Tuesday, August 2, 2011

I believe now

5:49 am (Hawaii) The writing was on the wall yesterday, but I wanted more evidence. After all, gold was near its all-time high. Silver was being treated like a second-rate contender. The market sold off after a brief rally on the debt ceiling "deal." But I didn't get my evidence until the night passed. That's when ZSL went from 13.90 to 13.28 at today's opening bell.

I was up for the start of premarket trading, but fell back asleep (2 am). ZSL hit 13.56 for a few seconds, but meandered below 13.40 the rest of the morning. I got out at 13.23. Yesterday, it was a very modest paper profit. Today, it was a miniscule loss. More importantly, it gave me a little peace of mind as an insurance policy in case silver sold off big. With DGP and XG up nicely, I'm not thinking twice about letting ZSL go here.

With gold just off a new high at 1642 and silver back above 40 at 40.19, it doesn't look like I'll be getting more physical metal at bargain prices. In fact, with the indices all stinky (down roughly 1% in the DJ, Nas and S&P), it appears that money is flowing rapidly into PMs — even as the dollar shows a fractional gain to 74.63.

AGQ is up about $10 and I'm not inclined to chase here. It's always hindsight that lingers. I had thoughts of departing ZSL yesterday before afterhours trading ended, but opted to hold in case the market spurred higher on some kind of catalyst. But I knew there wasn't one on the horizon. Maybe it's true. Maybe it just drifts and takes on a little more water day by day. Maybe the "deal" means nothing and the market has nowhere to go but sideways, at best. That's what the PMs are telling me. It's sad, but reality is sinking in for the masses. Finally.

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