I don’t have a lot of time to mess around today, as I’ve got to catch a plane to Noo Yawk for a weddin’ this weekend. I”ll have you know that I come from one of those “wide & deep” Irish families, and as a result have about 2,326 first cousins on my mother’s side, which also means most of my “vacations” from spring through December consist of going to a wedding somewhere. Ah , well — you live with these things for family.
That said, I wanted to comment on a bit of prejudice against the purchase of silver and silver miners that I encountered on the PPT the other day — coming, to my surprise, from one of our better known bloggers (he shall remain nameless for dignity’s sake)….
(cough!)
(cough!)
(cough! cough! ack!)
Anyway, I wanted to leave this note for those who might be concerned about this lack of discretion, and warn you not to take heed. This is the absolute best time to be accumulating silver and silver miners, as the Blees Rating (large money accumulators) is over 90 (out of 100), and the government is destroying our currency at a rate matched only by the rapidity with which ACORN has signed up phantom voters for the next election.
Most important, you must not heed the prejudicial rumours (sic) posted by some that accumulating silver will give evidence that you may be one of these:
Not that there’s anything wrong with dressing special on one’s free time.
And, yes, other stocks are doing well here and some better than the JCH. That’s a good thing, and you should take this opportunity to convert some gains into harder assets. Because believe me now and hear me later — when the time comes, silver will take off without warning, just as it has in the past — leaving many gaping in its wake. You want to have set aside your store of acorns for the winter.
For review, I like PAAS, SLW, SSRI, SLV and a smidgeon of EXK and AGQ…. and please don’t forget get some hundred ounce bars of the physical as well. Same goes for gold coins, and EGO and RGLD look nice here as well.
Be well all, and I’ll check back in tonight or via Crackberry earlier.
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Do you have a price target for the spot price?
Jake,
What is the best place to buy physical gold/silver?
Have a good weekend Mr. G!
My son is buying silver bars on Ebay when the price is right … he’s been building a position in gold, silver and platinum via coins and bars and will be buying stocks on the next correction … anyone under 47 1/2 should protect their future with a similar strategy … at least 5% of your net worth.
Jake, here’s an uplifting little article for you to read at the toasting of the bride & groom:
The Final “D” Word
By Rusty McDougal
Let’s move ahead, once again, to preview the next major macro-economic event on the radar screen. It is inevitable and will drastically alter your life.
I’ve been highlighting a particular “D” word a little over a year now… depression. The new American century has brought a historically horrible economy our way by any realistic measure of accounting. We are in a “Lost Decade” similar to what Japan went through in the 1990s and next week’s article will take a deeper look into this problem.
In the meantime, denialruns rampant though the slow motion train wreck continues unabated. Central planners can amp the stock market and bring in monthly economic data that is warm and fuzzy but they absolutely cannot reign in our out of control debt. Longer term problems will not be avoided.
Yep, it’s the debt stupid! That leads right to the final “D” word …. Default.
What happens when your Brother-in-Law, Bobby, loses his job, sees his house in foreclosure, has no savings, no credit line and owes $62,500 on six consumer credit cards? He can’t find work and you and the rest of the family have caller ID when he reaches out.
You know he’s toast, bankrupt, finished wiped out. It is just a matter of months until it’s tent time. This we can understand. Bobby will be forced to default on all of his obligations because he has no means of paying them back. Oops, my bad!
It’s much harder to recognize and understand when countries declare bankruptcy.Still, it happens all the time. South American countries, like Argentina, have perfected default to an art form. Argentina defaulted on its sovereign debt in 2002 and is now in trouble once again. Some of their national bonds are so risky they presently yield 50%. If you own Argentinean debt it will take more than a tango to get your money back.
So, it’s painfully obvious that millions of Americans, as well as emerging nations, can undergo debt defaults. No need to review third world countries like Zimbabwe.
How about the land of the free and the home of the brave? Can it happen here? Are we next in line for an IMF “workout”?
The present statistics are both mind boggling and mind numbing. Let’s carefully inspect them:
US GDP is $14 trillion. I should say it used to be$14 trillion.
US national debt stands presently at $11 trillion.
According to Richard Fisher of the Dallas Fed, unfunded liabilities (Social Security, Medicare etc) were somewhere near $100 trillion a year ago.
Crony bailout and stimulus pledges total an additional $12.8 trillion, which represents $42,000 for each man, woman and child in the US.
The Congressional Budget Office is projecting a $1.7 trillion federal deficit this year as well as similar deficits for the next few years. This year’s deficit is four times larger than any previous one.
Federal and state tax receipts are plummeting.
Corporate tax receipts are down 57% over the first six months of fiscal 2008.
For the last several years, the US has required a net foreign inflow of capital around $70 billion per month. Bailout and stimulus plans will make that much worse.
The world has balked at buying more of our treasury debts. Only $15 billion per month has come in over the last 12 months! Feb. 2009 showed a $97 billion net outflow. The US has $3 trillion in bond sales slated for this year.
The Fed is playing a shell game in the dark and actually buying our own debt.
The Federal Reserve balance sheet holds assets worthy of a local flea market with valuations like that of Neiman Marcus.
The US dollar has a crumbled foundation and is directly in the crosshairs.
Many states are bankrupt.
True unemployment is well over 15%.
Commercial real estate is joining residential real estate in malfunctioning.
US banks remain frozen and chock full of fully priced toxic paper.
A quadrillion dollars (!) of derivatives continue to sink. Levels of derivatives, astoundingly, are still rising as we approach end game.
One of our premier banking entities, Goldman Sachs, has $1,056 in credit exposure for every dollar of capital they hold. Cardiac arrest comes to mind.
There is fraud piled upon fraud in all of the bailout scams.
That’s nothing short of a national stress test! Unfortunately, no practical remedies are being offered. The solutions being thrown on the fire are only making things worse. There is no easy way out. A couple thousand up points on the Dow are meaningless compared to these issues.
Would you rather lend money to the criminals who sponsored these problems or to your Brother-in-Law? Bobby’s starting to look like a pillar of economic stability, no?
Again, the purpose of this article is to bring the term default into the conversation. The terminal national bankruptcy is obvious to anyone with an open mind. These idle promises cannot be paid.We are running on smoke and mirrors alone.
The bankruptcy courts will handle Bobby’s creditors. It’s more complex on a national basis. Citizens are accustomed to being lied to every election season. The bigger lies will get choked on in the immediate future. Failing programs like Social Security or Medicare will be just another notch in the belt.
What do you think has happened to Argentina’s many international creditors as the country stumbles from crisis to crisis?
The US is now in default mode as the Fed buys our own treasury debt. That’s a form of default. Diluting existing dollars via quantitative easing (burning up the printing presses) is another form of default.
The only conclusion to this sordid financial mess is default either through hyperinflation or public announcements.
Public announcements will be few and far between. That would require an act of integrity that has been missing for decades in our shadow government. Nevertheless, it’s game over. This dreaded “D” word will be the final one spoken.
Precious metals do not default. Make sure you have some around.
Live Resourcefully,
Rusty
Jake,
not to mention TBT….bonds will get crushed
What is my mother’s picture doing on your blog?
to Aristotle..your Mother ??? that my Fuckin BROTHER..he cleans up good don t he?
Silver near term target? $32.
_
I just went to one of those stupid wedings two weekends ago, my ears are still tingling from the LOUD music and I still have a hangover from the enormous amount of vodka I consumed.
SSRI is a Godly lease at this time. I have made mucho dineros in gold miners since the begining pf this decade and I am very nervous of the PPT actions. Baring that, ssri and AEM are going a lot higher for a while.
It is an unconforting feeling to know that the same people who adminidter QE are on the other side of our trade. Beware! thwse miners can go up 70% in a period of two months but they can get fucked just as bad in a very short period of time by the aforementioned forces. Load up but watch it closely and you might even consider stop losses.
If you fuck one of your wife’s cousins you won’t get invited t these wedding parties again, which is a win-win for you. I will try it next time but I wish you would do it first and let me know how it worked out for you! so I can follow with a precedent!
BTW, Silver next target is $19-20, in which case the aforementioned stock would DOUBLE.
Ciao- in a good sense
Have fun at the wedding. Little sister is married to an Irishman and every event with his side of the family is a blast.
Do you think we’ll get another shot at IAG around 9.25 any time soon?
Jake, not sure what web site you get your pictures from but they are priceless and often nauseating at the same time.
Another fun play on a silver run would be the jan 2.50 call options on cde….who I believe just turned a profit.
Lol! Why buy options on an option? That’s like second derivative degenerate gambling.
Just buy the schitty stock and
Fughedaboudit.
What is the best place to buy physical gold/silver?
There’s a couple of places on the net that are decent… Lear Financial comes to mind.
I go to a local shoppe near me that’s been good to me. Sometimes, that’s where you can get the best service.
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Do you think we’ll get another shot at IAG around 9.25 any time soon?
I would think so, just due to the gravitational pull of that consolidation zone.
You may want to pick up 30% or so of your position here, though.
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Caveman, thanks, but I just go to google images and throw in a phrase to see what comes up.
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Thx, Jake. Enjoy the weekend back in NY.
Will do, Anton. Headed to “I’ll Toscana” in Douglaston, LI. Queens, actually. Johnny McEneroe’s old town. Best meal on the Island.
Take the old lady next time you’re here.
___
I like the IDEA of silvr but I hate the market that silver is in – too manipulated…as they say hate the playas…but I do own some..paas, slw, ssri,etc
what are your thoughts on TBT?
Cheers..and say hi to the piano man!
Fm Fleck 2nite on the subject of pm’s
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Yellow Dog Bites Back, at $900-Plus an Ounce
On the subject of gold, yesterday I didn’t have a chance to point out what I believe is an important article on page one of the FT. It’s titled “Decade of Gold Sales Has Cost Europe’s Central Banks $40 Billion,” and it brings to the fore the fact that not only did most of these banks sell at the low — they essentially set the low.
(Relatedly, another of the FT’s three stories on gold yesterday carries the title “Precious Metal Lures Central Banks Again.”) I don’t think there’s any fresh news for gold bulls. But for those who aren’t familiar with the data, it contains an interesting breakdown of central-bank gold holdings.
What makes the lead article important, I believe, is that it will further legitimize gold in the mind of people who may not really have thought about it seriously before. Also, I think it will put intense pressure on central banks to not look foolish by selling more gold at what turns out to be low prices.
Being a member of a herd, which is what bankers and central planners always are, means not wanting to be criticized for making obvious mistakes. Now that Europe’s central banks have been exposed for having done just that, I think they’ll be even more reluctant to sell gold, and some central banks around the world might even conclude that they ought to add to their positions (though probably not in Europe). Of course, there’s nothing like higher prices to convince folks that that’s exactly what they should do.
Bruce- I am in agreement. Central bankers never sell at highs. They are paralyzed.
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http://www.bulliondirect.com (Bullion Direct – live on line quotes + they offer a unique IRA program as well)
“I’ll Toscana.” So it is written, so it will be done.
Restaurant reco’s always encouraged. Especially in Noo Yawk.