GOLD/SILVER & MINING SECTION

So Gold & Silver get bashed in yesterday's trading due to the COMEX raising margins again. A number of points on this -

1. Raising the margin level is just what’s supposed to happen, it’s not newsworthy
2. As expected everyone rushes for the exits at the same time with no doubt the perennial top callers out in force, note that these top callers have been wrong for over 3 years
3. Volatility goes through the roof, again as expected
4. Also, expect volatility to double AND treble from here over the next few years, daily gold moves of $40+ both up and down will become common
5. The precious metals are going up not because of speculative pressure but because everyone is realising that inflation is out of control and the govt stats are 101% unreliable
6. Long term holders of gold shares should realise their limitations and understand that they’re not traders, so trying to sell at the top and re-enter at the bottom is fraught with danger. The end result for 90% of people that attempt this will either be losses, or profits of just 10% of what could have been made if they just held their stocks and realised that short term fluctuations will occur
7. Mining stocks are still undervalued on a long term basis
8. Finally, forget about the shorts and when and how they’re going to cover. All this relates to the traders and not the investors. Let them fight their own battles because the price of gold is going up for fundamental reasons and the traders and their positions are nothing but a sideshow

Summary

Gold & Silver are both going a lot higher over the next few years. Sure they’ll be plenty of vicious corrections along the way but long term investors who have the patience to sit on their holdings will be well rewarded.