Tuesday, July 12, 2011

No burying gold for long

photo: MSNBC

10:36 am (Hawaii) Gold continues to show a tendency to quietly draw attention from near and far, high and low. Spot is at 1567, slightly off its high of the day. Spot silver recovered some today after yesterday's butchery by CME mafia. It opened lower, giving friends of JP Morgan and the govt ample opportunity to collect more silver at discounted prices. Why offer your friends a gift at all-time highs (50+) when you can give them a price at a 30% discount (35)? Yeah, it's a theory, but until we straighten things out with our creditors, there's no quicker way to appease them than by keeping silver price low as possible without inciting deadly riots in every major American city.

It's one of the few mechanisms left to the puppet masters, so applaud them for their concerted, if short-sighted attempts. Thank them for lower physical prices.

The flight to gold helped miners, naturally. XG ran as high as 14.67 before pulling back a bit as daytraders cashed out. The presence of metal royalty like Eric Sprott in the stock only solidifies the foundation. Getting out of AGQ yesterday and holding XG didn't take much thought. They — the puppeteers — will bitch slap silver in a way that they would never do to gold for very long.

XG up 3.3% (14.50 afterhours). DGP up 1.5% to 50.79. I've held this through some minor ups and downs. No plans to sell in the near term.

After rallying to the plus side, the indices finished down. DJ -58.88 (-0.5%), Nas -20.71 (-0.7%), S&P -5.85 (-0.4%).

AAPL finished down by a fraction after being up most of the day. AMZN, also down fractionally. BIDU down 2.3% after a nice run. Also down just by a hair, NFLX (290.50).

As for the banksters: NBG (+2.5%), BBVA (+0.8%) were up. IRE (-3.8%), C (-1.8%), BAC (-1.3%), GS (-1.2%). FAZ swung from a big early gain down into the red before finishing at 46.80 (+0.8%). Moody's downgrade Ireland govt bonds today. Story in the NY Times.

This is the roller coaster of trading in — for or against — bank stocks. Anything can alter direction. I would love to be a zillionaire and bet on FAZ big time, not worry about a paper loss for a day or two. I don't have that luxury, so I sit here and whine about it on a blog. Though Obama is long treasurys, I still wouldn't bet on the banksters with my own money. There is no long-term solution to the currency/inflation crisis. Just a bunch of stop-gap tactics.

I wish I still had my shares of FAZ at 43.33. End whine.

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