Re: Not this month!
in response to
by
posted on
Aug 13, 2012 11:04AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Well, Baba, one does have to listen to one's 'inner voice' at times. But, as you say, most of the gold crowd appears to be pushing for this month. There are just too many cross currents to really make an educated prediction. Oil alone remains a mystery since Iran needs $127/barrel to meet its budget needs and OPEC is not unhappy with higher prices...and then there is the 'Hormuz' question and Israel considering an attack on Iran and shortages in the North Sea...but then Obama needs lower oil prices pre election and higher markets...etc, etc. So, with oil up, how can gold and silver be down? Then there are the inflationary corn and soya prices...more upward pressure for gold. Hmmmm.
When the big banks and former gold haters start talikng about higher gold prices, I really get spooked. Looks like too many on the long side of the boat here to me...a perfect set up for JPM? I keep thinking that unlimited tranches of $US and swaps and derivative trades can work wonders in less than an hour on any given day. Of course, those knowing this ahead of the markets, I'm sure, can be stimulated to be short...knowing especially they are immune too any legal 'glitches'. So, will JPM pick this month to rid itself of a hefty proportion of its concentrated silver shorts? All we can do is wait. Is QE3/4 in play now or next month...or just twist until they decide when?
My crazy pet little theory is that a default is on the horizon in silver...paid off with $US. That will take JPM nicely off the hook. Will the US take posession of all the gold it holds for other countries in Fort Knox, West Point and NY and pay the real owners with debasing $US? Crazy theory no doubt, but they do say possession is 9/10ths of the law...and when you have the mightiest military on earth, who is to argue? Now, imagine backing the $US with all that gold after revaluing it to $5000/oz. Voila!...the $US retains it's strong position even if a new 'basket' of currencies partake to represent the global currency markets.
Whatever awaits us, it will no doubt be the most interesting time in the markets over the rest of this year methinks...and for the next several years.