Wednesday, June 1, 2011

Bottom line

2:42 pm (Hawaii) Zero Hedge with a piece about total physical silver at Comex dropping to less than 30 million oz, which Turd explains is the primary reason why the puppet masters crushed Spot Silver price today.

Thing is, I've seen all these wars within wars before over the years. Just when something seems so definite, so guaranteed (Dendreon's Provenge), guess what can happen? Yep, the naked shorters can win and the regular joes get smoked. I'm not saying it will happen with the silver market, but all the logic in the world will not ensure victory just because it makes sense. He who has the gold, no pun intended, will make the rules, and in this case, if the Fed and JP Morgan and the CME decide to cave in the majority, they'll do it. For whatever justification.

So I'm staying out of the way, mostly cash, not playing paper silver at all. If and when physical silver (and gold) get cheap, I'm ready to get more. But I'm not subscribing to an us-versus-them mentality. I believe the system is screwed, no doubt, but I have nothing to gain by yielding to emotion. Ask the people who were long DNDN at 7 when the FDA pulled one of the most heinous rejections of a medical treatment in history. That sent DNDN back to 4 and stalled the approval of Provenge for another two years. None of it made sense except that there were numerous conflicts of interest within the FDA. And there was nothing anybody could do about it.

Silver is no different. The good news is that DNDN eventually did explode, but not without further bullshit and naked shorting — as well as the first real flash crash incident — on the way to 50. But losing to emotion is just that, nothing but a guaranteed loss. Stay cool.

Turd: Deserving of its own post (June 1 2011)

Natural beauty of Australia

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