Wednesday, May 5, 2010

Busy Re-deploying Cash We Raised Last Week

before the sell-off. Scaling in on my favorite positions. Here are some articles that should be read. I wanted to add some commentary to these links but the articles speak for themselves - bon appetit:

From Clusterstock: Gold to $3000?  (Rosenberg is quick to point out the debt problems throughout Europe, bet let's not forget that the debt bubble in the United States makes Europe look like a day at the beach).

China Buys Physical Gold vs The West Dumping Paper Gold (make no mistake about it, China is voraciously accumulating physical gold - a lot of it is via their sovereign wealth funds, like China Investment Corp, and does not get reported to the IMF as "official" gold holdings. I know for a first-hand fact that CIC is accumulating gold).

Bill Clinton Slips, Admits Closing Gold Window Caused Our  (Bill Clinton is a closet goldbug).

Middle East Banks Going "de facto" Gold Standard? (We buy their oil with dollars, they turnaround and buy our gold with those same dollars).

As Europe continues to melt down, keep an eye on the growing civil unrest in Greece. There is a real risk that it will spread over Europe and even to the United States, as the controlled demolition of paper currencies spins out of control.

Remember - THIS is real money:

This is NOT:


  1. Looks like a prudent move so far Dave. Gold is finding some nice support at $1160.

  2. Currency Wars.

    Gold is a front and an important one in a much great struggle as the dollar hegemon crumbles.

  3. I'm not concerned about getting in too early and gold pulling back to $1100 or $1050, I'm worried about missing the "slingshot" move toward $1500 then maybe $2000 as the physical game suffocates the paper tragedy.

  4. Jesse = the ghost of Ludwig Von Mises? LOL

    LVM - circa 1936: [to paraphrase] with a global system of fiat currencies, eventually there will be a devaluation war that takes all paper money to zero

  5. We have history on our side Dave. I take down days as a good opportunity to buy...

    So thank you.

  6. There will be no happy ending for ANYONE in a currency war! Riots, martial law, wars, food shortages, etc.

  7. Is that Gold that just finished in the green? Yes yes it did. And the Markets still glowing red.

    The paper bugs must be foaming at the mouth.

    I eat popcorn.

  8. LOL. Lot's 'o butter n sale i hope

  9. We must be on the cusp of a major breakout-- I finally got one of my friends to actually consider buying gold. I've been telling this friend about gold for years, lol. I think he's finally noticing what's going on around him.

  10. WOW. He'll be glad if he buys now when gold hits $2000, which could happen this year.

    A long-time trading/goldbug buddy of mine called me this a.m. and said "we may go a bit lower, but we go parabolic around May 9th. I'm all in now - the Fed is getting ready to punch the printing press button."

    He's not great with shorter term trading calls, but he has been pretty good with making calls up or down ahead of big moves.

  11. D in D,

    Anu idea how he makes his calls? Does he read tea leaves or rolls ahandful of bones? TA orr other?

    Just curious. Unless he is Martin Armstrong that is quite a specific point in time.

  12. Rothie: I think he drops some LSD and stares at the sun LOL.

    He just left a long detailed message on my voicemail explaining the HUI charts he uses. I started zoning out. He thinks this pullback is finished going into the weekend and we start to head a lot higher starting May 8th or 9th.

    He doesn't read Armstrong - in fact he hates Sinclair LOL. I don't bet on his calls, but if the correlate with what my view is it gives me more confidence.

    Last week I felt we would get a heavy correction this week and I took our fund - the stock side - up to 50% cash into Monday's close. I felt like this week would see extraordinary volatility and the "fishing lines" needed to be bought; that we would have an unseasonally strong rally thru the end of May and then the summer doldrums would kick in.

    The EU thing going on may derail the usual seasonal sell-off/consolidation as I know for a fact that wealthy Europeans are literally hoovering up physical gold and taking private delivery as opposed to leaving their 400 oz'ers in HSBC's or Scotia's or Barclay's vaults over there.

    My buddy does't care if his own timing is off a bit, he doesn't even trade day to day anymore. He is following his conviction that the Fed is going to start printing in a big way, that may not even be apparent from looking at the usual spots on the publicly available Fed reports.

  13. Dave, is your friend making an educated call regarding May the 9th, or does he have some inside scoop? It's a Sunday by the way.

  14. He has some t/a chart analysis he does. No inside scoop, just over a decade of experience trading/researching/investing in the sector and analyzing the system. He believes the Fed is going to have to start cranking up the printing presses very soon and I agree.

  15. Thanks so much for the feedback. Priceless info here.

    Did the FED ever really stop priinting? Watch what these actors say, then what they do. Often they are polar oppposites.

    Even if the FED said they had stopped, I wouldn't believe them for a second. Covert Op's are business as uual, its the visible Q@E that has stopped...temporarily.

    Its interesting that even some MSM sites are coming to the conclusion that all these bailout of various parties, are simply bailouts of US BANKS! They could care less about 'saving' certain institutions or countries, all they are doing is guaranteeing the debt that the US banks are holding.

    JPM and MS to an even greater degree are LOADED with PIIGS debt. Bailing out the PIIGS = bailing out the Wall Street Banks.

    As far as LEhman, the US banks TPTB cared about were short, so they let it die.

    The paradigm is shifting for the masses...or at least its starting for a few who care to investigate.