Tuesday, August 2, 2011

Turning point?

9:10 am (Hawaii) The session is almost done and I haven't seen a day like this for miners in ... ever. Normally, a dozen or two of mining stocks that are up at least 1.5% for the day would qualify as a strong move. But today? There are more than a dozen — close to two dozen — that are up at least THREE PERCENT. Just about everything up on my Metals list (56% green, 43% red) is being supported by good volume. Meanwhile, the indices are cowering and faltering: DJ -155.04 (-1.28%), Nas -44.86 (-1.6%), S&P -19.94 (1.5%).

Is today the day that marks an influx of the masses into PMs? No doubt the passion and logic of owning PMs and PM stocks is there, but if numbers are correct and less than 1% of Americans even own any metal...

A vast majority of market watchers and participants saw a rally coming with a debt ceiling deal. What they (and I) didn't expect was that the rally would last for hours rather than weeks or days. Maybe silver's rally today is temporary. It clung on yesterday on the fall to 39.04 or so while gold stretched higher. But with miners having a huge day as a group (XG is sucking wind, though), maybe today is a significant day.

I told myself that I'd stay away from any more mining shares. The small position in XG is sufficient and I don't need the whipsaw action. But this is tempting. My approach to acquiring more metal has to be adjusted, as well. There is, apparently, no dip coming. No move lower to 35 or 32 for silver. There's no way I let go of all my dry powder, but if this is a pivotal day for price, 40 may seem cheap as heck come this fall and winter.

And with that, spot gold is now at 1650. Eureka!

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