Change of tune…


We are not at all convinced that the great recovery in gold and silver has started.   But something has started.  Punctuated with a bang last Thursday.  Traders got off stocks and onto silver and gold in a big way.  Just a letter or so ago we said we wouldn’t be buying gold.  Now the chart is saying buy me.  And the conditions may be saying that also.  As we said in our last letter the market is teetering.  Followthrough (negative) in stocks would be damaging, and traders are piling in to the metals to guard against that.

So silver seen above is buyable.  But be prepared for volatility.  We would stop it 6% under the low of Thursday.

Gold is in a similar position, but a little less volatile.


We will be buying gold and silver Monday — scaling into light positions depending on market behavior.  And depending on same increasing our hedge on SPX positions.

Readers should buckle their safety belts.  Next week will be, as they say, “interesting”.

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