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My fellow Americans… on this dark, dark day, when your PM positions have pulled back an egregious and insufferable one to two percent, I say to you, do not despair!

Do not feel compelled to jump on the gerbil wheel of drunken Chinamen.

Do not wander over hill and dale for the next Great Internet Bullshittery. 

And do not even bother getting short anything.  The Ben Bernank will shower all with increasingly feeble greenbacks.   Some will feel warm.  Some will point to value.   It will matter little.

Today, you must ask not what the dollar can do for you, but what you can do for the dollar.  At $76.25 or so, you can cheer the dollar on, and celebrate it’s deceased feline trampoline action by indulging in a select group of excellent names.  

They be SLW, PAAS, EXK, NGD, AAU, ANV, EGO and MVG.  

One other thing.  If you are worried about 5% moves one way or the other, and trying to catch every inflection, this game is not for you.   We are riding a wave of pure cement, and you are too small to challenge the intractable.   You will be entombed like a random concrete pourer on the mighty Verrazano.  

That is all, be well and healthy.

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UP goes silver and gold!

Sorry, I only have a minute or so, and it took me a while to fix the pic (if it is fixed!).

Looks like the dollar is heading to at least $76 where it should bounce (no guarantees).  That should give you an entry into some of my wild babies, like SLW, ANV, RGLD, PAAS, and maybe even AGQ if you have the gumption.  

I also like IVN and of course NGD and almost any silver here.  Buy quality if you can, however, so only do HL and CDE small, if at all.

I continue to become enriched, thanks to the above.  Have you participated?

I will try to re-cap my DC adventures later tonight.  Bizarre town, this is. 

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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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Bottoms Up! 

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On the imminent demise of the buck today, I loaded up with stupid amounts of AGQ, NGD, PAAS, MVG and SVM today, not to mention another 25% of RGLD.

The dollar is dying, I am quite confident of it.  Take advantage of all opportunities to at least mid-$76 on the DX-Y.  

That is all, really.  Short, sweet, simple

And sweet again.

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Wholesale prices were up almost a full percent in January, I cannot imagine why.

Despite the dollar being somewhat oddly surge-ish this morning, gold and silver are holding strong.   We are in the right place, here.  I loaded almost to the brim yesterday, in AGQ, ANV, SLW, EXK, PAAS, SIL, and AAU, as reported yesterday in The PPT.

Funeral is this morning, so I will try to ring in later today.   Carry on.

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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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