Man, these days are tough, aren't they? If you're new to trading and stacking the PMs, get used to this wrung-out and frustrated feeling. Because both metals are overtly and covertly manipulated by The Cartel, they are subject to these reversals that seem to come from nowhere. One day, you're right and everyone in the world seems to be catching on. But, on the next day, the C/C/C changes the rules in their favor and you tumble into the pit of despair. Have faith, my friends, as this too shall pass. Not without more wailing and grinding of teeth first, but, this too shall pass.
Let me ask you this: What has changed since Wednesday?
Has the U.S. suddenly gotten it's budget balanced? (Did anyone even notice the "failed" 30-year auction yesterday? Oh yea. How could you? CNBS deleted Santelli's "rating" from their video library.)
Are Italy and Spain suddenly solvent? Italy's debt-to-GDP is still 118%, isn't it? It's still going to take upwards of $3T euro to "bail them out". This math is impossible because that's still about 20% of Europa's GDP, right?
Last I checked, several big, European banks are teetering on the edge of insolvency due to their government bond and CDS exposure. Has this changed?
In the U.S., Bank of America is insolvent due to a terrible book of mortgages and an even more awful book of CDS exposure. Is that even fixable?
I could go on and on but I think you get the point. The W.O.P.R. machnes are dumping the gold they acquired earlier this week. Let 'em. You and I will just use this opportunity to quietly stack a little more. If you're trading, you can buy this dip at the levels shown below. Just be sure to buy yourself plenty of time. Nothing sucks more than having the right trade but having the sand pass through the hourglass before being proven correct.
More later, after we see what kind of fun the day brings. TF