I knew I shouldn’t have shorted SLV!
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Shorting silver in a plunging dollar market with gold on the move is almost as dumb as “going for it” on 4th and 2 on your own 28 , about two minutes to go and with the lead.
Heck, maybe it’s even more dumb. At least Belichick– with his multiple Lombardi Trophy mantle display– had an excuse to feel arrogant about his low-percentage play-calling. The silver bears, who were gold bears before that and stock bears before even that had no call to compound mistake after mistake by risking the last remnants of their capital on such an audacious call.
And now they are paying for it, or to be more incisive — paying me. [[AGQ]] which you recall I added when I heard that the “Reverse Lock” was shorting silver, is up another 1000 basis points this morning. I can’t imagine what that’s doing to the leveraged short ursines, but it’s gotta be something close to being drawn, quartered and then lightly salted/lightly peppered before being chucked on the grill, marbled T-bone style.
Amazingly, silver has decided to catch up to gold this morning, with an over one dollar move (price of silver is up $1.02 cents as I type this, or 5.9%) today, the silver to gold ratio now stands at a stunningly low 62x, down from 64x as of late last week.
Gee, I wonder if that move to rationality is going to continue (remember, gold is continuing to rise as well)?
You’ve seen this list before, but at the risk of boring you, go get ’em:
Silver Wheaton Corp. (USA) [[SLW]] [[PAAS]] [[EXK]] Silver Standard Resources Inc. (USA) [[SSRI]] [[CDE]] Hecla Mining Company [[HL]] And a new one I haven’t talked much about — [[SVM]] .
Don’t forget about the pure bullion plays either. [[SLV]] is one time and [[AGQ]] is two.
Happy hunting, and watch for pullbacks. We are parabolizing here, so I am talking off the rest of my call positions today.
Best to you all.
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Addendum: Platinum is another precious metal in “catch up” mode. I’ve banged the drum on [[PTM]] enough times that you should have at least a little. This should be a continuing move, here, however. I am also considering, but have not yet bot [[PAL]] , which is a dodgy stock even in the best of times.