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I apologize again for only being among you in rare circumstances these past few days. Except for a brief glimpse at The PPT and the regular iBankCoin panopoly today, I had little time to visit and surely none to roll out a post of any quality.

You see I was getting ready for my Washington trip.   Washington, DC, the seat of the Federal Maw, that is.   And oh what an egregious trip it is, as I’m off to see an actual Federal functionary.  A cypher.  A paper pusher.  A true honest to goodness Level 15 bureaucrat.   Assistant to the assistant secretary of Tax Payer Deflowerment and Refurbishing. 

I attend with a client, and I must say I’m morbidly curious.  I’ve never actually had to correspond in person with a Federal government employee (at least none that didn’t have to be elected first).  We are actually going to see this particular green eye shade public pensionairy about an interesting subject that I wish I could share with you here, but cannot.  It would make for a good story, let me tell you, and maybe I’ll roll it out a year from now.  

Until then, I will be busy as Paul Ryan in a forest of red tape and pork loin.  I will try to Blackberry in, and perhaps post from my hotel tomorrow evening, provided I’m not eaten by some brand of obscene government-provisioned and taxpayer fortified bed mite.

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What’s that you say?  Wasn’t it a shame to see all the lily-livers jumping off the bus at 3:00 pm today?  Well yes, I admit it was.   But I must also say it was quite amusing, as I was in meetings all afternoon and only got to review the tape in 20-20 hindsight.  It’s amazing to watch the experienced, hoary old gold and silver bulls shake the noobs like a passel of defeated rats fleeing the maze.  Here’s some advice next time the dollar is melting down and you feel trapped into pushing the panic button:

Be the maze.  Don’t listen to the dufuses and the short termers, but think about how you are constructing the web, the maze, the golden thread spun up around their misbegotten strategies.  You are the maze, and they cannot gnaw their way out, as you are a maze constructed of the finest cement… not maize.

Attend to the dollar this evening:

We could bounce here again, for sure.  But the way the rest of the stochs are looking, it doesn’t look like a bounce is imminent.  I think we’ll see a snap of this long term support line, and then there will be the deluge.

For now, let’s stick to high quality names, though I like crazy stuff like AAU, IVN IAG, NGD, EXK and even AGQ.  However, there is one silver stock that stands asportfolio  royalty — the mineless and therefore sinless, SLW.  Remember this reminder chart I published just over two weeks back?

Did you indulge?  Those who follow me on The PPT did, as do those who are watching my pick in the March Madness Tourney.  All found SLW and were comforted:

Thank you indeud for you patience and indulgence, as always.

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The Genius Max Shapira’s Greatest Creation

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Certain people were a bit embarrassing today.  Some of you, whom shall remain nameless, lost your composure and micturated on the couch in response to the first over-large pull back in the silver names in over a month.  It was quite appalling.

Make no mistake, I am prepared to lay down the law.  I must insist that if you are to remain a gentleman (or lady) of the Precious Metal Investment Set  you shall comport yourselves at the highest levels of decorum, sang froid, and steely equanimity.   If you become too annoying and whiny, I’m afraid we’ll have to usher you onto an ice floe and send you off to the deepest Antarctic.

I don’t know how many times I’ve told you on these pages that this bull is not an easy ride.   I’ve also assured you that over time, the bumps will smooth out to extraordinary gains, and you will forget about the vague discomfort you felt at these zero-G space drops we’ve endured while indulging in the precious.  

Gosh knows, these day I take my comfort from the fact that, while SLW may lose a dollar or two in a day, and maybe as much as $5 in a week, I purchased it originally at under $5 (and some under $3!).

But know this –even back in the day, when SLW was trading in the low single digits, it would lose a quarter, or even fifty cents in one fell swoop, and send my guts to the taffy pull whilst afflicting me with the greatest self doubts and personal recriminations.  Please recognize that these conditions do not change for the precious metal investor, they are simply the way things are, and a cross that must be born by hearty folk on the road to sweet reward.

So buck up, and indulge in Max’s Sweetest Elixer — the Evan Williams Single Barrel Vintage — perhaps the best “bang for your buck” Kentucky bourbon whiskey you will find in this Golden Age of Bourbon.   It will certainly allay your nervous condition, and marry you to a longer term outlook that will serve you well on the Golden Highway of Sound Money returns.

My best to you, and I promise I will not be a stranger tomorrow.

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(The Doctor Was Right!)

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Le Docteur du Drosfila was correuct yesterday when he promised that The Santa Bernank would arrive soon and solve all your troubles. 

Well, he would if you were an earl and precious metal investor at least.  The rest of the “stock” market may take a little breather here as we reset for the next devaluation of your crumbly-tumbly dollar (down another 0.6% as I type this).   I wouldn’t get too worried, however, unless you are on food stamps or some other COLA-regulated form of government teat.   Because be assured, your welfare state is not looking out for your welfare, even if you are on Welfare!

Yesterday, on weakness, I indulged — as per my announcements on The PPT, peace be upon it — in a double helping of additional gold stocks.  I am quite full up on silver, though I may turn fat fingered vulgarian and grab a smidge more AGQ to take full advantage of any weakness.  The stocks I added to yesterday were EGO and NGD.   Some comrades on The PPT followed me, at even lower prices than I received.

Cursed be their names.

Today, I am looking at some additional weakness in ANV and IAG, and those would be where I’d alight first.  I am also looking at AAU and IVN as “exotics” as it were.   Royal Gold (RGLD) is also looking  juicy.

We’ll talk more tonight.  Good luck and Merry Bernanke to you all.

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Relax, have a smoke with a glass of fine bourbon, over rocks.    Yes, I realize that the price of silver was up almost 5% today, despite both U.S. and Canadian stock exchanges being closed for President’s Day and Family Day, respectively.

Yes, I realize that, were those markets open today, anyone holding AGQ would be running around, madcap-style, kissing their latest brokerage statements in adulatory dis-belief, handing out shiny new dimes to children and mendicants as is the right of all wealthy individuals.  

But savvy AGQ veterans have seen this kind of thing before and so, rather than spending the night on the Best Buy website outfitting their newly excavated man-cave with 126″ laser-guided 240 mhz 1080dpi 3-d LED moon-scaped wall displays, they are instead hunkering down and preparing for a temporary blow off spike in the precious markets, which may join equity markets in a pull-back tomorrow, no matter what the U.S. dollar does.

I will likely wait unti 10 a.m. to do anything at all, which would include eating a number of samiches (sic), lightly salted, lightly peppered.    As yesterday’s SLW illustration showed, I am expecting a run for that stock back to the old highs, and then a pullback, either at, or slightly higher than those levels.  If  we break old highs, I expect the pullback to be shallow, if we are turned before breaking to new highs, I expect we may find ourselves right back at Friday’s close when all is said and done.

You will find that if you watch these things over many years, you will get a sense for their trickery.   One would think that in a relatively consistent bull market like we’ve had for the last ten years in PM’s, riding this trend would be relatively simple.   Nothing could be farther from the truth.   They are evil wood sprites, as a rule, and they take pleasure in your pain and indecision.

They really love leaving you behind as well.  Yes, I am talking to you, PM skeptic.   If you have been watching this blog for any amount of time, you have no doubt kicked yourself enough times to form a large callous on your own buttocks.   Do not be chagrinned, I carry a similar leathery ass, and it’s simply the lot of all PM investors and traders.   The wood sprites are simply too crafty to allow you to take every trade profitably.

That is why I have urged you to always “keep a core,” and trade around that nucleus like the best Fermi Level Physicist in the CalTech Senior Laboratory.

Tomorrow we shall observe with anticipation and trim like expert barbers if necessary.   For now, we enjoy the anticipation… along with a finely rolled Dominican Cigar and only the best bourbon money can buy.

Best to you all.

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Listen up kids, I don’t do drugs.  

No, really.

No, I get high on… silver highs.   New one’s especially.  ‘Fact, I might even OD on breaking all-time highs, but I am doing wind sprints and having my sons jump out of random closets at me— “Cato-Clouseau-style” — in order to get my adrenaline glands in good condition for the eventuality.

Cause I’m pretty sure it’s coming.   Tonight we have new 31-year highs at $33.12, which is making me very happy.  Mind you I started buying physical silver at about $4.50 an ounce, and have never sold any of it.  That’s over 630% since 2002.  I wish I could say the same for my silver stocks, which I’ve traded perhaps with over-zealous vigour (sic).  In truth, they’ve been even more volatile than the commodity price itself.  

My favorite silver play continues to be the royalty play Silver Wheaton — SLW— which does not dirty its fingernails with crude dirt-scratching but instead secures royalty payment in silver at a certain price in exchange for financing miners.   Would you screech out loud if I told you that SLW had arranged to be paid in silver at the equivalent of less than $5.00 an ounce?   That’s like taking a time machine back to 2002 and rifling the unsuspecting corner numismatic storedfront for less than appreciated 100 oz. ingots, only to return to February 2011 and have them assayed for over $33… and counting.

Can you see why I’m so excited about royalty plays?  They are, in fact, leverage for the leveraged price of the precious metal, as that is what the miners do — they allow one leverage on an increasing precious metal price.  The royalty play is one step higher up the chain of amped return.  Is there risk of default and other mining related problems?  Of course, but like a bank, a diversified portfolio will absorb some of that volatility.  

 Remember this SLW  chart from a couple of weeks ago?   The two arrows are the places where I’ve made recent buys.  We’re still not back to our old December highs, but I think we’ll be there, maybe as soon as this week.  

 Royal Gold — RGLD — is another royalty play, this time on the gold side, and with an even more diversified portfolio than SLW.   That’s another Jacksonian you want to own.

I also like EXK, AGQ (be careful with this one), PAAS, MVG, SVM, AG, CDE (small), and SSRI.  Another great catch all for all of these (or most) is SIL, the silver miner ETF. 

For gold, the old standards, ANV, EGO, RGLD, IAG, GDX, GDXJ, NGD  are recommended, and newcomers IVN and AAU to taste.  I continue to believe also that the rare earth metals will resume their volatile climbs, and I like AVL and QSURD best.

Nothing going on in the U.S. stock markets tomorrow, but the precious metal, U.S. dollar and futures markets should be fun.  Ciao for now.

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Wholesale prices were up almost a full percent in January, I cannot imagine why.

Despite the dollar being somewhat oddly surge-ish this morning, gold and silver are holding strong.   We are in the right place, here.  I loaded almost to the brim yesterday, in AGQ, ANV, SLW, EXK, PAAS, SIL, and AAU, as reported yesterday in The PPT.

Funeral is this morning, so I will try to ring in later today.   Carry on.

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