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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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And Just the Right Colour (sic), Too!

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It certainly feels good to stretch one’s wings once again, especially after a period of soreness and chafing, when the gold and silver markets pulled back in feeble, milquetoast fashion, rendering my hedges dull and feckless, and largely a waste of my time.   Luckily, I exited the remainder of my precious metal hedges today, and for the most part in the plus column (while my short ETF hedges were not), and the whole unpleasantness was avoided save for a more optimum re-entry price on a few select names.

As I previously stated, the dollar and the Amex Gold Bug Index ($HUI) were my guide in re-entering this morning, and the $HUI preceded the dollar in breaking that “roof” at $535 that has been plaguing us for the best part of a week.  I think today’s strong candle — on volume not evident in this chart, but in the individual names — gives we longer term players the assurance we need to be back in for the final ramp into Spring:

Note that upon the strong break this morning, I piled into AGQ with the gusto of a small ravenous narwhale amongst the migratory squid, immediately purchasing my first allocation (about one half of my expected total) without a limit order.  When things are breaking out like this, you always want to make sure you at least wet your beak so that you are not left behind in a tidal surge.   I also put in limit orders at this morning’s gap — and they never came close to being filled all day.   Tomorrow I shall try again for my fills there.

As planned, apres this break,  I also added to my considerable hordes in EXK, SLW, SIL and NGD.   As early as tomorrow I expect something of a pullback, but I will be adding at each opportunity.   Next in line is PAAS, AG, MVG and perhaps even CDE and HL.   I shall be as a fat suckling pig in a candy shoppe.   And no, I will not forget Prometheus’s gold — EGO, ANV and IAG will be added to as well, perhaps with IVN and AAU.

Scratch that, I just looked at the charts.  I will definitely be adding some AAU tomorrow.

Cheerio! Wot?  Your friend, Happy Jake.

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[youtube:http://www.youtube.com/watch?v=XfuBREMXxts&feature=related 450 300]

Boomer’s First Signed Act! (Check out the Instrumentalism!)

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As you well know, I am a believer– in many senses of the word (and the Word, and the weurd ).   But like Mickey Dolenz aimlessly tapping against the rim of a snare drum in an attempt to appear Ringo-weurthy, I am stuck here twiddling my Thaler collection, waiting for the second shoe to drop.

You remember my “I want to Believe” chart from four days back?  Well, it’s still stubbornly refusing to resolve itself, neither breaking down nor breaking out.   It’s enough to make one test the family flame-thrower out on the neighbor’s bird-stalking cat…

My patience is wearing to a thin thread, but I know I won’t have to wait much longer.  The dollar looks to be in its last throes, and will either spit the bit tonight, or take off in one last spasm of orgasmic excess followed by a quick-wilt into mid-February.   Your cue will be the $77.80 line on the DX-Y.  I believe that is our point of no return. 

Should the dollar fail there, I will be loading kegs of AGQ-brand sweet mead onto the back of my ale truck, along with SIL, SLW, and of course, EXK.    I will also have gold brands for you to swill, likely headed by IAG, ANV and EGO.   I never sold much RGLD, but I will likely be adding to that role as well.

For those of you who want something right now ,and cannot otherwise hold your water, I think the Borg cannot resist assimilating this latent bull, and so BWA should be bought here with alacrity.   The same goes for the providers of mining machinery to the mines above, JOYG and TEX.

JOYG to you all.

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You See Kid, It’s All About the Proper ‘Stache
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Well, the J-E-T-S, Jets, Jets, Jets lost… and many a friend, relative and associate is in mourning tonight.  I can almost feel their pain.  It’s tough to get so close to the Superbowl and then lose in a disjointed effort like that.  But the Jets should take heart, as they’ve a team to build on.   As well, the Steelers have indubitably the best defense in the league, and perhaps the best coach.  

 And let’s face it,  for the Jets to win a third playoff game on the road would be considered by some to be a near miracle.

I say “near,” because of course my own beloved Giants have performed that 3-Road Game Playoff Win feat, and topped even that by beating “the Unbeatable” New England Patriots.  You remember the Giselle Bundchen-related Patriots?  The team who had gone unbeaten in every game in the 2007 season…

Except the one that counted, I mean.  Heh.

No matter, the industrious Steelers pulled off the same carny trick the year after, albeit against a far inferior opponent.  Nevertheless, Mike Tomlin is great, Ben Roethlisberger is a loathesome pig, “Go Packers!”  and let’s move on…

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You want to know what I think the dollar is doing here?  I think it’s getting ready to rumble.  It’s been drip-sell, drip-sell, drip-sell for weeks now, and yet gold and silver have been pedaling in air, rather than soaring.   That means gold and silver, in their heavy, shiny brains know something.   This is what I think they know:

We might get a scrape below $78.00, but I think that’ll be the dog and the frog.  You’ll know the dollar is done diving because the market will crack like a ten week old egg left over from a third grade science project.  It’ll be smelly.  Are you prepared?

Everyone is asking me when I’m going to buy you-name-it– SLW, EXK, GDX, ANV, EGO etc., etc. 

Listen to me when I tell you that when its time to buy these things again, you will NOT want to do so.  Hear me?  Stop being so damn anxious and go have a clove cigarette and a warm paraffin foot bath or something.

In the meantime, here’s where I see EXK, you greedy little pigs, you:

Now remember that’s a weekly chart up there, so things will move slower than we’re used to seeing on the daily, and that distance to the buy is a site farther than it looks.  It might be three or four weeks from now.  So chill.

And here’s a bonus for you dynamite-strapped rocketeers out there.   If you try this, play it small because it’s wilder than boar hog afflicted with a case of cannibal crabs.  You see how much it was up on Friday?  Well don’t believe it.  This suckers going down just like it did last time.  Here’s my take:

That’s all for now.  Play tight and play defense this week.

Good luck to the Green Bay Packers, a real “good guy” team.  I might even root for Pittsburgh, but then, I have a daughter, soooo … no.

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For now, at least.    It looks the dollar has bottomed for now, and as a result, I will likely be dumping the rest of my AGQ tomorrow.  I will also continue to sell down my overweight positions in EXK, SLW and yes, GSS (which I am overweight for stupid reasons).  Some ANV will go, as well as some IAG and EGO too.  Not a tonne, but I will be raising cashe (sic) munny (sic).

I will also likely sell some other things tomorrow which look overbought despite their not being in the precious metal category.  I shall tell the good gentlepeople of The PPT about that before I make those moves known here in Pikerdome.

What won’t I be selling?   That I will let you know… lucky dogges.   I will not be selling any UPS.

I will not be selling any UL.

I will not be selling any MON.

And I will NOT be selling any TBT.    In fact, I may even add to the latter.

Best to you all, and Merry Kwaanza, Fonzies.

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The Turkey Gods are here.  Tremble, all ye who remain Ursine in attitude.

How do I know? Simple.   I merely whip out my prodigious folding money clip and scan the Benjamins, Grants and Jacksons for signs of wear and tear.   Sure as shootin’, there’s been beak-damage done to all the eyes of my papery dead Presidents.

The Turkey Gods love to eat dollars, but they especially love the vile jellies of moldering dead American War Heroes.   And yes, historical termagents, Ben Franklin was also a war hero.

Said heroes are not to be confused with “The Ben Bernank.” He is the hero only of the Currency Crusades, a tilter at windmills and the paper dragons of deflation. Soon, his unsmiling bearded mug will adorn the $10,000,000 dollar note, Zimbabwe-style.

Tonight, the dollar is below my “drain level” of $78.20 — currently trading at $78.13, after hitting lows tonight (Sunday evening) of $78.08.   I believe this is the “all clear” signal, and will be pushing the rest of my chips all in.

Not sure how many of you caught my large pickup in junior gold stock IAG, as announced in The PPT, the other day, but I grabbed a lot of December 17.50’s well below $17–.   I think that will continue to work.

However, I think the big silvers will be the one’s off the chart next week.  If you were contemplating the rulers — SLW, PAAS, SSRI or even the ETF, SIL, then this week is the time to grab hold before the end of the year.

The one I really like in the more speculative area, however, is EXK.   I also like SVM and MVG in the more speculative range.   CDE and HL — the garbage of the sector, should be handled with care.  No matter, they should all rise through to the end of the year.

RGLD, EGO, and of course ANV, gold juniors all, should also be at the top of your lists, as well.

Best to you all.

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