PM Carnage!

The precious metals have taken a smashing so right now my portfolio doesn't look healthy.  It has fallen 50% off its peak just a week ago since I'm very levered towards Silver.  Silver has fallen 25% since Wednesday and Friday's 17% decline represents the biggest one day fall since 1984.  We're not living in normal times.  I have since closed out some SLW Jan positions and moved towards longer term Silver positions.  With SLW that's going to take significant time before the chart is repaired and right now that's not going to happen so I will probably close out the remaining SLW positions sometime next week and move those towards July Future Calls, which look really cheap now.  Because technical analysis is worthless when it comes to manipulation, what you want to buy when chasing options is time.

My Silver target is still $60 (or higher) by June 2012.  The bet of my life.  Buckle up Dorothy for the ride of your life.

Gold.ax the breakout is on

Gold.ax (a proxy for Gold in Australian dollars) has finally broken out of its several year consolidation phase (3 years!!).  Another record in another fiat currency.

From this point onwards till next year, expect Gold to rally strongly.  This period is traditionally gold's strongest.  My target is still around the 1870 level.  That represents another 200+ rise.

To the "smart crowd" who chose the "strong"Australian dollar, you've just lost even more of your purchasing power.  Amazing how people only chose to buy gold now when it's risen so much when they could've gotten it much cheaper even just earlier this year.

September 11 10 years on...

Today's the 10 year anniversary of September 11.  10 years on what has changed?  Loss of freedom, more wars ("democracy"), more deaths in the name of "freedom".  And the US is fast going down a slippery slope into bankruptcy oblivion spending money it doesn't have while China grows its US reserves now in the trillions.  In the current debasing competition, the most notable safe haven currency, the Swiss Franc devalued 8.5% in a week against the golden bull.  That is a crash.


Model portfolio value


SLW Jan12 30 Call @ 8.67, 6 contracts - Currently $11.25 (29.7% Gain)
CLM2 140 C @ 0.96, 5 contracts - Currently $1 (4.1% Gain)

Current Model Portfolio Value $11,750



I'm still targeting oil at $100 by years' end.  If not, close to $100.  SLW still targeting $60 early next year.