Silver Bugs: Toughen Up and Hang Tight (SLV, GLD, AGQ, ZSL, CDE, HL, GPL, SVM)
Dominique de Kevelioc de Bailleul: In his latest comments on King World News, Trader Dan Norcini of Jim Sinclair’s JSMineset.com makes a great point—a point which may turn out to be the most critical to newcomers of the silver market. Volatility has been tremendous lately in all commodities markets. But in the silver market, volatility is the norm.
Unless you’re in this thing for the long haul, trade AAPL or some other stock, because the Fed is intentionally creating volatility in the commodities markets to keep wimps, amateur traders the uninformed out of the silver market. In fact, Bernanke would like to punish traders.
“We have tremendous whipsaw action in commodities. It’s so wild right now in terms of the trading swings. . . ,” Norcini told King World News, Friday.
“In my opinion, the Fed and the Working Group on Financial Markets have been actively manipulating key markets. The Fed has been doing this manipulation in an attempt to push investors back into the stock market and out of commodities and hard assets.”
If you’re new to the silver market because due diligence brought you to the precious metal, stick to the buy side, first of all. Second, don’t be a fool and trade it. You must exhibit discipline. And third, stop waiting for wonderful prices! Anything below $50 is a wonderful price, if your research has told you anything.
As a suggestion, Google “Stephen Leeb site: kingworldnews.com” or go to FinancialSense.com and listen to Leeb’s past three interviews. You feel good at buying silver at $30, $40 or $50. So, at $32, silver, according to Leeb, is a joke.
Back to Norciini: “The Working Group on Financial Markets (aka Plunge Protection Team—PPT) then goes in and starts putting heavy pressure on key commodities, which triggers a cascade of sell orders,” Norcini added.
So the point is: unless you’re privy to the PPT’s next attack, stop trading silver! The Max Keiser Casino Gulag is stacked against the trader in the silver market.
Norciini rightfully points out as well that, part of the Fed’s plan of incrementally capping commodities prices is to make the markets very volatile for the 90 percent of the public who can’t take the heat—the wimps, if you will. If you’re looking for another smooth ride from a lifeboat off this sinking Titanic, too bad, there’s is none.
“The Fed is literally undercutting the value of the dollar and they are causing a lot of repercussions around the globe. . . ,” Norcici continued. “The other countries are not run by fools and they understand the destructive policies of the Fed.”
Norcini makes another good point: Mom and pop investors have traditionally played the fool. Nation states with lots of capital move money into extended macro trends, and so should you. As prices fall, sovereign wealth funds go to work by accumulating what they want. Copy the flows of the big money and you’ll be carried along for the ride, not whipsawed.
And finally, if you’ve listened to Jim Sinclair for any length of time, you should be laughing each time the Fed threatens to stop its so-called ‘quantitative easing’ or Bernanke suggests that the U.S. economy is on the mend, which would then preclude further money printing.
When the aforementioned wimps panic out of the silver market because they continue to play the mom-and-pop fool to Bernanke’s lies and deceit, you better be buying with the Chinese on the pullbacks.
The only troubling decision to be made in the silver market is when to ultimately sell your stash, if it all. Buying the metal and holding it should be a very easy thing to do.
Related ETFs: ProShares Ultra Silver (NYSEARCA:AGQ), Coeur d’Alene Mines Corporation (NYSE:CDE), ProShares UltraShort Silver (NYSEARCA:ZSL), iShares Silver Trust (NYSEARCA:SLV), SPDR Gold Trust (NYSEARCA:GLD), Hecla Mining Company (NYSE:HL), Great Panther Silver (NYSEAMEX:GPL), Silvercorp Metals (NYSE:SVM).
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