(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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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=PTUY16CkS-k 450 300]

I’m sorry, I’m a little Johnny Come Way Lately on This, but….

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This might be the funniest of these dual play cartoons that have come out yet…  Just the part about “The Ben Bernank (sic)” might be worth the whole six minute ordeal.

And then there is “THE Goldman Sachs.”    Just too much hilarity.

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“The head of the New York Branch (of the Fed) is… THE William Dudley…”

Shit, sorry, I’m laughing some more…

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Henceforth, I will be putting “the” in front of all nouns for greater comedic effect.

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Sorry, it looks like THE dollar is still attempting a relief rally after dropping like a stone for nine weeks starting the end of August and reaching all the way to the end of the first week of November.  I suspect that rally, now six days old, will not last out this week.

Why?

Because the Turkey Gods, all red and gold and orange, will come wattling this way next week, demanding their pound of quantitive easing and giblet stuffing for all concerned.   The fat man in the red hat and curly white beard is not long behind the Fat Feathered Gods (not to be confused with the Scat Covered Dogs of The New Oblivion), and they too will demand the dollar die as is slated in the Book of Deuteronomy, right after the admonition against lying down with false cat idols.

I started buying back, ever so stealthily, this last end-0f-week, and put away small amouts of GSS, EXK and SLW that I had dispose of in recent days.   I still have a lot on the menu there, and most appetizing at this point is IVN, which I will take down at any sign of weakness. 

Let us all remain alert in these coming weeks to the actions of the Great Feathered Gods, and of course, their minon, THE Ben Bernank (sic), who scrabbles along behind, with the giant Baster of Heaven, ready to pass gravy unto those who most deserve it… meaning us.

Best to you all.

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[youtube:http://www.youtube.com/watch?v=8Y88SaP4orc&feature=related 450 300] God Bless our Veterans This Day… “to the Lost!”
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First, my thanks to all who serve and who have served. This is your day, God Bless.

Second, I just got back from my road trip so I’ll be brief.  There’s not much more room in this dollar bounce, in my humble.  In fact, I may amend my $79 target (the 13-week EMA) down to $78.60, which is the 50-day EMA.  

No, none of these numbers ever work out exactly, like some sort of magic poodle act, but they are a decent guide for resistance levels — especially when we are entering overbought territory already.  Behold — 

And when that dollar starts turning down, the PM’s will start running again, with abandon.  The silvers have hardly slowed down, but EXK would be on my radar screen along with the usual suspects.

Mostly, the gold juniors are looking the most appetizing here, specifically IAG , IVN and EGO.   However, this knife catch will probably be my first buy when the dollar cracks its head tomorrow:

Ciao to you all, annoying Italianate friends.   Go out there and buy a beer for a veteran or a current service person, and never be embarrassed to say “Thanks for your service!” to someone in uniform.  They really appreciate it, every time.

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[youtube:http://www.youtube.com/watch?v=WM1RChZk1EU 450 300]

The Greatest Hip Hop Video Of All Time… Do you Dispute it?

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And so appropos, no?   Can you dispute I got a million ways to get it?

Who holds the Jacksons, still?  Which of you?  

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I took some silver off today, specifically SLW, PAAS and EXK.  My positions in these were fecund and preposterous.  They were an insult to God, they’d grown to such metastisitic proportions.

So I reset on some.   But I keep all of my SVM, MVG, and SSRI, with an eye on adding again to all of them.

And even more so with the gold juniors.   Some have asked me, “what of IAG?” 

More of it here, good sir?

Yes, good sir, yes, yes.    And NG and IVN at any scant opportunity.   But above all, constantly feed RGLD. 

Outside these of the Precious, only MON, UPS and ANDE are attractive to me right now.  

Go on now, I’ve given you enough! 

Go!

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