Tuesday, May 11, 2010

"Pictures At An Exhibition" - of a Bull Market in Gold and Silver

With complete apologies to Modest Mussorgsky...

(click to enlarge - source:  Richard Russell - Dow Theory Letters)

It will take the Government quite some time I'm sure to figure out how JP Morgan has been fraudulently manipulating the silver market with extreme impudence and recklessness.  But perhaps the market will extract a lot of pain out the rogue bank before the Government catches up with insight of its own.  My best guess is that Dimon will throw his metals trading unit to the wolves and plead ignorance.

In the meantime, the bulls are loose and there's no rush like a gold rush.  And here's the sucking sound of physical bullion being drained from the LBMA:  CEF to Issue $350 million to Buy Physical Bullion  Central Fund Increases Equity Offering to U.S.$376 Million


  1. Dave,

    Did you see the commentary by Jesse today about a trader he knows? It reminded me of a characterization of WallStreet types he did recently which bears repeating.

    "An entire society built around white punks on dopamine, trapped in the infantile stage of development, allocating resources for the many, the arbiters of utility and worth, from Wall Street to the Congress: this is what America has become."

  2. Dave - Love the blog. One of the best written and most concise out there.
    Quick question - any thoughts on silver bullion longs besides comex? I see that CEF did a secondary today and grabbed some w low premiums, but any other plays? Own slugs of PAAS and SSRI, but when blood is in the streets I'd like to push....

  3. Joe - LOL. I did see that. He usually emails me when he posts. Actually a lot of those white punks step off the floor and into the bathroom to snort coke. If they did random drug testing on Wall Street, 1/2 the personnel would be fired.

    We're in the controlled demolition of Western culture and now it's spinning out of control.

  4. Hey Anonymous - thanks for the feed - really appreciate it. For pure silver plays I like SVM, Hecla Pfd C (6.5% stock dividend that yields 10% right now), ECU Silver, and SDRG for junior spec play.

    You can also CEF's pure silver play, SBT on the Toronto exchange, but it has a bulletin board symbol. Yahoo finance will have the symbol.

    Make sure you buy some silver bullion that you keep "under your mattress." I prefer silver eagles and maple leafs over the private label stuff, even though the premiums are higher. silver eagles are extremely hard to counterfeit and they're recognized globally. On a relative scale, the premiums are low right now. Buy a sealed mint box from Tulving if you can afford it.

  5. Dave you don't like the 1oz bars? Such as Sunshine or Silver-town? I pretty much buy a variety pack if you will, and switch off between eagles, maples as well as the bars.

    Great posting as always


  6. Dave -
    Actually just took delivery from the comex on a mini bar. Damn feels good. Will hide it under my sofa, little will my guests know... Thanks for those hints, will look into. Not as well versed in silver bullion/products compr to gold, and yet perhaps silver will be the cause of comex default....
    Thanks again.

  7. "Actually a lot of those white punks step off the floor and into the bathroom to snort coke. If they did random drug testing on Wall Street, 1/2 the personnel would be fired."

    What they are actually snorting are derivatives of cocaine, not the real deal. In fact, I bet they are massively naked short cocoa leaves and poppy fields.