Monday, November 8, 2010

Once you pop, you can't stop

So, less than two months ago I got all excited about a $14 swing in gold.  How quaint.  Today gold punched through $1400, and silver has been on a tear, breaking $27 today.  After my last post I thought long and hard... could I recommend for anyone to actually sink their hard earned money into gold, or silver, at such high prices?  I came to conclude no, I could not.  The memory of the fall of 2008 was hot on my mind.  I remember the euphoria of silver at $20, and people saying it was just a pullback, that it was just consolidating, as it dropped all the way down to the $9's.  I thought (and still am not 100% convinced they don't) that the manipulators still had at least one more crushing blow in store for metals.  I was thinking that the third time would be the charm, that we would get one more massive price drop, and buying opportunity.  Well, as of today, I'm really starting to think there may be no third time.  This might be the new normal, the end of the manipulation, and the beginning of the end of fiat currency.  The USDX is up, along with Gold and Silver.  Extremely bullish (well, for metals at least).  Last week ZeroHedge had an article discussing strong resistance at $25.50 in silver.  That ceiling held for one day.  The next day it blew through $25...and $26.  Today $27.  $30 by the end of this week?  I don't know what to think anymore.  All of my prognostications turn out to be wrong, always, lol.  Am I right this time?  Is this IT, really??  I don't know.  What I do know is, I don't want to be looking at $60 silver and $3000 gold next year at this time saying coulda shoulda woulda.  And if the numbers are $10 and $1000, well, that's just a chance to lower your cost average then  :)  Good luck.

The value of these metals remains *fairly* stable, but their prices increase as the only trick that central banks can, will and do pull, is to run the printing presses to infinity and beyond.  I am convinced they will do this until it all falls apart, because it DOES buy time, vs. instant deflationary black hole otherwise.  But in the end the debt based currency system must crumble, and we are witnessing it.  Oh, and if anyone says Gold, or Silver is a bubble...  it's debt, it's fiat which is in the throes of it's last bubble, not metal.   Buy now, buy regularly, buy frequently until you can't anymore.  I am.  If nothing else it's a middle finger to our irrevocably broken and fraud filled paper financial system.  Take your ball and go home.