Pilot fish mode

9:53 am (Hawaii) I get the feeling that one day, as I've read before, one of these puppeteers will tell us (or write a book) about how all this manipulation was strictly to keep price down and allow our debt collectors (China, etc) go scoop up cheap gold and silver at certain, appointed times in the market, morning, afternoon and night. The runs by naked shorts were just a way for CME/JP Morgan/etc to keep from losing money doing all these transactions and string-pulling practically 24 hours a day.

I don't consider myself a conspiracy theorist, but as a form of strategy, it would make sense for this to be in place to benefit these parties. It wouldn't really benefit us peons unless we timed the runs well, like J.S. Kim.

AGQ leveling off at 176 as the closing bell nears. AAPL back at 326+. The Dow regained some, rising from -195 points to -155. Now at -164 (-1.3%). Nas is -44 (-1.7%) and S&P is -20 (-1.6%).

Caved in and bought a handful plus of QSB Morgans off their Dutch Auction. Paid 97¢ over spot, 36.83, which is a $2 discount from the current regular price (38.90). I may regret later if and when spot drops below 35, 33, 30 ... but the stacking continues and I don't regret that. Still got an eye on the Apmex rounds on sale. That discount runs until tomorrow so I'll wait to see if spot price drops tonight.

Also got an eye on junk silver. I've been putting that off for a couple of weeks, waiting for a better price, but at roughly 60¢ over spot for Franklin half-dollars, it's a good deal price. Just tough to find AU Franklins or any other AU 90% silver coins cheap. After learning about how much damage the circulated pre-1965 silver coins have suffered, of course a coin dealer wouldn't pay anything near spot for them, so why should I pay spot for busted up coins either? Gotta be picky.

Metal in my head

1:45 pm (Hawaii) Physical gold a possible buy (spot 1513.50) showing strength after a natural pullback off all-time high price (1560ish). Strong volume today after weakness for the past two weeks.

Paper gold also a possible buy here, but I favor 2x bull (DGP) as a daytrade rather than a hold over the weekend (through GLD, XG, etc.)

Physical silver also consolidating, but immense CME pressure remains and the climb back to spot highs (49) or even 40 will be a grind.

Paper silver is a more volatile/profitable trade up or down (AGQ vs. ZSL).

Eurozone crisis makes Gold very attractive ... or maybe not. Greek default? Gold is golden. QE3 delay? Bad for paper and could present physical Gold, Silver at significant discounts. It's all dependent on the affect on the US Dollar.

Beyond trades, better to buy physical here than waste it on meaningless frivolities. But when?

PERSPECTIVE: In 2008, '09 and '10, Gold was flat to negative between mid-May to late August. In '10, Gold rose in early summer, but gave back the gains and went negative before fall.

In the past two years, Gold has been cheaper in July than May. That's even with QE1 and QE2 in place.

The trend remains up based on this three-year period. Timing is key.

That also means that there is no hurry to buy physical, especially if QE3 is delayed or buried. Long term, beyond QEs and defaults, Gold is a standard and will hold up, probably keep rising unless the dollar rises (impossible?) and the trendline from late 2008 is broken. 

So, I won't be afraid to get physical gold this summer, but I will always seek the best price or simply pass until better prices arrive. Gold, silver, always shopping wisely. The past week, a Scottsdale Silver 10-oz stacker was at $387, only to drop to $373, then rose back to $390. 

I want physical gold at spot price, or as close to it as possible. Premium doesn't matter because this will be an eternal-hold position. Tiny, but growing.

Best value? Maybe junk silver. The hunt begins. 

The argument for 'junk' silver

1:55 am (Hawaii) Premarket (peon version) begins in 5 minutes, but I am distracted once again by information of any kind regarding coins and rounds. The argument for the value of "junk" silver is getting more compelling. Here's a piece from Victory Report:

"... Many investors want silver in a form that they know is silver, and pre-1965 US silver coins certainly fit the bill."

Victory Report: All about Junk Silver

Schectman: Best buyers value is 'junk' silver

11:58 pm (Hawaii) Nodding off here and ready to sleep (maybe), but this interview by Jeff Clark with Andy Schectman of Miles Franklin, a precious metals dealer connected to three primary US mints, is fascinating. One of his assertions is that the best value in acquiring silver is through "junk" silver. Schectman says the supply is dwindling at a rapid pace and scale.

Interview: Andy Schectman (May 17 2011)