The Agents of the “current powers that be” continue to pound away at the price of gold, silver, and the related stocks. If one did not buy on margin, then the losses only occur if you sell out, and that is the hope of those who are pushing down the price.
Has the macroeconomic picture improved to cause a flight from gold & silver? No, each day moves us closer to an epic negative economic event.
In the early 80’s, we purchase a property on the Gulf of Mexico. The late 80’s cause property prices to lose 65% of their value. However, in 1996 we sold the property for 2.8 times of our original purchase price. Was it a good deal? Yes. Did it look ugly in the late 80’s? Absolutely. If you have never experienced a swing in prices, it can be unnerving. A little gray hair with some experience behind it helps when major events are unfolding. Some look fearful, I am looking at my next purchase (as soon as I get some more cash).
In a recent interview, Richard Russell, a well-known investment newsletter writer said:
“What do billionaires Warren Buffet, John Paulson, and George Soros know that you and I don’t know? I don’t have the answer, but I do know what these billionaires are doing. They, all three, are selling consumer-oriented stocks. Buffett has been a cheerleader for US stocks all along. “
Shares of Johnson and Johnson, Kraft, Procter and Gamble, Intel. GM, IBM, Sara Lee, JP Morgan, Citigroup and Goldman Sachs were all listed as being sold by one or more of these billionaires. It the future was bright, these guys would be adding to their positions, not reducing or eliminating them.
This would indicate that these three are not optimistic about the recovery in the U.S. They have been right more often than most.