Another Stair Higher

206
Fri, Jul 29, 2011 - 10:38am

While CNBS et al struggle to explain the awful, miserable and pathetic GDP numbers, I certainly hope that none of this comes as any surprise to you.

And believe me, every stone was turned looking for inputs to get the number even to the paltry 1.3% they reported. Actual growth was certainly even less than that. No matter. As the U.S. economy staggers around like Michael Spinks, tax revenues continue to plummet and the imminent "need" for more QE becomes readily apparent.

As stated here ad nauseam (particularly back in May), DO NOT SELL YOUR PMs. They are your only insurance against the financial calamity that is now rolling over the horizon. Politicians and bankers may operate and function in a dream world where they can deny reality. In truth, however, they are subject to the same rules and laws of economics as you and I. Trust your instincts and do not be dissuaded. Prepare for the worst while hoping for the best. Be a leader and help enlighten others.

I've mentioned before a book by a man named Ben Sherwood. In researching "The Survivors Club", he spoke with people who had been able to survive all sorts of disasters, both natural and man made. He wanted to find if the "survivors" shared any common characteristics, experiences or traits. He found that, without exception, all of his survivors had two things in common:

1) Faith. Not a particular religious doctrine but a faith in a Creator who was present in their lives.

2) Preparation. All survivors had taken time to mentally prepare for any and all eventualities. They "knew where to find the exit doors", so to speak.

I mention all of this today not because I expect the world to end over the weekend...but...heretofore unimaginable, life-changing events are rapidly racing toward us and we must be ready. You've been blessed with time and foreknowledge. Use it wisely.

As you might expect, the PMs are rallying on the GDP number. As predicted last night, gold has finally broken through 1625 and is currently trading near 1632. A close today near this level will help to set up another explosive Sunday-into-Monday trade which will take gold up near its next target of 1650. Silver continues higher but at a slower pace. This is clearly due to all of the lousy margin hikes form back in May. Open interest is rising but is still below 120,000. This is keeping the rally contained and measured but it also leaves the rally with plenty of room to run. A close today above 40.50 sets silver up to trade through 41 next week and make a stab at my short-term goal of 42-42.50.

That's it for now. As usual, keep an eye on the headlines out of DC and stay nimble. If any significant dip develops, I, for one, will be jumping all over it. TF

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  206 Comments

Old Major
Jul 29, 2011 - 10:43am
murphy
Jul 29, 2011 - 10:48am

@ Blackhawk

People still need to eat and use energy. Where do the people store their excess wealth if they have additional assets, for those who don't store food and water? Paper currency? In an out of control printing world, I think not.

Where are the trillions of investment dollars (in all currencies) going to go. If the juniors can't get financing how easy would it be for hedge fund money to come in and buy the whole gold/silver producing company. How about big boy miners using their new found gold wealth to buy them up on an even more aggressive scale?

Yes, when the tide goes out the miners take a tumble. But look at what happened since 2008, they came flying back. This time I don't think they will fall as far and they will bounce back quicker and stronger. Just look how fast the metals prices snap back nowadays. What used to take months now only takes days.

my .02 cents

Tesla
Jul 29, 2011 - 10:53am

Nice gif Silvertree

But it is 3 megabytes bro... Think maybe some users will have problems loading/refreshing the page?

No offense (you know I love all your stuff) ...just sayin'

GoldenTurds
Jul 29, 2011 - 10:56am

3rd like the Turd

oh ya.....buying Glock 17 today and ammo.

ewc58
Jul 29, 2011 - 10:58am

Reading that, I'm pumped

One of the reasons I love ya Turd. Occasionally you're downright inspiring.

Thanks for all you do.

SilverTree
Jul 29, 2011 - 10:58am

RRaaa!

Braveheart scene - Victory
worldend666
Jul 29, 2011 - 10:59am
bullwhip29
Jul 29, 2011 - 10:59am

Speech over...blah blah blah...yawn

What outcome is most likely:

(a) markets rally hard into close (PMs are raided, naturally), then deal announced after 4pm today. everyone goes home for the weekend happy

(b) market closes on its ass today. deal announced on Sunday evening. shorts get obliterated on Monday morning

(c) Aug 2 passes with no deal. Markets selloff fall 2008 style. The players that matter get everything they want (and then some) when a completely fraudulent deal bearing no resemblance to what is presently on the table is finally cut.

*For now, it's lookin like (a) is in the cards. Nasdaq (...uh, I mean AAPL) now up...LOL. Of course, everything could change in the next 15 minutes...

Eric Original
Jul 29, 2011 - 11:00am

Talkin' the "Miners Suck" Blues

The guys at Pailin's Corner were discussing the same thing. I had a comment about it, and since I was talking up miners so much yesterday I thought I'd toss it out here on Main Street as well.

It's true. I love my miners, but they seldom love me back. It's an abusive relationship. I yack yack yack about miners all the time, on this thread and others. But the facts are that my exposure to miners is only about 35% of my exposure to physical gold and silver. And I've been very disciplined about keeping it from going any higher. Plus, my UGL shares as part of my DowGoldRatio trade aren't even factored into that.

I don't blame anybody for ditching miners and sticking with phyzz or gold ETF's. It makes a lot of sense. I just happen to like ​the damn things. It's my cross to bear....

SilverTree Tesla
Jul 29, 2011 - 11:00am

I traded the gif for a

I traded the gif for a Youtube vidi

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