[youtube:http://www.youtube.com/watch?v=jIfu2A0ezq0 450 300]
Official Theme Song of Obamerica
_______________________________________________
I may own 16 tonnes (sic) of No. 9 Silver by the end this downdraft.
So be it.
Yesterday, I took it up a notch, as reported in my comments section. Not only did I add yet again to my Silver Wheaton Corp. (USA) [[SLW]] call horde, with 40 more June $11’s at $4.10, but I also began to purchase my old friend [[AGQ]] , with 600 shs at $53.77 and later in the day, another 600 at $55.11. I may add to that double silver horde again this morning if I can get this post done.
(It’s troubling to me that sometimes the blogging gets in the way of trading and other weurth(sic)-while endeavours (sic).)
For those of you watching at home, I’m almost back up to my total pre-December concentrated position in Silver Wheaton Corp. (USA) [[SLW]] with 18k shares. Another 2k will finish that hording. I am also up to 14k on the smaller [[EXK]] , and 7.5k on [[CDE]] . Because of the selling I did in December, I still have a lot of dry powder, which I will employ if we get one more push to the $1,030 area in gold. As it is, however, we may not get past the $1,075 I’d mentioned earlier in the week.
The important datum in this scenario, however is the ratio of the prices of gold and silver — right now, the price of gold stands at a nosebleed 65.75 multiple of the price of silver. As I’ve mentioned before, recent historical price ratios are normally between 40 and 50 times. So yes, gold may drop from here, but even in a drop to $1,030 from here, gold is still at near-nosebleed 61.6x the price of silver (with silver at the $16.71 an ounce it’s at right now).
So yes, I’m accumulating silver, in the sixteen tonnes range — it’s a value play at this point, and indubitably so. As one of my colleagues in The PPT explained yesterday “I had a dream where everyone’s future wealth was determined by how large of a silver belt buckle they wore.”
I also added 2k of [[PAAS]] yesterday in the $21.65 range. That was a standing buy order that just got hit. That’s been happening a lot lately.
On the gold front, I will look to add to Eldorado Gold Corporation (USA) [[EGO]] and perhaps some Allied Nevada Gold Corp. [[ANV]] today, as I got my IAMGOLD Corporation (USA) [[IAG]] position up to 10k shares as of yesterday as well with a buy in the low $14’s. For the record, I am not adding any [[SLV]] or [[GLD]] here, as I still have half my positions left over from the December sales.
If anything, I will add more [[AGQ]] today, and judging by it’s price, that may be soon.
Best to you all.
___________________________________
Update: Sorry for not mentioning the banks, which continue to look good, even as the Great Bankers (Geithner and Bernanke) continue to look bad (and mad) before the dopes in Congress. Odd, no?
BB&T Corporation BB&T Corporation [[BBT]] continues to be a top pick, and even the stalwart sons of the Confederacy down at Sterne Agee and Leech(es) have given it a “buy” with a target of $33 (my target is $38, as you know). Thanks to The PPT for that bit of information.
I also like Pacific Capital Bancorp [[PCBC]] on this weakness, just remember it is a lotto type pick, and go lightly, Holly. Fifth Third Bancorp [[FITB]] and Huntington Bancshares Incorporated [[HBAN]] continue on the Crosby Still Nash & Young theme of “Four Dead in Oh-hi-oh” — as Nat City and Provident are already dead, and these may survive, AND MORE.
Best.
__________________________
Comments »