No Man's Land

We’re at that stage of the game once again where it is “shit or get off the pot” for the cartel. If they are still willing to exchange physical gold to maintain the downtrend for gold then we should see a hard price reversal this week and break below 1200 over the next few weeks. On the other hand 1320 should be the next battleground for the cartel. I am not as concerned about the paper price of bullion right at this point, but more interested in some of the miner trend changes. They appear to be breaking out of the bottom process and leading the paper price of gold. This is a very constructive pattern, but not necessarily something that provides an easy trade at this point. I still maintain that holding in the longer term gives you the best chance of succeeding if you still wish to play the paper game in gold and silver miners. This is pure and simple gambling in a casino. Make NO mistake. If you can get out of the casino with your chips cashed then you will be fortunate.

Some that read this blog still believe these markets are intended to give you a sucker’s chance at getting out with your shirt on, but as I was informed once “the market is designed for one purpose, to take your money”. If you read that disclaimer and still wish to play then buckle up because the nice mild bumpy four year ride up is now going to become unpredictable. Dramatically increasing volatility followed by languid periods of controlled, calm will confound the bulls and bears alike in general equities and miner stocks as the participants on both side are fleeced. The name of the game now is taking the chips from everyone sitting at the table. The bulls had their chance to leave but like any liquidity induced market the emotions of greed become overwhelming. Sentiment in the miner trade remains wretched and that is comforting, but there is no reason to assume they will rip the miners up to the sky and give you your ten-twenty-fifty baggers with a free spa pass in a few weeks. You’re going to have to earn it. gl if you make it out with your skin attached, because they will try to take it…..gl 

BTW I am not here to spoon feed your beliefs so feel free to take your shots. If I provoke thought or if you wish to put out your own links then the blog is better for it ………so fire away.

“Finally he broke the seal on his banker’s letter. He read it and exploded with rage.

“What is it?” Culum asked, frightened.

“Just an old pain. Nothing. It’s nothing.” Struan pretended to read the next dispatch while raging inwardly over the contents of the letter. Good sweet Christ!

“We regret to inform you that, inadvertently and momentarily, credit was overextended and there was a run on the bank, started by malicious rivals. Therefore we can no longer keep our doors open. The board of directors has advised we can pay sixpence on the pound. I have the honor to be, sir, your most obedient servant…”

And we hold close to a million sterling of their paper. Twenty-five thousand sterling for a million, and our debts close to a million pounds. We’re bankrupt.

Great God, I warned Robb not to put all the money in one bank. Na with all the speculating that was going on in England, na when a bank could issue paper in any amount that it liked.”