I do think we are in the Train Wreck mode I've described at Epic and that means the rigging and price fixing that goes on in gold and silver especially gets very hard to sustain. The pressure is really on the manipulators. So I've gotten more opportunistic about PMs. As some of the stale money has come out, it's created some excellent buying opportunities, especially in the premier late stage development projects. Accordingly I reentered MNG this week at 1.75 avg cost. Yesterday I bought CLG at 2.24 avg cost. I own WTZ (bought a few years ago in a private placement:it's hold, not a buy) GBU, SUF and AGI, and I think new money could be committed to the last three too. I think there is an unbelievable Train Wreck developing in copper,
Message 19929914
and I'm looking for an entry into NXG, I may not get a real downtick though. I'm really kicking myself for dinking around when it was at 2.00.
The other element of this is the the Crack-up Boom (Mises term, covered constantly at Epic). I think with the CBs fiddling while Rome burns the odds for a Crack-up Boom have really gone up since the beginning of the year. The CBs might defend against this, but right now it looks like they are playing games. They are really playing with fire. The defense against a Crack-up boom would be higher interest rates, therefore I'm hedging my crack-up boom plays: energy and PMs with short Sept Eurodolllars. I'm also short financial stocks. I will try and adjust the "lean" one way or the other depending on how I see this playing out. I'm not one who believe that the Fed and BOJ can continue with the status quo, there will be changes, it's just a question of how aggressive. My verdict, right now it's not too, and that's friendly to Crack-up boom/Train Wreck plays. |
