May 6, 2011

1. "It's 2008 again" - A multitude of gold community investors, May 5, 2011.

2. There are some key differences between now and 2008. At the top of the list? The difference is YOU as a general group were a bailer in 2008 and now you are a holder and in many cases a buyer.

3. GoldLion says his liquidity flows work shows the silver price yesterday, in terms of valuation, is at the same levels he saw in 2008 at the eight dollar low of 2008.

4. A reminder of the power of the banksters, who you competed with yesterday on the buy, in the gold, silver, and commodity market arenas:

5. With the silver margins now approaching $25,000, there is a long ways to go, in terms of the ability of the banksters to raise them further. At $35 an ounce, the value of the CME comex silver contract is appox. 15% of the value of the contract. That leaves 85% to go. I think the other 85% comes, but not until we go over $2000 on gold, and again in more stages, not a shock, although that is possible.

6. I've warned most of you of the difficulty of trading silver and to stick with gold, and this 25% price decline has given you a taste of why that is. That's a total decline of $15 from the HIGH. Before this bull market ends, I expect silver to move more than that, both up and down, in one day. The question is: Are YOU prepared?

7. Trader Dan Norcini argues that allowing massive leverage in the gold/silver mkts allows the speckies to provide phenomenal liquidity. I don't really agree. While they provide additional liquidity, that liquidity would be there if Elmer Fudd professional Gman rear-end kisser hadn't bought every piece of the banksters' propaganda and ruined the American constitution.

8. If most Americans view gold & silver for what they are, there would be more liquidity provided by the small non-leveraged speculator than there is now provided by the leveraged mini minds operating in these metals markets. Don't leverage a mini-mind. You get a bigger problem.

9. I booked off profits on my silver put options yesterday, ranging from 200% to 900% gains in 5 trading days. How many of you took protective action for even 10% of your silver holdings?

10. Don't worry, you only have another ten zillion chances to protect yourself against a replay of the past week, down the time road, as gold VOLATILITY that I predicted as the MAIN THEME OF 2011, grows to the point that this latest entire decline becomes the NORM of one day's trading action, going forwards.

11. While the banksters deliberately created the volatility in the markets by hiking margins, can you even possibly imagine the horrors if the banksters killed their BUY ORDERS yesterday? I estimate that 95% of everything sold yesterday was bought by the banksters. You, and a few funds, bought the rest. Ride the shark, not the wiener. The banksters are the shark, Fudd is the wiener.

12. The gold and silver markets went OUT OF CONTROL yesterday, and if the banksters had not placed massive buys, I would conservatively estimate gold would have fallen $500 yesterday and silver would have fallen $30, for the DAY. The banksters KNOW their power to "lord" over markets. Respect that power, by using the PGEN and HSR. [It wasn't just gold and silver yesterday: it was most everything in Energy and Baic Materials, as well as overall weakness except for slivers of consumer cyclical, tech, health care, and industrials. -FNC] Not a price-chased plopgen at silver $50, while reading off beautiful drill reports. Smoke a cocheapa from uMOPEia while on the buy today, so you smoke a cohiba in utopia, as silver blows thru $50.

13. Respect an out of control market. While it is NOT 2008 again, it IS 2011 NOW. Welcome to the show, the big show.

14. Times like this are good to replace some paper gold with physical. If you bought into the decline with paper, you sell the accumulated paper at a loss, and buy the same amount of physical. Then bury or vault the physical. Make sure you report the physical you buy to the Gman if required. If some falls out of your car on the drive home, report that amount as lost, so you don't violate any rules.

15. Both SLV-n and SIVR-n have shortsale restrictions on them now. [?] That should tell you that the price chasers are shorting now. The set-up is being put into place for an astroblast higher.

16. Attention gamblers: On the upside, always buy MORE time for call options than for put options. Markets fall faster than they rise, generally. Up moves can require bigger basing periods. Pay up for time. Pay nothing for bottom and turn calls. Use profits to buy time.

17. Some of my competitors are suggesting there is nothing to worry about. I don't see it that way. Most investors bought a lot of stock in 2006 and 2007-2008 and are still badly underwater. Focus on pain and shock absorption, not looking into a painted mirror at your stocks thru rose coloured glasses. Reality check: It's been 5 years of gold stock insanity. There was intense liquidation yesterday, a massive transfer of wealth to the banksters. More than pain yesterday, the theme was SHOCK. Don't lie about it. Endure. Patience....the LEVERAGE of CHAMPIONS.

18. While yesterday the gold community looked like roadkill after a parade of lemmings attempted acrossing of a LA Freeway, the hedge funds didn't fare that well either. Gold stock indexes like GDX didn't decline that much more than gold bullion did, and less than silver bullion did.

19. The extreme overbought situation has been resolved on the longer term charts, and now, ironically, there is a reverse overbought situation on the short term charts. The gold to silver money chart shows gold as massively overbought against silver, and silver massively oversold against gold.

20. Click here now to view the gold & silver money chart. This chart shows you don't need to focus on the dollar valuation of your metals to build wealth. Gold has soared 30% against silver in a week. You can build ounces by moving back and forth from gold to silver. Right now, this chart suggests a move back into some silver, via PGEN, is a solid tactical action.

21. Rob McEwan promised he would put his junior gold US Gold into the S&P500 in 5 years. At the rate things are going, he might want to consider an alternative index, perhaps the S&Pooh500.... Regardless, UXG is a major PGEN buy here, and the hedgehog ratio traders will be destroyed by your personal leverage; patience.

22. Forget the analysis. Click here now to view the 25% flyer that just arrived in your mailbox from the Gracleand Gold Juniors Grocery Store. That little screenshot is UXG-nyse dropping from about $10 to $7.50. That's all you need to know.

23. Many very good analysts are trying to call a bottom on silver here. I'm calling for (and placing hundreds of) buys, not bottoms. If you look at the monthly HSR zones on the silver bullion chart, and I'll go over that in minutes on the site by video, you'll see the only really big support zone lies down at the $21 zone! Be careful about acting on what you think you KNOW versus responding to what IS.

24. When a market goes OUT OF CONTROL you do not know where the bottom is. All you know is that the market is out of control. Remember when I told you CRASH SEASON for gold and silver is the April/May/June area? The market is crashing and you are buying. End of PGEN story.

Grid Time. There's zero shame in stopping buying for financial or emotional reasons as price "impossibly" careens lower. Don't keep buying for the sake of calling a turn. Buys make you richer, not turns. Keep buying ONLY because you emotionally and financially are capable of doing so. These prices will look cheap in time, but do what it takes to make sure you EXIST when that time comes. Be realistic with what you are capable of handling...

Thankyou

Cheers