I love this month and I hate this month. Before we begin:
"October and the trees are stripped bare
Of all they wear. What do I care?
October and Kingdoms rise and Kingdoms fall
But you go on...and on..."
Against that melancholy backdrop, we take on the day and it's not pretty. First up, that "Dave in Denver" guy has written something that you absolutely must read:
He wrote that yesterday. Now consider this:
Additionally, there are the problems at Dexia, the largest bank in Belgium, perfectly summarized by Harvey:
So, is it time to panic? No. At least, not yet. However, like Octobers past, one can clearly see how this can get out of hand very quickly. We've spent considerable time here discussing "the end of the great keynesian experiment" and how you should "prepare accordingly". If you haven't yet prepared, I suggest you visit the "Preparing Accordingly" forum for tips and ideas. In the meantime, it's always a good idea to look around and "think outside the box". Maybe stop by the ATM today and pick up a little extra cash. Maybe call up Provident or Gainesville and order some extra physical. Maybe run by Costco for some extra non-perishables. Maybe. Not sayin. Just sayin that there's a lot of nasty stuff currently bubbling to the surface. Right now is a time when you need to be paying very close attention.
As this pertains to the short-term price of the metals...who knows? As you can see on the charts below, both metals are working themselves into technical corners. Obviously, anything can happen but, if I had to guess, silver looks like it is about to break lower in coordination with a global risk liquidation. $24 is still a possibility. Gold looks better and it should not see as much selling pressure for the obvious, fundamental reasons.
Hang in there. The time is now for sober consideration and planning. Help each other and try to remain a force for good. I'll update as conditions warrant. TF