No, I am not talking about Denny’s breakfast. Gold, silver, and related stocks continued their “slam” today as margin investors had to liquidate holdings, even grandma’s jewelry. It was a good day to add a few shares of stocks you believe in. The macroeconomic picture has not improved but only worsens day by day. The volatility is as predicted. Once the margin investors are out of the picture, prices will firm up. I hope they stay low until I get some more cash to buy at these levels. I do not recommend you follow suit unless your licensed professional investment advisor recommends any purchases.
Is the Federal Reserve increasing the quantity of dollars every month by $85 billion Yes, they are further debasing the dollar by transforming debt into currency.
Is the unemployment higher today than it was 7 years ago? Yes, the economy is not in recovery.
Is the euro strong? No, It goes from one crisis to another. The Dutch Finance Minister to the EU wants to confiscate depositor money in banks in Cyprus and use it as a template for future bailouts.
Is the yen going to strengthen? No, the Japanese government and central bank are debasing the yen even more rapidly than than the speed at which currencies of other industrialized countries are being debased. The population will look to precious metals as an alternative.
Today’s action will help remove the feint of heart from the market.