May 12, 2011
1. Poll specialist Mark Hulbert reports that 93% of Graceland Subs remain on the gold buy and on the core position hold. OK, that was a typo. He reports that 93% of goldland is burnt, fried, roasted, toasted, grilled, baked, and poached. Gold chefs can feel free to let me know if I've missed any important words to describe the reality of this week.
2. The Hulbert poll shows 7% of timers remain as bulls. As of this morning, it's probably 4%, or less.
3. I remain on the real world buy, with a focus on wheat, corn, uranium, gold, silver, GDX.
4. Well, I WAS on the buy into the early hours of this morning. As I write this, gold and silver are already rallying. Time to fire up the cash register.
5. I'm considering starting a charity (with my money only, not a donations scheme where I collect "admin" fees) that invests in the major markets, and spins off cash to worthy causes. If you know any, let me know. On my "A" list are these superb charities: Cadillac and Hy's steak house. Seriously, if you have any charities that you think are worthwhile, let me know and I may donate. I won't mention them on the site.
6. Most of the world's price chasers could probably use a donation this morning, but unfortunately they didn't register as a charity in time, so they get nothing but more pain. That pain could be watching the metals market shoot higher with them holding a bag of toilet paper they bought after selling their gold for it, in failure this week...
7. Jim Rogers says "great fortunes will be made in agriculture..." Click here now to view the wheat chart.
8. That chart is better named the "sell all your wheat now, because when the blue HSR line breaks, and it will, people are going to stop eating and wheat is REALLY going to zero! Sell, sell, sell!"
9. The PANIC sweeping thru commodityland is not much different in sugar. Click here now to view the "terror line in play" on the sugar chart.
10. My partner, gold artist, believes 40% of the gold community has engaged in MAJOR capitulation this week. GoldLion reports that some juniors stocks have gone to NO BID at times this week.
11. Is it a panic, or is it a SALE? Clearly, the answer is that it is both. A sale for YOU, and a panic for the card-carrying members of the Price Chasers Association.
12. I'm going to make an attempt to do a DAILY posting of the gold to silver charts, which are one mechanism of building ounces of wealth while isolating yourself from the world of the dollar.
13. Goldblood in England has taken his gloves off and traded in is price-chasing club membership card for a lifetime membership in the "House of Ounces". When you look at the 100 year performance (with the 100 year anniversary fast approaching) of the Fed, you see that you need 50,000 ounces now to do the equivalent of what 700 ounces did 100 years ago, in terms of buying paper money.
14. Most of you are highly successful business owners like goldblood. The level of buying power destruction has been gargantuan, and more and more of you have reached the "breaking point", where you just say, "I don't care what bankster games are YET TO COME in the gold market, none of these games can outweigh the robbery of purchasing power, and obviously all that is going on right now is another bankster game to get more of my gold, silver, commodities, and stock. I've chased my last price. I'm still in the paperbug world, but I'm ALSO in the ounces of wealth building world. Now, get out of the way, I'm comin' thru on the buy this morning!"
15. There is no more talk in the gold community now about "the smart Chinese Gman" buying up gold on a $20 dip at $1550 to push it higher, after he bought none at $250. Talk of mine reports has all dried up. Those explorers that are releasing positive news in this type of market are finding that their news has no effect on investors. Duh.
16. GoldLion suggests that we are moving out of the phase where gold is rising on FEAR and into the beginnings of a phase where gold rises on HUNGER.
17. I want to re-iterate why it is so important to buy items 'all the way to zero", but particularly for juniors stocks. While a juniors stock has a huge risk of going off the board, buying to zero is not related to THAT risk.
18. You manage THAT risk of the junior stock going OFF THE BOARD PERMANENTLY by the total amount of risk capital you allocate to buying it all the way to zero, not by guess at which of your buy points the stock will turn and astroblast to infinity.
19. The reason you need to buy juniors stocks to zero is because they are ultra-volatile and most tend to have drops of 50% regularly, and 70-90% is pretty much normal as well.
20. You can't know when those drops will happen, but you can be 95% certain that they WILL happen while YOU own the stock.
21. Most investors spend 99% of their time discussing all the reasons why the market is irrational or should be doing a,b,c, when they should be spending 99% of their time MANAGING the 95% chance that it does do ALL they think is IMPOSSIBLE.
22. Click here now to view the GDX chart.
23. While most of the gold community tried to interpret that price congestion area as a price pattern, I, alone, called it a BLOB. Note the "line of terror" at $52.50. All price below $52.50 can be correctly labelled the the run to mommy zone, if price takes out that number.
24. Most analysts will call the $52.50 area a key support zone. It's an HSR PGEN tweak area, and nothing more. If it breaks, you need to remain on the buy, or at least don't blow out what you hold, if you run low on cash. The bailers are going to find they are not running to mommy, but to the BLAST FURNACE, while handing their holdings to the BANKSTERS.
Gridtime. The TEMPTATION is to try to time your way out of this "gold mess". Don't give in to that temptation. It won't work. Real wealth transfer occurs when you actually believe the market MUST go lower, and CANNOT rally. It is extremely difficult to buy during a time when your mind and emotions have NO BUY THOUGHTS OR FEELINGS AT ALL. That is why you have to surrender your MIND and EMOTION to the grid and the pgen. The failure of the timers is only beginning, and the power of the pgen will dwarf everything as 2011 becomes even more insane than it already is.
Thankyou!
Cheers
St out