Wednesday, September 28, 2011

Why we choose to be in a manipulated market?

Everyone that trades in their hard earned fiat currency for both Gold and Silver do so because of the fundamentals reasons, debasing currency. While it may not be legal for us to counterfeit US dollars, the Federal Reserve can do it, hand the fiat to the banks and it is perfectly legal.  The banks that created the whole financial mess gets rewarded with bail out money, good job. (And the tax payers flip the bill with inflation)

So your holding Gold and Silver bullion and are in it for the long term as you know that the money supply is increasing on a daily basis.  Do not loose sleep over the price declines, over time both Gold and Silver will make new highs, it may take 6 months, maybe a year but they will go higher because the Federal Reserve and the Central Banks will continue to debase the currency.

For the short term and mid term PM prices, they can do just about anything, especially when you have a banking cartel, the CME, LBMA colluding together to suppress the price at the same time. It helps those that are 'stuck' in short positions that are underwater and those on the inside can front-run the markets with short positions on the futures exchange, puts on GLD and SLV and purchase ZSL, GLL, DUST.  It's easy money when you can hike margin requirements and are 100% confident that the commodity price will decline. Many banksters and insiders should be in jail for doing this, but there is 'Too big to fail' and Too big for Jail'. When you own congress, you get away with a lot of things.

What to do?  If your long bullion, don't worry and go to bed happy that you purchased more at a lower price.  I'm happy to trade in my fiat for Gold and Silver.  I need to find more paper to trade in.....what a joke.

I am long bullion that I am not going to touch until the Dow/Gold ratio is 2/1. Combine that with a Gold/Silver ratio under 20/1.  That is when I will start selling portions of my bullion.

If you trade short term / swing trade.  Take the money and run when you can.  When the RSI is above 80, set your stop up close. I was listening to a radio show where a guy mentioned 'Sell first and ask questions later'.  We should do the same.

No comments:

Post a Comment