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Nov 27, 2010

1. "Ring Ring!" The telephone rings. It's the Rolls Royce sales lady. She says, "Hello Mr. & Mrs. Gold Community person, how are you today?" You say, "I'm well, and you?"

2. She says, "Look, let's drop the formalities. Here's the bottom line. I have 5 brand new Rolls Royce Ghost cars, and I've been authorized to sell them to you for a hundred dollars each. Jim Rogers and Jim Sinclair each just bought a thousand of them, and I have 5 left at the same price they paid, for you."

3. You say, "Jim Sinclair and Jim Rogers are idiots. I wouldn't pay a penny less than a million dollars a car. Sell them to me for a million each, or lose my phone number. And you better include some maximum rate financing for me too."

4. Then the jewellery store calls. They announce that everything in the store is going for one dollar an item.

5. You say, "One dollar for a boatload of diamonds, rubies, emeralds, gold, platinum? Are you joking? Get that crap away from me. I don't buy anything unless the banksters have marked it up at least 10,000 percent above the price they paid. Then I sit down with five golf ball advisors and my inner circle of price chasers, and announce to the universe that gold is here to stay, but only if it trades at $1426 or higher. No, I won't buy one dollar of gold at $1314 if it breaks the 1315 lows, let alone anything if it goes into the 1200s. Gold stocks? Those are for nutjobs, but if they rise 100,000% or more, give me a call and I'll report for price-chasing duty, ready, willing, and able!"

6. Price chasers are what they are.

7. Gold is what it is.

8. The more things change, the more they stay the same.

9. If the price chasers only had an inkling of what is coming, to them, as the bond and paper money markets implode in their financial face.

10. The markets crisis is 10 years old. Look at them all. Boatloads of pathetic cowards, price chasers all huddled on bond market lifeboats sent by the banksters to supposedly rescue them after the banksters sank the Good Ship Stock & Real Estate Loli-Plop.

11. The banksters are preparing to carpet bomb the overloaded lifeboats. There's so many idiots in those lifeboats they are layered on top of each other like billions of price chasing sardines in a giant gooey ball. There's no escape because they are all in on bonds and paper money, in a single price band at nosebleed heights, with the banksters on the other side of that entire trade, which is essentially long gold. Long the Gold Punisher.

12. Yes, the markets crisis is 10 years old, but the economic crisis is only 3 years old. Markets lead economies. The economics crisis is not over. It's barely started.

13. Elmer Fudd Public Investor wants a solution. The banksters already have a solution to end the crisis. It's called a wealth transfer. From Fudd to them. The banksters are marking Fudd to market in carefully planned steps. If Fudd gets totally marked to market, he gets marked to the breadline. That's the reality of the mark to market pricing of the world's paperbug assets, marked against the gold punisher.

14. The public's twin heroes, the Gman and Doctor Pinocchio's electronic photocopy machine, are going to turn on him. The coming "austerity programs" to be unveiled by the Gman, are part of the markdown mechanism, part of the banksters' otc derivative debt collection tactics. Part of the repo program.

15. Let me expand a bit on the austerity programs. I don't think most understand what is really going on. It's too late for austerity. It's like you befriend a murderer and he changes his ways, only the police are already knocking at the door. There are consequences for grave errors and sins. While the govts of the world should practise austerity, the problem is that their sins and errors of the past are too big to reverse future consequences with ANY action taken now. The bottom line:

16. There is no solution. There is: Punishment.

17. The punisher is knocking at the door. Gold is the punisher and the rising price of gold is only the smallest part of the punisher's arsenal. What gold IS, is the other 99.9999% of it. Fudd and the Gman had a chance to go to gold entity school, not gold price school. They spat in Gold Entity's face. That's a crime. Now it's time for Fudd and the Gman to go to....

18. Gold Prison.

19. When you go to prison, what do you do?

20. Time.

21. The Gold Punisher is not about driving paper money to zero, although that is easily done thru an immediate marking to market of all OTC derivatives this morning. Mark to market this morning, and by noon Fudd is marked to the breadline. Period.

22. The punisher, going forwards, operates by locking Fudd in a financial austerity program that goes on and on and on, an ongoing lowering of his standard of living, like a ratcheting boa constrictor clamped around its prey. This is how Fudd will live out his life, his financial breath constricted for time. It is for him, financially...

23. The End.

24. There are problems too big to solve. When problems with a stock occur, price gets marked down. Fudd and the Gman are intertwined in thought and action, intertwined in problems. They are going to be marked down in price.

25. There's what should be, and what is. Some of you (most now) are totally comfortable with the idea of gold moving down, say $100. You sold into $1426 and you bought into 1320, and you are ready to layer in the next set of buys down to 1225, if it happens.

26. What if you created a "compressed reality" for yourself? What if you bought tiny weakness in the 1424-1320 zone with a LOT of capital, and blew out your reserve tank, your ability to buy down, both financially and emotionally? Suddenly all the flip trading, the micro wins, all the gains are being erased and will go badly red if gold takes out 1320 and falls $100 or so. You need to look at put options. Insure yourself, mentally and financially, against a meltdown.

27. I like to buy contrary assets, rather than put options. Put options are insurance, but also bets. Options expire, generally, in fairly short periods of time and longer time options are generally not effective to protect somebody who overloaded in a tight price range and needs $100 an ounce of gold protection or less.

28. For those who are all-in for all practical purposes on gold in the 1387 area, and never expected to see gold halt its rise at 1387 as it did, for this amt of time, you need to maintain yourself in the discomfort zone, not the pain zone.

29. Just playing around with micro money on the US dollar can mitigate a lot of the emotional worry. Obviously IF we declined to 1225, the wiener patrol (and all our minds) would then "wonder" at that 1225 low point, if gold could then fall another $100, down to maybe $1100-1156. On and on it goes, and where all the price chasers sell out, nobody knows!

30. I was booking wins yesterday on the US dollar, and nothing works better to perk an investor up than the kachingo sound of the cash register. My main focus is buying gold, gas, uranium, gold stock, and food, on weakness, NOT buying the US dollar in size, to "play the rally".

31. The head and shoulders top formation/painting on gold bullion is also apparent on a number of gold stocks. San Gold, for example, could be argued to have a technical target of one dollar a share, if the $3 level breaks cleanly. I argued vehemently that San Gold management should show themselves as open market buyers of the stock, alongside their investors. They blew it. Promises of big mine numbers are all very interesting, but if the coming numbers are so great, why the hesitation in showing themselves as open market buyers?

32. I believe the numbers coming in Q2 2011 for SanGold will be phenomenal, and IF $3 fails, it could be basically a major buy opportunity for you. I warned that by not supporting the stock while the rest of the gold stocks soared, San Gold was putting their stock in a very bad positioning for the price chasers, if the general gold stocks market turned south, which is exactly what potentially could happen and arguably already has.

33. Like with natural gas, my San Gold action gets serious on the buy side IF the $3 marker is blown out. With natgas, I ignored the general gold community hype as the buys started, then as "we got the turn on gas!" plop buyers turned into "I'm burning, when does the pain stop!" natgas reporters, I began Phase 2 of my buy program, which is much more serious than the Phase 1 tiddly winks show.

34. The good news for those who overdid it in Phase 1 is that those prices will likely look like gold $700 buys (probably lower) as the natgas bull begins to stampede upwards. Wealth is built in time. Embrace time, both in gas and in everything.

35. Don't race time, embrace it. Those looking to race time are making a monster wealth-building error. "I need this, I need that, and I need it now" - Average investor. Wrong. The average investor needs to relax and sit down in front of the gold punisher for their lesson on embracing time. It's either the classroom or the woodshed. I choose the classroom.

36. The time racers all are going to face the gold punisher in the woodshed. Think of how pathetic it is that BILLIONS of investors raced into bonds. Their supposed strategy is really all about racing time. The time racers are finished, unknown to them.

37. With San Gold, it is the same. Shareholders aren't going to care what management has to say about anything if price keeps dropping. Embracetime.

38. Have a drink of wine. Good, yes? Have a drink of time. Better!! Enjoy the here and now price of San Gold, the here and now time. It's easier to make money in San Gold now than it was at $5, because there are less grid points to manage. Period.

39. WEALTH is built buying value. Buying value, sadly, is buying what those on fire are throwing away in terror.

40. If you have interest in San Gold, you must buy what the San Gold bustouts throw away if $3 blows out.

41. All the way to zero. Remember the word....time.

42. Let's close this off on a (sort of) lighter note, by listening to the Elmer Fudd Public Investor Choir, as they sing us their new international anthem, as the banksters accelerate the process of marking Fudd to market.

43. Click here now, to listen to...

The NEW Elmer Fudd International Anthem !

See YOU on the Gridlines on Monday

For your next 5 day week-end!

Thanks!