Beguiled by our recent trades in gold and silver we happened to think back to our adventures in the commodity markets of the ’70s. At Commodity Investment Service we were managing a lot of client money in addition to our own. We made about 100 losing trades (a mild exaggeration) in silver until our clents were screaming and asking us to quit trading silver. (In tears.) Shortly thereafter we got long silver and were long silver in the great Hunt silver market. We made a small fortune.
This pattern will be repeated in gold and silver. Losses and false starts and frustrating trades and all. And one day a fortune will be made.
If we were the Secretary of the Treasury the last thing we would want to see would be a bull market in gold. A message from the markets that the government was in deep trouble. So we would do everything in our power to keep the price of the precious metals down.
Does this sound like the Nixon of the ’70s who put a lid on commodities prices until he couldn’t keep a lid on and prices blew away?
To make a long story short we bought a little gold and silver. A small enough trade that we will ignore moves against it — call it an insurance policy. When it makes a new high we are going to sell the ranch and bet it all on gold.
(For new readers, ignore senseless satire and wild threats.)