Several items to touch upon this evening so please bear with me.
First of all, I need to extend a genuine, humble "thank you" to all of you who have "fed the turd" today. Never in my wildest dreams did I imagine this outpouring of support and it is greatly appreciated. I plan to use the donations to buy some silver, of course. I'll post a picture of my purchase when I make it. Additionally, our little site had a record 8,113 pageviews today. This is a mind-blowing number. 3MM annualized, for crying out loud! In all sincerity, thank you.
If you haven't gotten your daily Harvey yet, I suggest you do it now.
Unprecedented happenings at the Death Star! At this point, there are some 27.14 million ounces of silver standing to be served and delivered. If you're keeping score at home, that's 844 metric tons! By the way, if you're wondering how I did that conversion, keep this site handy:
Anyway, back to the Comex...Of course, not all those standing will, in fact, demand delivery...but...844 metric tons!!! That's about 5% of all global annual production! Holy moly, the next few weeks are going to be very, very interesting.
On to today/tonight's action on the Globex. As I type, the Feb11 gold is at 1390.10 with a high of 1391. March11 silver is 28.21 with a high of 28.25. Gold is particularly interesting. If it can draw away from 1389 overnight, it'll probably run up and tap 1400 before the Comex open tomorrow. At this point, Blythe and Her Monkeys have two options:
She can cling to this silly, H&S top notion and try to jam it down overnight. Absent some global "event", I don't think she'll try it. Too much genuine momentum against her at this point. More likely, she'll fall back to the area between the all-time closing high of 1412 and the all-time intraday high of 1426. She'll fight like hell to paint a "double-top" there for sure. Will it work? Who knows? Who cares? Even if it does work, it will only be temporary. Go back and look at her pathetically unsuccessful track record of painting double-tops at all the previous "all-time highs". She's worse than Prechter! Hey, wait a minute...I've never actually seen Blythe and Bob together, in the same room. Hmmm....interesting. I digress. Sorry.
Silver continues to struggle with 28.20-25. Lots of contrived "resistance" there. I've got a hunch that by late tomorrow or early Thursday, silver will smash through, hit a bunch of "buy stops" and catapult up toward 29. Let's watch and see.
Next, I've been asked several times recently if I believe in the miners and, if so, which ones. OK, here you go. First, a disclaimer: I don't know any more about these equities than anyone else. I own them for various reasons, which I'll try to explain below, but that doesn't mean they're all going to work. Got it?
First of all, maybe you'd just like a plain, old mutual fund. My favorite is the First Eagle Gold Fund. Well diversified in quality companies and well-managed. Any registered financial advisor will be happy to sell it to you. Trust me, he/she is dying for a commission right now.
If you'd rather own an exchange traded fund (ETF), for pete's sake, don't buy the fraudulent GLD or SLV! (http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=13341:the-seven-sins-of-gld&catid=48:gold-commentary&Itemid=131)
Check out GDXJ, instead. Its comprised of what are called "junior miners". The "juniors" are typically where you get your most bang for your buck and greatest leverage to rising metals prices. Here's a link:
The five miners I currently own are: EGO, TRE, NG, SVM and EXK.
EGO: I must admit that I got this one from Cramer. Big presence in China and, at 17.44, its about $3 of its all-time high.
TRE: This is Santa Sinclair's little baby. I figure that if anyone knows how to run a gold exploration company and not screw it up, it's General Jim. I also own it because, one of these years, I'm going to attend the annual shareholder meeting and finally buy Jim a beer. Its also a point off its highs.
NG: Simple greed led me to this one. I'd read that it was a possible takeover candidate and the chart looked OK so I bought some at 8 something. Its now 14 and change. Working pretty well...so far.
Now, for the other two. They are in silver and, as you know, I've very excited about silver right now so these are my two biggest % holdings. They are junior and explorative companies. Riskier but more upside than say PAAS or SSRI.
SVM: I own this one because, like EGO, it has great exposure to China and it seems to be relatively solid financially. I also think uninformed people drive the demand for it because of its name "Silvercorp", think "Goldcorp". Kind of a lame reason, I admit. But, hey, I think that's a better fundamental reason than some of the nonsense spewed by CNBS all day.
EXK: Had it for a while and it became a top holding when I read this:
Interesting, huh? We'll see but I like it. A lot. It's also run into profit-taking lately and, at 6.21, is down about a dollar from its recently-attained, all-time high of 7.16.
Finally, be sure to review these charts from Trader Dan at JSM. New all-time, monthly high set today for gold. Remember, the hourly and daily charts are for short-term trading only. The real, long-term, secular bull market in gold can be plainly seen in these charts. Ignore the fool top-callers!!
So there you have it. That's enough for today. Time to go spend some family time.
Rest well. Let's see where things are tomorrow morning U.S. time. Another $9B in POMO is scheduled for tomorrow so, absent armageddon, we'll probably have another fun day. Turd night night.
8:25 EST update: As mentioned above, gold did draw clear of 1389 overnight. The Feb11 contract reached a high of 1398.30. The March11 silver actually traded as high as 28.88. Though, the EE has done a little of their 7:00 am dirtywork, the pullback has not been too significant.
Almost everything is up this morning as the dollar rally appears over at it reached the 81.50 level I'd mentioned back on Monday. Watch 80.80 on the DecUSDX for confirmation. Again, lots of POMO today so lets see if we can break 1400 and 29. More later.