Visions Of Silver Dance On Dead Oil Bulls’ Heads

Don’t let my seemingly eternal caprices of bearishness cloud your impression of me. There was a time, not long ago, when I danced in fields of lilac bushes and mustard, clad in three piece suits donned in precious metals.

Not long ago, I wrote long articles articulating the evil Federal Reserve’s desire to destroy the dollar and crush humanity. I went long stocks on borrowed money, because I could.

In the grand scheme of things, it has only been very recently that I locked myself in my 9th floor office, raining predictions of doom on those of you gathered outside.

But, now something interesting has happened.

In December of 2010, saddled with large gains from silver bets around $15, which were undergone almost entirely with borrowed money, I liquidated enough of my holdings to wipe out my outstanding debt, keeping the difference.

Today, silver trades below the price I sold out at.

This is naturally a very tantalizing development for me. If silver can get 10% below that price point, I would be all but required to step in and double my holdings by using credit.

As of this moment, I have only a very small position of borrowed funds, which I used to step up my SCO position some time ago.

Particularly with June approaching; with things looking very bleak; and with this godforsaken energy short nearing break even at breakneck speeds; I am piqued by the opportunity to wash myself clean of 2011 and modestly expand my precious metals position.

However, this will not happen just yet. There are many underwater oil bulls who need to be drowned to death first. Crude will touch into the $80’s before this is over.

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