It was another
pretty tough week and doubly so in the precious metals arena with the metals
being hit hard and the shares being hit even harder. This is being compounded by the forces
that be not wanting precious metals higher during this time of crisis as well
as tax loss selling en masse right now in the mining sector.
not selling any shares personally and looking for entries to add to existing
positions and perhaps even add a few new companies to the mix. The fear is rampant and those are the
times to get in and make a fortune in times to come.
seriously considering dumping some physical gold and silver and allocating
that cash to the mining sector but to be honest I’m scared to do that.
physical metals are just that, while the shares are much more volatile and
less secure but the payoffs could be huge.
a never ending tug of war in my brain this holiday season and one that is
unlikely to end and give me peace in the near future.
just such a tough thing to sell physical precious metals and get fading
currencies as the future of said currencies is far from certain.
now the battle in my mind rages but I’m doing a weekly chart update of
all our miners this weekend for subscribers and even more-so for myself. Hopefully this will answer a few
questions in my mind and I can come closer to a decision on how to allocate
my wealth going forward, or even to change my allocations at all.
of my action or inaction, I’ll remain very heavily in physical gold and
silver and possibly go heavier into the mining stocks while I am also on the
cusp of increasing my dividend portfolio. I’m also
wanting to do some more swing trading soon but this market is simply
not conducive to that at the moment as every-time we have a nice chart setup
it breaks out then promptly fails.
don’t remember a time when markets have been so indecisive and false
and cash is definitely best for your trading allocation while action should
soon be taken on the super sales going on in the mining sector and precious
metal sector as well.
may not feel like Christmas in the stock market, but if you buy right it soon
was smashed 6.58% for the week but held support at the $1,550 area. The drubbing is harsh right now but
it’s not the first time we’ve experienced it, nor will it be the
last in this secular bull market that has years to run still.
really need to zoom out and look at a weekly chart to give us a better view
and I’m doing that this weekend for subscribers along with weekly
charts of all our mining stocks which is now near 30.
gold broke the 200 day moving average this past week we saw a large influx of
commentators proclaiming the end of the gold bull market and that’s
fine by me. There were to many bulls anyhow.
facts are that we’ve broken the 200 day average before and seen the
same routine every-time. The
world is much worse off economically than the previous times and the debt
issue simply cannot be solved. There
literally isn’t enough money in the world to pay off the debts....I can
hear the printing presses warming up now!
gold can fall quite a bit from here and I won’t worry since I’d
much rather coins to being fully exposed in the stock market or worse yet
sitting in depreciating cash.
all a ruse, don’t fall for it.
Take advantage of the Christmas gift of cheap physical gold and silver
how your deal with adversity that determines how successful you’ll be
and it’s near a great time to do some serious buying of high quality
now with the holidays in full swing anything can happen with gold and we
could well see a move to $1,425 or so and it wouldn't really mean much other
than gold is cheap for us all.
won’t get back into the real swing of things until the new-year so I
won’t harp on about this technical damage on the daily chart.
would be expected the volume was heavy on the downside in the GLD ETF as the
200 day average was broken. I
can’t say it looks like a bottom is in yet looking at volume and price
action but I’ve been wrong before.
I suppose in
hindsight there was a head and shoulders bearish pattern on silver and you
could even make the same case for gold.
Silver fell 7.97% on the week and so far has found support at the $28
the same can be said about silver as I said about gold. It’s a great place to be when
you think about the other options and I’m really hoping for a further
fall to pick up a little extra physical silver.
SLV ETF volume was heavy on Wednesday’s drop but not extraordinary by
any means. As with GLD, SLV
doesn’t yet look to have put in a bottom to me.
6.34% on the week in what ended up being a drubbing all across the
board. It wasn’t pretty and
volume was heavy.
have to look to the weekly chart for support now and go all the way back to
almost 1 year ago to the day to find support at the $1,400 level. If we fail here then there isn’t
much stopping a move to test $1,300 where there is much stronger support from
the mid 2009 timeframe.
PPLT ETF saw very heavy volume on the lows of the week at support so we may
now have at least an interim bottom.
was hit very hard, to the tune of 7.91% this past week but after the two
weeks previous it’s only a 61% Fibonacci retracement which is very
being said it looks like we could very well test the uptrend line around $580
in the futures was heavy on the downswing and not quite as noticeable in the
PALL ETF but both the futures and ETF didn’t show much enthusiasm off
the lows whatsoever which tells me the low isn’t yet in.
always we’ll see as I’ve been wrong before, but this is how it
looks to me at this time.
the Christmas season, or should I perhaps say the more politically correct
Holiday season, upon us we are likely to not see any sort of resolution from
Europe or anywhere else until the new year now.
won’t rant much here but the thought above of the offence that some
take to the words Christmas is largely what’s wrong with this
world. We need to be more
tolerant and not sweat the small things.
Perhaps if we’d worried about having responsible government and
holding them accountable rather than worrying about the latest celebrity
gossip or bickering about politically correct ways to say something
we’d be better off today.
the spirit of this Christmas season, let‘s all just get along and focus
on the good things we have in life and let the little things that may bug us
make 2012 a year to tell our governments how they should be operating and
that’s like a business.
Some debt is fine but the irresponsibility is so out of control at the
moment that we’re literally on the brink of collapse.
haven't seen a bank failure since November 18th until this past
week when we saw perhaps the last two of 2011 to fail and join the final
spots in this
year list of biggest losers.
big news came late in the week with potential downgrades of Cyprus, France, Ireland,
Italy, Slovenia and Spain coming out but this should be no
also saw 7 of the worlds
largest banks debt ratings cut this past week. It’s also something we should
not have been surprised to see as they are the major ones at risk of country
default since they hold so much debt of the failing countries.
good to finally see some high level insiders charged over the mortgage fiasco
and fraud but it’s so late in the game now. What really stuns me is that no
enforcement will be taken at all.
No time will be served and no monetary compensation will be sought as
long as the companies agree to admit guilt and not dispute it. Unbelievable. US taxpayers should sue them, but in
reality they’d have no chance as the whole system is rigged and we all
know that by now.
can’t believe these people are allowed to roam free. I assure you if you steal a CD
you’ll not have the same luxuries so the lesson is if you’re
going to steal, steal big!!
whole thing is rather confusing and I suggest reading the long story yourself
to get a feel for the complexity and sick way the system doesn’t work.
of gold from Hong Kong to China rose 51% in October to
85.7 tonnes which is astounding.
This more than triples last years output
during the first 10 months of the year to 286.8 tonnes if
gold. To say China’s
appetite for gold is insatiable is an understatement and more importantly
remember that China is the worlds
largest gold producer and not much, if any, of that gold ever leaves the
Bass had some great insight which you can read about here but my favorite common sense thoughts on gold are;
we went and looked at the COMEX. The COMEX at the time they had about
$80 billion in open interest between futures and futures options. In the
warehouse they had $2.7 billion of deliverables. So $80 billion in open
interest -- $2.7 billion in deliverables. We’re gonna
own it a long time. You're on the board, as a fiduciary, what do you do?
That’s an easy one. You go get it. So you go take a billion of $2.7
billion and you let them worry about the rest."
I talked to the head of deliveries at COMEX NYMEX, I was like, 'What if 4% of
the people want deliveries?' He said, 'Oh Kyle, that never happens. We rarely
ever get a 1% delivery.' And I asked, 'Well what if it does happen?' And he said,'Price will solve everything' And I said, 'Thanks,
give me the gold.'"
MF Global saga is continuing and now it seems that customers with warehouse receipts for gold and
silver, which means you actually have the bars in a warehouse, are
going to see their bars value shrink by 28% as all assets are split up and
distributed equally not taking into consideration whether the assets owned by
customers were real or not. You
must own physical precious metals and ensure you can physically touch it in
short order without jumping through many hoops or I assure you, you
don’t own it.
is a very neat new organic material that is
being used for shipping rather than the normal styrofoam
which is thrown away after packing is removed, but lasts forever. The video is quite impressive and
makes some great points. We do
need to reduce use of plastics and petroleum products, especially in useless
capacities such as packaging materials.
tried to keep it short and to the point for you this week and I’ve got
quite a bit more work to get done for private subscribers as well so I’ll sign
off here. I’m not sure how
I’ll deal with things next weekend. I’ll just play it by ear and
likely send something very short out as it’s a weekend we should all
take off to spend with family and friends, and that includes myself.
next week take care and thank you for reading.
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