Monday, August 15, 2011

Monday cinema & library (updated 10 pm HST)

11:04 am (Hawaii) Seems to be a change in the currents, how gold and silver traded up while the market was also bullish. Seeing miners in green with the market is common. SIL (Silver miners ETF) is up 5.2%. But the PM spot prices don't usually go up with the indices. My take is that some hedge funds are betting on more Euro printing with a "good" meeting tomorrow (France and Germany). Some funds are betting on more Euro printing with a "bad" meeting tomorrow, say if Germany tells France, "FU and your stupid banks for being greedy and gambling on toxic US vomit derivatives!"

Really, that could happen. I have my little handful of DGP shares and that's enough. They keep printing paper currency, I'll keep exchanging my monopoly money for metal.

If, as Brother Turd Ferguson surmises, silver does run to 44 by Labor Day (three weeks from now), AGQ could run from the current 210 (yikes, it was 208 a few minutes ago!) to near 300. When silver as 49 in the spring, AGQ reached 382. I've mentioned a few times that a run for AGQ from 220 to 382 is a 74% gain, while silver from 40 to 50 is only 25%. Can't know if the ratio will hold in a silver run; I tend to think not so much since far fewer buyers are extending themselves precariously on margin. But it is a question: better to ride AGQ for any sustained run, then buy more metal at a higher price? (Or wait for a pullback then?) Or just ride physical metal for the long term and forget the paper game?

I'm doing a little of both. There's always something to facts, numbers and history.

Update 11:44 am (Hawaii) Per CNBC, Steve Cohen has a call position of $628 million in GLD and ups his AAPL stake to to 598k shares from 255k shares. David Einhorn also announced an increase in his AAPL position.

DGP now 63.72 and AAPL up to 383.84 on the news.

(new) Turd Ferguson: (pm) Three overnight items (Aug 15)
(new) Scott Blier: Trepidation... (Aug 15)
Turd Ferguson: (am) Happy Anniversary (Aug 15)
George Maniere: The global meltdown of confidence (Aug 15)
Gary North: Gold standard or Nixon standard (Aug 15)
Lone Ranger Silver: Living through a currency devaluation (June 20)
> Worth another read

(new) bigdad06: There is no substitute! (Aug 15)
(new) bullorbearreport: Inflation investing, bull is back!!?? (Aug 15)
silverfuturist: Don't use credit to buy silver, gold (Aug 15)
Hit the Bid: Monday, Monday, ba da, ba da da (Aug 15)
endlessmountain: The Silver Log (Aug 15)
Pastor Dowell: Peaceful revolution (Aug 15)
SGTbull07: Future of gold, silver, miners: Tekoa Da Silva (part 1) (part 2) (Aug 13)

(new) Time Monk Radio: Clif High (Aug 15)
King World News: Jim Rickards (Aug 15)
King World News: Weekly metals wrap (Aug 13)
King World News: Stephen Leeb (Aug 13)
King World News: John Embry (Aug 13)

Blog commentary

> Price's speech at GATA conference

Reuters: 40 years after Bretton Woods, gold shines on (Aug 15)
Journeyman Pictures: No Refuge - Greece (Aug 15)
CNN: Paul Krugman: Fake alien invasion would improve economy (Aug 14)
CNN: Marc Faber (Aug 12)

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