Apr 27, 2011
1. The US dollar. Put 10 gold coins in a stack in front of you. That's 10 ounces of wealth. Now stack up $15,000 in Gman cash beside it. Soon it will take 20,000 of the Gman's "finest", then 20,000, then 30,000, and on and on it goes, forever....
2. By the later stages of this dollar bear market, most of today's silver top callers will be terrified. They will be terrified to sell any of their metals (if they have any left), because they will be afraid the COST of gold/silver could keep rising and they'll never be able to buy back anything they sell. Ironically, when it is really time to sell gold/silver, for govt bonds and the dollar, they will be totally afraid to do it. I don't think most of you realize how hard it is going to be to buy the dollar when the time comes. The level of horror, and the possible appearance of full hyperinflation, will see probably only 5% of the gold community able to eat the pain and do it. There is no greed coming in this dollar bear market market for ANYONE. Only an exponential increase in fear.
3. Do you really want to end this bull mkt staring at that same 10 ounce pile of gold you started with in 2001, or do you want 100 ounces, 1000 ounces, 10,000, and at least make the effort to get to 50,000 ounces, the number that defines you as rich?
4. Don't find yourself at the end of this dollar bear mkt shoveling stacks of the Gman's finest into your fireplace to keep warm. Nobody really knows how this all ends, and since the banksters play the game of "chicken" with hyperinflation for real, the dollar reallycould turn into what Jim Rogers terms, "confetti". Mr. and Mrs. Confetti, I now pronounce you...married to the breadline. Don't let that be... you.
5. Selling trading positions on silver for dollars into silver strength is fine. Selling them for gold is finer. Selling them for sugar is ok, but you can't be a bottom caller or turn caller, if you want to be a wealth builder. The two phrases are polar opposites. You can't "call" your way to wealth, but you can accumulate your way to wealth.
6. Selling physical silver core positions for physical gold is fine. Selling inner core physical silver core positions for dollars now is outright stupidity. I'll give you the highest odds that everyone selling core physical silver for cash right now is a lifetime market loser and soon to become a much bigger loser.
7. Running a trading Pgen in silver against Gman paper currency is one action that I like seeing you do. Running a silver to gold pgen is "only" 100 times better. Break the Gman's chain. Forget the statue of liberty. It's time for the statue of YOU.
8. When you sell a silver ETF, buy a gold one with the party pack proceeds. Bullion power vs Gman photocopier power, the choice is yours. Build ounces of wealth. Not fireplace fuel.
9. Rather than top calling silver, how about top calling some cash? If you are lucky enough to see cash rally against silver....
10. We all know where the silver top callers busted out, or at least you will after you read this sentence. It was the $28-35 area. They had little or zero physical and they busted out in a series of failed top calls and shorty pants plays, and now they want price back to what I'll term "the bustout zone" at 28-35, so they can fix their failure. I say: error #1 is being compounded with error #2.
11. There is no blow off top in silver, just a bunch of blown top callers.
12. Here's what is going on: Silver is "working" the $50 area HSR (horizontal support resistance) band. Remember all the top callers on gold's 3rd run to $1000, when I told gamblers to buy call options and everyone else to brace for upside blastoff?
13. This is a re-run of the gold show, on the silver stage. At gold $1000, the gold punisher recruited Michaelangelo to build a head and shoulders continuation pattern, and the worst traders of all time all took turns arguing over how far gold would "pull back" from $1000. Plain English Translation: They busted out, and lied about it to you.
14. That is exactly what is going on in silver now. The $50 area on silver (and the high is really $52.50 to $54, defined by near and long month futures, not $50) is far more of a key number for silver than $887 for gold, because the last bull market saw silver make an extreme move to the $50 area.
15. $50 silver is not high, not at all. But how silver rose to that $50 level in the last bull market was dramatic, and the top of that bull market was one of the most dramatic market tops of all time. That is precisely what makes $50 important. The drama. Not the price height. Those who think silver is "high" are IDIOTS.
16. This move has not been parabolic. It has been a steady march, but not a parabola. Could it turn into a parabola? Yes. The last bull saw the $35-50 area on silver become a bug light magnet for price-chasing idiots in the LAST bull mkt. They bought and bought, and bought and bought and bought. And bought and bought and bought. While I sold.
17. Those same idiots are getting out of what they bought then, now. Many of course sold on the crash to $15 after 1980, and into the lows of $4 of the late 1990s, but many lobotomized bag holders remained, and they are exiting now.
18. Remember that people lined up down the STREET for BLOCKS to buy silver bullion ON THE DAY OF THE HIGH at $52-54, in the last bull market. Do you really think those MILLIONS of IDIOTS think silver is a buy now??? No, the world's stupidest investors want out and they are getting out, ending their 30 year clown act and beginning an ever bigger clown act in toilet paper. As I said: good riddance.
19. Silver is now a French curve formation, not a speculative parabola. There's "only" a night and day difference between the two formations.
20. Let's summarize the silver market's liquidity flows of the weakest players right now. First, you have the new longside price chasers. They waded into silver at $40-50 and are now terrified that they might be about to burn, while the top callers chant, "yes you will, yes you will!". How pathetic. Second, there is team shorty pants, who shorted silver in a missive plop as low as $28, rather than waiting for major HSR at $48-54. Third, you have millions of losers who bought the 1980 high booking losses on their failed price chase. If I was a bankster, and wanted my kiddies to enjoy the "maximum burn of the idiots" show, after putting Orville Redenbacher on speed dial, I'd work to drive silver down to perhaps $40, so the new longs engaged in a loss booking frenzy, while the leveraged shorts shorted MORE into the fall to $40, congratulating themselves on their supersonic top call. Then I'd create an institutional panic in the dollar and watch shorty pants turn into a financial SKELETON within hours.
21. But the banksters might also be considering driving price UP thru the $50-54 area NOW, to fry the top callers first, AND bring in a huge crew of price chasers who would frantically buy the "breakout". Given that the morale of both crews of price chasers, the shorts and the longs, is fairly broken, it's a coin toss as to what actually occurs. While the shorts are probably a bit mentally stronger given the near $6 fall, they are also more underwater than the longs, so it's a 50-50 deal. Only the PGEN with buy orders below current price and sells above the current price let's you remain a player beside the banksters in this silver market, which is... the ultimate GAME.
22. I'm increasing my exposure to gold stock ETFs dramatically. GDX actually traded back to into the "59s" yesterday. I'm starting to look a bit swollen, from absorbing all the stock sold by the bustouts. All I tell you to do, is all I do myself. GoldLion focused on buying silver stocks yesterday while team top caller ignored what is now almost a $6 sale on silver. 8 more of those sales and silver is at zero. Fudd, as he books losses on what he bought at the 1980 top, knows it will happen. I'm less sure.... Hands up everyone who wants to sell all your physical gold at $1000 while the banksters promise you it will fall to 985 so you can do a "rebuy". Silver $50 today is gold $1000. You've been told.
23. Look at natgas yesterday. Another day in the trench. That's life in the wealth-building trench. Want more ounces of gold wealth, bigtime? Then buy gold stocks, natgas, sugar, corn, wheat, uranium, and after they show you a repeat of the silver show, cash some out, at the gold bullion cash register.
24. The dollar, as a measurement of wealth, as a unit of account, moved into 2nd place after gold took out $1400, not because of the price of gold, but because of the fundamental acceleration of the crisis. Over time, the dollar, as a unit of account, will pale beside ounces, and I'll bet that many more of you now feel this as real. Why? Because it is.
Gridtime. Many of you have Iphones. For the videos I post, I'm trying to get one single format that works for both web users and phone users. I might have got it "dialled in". Click here now, but remember that as a web user to click Screencast and as an Iphone user to click ipodcast. Screencast for web users, Ipodcast for Iphone Users Gold HSR Update
Thanks
Cheers,
S "silver 50 is gold 1000" t... out
"One half of the Congress likes to spend money for wellfarism; the other half likes to spend it for militarism -- and
they pretend they disagree, but they really don't - so
they spend a lot and then
they tax and they can't get enough money and then
they borrow and they can't get enough and then
......."