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.

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