Friday, July 22, 2011

2 Minute Warning

9:54 am (Hawaii) Just a few minutes before the market closes for the week. Tempting to ride the momentum in precious metals over the weekend, but — whether I agree or not — general consensus seems to be that if the debt ceiling issue is resolved soon, PMs will take a hit ... then rally as usual due to the fallacy of Congress' efforts.

So wouldn't it be better to wait for a profound selloff in metals? Sure, Spot Silver could get kneecapped from 40 to 35 overnight. Maybe lower. My guess is the drop would be 7-8%, not 12-15%, simply because the short-term proposal/compromise does nothing to heal the $14 trillion wound our nation continues to suffer from. There are no lenders of large capital, and even if there were, long term we'd still be fucked.

So perhaps I'll inch into a little more of this or that — GSVC at 17 or wait for a possible market crash this summer that takes it to 10? — with these last two minutes.

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