Thursday, April 21, 2011

Pullbacks quick, Painless

Silver has been pulling back, but they are so quick only algo machines and day traders who drink coffee twenty four hours a day can catch them.  There may be a pullback that lasts a day or two, but the run in silver has so much momentum that a price target of $50, which is currently very mainstream, is laughable.  Watch silver get into the thousands over the course of the next year or so.  Watch, I dare you.

The best way to buy silver is to accumulate it not when one thinks the price is right, but when one can.  Free up cash and level buy it, and this means if one has not yet invested, do it now.  Exchanging real monie for paper monie should not leave a doubt in one's mind as to if a yield will be had.  It is what truth derives itself from.  Necessity is the mother of invention, and investing in silver fills necessity to the brim.

Time will tell as to what nominal and very fictitious price action silver will have.  After all, what is a dollar, if not nothing.  Paper fiat IOUs are worthless.  Light one on fire, and see how great a store of value it is.


  1. Had I known you started a blog I'da shown up sooner. Judging by the archives I'm late for the party.


    - Chumba

  2. Thousands within a year...uhmmm, when was that time I heard "Oil is going to $500 within a year"...

    Oh, that's right, uhm, 2008. Wasn't it? Yeah, that's right. 2008. Right before the big crash. Oh, and no, doesn't that mean the markets will soon be trading on thin volume for any potential uptrend, and very thick volume for the potential downtrend? I guess so. What does that mean? A crash? Umh...yup, sure does.

    Wait and see. Too dangerous to play the paper silver game, and wondering if it's worth it to pay circa $50/oz for the stuff when, God knows, in a couple months or so it could be back down to $25/oz. Buy low, sell high, my friend. That's all you need to know. It's high, so I don't buy. I'll just wait til it's low then I'll go go go. Methinks the silver bull has just about run out of steam. The volatility over the past couple of days has been truly mind boggling. When you get volatility like this it usually means 2 things - a consolidation followed by another leg up, or a massive sell-off once all the smart money is out of the trade. I'd bet on the latter, because...well, NO QE3 hehehe.

    Who wants to bet the trades on the long side of silver are heavily leveraged? Perhaps 250% leverage? Maybe 500%? How about 1000%?

    High? You'd surely be low, wouldn't ya? If it were me, I'd book the profits, take them off the table, and wait for the 2008-style crash, then buy up those silver coins at bargain basement prices.

    It's 2008 all over again bitchez!

  3. I disagree with every point you made. First, the CUSIP on the bond sale the other day said QE3, and I do not know why, but it did. Second, Maestro Jr did not say anything about ending QE3. Third, you did not mention the short sellers who are holding on while they are being blown out (JPM, cough, cough). Fourth, silver is money, and the dollar is not, and that right there is all anyone needs to know. Finance is run on a fiat ponzi, all ponzies fail, but this one has no bottom collateral, except the gold is the Central Bank vaults, if there is even gold in the vaults, as they have not been audited for decades. Silver has the same above ground supply as gold, it is a direct investment in technology, and it is, as gold, money. If you think there will be another crash you think the dollar is a safe haven. I do not.