the scheme of things.

Before you let the best opportunity for a quick fortune get away - jump on this train anyway you can. $10 per day if that's all you have.

Then buy yourself some guns and lots of ammo - because you are going to need it when the dollar swan dives, oil blows through $200, and food disappears from the shelves.
Welcome to Argentina or El Salvador in your hometown!!
Government gets even more abusive, crime goes ballistic, and your daily survival becomes questionable. That's where we are headed.

I would love to be wrong, but I am sadly accurate.
If I am wrong, then you will have merely made money and bought firearms inexpensively. If I am right, you will have money when most do not, and you will have a means of protecting yourself from them.

In Liberty...

Tuesday, October 30, 2007

So Far Gold and Silver are Moving Just Fine

They both rose, perhaps a bit too aggressively, and are now settling down for the wait until after the FOMC meeting. .25 or a stand still. Can't really see another .5 decrease happening but then again the last one shocked most analysts.

My expected path for gold and silver is a breather/mild sell off, then a rocket ride higher with gold taking out $840 and silver blowing past $15.00

More about Silver:

I think Silver has the power behind it to hit $20 by early next year. Silver rose about
$.90 over a one week period. That shows incredible strength and money behind the move. After some breathing time, the same funds and more have firepower for more upside. Especially considering the pronounced down trend with the dollar.
From $15 to $20 is a 33% increase and a huge move for most categories, except silver. On a normal pattern, Silver can outrun gold 2:1. A 20% move in gold can easily see a 40% move in silver.

Gold to silver sits at a 55:1 ratio. It has recently traded at 48:1 a few years ago when silver was trotting. Getting to a less extreme ration of 50:1 puts Silver at $15.66 with gold at $783. When gold rushes up to $840, Silver would be at $16.80.
That is a short 20% leap to the $20 mark. If silver breaks down below a 50:1 ratio and starts towards its normal ratio of about 16:1, at the very least, we would see our long forgotten $50 silver at the bat of an eye.

What could create this neo-Huntian demand? War and an awakening public.

The latter is a doubtful and mercurial sort, prone to show up late if at all.
The former is as sure as a winter chill in January, and shows up early every time, habitually overstaying its unwelcome.
Every gear and bearing of war demand Silver for the greatest killing power.
It should be devoted to friendly, mutually beneficial exchange - money. Instead, Silver has been conscripted to sink ships, plans, lives, and dreams.

Get some silver and use it the right way. Make some money with it.

Friday, October 26, 2007

Upside Potential Before Gold and Silver Breathe

With the Fed Heads meeting in a few days and possibly continuing their rate decreases, gold and silver have all the gas they need for a run into the recent record books. That's how my options are betting.

Gold tags $850 or near before we swish the bubbly on '07, and Silver claws over $15. Something has spring loaded silver, witness todays 44 cent spaching before cooler shorts took over and spanked silver for a 20 cent rise. As I pen this, silver is way over $14 and looking for grip at the technical breakout level or $14.25. If it gets beyond that soon, $15 looks good for the end of the year. I wanted $18 but I am not sure of that before we greet '08. That will be a spellbinding, pocket filling good year for the sane gold and silver investors. Everyone who isn't invested therein, is insane or simply ignorantly charitable with there money.

To a stellar cast off for Gold and Silver - Ride on!!

Thursday, October 25, 2007

Gold and Silver Sling Shot

IT nearly happened. Silver nearly had a $.50 day up! Gold teetered up and down, and came in respectably, but it's paler sister rocketed up over $14 and looked like she had plenty more steam. Then the PTB played smack down and she fell hard.

Not below any technical damaging numbers, but certainly not newsworthy numbers either. Once silver passes $14.25 for a few days, then we will see $15 I believe in short order. The supply is tight, the fiat currency is loose, and the climate is ripe with revulsion of the abuse of the worlds purported reserve currency.

Run for the hills is screaming inside everyone's head who has a clue what is heading our way and yet we all - myself included - keep the cool exterior and slowly leak dollars into other assets. Almost anything - except that tied to bonds, SIV's, CDO, MBS's or a financial institution is worth more than the dollars.

Next article I will discuss the real price of gold and silver. It isn't as simple to find as you think. The price gaps are large and growing and profitable if you know how to take advantage of them.

Have to run and support Ron Paul at a Rockfest for Ron Paul!!

Wednesday, October 24, 2007

Dance with Gold, Silver, or the Mining Stocks

It's not even a close question. Gold will rule the final day, just as Silver looks like the champion, long after passing the mining stocks as they careen to earth from a variety of ills including the oft realized threat of nationalization.

Gold steps up the plate when economic activity contracts because people are scrounging for food, let alone being productive. Silver runs hard when the inflation keeps the wheels of industry blurring, just before the contraction sets in because prices outrace the quantity of money being produced, setting up a slowdown despite the rampant inflation or money printing. Sounds impossible, but soon no amount of money will flow, even if enourmous sums are flowing because the price increases absorb the paper or worthless digits. Think wheelbarrows full of currency for the loaf of bread that is no longer available because of wheat crop failures and politically expedient yet scientifically laughable ethanol plans, and such.

Our play book, for those following my experienced template, is to run with Silver, and the mining stocks early, holding only a small portion of Gold. Then dump the stocks after catching a few good runs, keeping only the profitabl producers which will eventually pay handsome dividends. Later, much later, sell the stocks and the silver and convert completely to gold. At this point you might even have to leave the country and gold will be easy to tote, while Silver is anything but light.

Silver, Stocks, Gold to Silver, Producers Stocks, and Gold to Silver and Gold, then finally only Gold. Gold will hand the wisest ones a 10 to 15 X return, Silver probably a 20 to 23X return, the stocks will probably give a 4-10X return. None of those returns are shabby, but they will all go back down to earth if you do not trade your position correctly at the tale end of this tail of currency crashes.

Keep coming back here for the watch words on when to move from class to class.
We are still early yet, though the stock momentum is off the majors and with the mid-tiers, eventually dropping back to a few juniors that have real prospects at production. Gold and silver are awaiting launch for their biggest moves yet in absolute terms, if not percentage returns.

If it were not for the totalitarism that these currency moves portend, this would be a great time to be alive. As it is, this is a time for bravery in the face of fascism and gold and silver are the best teammates you could ask for.

Tuesday, October 23, 2007

Gold and Silver dive along with the Market and Will rise beyond it

As I predicted in my earlier posts, gold and silver went down. They could drop further, but their drop will not be breath taking at all. More of a walking session as they complete their marathon run up to four digits in gold and three digits in silver. Gold will win pitch battles and go up by steady leaps. Silver will be kept down until the steam from the volcano foretells of an eruption that will be recorded for the ages in history books written about the Great Silver Squashing Scandal.

The explosion will only happen once, as in, occurring over a very brief period of time, and will not capture the attention of the masses until it has passed the moment of releasing most of the pent up price accumulation that equivalent metals would demand of it. That could be a leap directly over $20+ and then even $30. Once that is handily behind us, and fortunes have been made, silver will settle down to a steady climb, just like gold.

The real price of silver from the 80's is more like $25, not the oft quoted $50 from the Hunt brothers doing their rightful best to buy all the silver they could, as is the underlying promise and premise of a free market. Free until you piss off the blue bloods running the market, that is. Then you are a criminal, hoarder, market fixer, and low life, snake bellied scoundrel. Now it would take a relative pittance, one phone call from any of a thousand, or hundred thousand people, could wipe out the entire comex hoard of a trivial 130 million ounces, now valued at about $1.8 Bill, give or take a few $.

With a 50% margin, that pot could be sold to anyone of serious means. And the halls would be empty of silver, more or less. 5000 years of mining sold with the slam of one gavel. Free markets no longer being available, makes this an impossibility, not because no one can write check, but the pot of silver would have to get buy all the AR-15, M-1's, Apaches, and various dark hooded folks who speak taser, double-tap, Guantanamo, and FISA, not to mention non-posse comitatus. Money no longer transacts in this land, force does. If you had the weaponry, which $1.8 Billion could certainly entrain, then you could take - and I mean TAKE - delivery. Short of that, you will first get a phone call, then a call by a Drone. No sooner will the laser dot you, then you will know the T-bills would have been the "safer" yet intrinsically worthless option.

Uncle Sams financial advice these days bellows from cannons, enforcement actions, liens, and seizures.

Gold however, will still be easily moved and purchased for a while longer.

So load up your wagon, because the next move up will be a dramatic one, and there will be no more respites in this marathon.

The shoes are tied, the preparation sound, the crowd gathers, and the fiat runners are showing their age and lack of fitness. Gold and silver are nothing if not indefatigable. When they run down the last straight defining survivability and superiority, gold and silver will take the important prizes rightfully due the historic masters of the monetary marathon. Of course, the medals will be more affirmation of their potency, symbols of triumph, superiority, longevity, honor, fame and fortune. There will be no diplomas, no leaves, no worthless pronouncements, no shiny imposter's. Only two materials can sufficiently award a duo of such gravity, and royal performance in the race for mankind's trust. You and I know what we speak of...the victors can only be awarded more of the same that has represented victory in every conquest from the first hieroglyphic to the last laser impression - Gold and Silver.

Grab some victory for yourself, while you still can.

Friday, October 19, 2007

While Paper Burns, The Metals Glow

Dow swan dives rekindling thoughts of the days of yore from 1987. Gold has its historic feet firmly planted back in the early to mid 70's with a rambunctiousness belying its 5000 year age. Gold and silver, along with the dependent equities, have been tap dancing like teenagers all over this moribund stock market. I saw a graph yesterday from Casey research showing how the mining sector is beginning to solidly pounce the rest of the stock market once again. Match that with the number of new commodity traders rushing into to fill the vacant mortgage lie officer seats, and we have the stirrings of a bucking beast. Let the metals rodeo ride!

It will be a beast to hold onto the gains though. Deflation of the money supply - not from lack of printing and credit - but from despondent debts no longer phoning home to the mother ship, be it bank, credit union, car loan, mortgage originator, or pawn broker. Someone pays. With the increasing list of banks writing down their losses, it looks like the creditor is getting the short stick, by the bucket load.

Head West - pick up some gold and silver along the way, move much of your financial base off the formerly safe shores of these United States, and make your next big moves near the lands of rice and chop sticks, because the U.S. has a long way down, and many moons to lie at the bottom when it hits.

Not profiting doom, just seeing a way through the doom to profit. And it will be easier to make that once in a life time killing where the buffalo's are roaming - and they are long gone from here. The car companies are downsizing from their already skeleton stasis. The financial companies have swindled the world and will reap what they plundered. The tech companies are a bright spot, but have an increasing appetite for Chindia over California. No blaming them for making a wise skilled labor and business friendly decision. Still, they take the mental motive force for powering our numbers higher - like incomes, standards of living, not to mention overall employment.

The mother ship of sound money left us long ago. Now we are suffering from the neglect of the fundamentals. Like any team that loses touch with the basics, we will experience a fast retreat from our former heights. The dollar is the score to watch and it shows no signs of reversing its pathetic performance that has been building for years.

Solomon says "Let your Gold and Silver be your bedrock, as the U.S. economic engine crumbles."

The Crash Has Arrived - Man Your Stations

The crash I have been awaiting has been here for a while. Comparing the stock averages against either true inflation adjusted currencies, or better yet, gold or silver, the stock market has crashed, people have lost their shirts in real estate, and those who listened to my advice have all made at least 3-5X their money in the past 4 years. That’s why I decided to add to my commodities license and get the Invest Adisor license, because word has gotten out so to speak about my accuracy. Sometimes early, rarely wrong. Strumming the same theme – out of dollar assets, out of treasuries or bonds in general, into resource stocks – precious metals, uranium, water, energy, and into foreign bonds or currencies. Technology could also be ok. It’s not a case of making a ton of money, it’s more a game of preserving wealth while the U.S. currency and markets implode.

Wednesday, October 17, 2007

Gold and Silver Finally Breaking the Big Banks?

That's what seems to be possible right now. The COT structure has the big money commercials hugely short and the tech funds taking the other side, making for a powerful force trending for a lower price soon for gold and silver.
Ted Butler - the center of the Silver anaylsis universe - has titled this the Rope a Dope market. The commercials are waiting out the tech funds for a big downward flush out - maybe $30 or more on gold and perhaps $0.50 on Silver. Silver is looking weak because it catches the downdraft and only a tail wind from the updraft.

Options suggestions are to go short from here for a mid length contract in silver and gold, then bail out when the clean out begins - and there will be a clean out. Then convert those profits into a long position as far out as you can in Gold and Silver, scooping up a front run on both the correction and the spring back.

My silver long options are already layed in and I am waiting to convert at the end of October, early November when I expect Silver to have successfully crested the $14 level and left me whole in my positions. I need closer to $15 to make any serious money on them.

Listenting to Bloomberg about Wall Street loading up on commodity traders and converting mortgage brokers into traders. Ha! That's like converting a marathoner into a sprinter or maybe even a shot putter. Could happen but seems like pushing up hill.

Also read Grandich's letter about what he sees coming with the U.S. attacked and attacking from all sides - militarily, economically, manufacturing, and financial.
We are world-class, down and dirty, bring out the belt, shouting from the roof tops ---SCREWED. While I think Grandich is way off in terms of the threats he sees coming from the towel head cultures, his economic analysis is more cogent.
One aspect he misses entirely is how the U.S. has sealed it's own fate with the regulatory burden of our markets and businesses has made growth a slog through process. More orchid than weed. We want growth like weeds, not the occasional example of a Microsoft or Google Orchid.

We have choked off our own life force and rigor mortis will set in.

Buy tools, including guns, generators, water pumps, anything you think you might want in the next 5 years.
Sounds crazy but those things hold their value better than a falling currency when an economy collapses. And the markets are not going to save us at all.

G-d only knows what will - Gold and Silver.

Tuesday, October 16, 2007

Stocks South, Precious Metals North as a Sales funnel

The downward swoon of the stocks has been long in coming and just the same thing for the precious metals heading north. How far down will the stock market go down and how high will the PM's rise?

Gold looks like a shoe-in at $800, maybe a tad over. Silver will be struggling to go over $15.00 and that is based on factors of stagflation - lowered economic activity with rising inflation. Until the investment community and some of the masses get wind of the fundamentals of silver and the great opportunity available, Silver will be a laggard.

The sales funnel for a business can be applied to the investment prospects for precious metals versus stocks and bonds or commodities. The more salesmen you have, the more you are likely to sell. The bigger the advertising in a business area or product the bigger the sales - generally speaking.
Only now are we seeing some gold ads on tv, none for silver. So gold has a much larger sales base and is more difficult to suppress. Silver is there for the squashing.

Bottom line - Gold to $800+ by end of year, early 2008, and silver crawling over $15 in the same time frame. Boo, hiss, my options may only be slightly profitable by then, better than a poke in the eye, but not the $18 dollar rain of profit I had expected.

Monday, October 15, 2007

What Silver and Gold are Saying

With Gold handly outpacing Silver in the recent run-up, we are left to wonder why?

I believe that beyond the COT structure, the reason Silver lags Gold in price performance is because the perception and reality of the economy slowing down, dampening demand for Silver. The industrial side of Silver is keeping the lid on prices.

While Gold is primarily a monetary asset, Silver is primarily an industrial one. So until the monetary driver reaches for the gas pedal in terms of Silver demand as a financial storehouse of wealth, we will be left with modest gains and overshadowed by the performance of Gold.

Wish it were not true, but it seems to be.

Silver could be at around $35 per ounce or more, considering the price high it once reached while Gold was treading in the same waters near $800 per ounce. The conditions now are even stronger though with Silver being in much shorter supply.
SLV, the Silver ETF does act as overhang though. That amount of Silver could crush the market were it to be reintroduced in a scramble to lock in profits.

The way to play this is to watch SLV in and out flows, as well as the Comex warehouse, and the lease rates. When the numbers point to a tightness, be long. When they point to a flush position, short hard. Because Silver goes down much faster than it rises - sad to say.

Friday, October 12, 2007

Where the Economic Chess Pieces Sit

We, and the rest of the general population, serfs, subjects - choose your moniker - are largely the pawns. With a liquid net worth about $10 mil perhaps, you might move up to head pawn, or maybe a Rook.

The Fed is the Queen, along with almost all other central banks granted the unspeakably fraudulent and prima facie evil priviledge of ruling over all of us by printing money and credit.
The governments are the kings - able to move about in any direction, but only so far as the Queen - representing the bankers - wants. Bishops and knights surround the criminal duo of King and Queen, lapping up the largess. Knights represent Blackwater, Boeing, Dyna Corp, Raytheon, Monsanto, Dupont and a host of military industrial companies, along with the military itself. Any campaign finds support from these fire breathing brigands. Bishops, cloaked in self-importance and false piety, obsequious with their praise and fawning, follow the sheen of modern day social activists, environmentalists seeking control over all that breathes, more taxes for their dictatorial programs in the name of some cause more ethereal every day.

Gold and silver sit idly by, while paper floods the realm. Calm like a fighter that knows there is no match he can't win by attrition. While the King, Queen and their hangers on - Knights, Bishops and Rooks push the pawns into the melee, paper currency being as much of the fuel for the engines of war as oil itself, Gold and Silver have seen this play a thousand times with millions of different actors and victims. The decision always falls down the same way.

Gold and Silver retake the realm, so long as there are enough pawns left over to hold back the fake royalty and comrades from reinstituting the same regime.

Yesterdays leap in gold and silver shows there is a fire breathing bull awaiting any signal, any release of the lever holding back the gate that is preventing gold and silver from launching.

Gold moved up about 11.40 at it's high before settling with about a $6.00 move. Silver took its gains at about $.23 In the end, silver began closing the ratio from 55 and marching toward the 40 that I expect by next year.

Silver would be around $18-$19 were it at a 40:1 ratio with gold. That would place silver in the run to the moon category because $15 has been resistance and would become firm support at those levels. While from a bull market begining low of $2.65, the current price represents a significant rise of around 400%, there are many commodities that have blown by this performance - nickel, uranium, etc. Silver is behind in the race and I am part of the cheering crown urging it to find it's rhythm.

The market conducts the investment orchestra, so all we can do is:

1. Support and vote for Ron Paul as President 2008. He is the only one talking about the criminality of the Federal Reserve system and replacing it with Gold and Silver, just like the constitution requires.
This is link for showing support for Ron Paul.
Please also visit This is Ron Paul's Official Campaign Site.

2. Get gold from the Bullion Vault. Along with the lowest commissions charged, the gold is stored in Zurich or London if you want, can be traded very profitably without losing much in trade costs, and it can be spent easily or moved back into your bank account should you want.
Buy gold online - quickly, safely and at low prices

3. Spread the word about Ron Paul, the concept of storing wealth in gold and silver and related securities, and the disaster of fiat currencies.
4. Consider moving your wealth offshore. Much more difficult than it sounds and bullionvault or goldmoney are good first steps.

Take all this seriously please, because great wealth can be yours or great misfortune. Your choice depending on adapting to the situation we are in now and the one we will face soon.

Thursday, October 11, 2007

Gold and Silver Launch out of Nowhere

Being a card carrying OCD (Obsessive Compulsive Disorder) financial freak, I check commodities prices of gold, silver, platinum, palladium, currencies, and anything else I can follow the first thing every morning. Currencies even let me obsess during the weekend and wee hours of the morning while I read about the financial market moves and where they may go next.

So this a.m. is a lazy Thursday, with me denying how beautiful the day is outside while I read my Treo 700p screen for the market news. Goes like this:

Gold up a couple of bucks to $742 or something. Silver dialing in at around $0.07 up to $13.61
Nice though nothing significant.

Life and phone calls tear me away from the screen for a few hours and when I come back!!!!
A price explosion in gold and silver has occured!!

Gold at 752+ and silver at $13.90 !!! Someone's options just bought them a yacht in an afternoon. My background as a FCM or Futures Commission Merchant, commodities broker in normal parlance, has me curious as to what shoe fell either politically or on the trading floor for the mid-afternoon launch.

The COT's - committment of traders reports issued by the gov't - indicated and upward bias to these markets, but not an explosive launch. The Fed minutes also showed concern over inflation though this is akin to a a boxer being concerned about punching someone - it's what they do for a living, so what gives?

Could be the side slap Bush gave to China by visiting and bestowing a prize on the Dalai Lama. Does he now realize how beholden we are to the Great Red Country? Just begging for a spanking- that the rest of us are going to feel.

Action Items:
Buy more gold and silver on pull backs - or trade with BullionVault.
Load up on gold or silver options from a commodities broker - this is my path.
Get all the tools and productive items you ever wanted, because they will either be gone from the shelves or much higher priced in just a few months. I have a barn full of tools, supplies, etc. Since I have been doing this for years - sometimes I am early, rarely wrong - the prices of my purchases have risen dramatically. The race though for higher prices is getting going in a hurry.

Load up on storable food. Check the supply of wheat, cattle, fruits and vegetables around the world. Newsflash - we are tipping into food shortages.
Vote for Ron Paul for President or plan your expatriation from the former U.S.A.

That's what I've got for today.

Unified Economic and Environmental Theory of Our World

Facts:
Almost all minerals and metals are in short supply around the world, with mine output shrinking as demand continues increasing.

Agricultural production is also generally declining, along with available farmland.

Patent applications worldwide are decreasing and the individual impact of each patent is becoming less.

We are headed into an *ice age with rapidly increasing ocean temperatures, more precipitation in coastal areas, more dramatic weather extremes, a generally higher energy atmosphere, and more earthquakes, and volcanoes fracturing the landscape.

*If you believe the pervuasive global warming falsehoods, then you have misplaced your basic scientific reasoning along with your political skepticism filter.

Every country employees fiat currency and backs it with - more fiat currency. Despite the Euros' claim of gold backing at 15% or so, you cannot exchange Euros for gold. Fiat currency with a false political promise is all you are left with.

Almost every country actively debases, overprints, their currency hopelessly attempting to keep pace with other countries like the U.S. that are inflating at 10% plus rates to keep the exports flowing. Each scrap of currency lays a claim on resources including minerals, metals, food, human labor, ideas, a good stiff drink, a golf game, or a particularly jiggly stripper.

Opinion:

With all the currency claims printed today running to the nearest jiggly strip center to imbibe more from the CostcoSamsWalmartville bar, we soon run into the problem of the bar running empty. See the level of platinum production, or oil, gold, iron, tantalum - the cabinet is not being restocked as fast as we are sloshing the good stuff down our collectively gulping throats.

With my new Solomon's Something's Gotta Give (SSGG or S2G2 or SG or....) Unified Economic and Environmental Theory, I suggest that we will keep running the cubbard more bare, see decreasing agricultural production, mining become less fruitful, and more money begging for more goods. We will experience great currency debasement leading to the U.S. disposing of the FRN (Federal Reserve Note, distinctly different from a constitutionally defined Dollar) in the stead of the Amero just as the FRN flatlines. More currency will cease being able to buy more stuff as the social contract breaks down.

Fewer children born, more starvation due to inflated currencies, political misdeads, wars, international trade disputes, and ice age related weather patterns. Lower population will lighten the burden on minerals, metals, and life giving goods from the earth until the point where the Ice Age kicks in with massive dumps of snow in the 50 feet plus range, creating a scraper, crusher, replenisher for the earth.

12,000 or so years later, the Mother Earth bar will be fully restocked, population will be on the rise, and we will all be powered by nuclear batteries and living in Second Life version X, loving every minute of it. Linux may have even displaced Windows by then.

Just remember...you heard it hear first.