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How about this Gaddafi cat?
Calling a cease fire after world powers called for a no-fly zone to be
imposed and also permitting protective strikes, but he continued on as if
nothing happened.
He’s
got quite the chutzpah to be killing his own countrymen. News is
breaking fast, but it seems the powers that be are not totally ready to take
him on, although France has launched some attacks and some US missile strikes
are also clearing the way for allied planes to enforce the no-fly zone safely.
Gaddafi
is trying to make his final push into Benghazi before opposition can take
action. He may must succeed. If he can take control of that city
then it poses a totally different and much more complex set of circumstances.
The
only way out in my opinion would be to take the man out himself. That
won’t be an easy task by any means though.
One
thing is for sure, this whole saga has me intrigued and sitting on the edge
of my seat.
The
military action now underway was put off until markets were closed on a
weekend I’m sure. They are hoping to have their goals met before
markets reopen on Monday. Japanese markets are closed Monday.
The
last thing officials want is to further disrupt markets.
As
for Japan, news can change in a minute, but it seems the situation is stable,
but still very dangerous.
Markets
gyrated like we haven't seen since 2008 and have no clear direction.
We’ve enjoyed sitting around watching news and getting a few
housekeeping items completed all the while keeping a eye on these historic
developments.
It
will be soon that we see some great entry points in our favourite miners as
well as our favourite swing trading stocks. Be ready!
Metals review
Gold
ended the week actually rising by 0.07% after a violent move lower early in
the week. We saw the gap filled from late February and we tested and
held an important Fibonacci level.
As
I’ve been saying though, situations in the Middle East as well as Japan
are far from certain yet. Anything can happen.
It
appears we may have seen a bottom, but that can change within seconds and
chances would be quite good that markets would be closed and open with a gap
leaving you out of luck.
The
GLD ETF did see heavy volume Tuesday, which has signified bottoms or tops in
the recent past. I was looking at this as it occurred but I had no
desire to try and pick that bottom at all with so much uncertain at the
moment.
If
we can break this downtrend line then I will consider taking on a trading
position, but I’ll be very nervous. Our physical position remains
under lock and key and we have no thoughts of selling even a 1/10th of an
ounce yet.
Although
the way gas is rising we may have to sell some just to put gas in the truck
to go get some groceries, which are also rising quickly.
Silver
slid 1.67% on the week. I am still totally amazed at the incredibly
strong bid Silver gets after any slight move lower. It sure is a change
from the past and a change that’s taking me a while to become
accustomed to.
Silver
held the 21 day moving average very nicely and did not approach any Fibonacci
levels as of yet, but we may yet see the $32.70 area tested. I would
like to see that, but as always, it’s not up to me.
The
SLV ETF saw mediocre volume early in the week as Silver tested the 21 day
moving average, but that volume was really nothing too heavy, then as we
moved off the lows late in the week volume dropped to nothing as investors
decided to sit the end of the week out. A wise move in my opinion.
Many
a rookie trader may have gotten lucky this past week, but those of us
who’ve been through the school of hard knocks have learned to enjoy any
respite the markets afford us as it keeps us plenty busy for the most part.
Platinum was hammered 3.38% lower on
the week as investors decided the car plants being shut temporarily in Japan
was the end for the white. We know this is only a temporary phenomena
and this will be the best chance we will likely see for years to acquire this
white metal.
A
bottom could be in as of this week, but then again we could see something
else occur which could knock it lower. We’re cautiously bullish
at the moment.
The
PPLT ETF is one ugly site to behold. Heavy down volume was seen early
in the week as this metal gapped down. Strong volume was seen late in
the week as Platinum moved off it’s lows. I’d love to say
the bottom looks to be in as volume was heavy and key levels were tested and
held, but we can’t say that yet.
Palladium
was hardest hit, to the tune of 4.48% lower for the week. Automobile
plants being temporarily shut was the catalyst. We’ve seen this
metal perform extremely well for an extremely long time and this correction
is a long time coming. We are looking for an entry in the near future
in Palladium.
The
PALL ETF saw the highest volume on my six month chart on Wednesday’s
rebound off the lows. It looks like there was a lot of selling and a
lot of bottom picking as we have seen the worst of the crisis around that
time.
Fundamental Review
It’s
a sad day for me to see Bernard von NotHaus convicted of counterfeiting
for his role in the creation and promotion of the Liberty Dollar.
I’m not sure if you’ve been around the precious metals scene long
enough to know the story.
The
basis is that he created a Silver coin called the Liberty Dollar. He
tried somewhat successfully to implement localized use of it as a form of
barter. He was shut down and all his inventory and equipment ceased by
the FBI.
The
coins were used in a limited fashion for exchanging goods, but most of the
coins were kept as a an investment and not “spent”. Their
premiums will increase dramatically I’d imagine now that they will not
be produced ever again, for sure.
It’s
too bad since Utah and other states are now proposing laws
which are basically a mirror image of what he was attempting.
It’s sad to see such visionaries punished for what I believe to be
right and valiant efforts. He stood for what is right, and against what
is wrong in the world monetarily.
He
faces a prison term of up to fifteen years and a fine of up to
$250,000. The US attorney said “attempts to undermine the
legitimate currency of this country are simply unique forms of domestic
terrorism”.
This
guy is part of the problem. He needs to do a few minutes of study on
monetary history. The Federal Reserve is the true problem here.
They are destroying the US Dollar by printing it in excess and devaluing
it. That is terrorism again each and every American by destroying their
purchasing power.
Forget
about these imbecilic, ignorant figureheads. Just protect yourself by
storing some of your wealth in precious metals. The more the better in
my view, but whatever you are comfortable with is your prerogative.
Sorry,
I’m getting a bit worked up here. That’s why I’ve
stored a high percentage of my wealth in precious metals. I don’t
have to worry about these types of clowns. They do not and will not
protect my wealth.
Once
again we haven't’ seen any banks fail this week to join this years list of biggest losers.
Very interesting.
A
new report issued urges the global retirement age to be increased.
I’m lucky enough to love my work and while I may one day write less,
I’ll never stop being interested in the markets and world at
large. But most individuals who are working for the man are looking
forward to the day they can finally sit back and relax. The only way
you’ll be able to do this is to take matters into your own hands.
I’ve
said it a million times before and I will again. Physical precious
metals will help you achieve your financial goals.
A
dentist recently was able to retire because of his precious metals and
related investments, His dentist friends asked him how he could retire
since they were hit so hard in the 2008 crash. He told them, and they
said it’s too late for them to follow suit.
It’s
not. Once you hear stories of doctors, dentists and most others
capitulating to buying precious metals then it will be time to begin selling
yours. We are far from that day.
Grow
a set and get in now while you still can!
While
we are far from perfect, we do believe we have the right strategy now and going forward.
A very large percentage of our portfolio is into physical precious metals and
skewed toward Silver.
We
hold some amazing dividend stocks, one of which pays close to 20% and is very
stable. We also have a mining portfolio and a swing trading portfolio
for fun.
Our
physical hoard is our insurance. Our dividends are also a great form of
income and stable insurance to a degree, as we only hold stocks with
dividends of about 10% or greater. Our mining portfolio can grow
exponentially and has a mid to long term time horizon and our swing trading
portfolio is a small percentage we use for fun and use options ETF’s or
stocks to try and put an extra layer of icing on our cake.
All
in all our strategy is increasing our wealth at a very steady rate and it
looks set to continue.
Here
is an excellent piece from Alasdair Macleod on how
precious metals will replace fiat/paper money. All I can say is get
your new world currency now while you can, before it officially becomes the
new world currency and is valued at a much higher price.
Also
please read through this article on the recent Warren Buffet
interview where he talks about the size and dangers of derivatives.
Recall that it’s really derivatives that sparked this collapse that we
are in the middle of.
South
African gold production has now dropped to levels not seen in a century.
Production dropped 6.4% in 2010. It’s amazing how quickly South
Africa fell from grace. Just a few years ago they were still the
world’s largest gold producer. We’ve been avoiding
investing in South African companies because of this declining production
profile.
I’ve
told anyone who’d listen for years, usually followed by smirks and
scoffs, that if you’re a young person looking for a new profession then
considering farming or geology could be one of the best decisions
you’ll ever make and you’ll likely make more in those occupations
than any other in the coming years.
An
article just came out citing the coming shortage of geologists.
The facts remain that geologists are retiring much quicker than there are new
ones coming into the industry.
Until
next week take care and thank you for reading.
Warren Bevan
www.preciousmetalstockreview.com
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