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My previous post on
F&F Nationalization and the reader comments thereto should explain why
today’s nonsensical market action might actually make sense if you think
“up = down” and “black = white” as most people in the
world seem to be thinking nowadays.
Silver hit $11.90
today. Those who got the special technical report last month from Eidetic
Research will know that is a pretty heavy line in the sand, and so far it has
held. A break of that level would not be good as the downside potential would
then be all the way down to the $9 range. Ouch.
For a while this
morning it looked like the U.S. dollar might be disconnecting from gold and
silver but then all the other markets save COMEX closed and the precious
metals sold off as predicted by several of my readers (see comments on
F&F post). No, I don’t think that was just the markets doing what
they are supposed to be doing. Clearly once London and the other places where
physical — not paper — metal is transacted were closed, the paper
sellers on COMEX no longer had to bother with the pesky physical buyers who
dare stand in the way with their pedestrian bargain buying. Even then, gold
managed to eek out a small loss while staying above $800 as the U.S. dollar
rallied more than a point on the Dollar Index, just about reaching the 80
level that has been my target for a few weeks. So perhaps we might be seeing
the start of a disconnect after all. Or, more likely, the U.S. dollar has
just had its blow-off peak and will now renew its descent into the bowels of
Hell (or at least 0.52 on the Dollar Index, whichever comes first).
It’s pretty
clear what’s happening–the market’s
“frustration” is being taken out on silver. Why silver? I suppose
because it is small enough of a market. And it’s not the only one.
Heck, look at palladium: down 55% from a high of $579 to $259 today. Even
platinum, with the very real threat of supply disruptions due to power issues
in South Africa, is down more than 40% or almost $1,000 per ounce.
There’s a metal pretty much nobody expected could possibly drop by that
much given the fundamentals. Same deal with rhodium, down 60% from JUST 2
MONTHS AGO. It sure seems like the smaller the market, the more severe the
fall has been. So, the answer to “why silver?” is “because
they can”.
Look, silver could
just as well go down under $10 as it could have found a final bottom today.
When “black = white” anything is possible in the very short term.
If that scares you enough to say goodbye to the greatest investment
opportunity of your lifetime (that’s a double entendre by the way, as
in it could take a lifetime to realize the opportunity!) then it is just as
well. For the rest of us who have the patience of a lifetime to see this
thing through, the opportunity just gets better and better.
Now for the deal on
the password protected entry that precedes this one with the title “The
System”. This is related to the Three Steps Back post last week wherein I said that I
would be sharing certain information only with confirmed attendees of the
GSUL 5 Session in Canberra, Australia to be held November 11-14. If
you’d like to see this post and the others that I will be writing in
the weeks ahead, all you need to do is let me know and I will register you
for GSUL 5.
And here is something
to consider for those who cannot make the trip to Australia. I would say that
you should register anyway. Why pray tell? Because that way you will get the
attendee-only price on the DVD set from GSUL 5 (trust me, that alone will
make it worthwhile) as well as a bunch of other benefits like personal advanced
instruction on the basis from me and perhaps the Professor (still working on
that), an hour of live assistance by phone or in person, free unlimited
e-mail support and a bunch of other stuff like the password to the previous
post. Indeed, if there is enough interest I will try to work out something
even more special assuming the technology permits it. But I need to hear from
enough of you to make it worthwhile. By the way, the cost of the GSUL 5
session is AU$790 which works out to about US$650. I personally think that is
a fantastic deal, even if you can’t attend the session in person. This
is coming from someone who would make a horrible used car salesman. Once
again, please contact me to register, not the Professor or Mr. Barton (who
has graciously taken on the challenging role of setting up this
hopefully-not-last session of GSUL), to make sure you get all of the above
benefits and more.
Tom Szabo
Silveraxis.com
Tom Szabo was born in Hungary
during the Communist era and escaped to the West with his family, eventually
settling in California. After graduating from the University of California at Berkeley with a Bachelor’s Degree in Business Administration, he spent 8
years as a financial statement auditor with Deloitte & Touche, focusing
on financial institutions. He has co-founded several
precious metal related businesses and investment funds, invests for his own
account and runs the website at www.silveraxis.com. His specialty is
original, controversial, unpopular and contrarian thinking.
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