Not quite Infinity… but Bloody Close!

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Much to the bear-shitters’ chagrin, gold is continuing to break out.   Don’t believe me?  Look for yourself (see below).  My target is a bit past $1,300 per ounce for the near term, and then we should finally get some pullback.   At least, that’s what I’m hoping for because I’ve started hedging my ANV and this could get enraging if it continues to march skyward.   Here’s the gold price daily:

 

Crazy, no?  Well you should see silver, which has contracted it’s egregious price ratio with gold, but still stands well over 50x at 56x+ the price of gold.   Better than the 70x+ it was stalled at when I was screaming at you to buy it, but then, the world need bearded ditch diggers too, doesn’t it?

I also see a pullback coming in the miners, which will largely coincide with the near-term top in gold projected above.  The $HUI is really just a hairsbreadth from all time highs, and it too will likley break those highs before pulling back and making new bulls scream.  Note the pretty pictures:

This has been a fun ride, hasn’t it?  Who knows, maybe the Tea Party will toss all the Dems out of Congress on Nov 3rd and start their first session by making the official currency a one ounce U.S. coin with the Dog Sledder’s likeness on one side and a large glass of bourbon on the other? 

One can dream can’t one?   Best to you, my fellow idealists for liberty.

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Coupe la tête?

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Quite a day today, non?  Up another 3% and looking for more, despite the heinous allegations made by some of the ultimate Louis the XVI exit of our precious metals bull.

A vicious canard, but forgivable given the circumstances of the day.

And don’t believe a word out of those frenzied (and way late) hugger-muggers in the Japanese Ministery of Finance.  Who do they think they are kidding “intervening” in the rheaming (sic) of the U.S. greenback?   What effrontery!  All the fools do is make a mint for those fading them.  Why George Soros– the rosy-nosed blaggard– will finance half the New York electoral ticket on this move alone!

What’s our friend Baby Huey say about how close we are to “fini” on this move?  You tell me:

And one to look at for the coming Santa ride…

 

$50 looks like a nice entry if your thinking of it…

Enjoy the good days, and be well.

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Step away from the rabbit…
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Pay no attention to Lady Mahket with the butcha knife.  This is the chop part of the summer, but I’m not fooled.  I know what’s coming this year and so do you.

It’s an American election and it’s an important one.   The forces of “status quo” are going to do what they can to make sure it happens in as stable an economy as possible, despite the double barrells of ObamaCare and Dodd-Frank that have been administered to our collective guts.

Make no mistake, we’re going to be dealing with those two awful — and I mean awful — bills for the next decade.  My hope is that the perennially corrupt Congress will be rendered poleaxed for years to come just in unravelling them both.   That is truly our best possible outcome, given the unintended consequences that have popped up even on the very first day of the horrific bank “reform” bill’s signing.   I point you specifically to S&P and Moody’s suspending their ratings for fear of being sued into (perhaps righteous) ignonimity.

This is what you get when you allow a group of largely innumerate corrupt Democrats (and select boneheaded Republicans) access to the vital wheels of commerce.   Truly, they are en masse, a shit show.   Tell me again how elections don’t matter.

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Surprisingly, I’m sure, you’ll find my answer is grabbing undervalued gold, of which we have recently come upon a trove.   First, the weekly $HUI is approaching oversold whilst bouncing off a crucual long term (34 week) moving average.   That’s been a healthy sign in the past:

Then, a specific recommendation, one of my favourite Jacksons is  a bargain.  Look at the weekly ANV chart for my take on the situation:

I am back home this evening, so I will try to catch up on some sleep and be here tomorrow for any queries.   Best to you all.

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It’s called work.  I’m back home, and I’ve got tonnes of it.  I shall be out of the office again for three days this week and have all manner of personal and personnel issues to work through.   What’s worse, my right hand man is taking this week off (and deservedly so, as I’ve been working him like a Sherpa in tourist season).

I did have a chance to look through the charts tonight, however,  and I continue to believe two things.   One, this rally will continue, most likely after a slight pause that will either accompany or ensue from a dollar strengthening.   It won’t be much, but enough to continue working out it’s current oversold condition.  

This week would not be the week to add to the TNA (D’Rex Triple Russell), in other words.   It may be a decent week to continue looking at the PM recovery that firmed last week, however.   This is especially true if we’re given a bit of respite with the dollar strengthening.

As the daily AMEX Gold Bug ($HUI) chart show, that rebound off the oversold levels has occurred.  If the cycle continues as it has, we should see at least $490 again, and perhaps even new highs, depending on what the dollar decides.   Here’s the latest in a series:

I would continue to add to strong names that look like they’ve bottomed for this cycle, especially IAG, ANV and EGO in the golds, and SLW and PAAS in the silvers.   RGLD — the royalty banker — is also extremely attractive at these levels.

Feeling adventurous?  Gobble some EXK.   Or gobble some more, in that case.   I can’t tell you how much that stock reminds me of SLW, and even it’s ultimate parent WHT (now known as GG) in the bad old days of the early 2000’s.  I believe it will eventually provide similar rewards.

Someday, you will thank me for nagging you on all this.

Best to you all.

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“Opiate Dreams” 

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Don’t bother listening to any of the bullshit on Bubblevision, or even stuff you read on the latest financial blah blahg.  Unless it’s The PPT, you are wasting your time.

  Rather, you should concentrate on foreign commodity names with strong earnings paths, because the crap dollar is what’s making this thing work right now, and that will be true right through late October, early November.

You may remember, we have an election coming up?

Here’s the deal on the dollar.  It’s hugely oversold right now and very ripe for a bounce.  I think it gets all the way to $85 and maybe more before collapsing again.  Here’s the projection:

If you are in gold and silver, gird your loins.  We could see as low as mid $1100’s on the gold front, as a result of the dollar’s return to $85.   “Que sera,” I says.  “Suck it up,” I says.   We’ve been down this road before and we certainly know it’s ultimate end.   (That’s “up” for you noobs). 

In the meantime, buy some PBR, or some CEDC on any pullbacks– you can’t go wrong betting on Brazilian oil or Polish folks taking to the bottle.  Both are top “furrin picks,” on top of my PM hordes.  Go get ’em.

On the PM horde front, and with regard to a dollar bounce, I may sell some calls.  I will certainly let you know.   Right now, I am sitting, eating samiches, counting coin.

And drinking fine wine and eggsellent ales, of course.   I am still on vacation, after all.

Best to you. 

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[youtube:http://www.youtube.com/watch?v=BCAw5EYzen8 450 300]

(One of the kids’ favorites, and prescient)

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I’m on vacation and have enough trouble dealing with the deal shinola from the office, so I’ll make this brief.   That $HUI daily Amex Goldbug Index I’ve been featuring these last few days?  Well, it’s finally hit the trendline, and now it’s time to pack those shiny things on.

I’ll bring me sack, you bring the gold:

Could we have a couple of extra days consolidation?  Sure.  Play it by ear, but stay on your toes and be prepared.

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