Monday, August 8, 2011
Asia is rocket fuel?
5:17 pm (Hawaii) There's got to be a better analogy, but Asia is doing it again. I'm back online after being busy for the past few hours, and spot gold is now $1,753. Incredible. That's a gain of almost 100 bucks in less than 24 hours. With JP Morgan publicly trumpeting bullishness for gold (upgrades on Friday and today), there is no barrier left to restrain it. However, it remains apparent that the CME mafia (JP Morgan) is intent on putting a lid on silver, which is struggling to stay above 39.
This rise makes me regret not adding more DGP before the close. The paper price feels like it's out of control, but in reality, there's a real chance that it simply has been buried for so long that it's finally, and simply, being unleashed.
Is it the retail buyer in Asia behind this? Or is it a combination of central banks (India, China, Australia, etc)? Maybe it's everyone. They sure know they can't put their trust (money) into US dollars.
I'm glad I moved to acquire more physical gold over the weekend, but I also picked up more silver, which was actually up 1.7% during today's session. Going back three Sundays, gold is up 9.6% from 1600. I know because I debated that day whether to get more silver, gold or both. At the time, I had doubts about gold having more room to go higher when it was near an all-time high. But in my gut, I had then and still have now more confidence in gold. Silver is simply a toy for the puppeteers whose time will come. It just won't be anytime real soon. I'll just keep stacking both best I can.
Update 5:37 pm (Hawaii) Futures are deep, bloody red. DJ -267 (-2.5%), S&P 500 -28 (-2.5%) and Nas -53 (-2.6%). I expect a bounce at some point, of course, but it's starting to feel like this: If nothing changes for a few more days and we continue to digest these huge losses, a lot of companies (and hedge funds) will be insolvent or on the brink soon enough.
I'm long enough paper and physical gold to take it stride, even as my XG and GSVC positions tank. I'm holding those through thick and thin. For better or worse. Through sickness and health. Damn, not supposed to be married to any stocks, right?
Gold back up to its new all-time high, $1,755. In the back of my mind, I think all this could change in an instant and the market could rally huge tomorrow. But I thought that same thing the past few days and let FAZ get away from me. So I'm going to stay steady and not chase or hold new positions overnight. Yet.