Tuesday, May 11, 2010

CAPTAIN THERE'S WATER IN MY CABIN update I

As I was helping Captain Ben rearrange the deck chairs on the Titanic this morning one of the passengers named Demetrius was quite concerned about the water washing into their lower berth cabin. I was quite impressed by the Captains calm demeanor and reassuring tone when he allayed all the passengers fears and handed them a stack of dry towels to clean it up.

We are playing a similar game now. After hitting our iceberg in 2008 our ship is floating on the captain's hot air. In this case in the form of fiat currency...the USD....due to its unique stance as the world's reserve currency. And oh how we are abusing that status.

Lets not dwell on the moral hazaard that is creating (and it is huge), lets look at it from the effect of how we must react. We cannot stop them, that is a certainty. But look at today, it is telling us everything. The dollar is strengthening as money scurries for near term safety. But look what is exploding in the face of a strenghtening dollar. Thats right "mellow yellow". The big Kahuna. GOLD. Sorry for the promo. I have owned gold for years but never quite understood the game until this ponzi unwound two years ago. Fiat has NO value in the the corrupt ponzi world. Now as Joe mentioned MANYtimes last year there would come a day where the dollar would strengthen and gold would strengthen with it. That would be the "signal" the "gamebreaker". Well we are there gang. This game is coming unravelled. Hope that you have listened and own your physical. There is a worldwide scramble for it now and as the comex ponzi blows up.......you will wake up with gold up 1000 dollars an ounce in one day.

Right now its starting and hopefully this game plays for another year while the ship sinks slowly. Don't count on it.

For now we are assuming that "growth" continues in the economy....hehehe....and we are focussed on SWC PAL SSRI SLW. Don't forget my gold miners EGO AUY GFI...gl gang

update I Reuters) - Gold jumped nearly 3 percent to an all-time high at above $1,230 an ounce on Tuesday, as traders sought safety after a $1 trillion European rescue failed to put to rest fears of euro zone debt contagion.

After trading modestly higher in choppy trade earlier in the day, spot bullion prices kicked above their previous $1,226.10 peak set on December 3 after U.S. stock markets turned negative at mid-afternoon, resuming a safe-haven rally that had threatened to stall with Monday's brief revival of risk appetite.

Silver also rose 4.5 percent to a five-month peak, posting its biggest one-day percentage gain in six months, while platinum and palladium were little changed.

Having broken down the previous high, analysts began looking for the next target.

"We think there is an upside risk for gold and it has the potential to go to $1,600 (an ounce) within a year or so," said Bart Melek, global commodity strategist at BMO Capital Markets.

"We think there are continued sovereign risk issues, even after the European debt bailout. Buying gold or precious metals generally as a hedge will continue until this environment stabilizes somewhat."

After touching a record $1,233.65 an ounce, spot gold rose $30.85 or 2.6 percent to $1,232.75 an ounce at 3:30 p.m. EDT (1912 GMT), against $1,201.90 late on Monday.

U.S. gold futures for June delivery on the COMEX division of the NYMEX was up more than $30 at above $1,230 an ounce. Earlier, June settled at $1,220.30 an ounce.

Gold looked primed for a run at the previous record after a rush of retail buying last week, and its very limited dip on Monday, when the S&P 500 index rallied 4 percent as risk markets cheered the $1 trillion emergency aid package.

34 comments:

  1. Jeeeeeeezeee these miners are goin NUTS

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  2. snagged the swc down move....

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  3. gdx broke out now to new highs...55.40

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  4. Patience is rewarded :) Go AUY

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  5. AUY has a long way to go so sit tight.....

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  6. AUY has seemed like a broken stock for such a long time. It was running in tandem with SLW and now SLW is almost twice the price. I thought that AUY was heavily shorted based on how it reacted relative to other miners and the price of PMs. Maund thinks it's ready to break out. I hope he's right.

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  7. Will do - Got to give it to ya Kli, had I not been "Educated" would have went short big Friday and well you know the rest..... Thanks :)

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  8. AUY "should" be a mthrfkr....My guess is the heavy money was accumulating for the big move. They flush the weak hands during the "underperformance". Bigger volume miner makes their moves more easily disguised...hehehe...(it works)

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  9. dont furgit to look at ALU...devaluing the euro...nice hold. ANYWAY you have fun gang...have not sold my core today ....its heavy too. Let it work. Will look for any pullbacks to add now. Thats da way breakouts look and work. Maybe i should say "breakdowns". Wondered how this would look back in 2008. Just the way Joe predicted.

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  10. Yes, gold & dollar up, it's ominous. Now worrying that I don't own enough physical...

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  11. Auy must break 12 and hold to confirm breakout

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  12. Physical gold must break and HOLD 1225

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  13. Joe wants you to also be aware that AUY management has sucked managing their margins which is why it has lagged. But if 12 breaks and holds then 14

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  15. Excuse me if there's a double post...anyone use these? Looking for Silver rounds. I know local probably best but...

    http://www.providentmetals.com/1-oz-999-silver-round-incuse-indian.html

    http://www.providentmetals.com/1-oz-999-silver-round-incuse-indian.html

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  16. I use tulving.com or Jason Hommel via seekbullion.com

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  17. Took profit on the rest of my AUY, SSRI I can hold onto but AUY has just gotta take a break sooner or later.

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  18. Would love to take some of the profits but I'm afraid this will keep running. We're up nice on SLW and EGO. Just reloaded SSRI and PAL. I hate these decisions, wouldn't be a tough one had I loaded more on AUY in low 10s four weeks ago instead of JAG, etc.

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  19. Huh, watered-down Fed audit just passed. Ron Paul may not be happy but this does let us peek at about $2T or so.

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  20. Homer, I am in jag as well, wish I had bought ego. are you holding or moving to ego/gfi? also bought some pal on fri. when it was down. Is everyone buying local? I have used apmex in the past. What a day!

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  21. Watered down, what a shock. Love this line from the sponsor. Whether its just more pomp and circumstance and someone trying desperately to keep their job, I don't know.

    "I want to know, and I think the American people want to know, why Lloyd Blankfein" - Goldman's chief executive - "attended a meeting at the New York Fed when the federal government decided to bail out AIG to the eventual tune of $182 billion," Sanders said, "allowing Goldman Sachs to pocket $13 billion of that money."

    Goldman got the most money of any U.S. bank - $12.9 billion - from the rescue of insurance giant American International Group. Henry Paulson, a former Goldman chief executive officer, was the treasury secretary at the time and brought in other former Goldman execs to manage the rescue. Goldman says that neither Blankfein nor any of its executives played a role in the AIG bailout decisions.

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  22. Hell Obama might veto the damn thing anyway if Ben flashes him his "I wouldn't do that if I were you" look. Or maybe Geithner reveals that he's already done the audit personally using TurboTax.

    Thanks for the reply last night, red. Couldn't the BRIC nations screw this plan up by simply taking delivery on all the gold they can manage? Global simulflation can only stay hidden as long as the PM markets remain controlled.

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  23. 6 mo inverse HnS on gold with minimal target of 1300...3 year inverse HnS on gold with target of 1500....take your pick 1300 "should" hit within 4 weeks......butcha know....nuttin is for sure.

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  24. Morla,

    Everybody is cheap, if the central banks of the BRIC nations took even half of their reserves out of the dollar and euro and went into physical gold in a very short period of time you could guess what that would do to the price, triple or quadruple in a couple weeks. By itself no problem and would actually help contain inflation, the problem is when members of OPEC decide to price oil in terms of gold instead of dollars, like 4.25 grams of 22k gold (1 gold dinar) per barrel of oil.

    Looks like there is legitimate concern to creditor nations when debtor nations decide to print unlimited digital fiat, with Dr. Evil taking the usury annual interest of each tranche. Even though Dr. Evil holds plenty of physical gold holdings, the real money is made by taking a cut of new imaginary fiat that is dispersed side by side with real capital.

    The PM markets can only be controlled as long as very few buyers take actual delivery.

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  25. What next after gold gets to some ridiculous number? You might want to consider selling some and acquiring the means to produce your own Alpo in the form of a small farm with some decent soil, if the local community hasn't devolved into a scene from Mad Max.

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  26. Right now if I am lucky enough to to hold on to my gold until 2014 then I plan to exchange it for fertile farmland which should be relatively cheap comparatively to gold. I am not a farmer but there will always be farmers to lease it. In time it will appreciate tremendously. Some of you that hopefully will own gold need to have in mind assets that 4 years from now you want to buy with gold on the cheap.

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  27. Thoughts on HL anyone? Thanks...TXB

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  28. I guess when one computer trades with 3 others and all they do is bid the prices higher and higher, you get this:

    http://www.nytimes.com/2010/05/12/business/12bank.html?partner=yahoofinance

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  29. TXB VERY impressive GRS....underperformer .....could be a monster here....holy chit......couldn't find much to piss on other than being in Mex. Its a Canadian co ....i like it a lot.

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  30. HL very nice also and in the U.S.... both have nice cash per share no debt....

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  31. hey sister - just saw your post. I'm just whining about JAG. Only up 9% or so instead of about 15% in AUY I could have been but I own AUY at 11. Point was I loaded up a bunch of positions a while ago, then just get caught looking when they drop instead of loading more or establishing limit orders. I'm all about the shoulda woulda coulda. ;-)

    I've been unloading the performers and buying the under-performers, hoping they catch up. re-loading the good performers on big moves down. Its tough for me as I usually am a bottom feeder, not momentum.

    I think many buy at their local dealers, supposedly the markup is less. I actually like the idea of the bigger houses like APMEX as I assume they would not jeopardize their entire business with counterfeits. Assume is a big word though.

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