Devastation!

 I thought I might start out today with some commentary on the metals market since some of you may still own some. Keeping up this weekend with numerous metal traders and listening to different podcasts I couldn’t help but notice a trend in sentiment and it is most definitely as negative as it was at the last bottom several months ago. Is the July bottom in gold and silver going to hold? I really don’t have a clue, and frankly don’t really give a $H#!, because it won’t make much difference to my equity holdings in the miners and it certainly won’t change my outlook on physical metal. It will give me an opportunity to keep accumulating physical metal at prices I never expected to see two years ago and that is a positive.  What the sentiment DOES do is make me wonder if indeed we are very close to a higher low in many of the miners and in the metals….so maybe we are and some physical silver Monday will be on the “to do” list. NO ONE on CNBS is saying buy gold or silver and that is a positive. If any of you follow this channel as I do for sentiment then you may recall that several of their pundits on Fast Money were saying buy Gold at the high last months (and miners too). THAT should have sent off some warning bells.

Whether you subscribe to the end of the world scenario or not, even the most rationale, apolitical, anti-conspiratorial peep with half a brain must admit this is the most distorted, manipulated market in the last 50 years. It defies logic, but at the same time makes sense if you listen to THEIR own words. With every sentence defending the Feds monetization they add “after the greatest crisis since the Great Depression”…..Just keep believing they can keep this afloat with “digital printing”……Just keep believing as countries are bailed in and private retirement accounts are confiscated. Just keep believing as many of you did in 2007 that their was NO crisis coming as Ben repeated every month. AND in 2008 the downturn was temporary as your accounts evaporated into dust. “No one could have seen it coming” said numerous Fed speakers in 2010. Its funny how those quotes of “no one could have seen it coming tend to surface over recent history. 

BTW the current debate over the debt ceiling is a charade. Its Kabuki Theater to make you believe there’s a government. Don’t get caught up in it, its just noise. If anything its to keep the headline BLS numbers off the map for a couple of key months so no one knows just how bad it is AND it gives the Fed the cover to blame CONgress in a month or two for a collapsing economy.

Tough time for anyone in the metals trade, especially if you don’t understand WHY you are in it and many of you don’t. You really do believe in Santa and you really do believe the Wizard is behind the curtain to save you. gl with that.