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...
Wednesday, October 31, 2007
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.
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!!
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!!
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.
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.
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."
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."
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