Tuesday, November 20, 2012

WORM TO TURN

I see silver!
You have to give credit to the masters of the universe. The beatdown and shakeout of the miner trade for the past two years has been masterful. Without this beatdown however I would never have been able to add the physical that they allowed me to accumulate. That was the game. It was always the game. It was always to expel the weak hands from the precious metals trade. Especially the leveraged play in the trade which is the junior mining sector. Its where the next monster move will be as they raise the metal prices, which will be done as the accumulation of the actual physical is the limiting factor for their price suppression. Back to the miners now. Shaking out the weak hands in the miners is the easiest task. It has virtually no downside risk to the cartel since supplying vast amounts of paper can be done easily through a variety of mechanisms. Just look at the all the ETFs to absorb the investment fiat in the miners. Just imagine if those investment dollars were actually going into the stocks of miners. The actual mines would be up exponentially already. Of course they are not, but eventually the market will be determining true price discovery when the game unwinds....and it will. Just be aware that paper is paper and owning common stock through your brokerage does not mean you own the stock certificate. YOUR stock investment is NOT ALLOCATED unless you possess the certificate.

Now let's return to the physical game. This move is starting to reach its next leg up from what appears to be the bottom formed this summer. We should run quickly over 2000/oz in gold and to 50/oz in silver before spring of next year. After this latest consolidation many of the holders will exit with their first hint of profit only to stand on the sidelines as the metal moves out of their trade. The same will be more true with the miners.

Thanking nature?


Some of you have sent me private e-mails regarding the end of days issues and I want to address that again for everyone. I do not have a strong prediction on this. I remain optimistic that we muddle through this with a lot of economic pain and political upheaval.....hopefully falling short of  an apocalyptic conclusion to this ponzi. After watching the dreadful events unfolding in the Middle East and recognizing what we are doing in Iraq, Syria, Afghanistan, Yemen,,,,etc... I become less sanguine regarding muddling through. So with that I say "trade on".....let's maintain our hypocritical game!


Will nature remember?



25 comments:

  1. Everything in the Middle East is manmade to install a sense of fear and distraction.

    Enjoy Thanksgiving with friends and family, Black Friday is another thing all together.

    As for the end of days, that's the day when each of us finishes our cycle of existence; so make the best of the time before then because you don't know when that day comes but it will eventually for each of us.

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  2. “If it is necessary sometimes to lie to others, it is always despicable to lie to oneself.”
    ― W. Somerset Maugham

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  3. worst day for press release to pump up stock on orphan drug status has to be today...OXGN barely green...ARNA acting strange also..

    Here's wishing all of you and your families a happy, hearty Thanksgiving....

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    1. you know that is just how the biotech game works.......my timing may be off in the miners....in fact it may be Waaaay off if they want it to be.....but going into an armageddon deflationary type environment I'd rather be holding those losers...

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  4. Life needs a frontal labotomy..so I keep a bottle in front of me.

    -- B. Sheeps.

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    1. I like Lagunitas censored
      http://www.lagunitas.com/beers/censored.html

      Sheeps, hope all is well with your wife..cheers...

      miners just turned north on a dime right now...

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    2. yup that move is telling......accumulating

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    3. I was thinking dec. options exp. next week might be another take down..then some strong moves north with seasonal bias helping also..thoughts?

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    4. or we could see a nice run up before opex and then takedown just before

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  5. Chuck, all I see is unicorns, pixee dust, the tooth fairy, the Easter bunny and Santa Claus. Mean while the vix is crushed..all is good as the wheels fall off the bus. So some adult beverages to keep it real.

    The Lupus road has been very bumpy last couple of months.

    Tomorrow a good day to give thanks for the good we do have and have had.

    On a interesting note...Citi wrote down 125K on my mortgage...just like that.

    So to all here, Happy Thanksgiving!

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    1. Best to you Blacky.....Lupus is very unpredictable but in many cases the disease will "burn itself out".....lets hope that becomes the case here.....and the progress in treating it is considerable now...and getting better

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    2. praise the lord for Citi....lol.......way to go sheeps

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  6. Sean,

    Here's wishing your wife a pain free day at the very least...

    Citi news is great...congrats...

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  7. Thanks for the concern guys. The pain is a bad aspect of this. Norco and Morphene really just put a dent in the pain. The Methotrexate and steriods have nasty side effects. A recent ICU MRSA pneumonia and sepsis episode was brutal. However, the docs where great and she gets to see more days. :) Just have to be very careful because of the weakened immune system one can easy get nasty virus or baterial infections that are life threatening...tis a bumby road. She is pretty much completely disabled and I have my work cut out for me. It is however, gratifying to help another is this way. The responsibility is not take lightly. Be thankful for health for sure.

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  8. across the board money flow positive.....as usual......sneaky baastids

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  9. The FDA or Forgetful Drug Agency
    http://news.yahoo.com/fda-warning-meningitis-linked-firm-came-long-inspection-143055877.html

    The U.S. Food and Drug Administration took 684 days to issue a warning letter after uncovering serious issues at the pharmacy at the center of the deadly U.S. meningitis outbreak, newly released documents showed.

    Go long paper and ink, it must be short supply! 684 Days to write a letter?

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    1. Paper?? now they can eliminate fingerprints with a simple keystroke

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    2. My father mysteriously contracted meningitis a few months ago and for months, it looked like he was a goner. The doctors essentially wrote him off and we just hung on hope that he somehow made it through. He eventually did but in a much more weakened state. He was bedridden beforehand so he didn't really go outside much and we couldn't figure out from where he contracted the illness. He took steroids orally, not through the spine. When the story hit that the steroid injections were tainted with meningitis, of course I thought there might have been some connection. Have any of you read anything about oral steroids being tainted as well?

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    3. There are a multitude of etiologies for meningitis....eg. viruses, or bacteria or fungal even protozoal....the injectable meningitis recently was a contaminated fungal organism. He did not contract whatever type of meningitis he had through the oral steroids....HOWEVER... if he were bedridden beforehand then it could have been any one of a number of vectors and organisms involved

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  10. As far as I know the tainted steroid was the injectable. This problem did not occur in all states.

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  11. It has been crazy here trying to get everything settled before Thanksgiving.

    Let's hope for healthy Thanksgiving (Sheep's wife & Silver's Dad).

    Just for a laugh, my son came home from college and apparently, it is "no shave November" at his college. He looks like someone that just got off the boat from the "old country". The things these college kids feel compelled to do. Well, at least he's home.

    Best to everyone!

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  12. Given all that I have been witness to over the past month my family and I have a lot to be Thankful as so many have lost all. On a personal note, I'm very Thankful to all you folks here in Kliville.

    Will be praying for a speedy recovery for Mrs Sheeps and Dad Silver.

    Happy Thanksgiving

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  13. The U.S. Mint sold 67,000 ounces of gold coins so far in November, more than the 59,000 ounces for all of October, according to figures on the mint’s website. At that pace, total sales for the month would be 100,500 ounces, up 145 percent from a year earlier.

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  14. Kli, is that your good-looking family? Happy Thanksgiving to my wonderful cyberfriends. Sheeps--had no idea about your wife...indeed health is the biggest blessing. Recommend It Happened on the Way to War...unbelievable story of young Marine establishing not-for-profit in largest Kenyan slum which is right next to the Nairobi Golf Club...Best to all of you.

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