Wednesday, July 04, 2007

Damn I'm busy and so are the markets

Holidays, work, and home all keeping me too busy to say much on the metals markets the last few weeks but there was certainly lots to talk about.

Metals have taken a beating but so has the U.S. dollar so in my mind there is little reason for the recent slump other than the usual summer doldrums we have witnessed for the last few years.

Others might say that there has been some liquidation of metal positions to cover other expected losses stemming from the CDO/Hedge fund melt down underway. I suspect there is some fear and indecision in the market but there is no real sign of a huge sell off, I believe it's summer apathy, and market indecision.

Had I the funds I would have dived in heavily last Thursday which I believe was bottomish. Be assured that under no circumstances in today's age of flaky paper products would I be tempted to liquidate even a small portion of my position.

Oils States are dropping the U.S. dollar peg, the dollar itself is weak, banks, hedge funds, mortgage brokers are all going to shaken to their cores as the twin towers of debt and leverage come crashing down. Today I'm not worried about Jihadists in the streets but those Vikings in places of financial power who are in a war to download their debt and losses onto unsuspecting investors and fund managers. Their war will also be taken to the halls of government as they demand and beg money and concessions that can only reward them for misbehaviour and further fan inflation.

There is no rational reason to expect metal weakness, while markets can be irrational they can only fake it so long before reality bites them in the ass. Today Wall Street is walking quickly and often checking over their shoulders.

I'm at my wits ends and I don't know which threat to worry about next, financial chaos, or peak oil and eventual starvation Read This for a scare. I've noted before that the money contrarians and the environmentalists don't communicate and specialize in their own worlds. Perhaps the level of dread is too much for them but the big picture is ugly and must be seen.

The answer

Get out of debt - a depression is coming and debt will strip you of your property. I've managed this but keeping out of debt is also an issue, some day soon (1-2 years) I'll need a new car.

Buy some metal- Since we can't trust the counterfeiting governments to maintain a valid currency with the ability to maintain it's value, we must divert some portion of our wealth into something they can't forge, silver and gold. I've done this but can one ever really know how much is enough? As of today Silver and Gold are certainly good buys, the market chaos is giving everyone both warning and opportunity to buy, don't ignore the gift.

Self sufficiency - If you have the means, buy land and learn how to use it. Buy it collectively if you must but access to land is life. All the silver in the world is useless if there is no food to buy, no power to heat, no place to live.

Depressing post, sorry it's that kind of week.