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Friday, March 25, 2011

Precious metals explode up Thursday, then fall....

So what happened? In an international market place, probably not able to blame anyone event.

However Thursday the CME raised margin requirements for Silver and many other commodities Thursday. And when you raise margin requirements certainly, the item will fall as people must sell their "max leveraged" positions to gain compliance.

This trick will continue to occur until there is no margin allowed, at that time, there will be no stopping the commodity bull.

But all you commodity bugs, don't worry, the IMF is here to pump prices much higher. Apparently the Federal Reserve Bank has noticed the USD is headed towards all time lows, and doesn't want to race THAT quickly to the bottom. So the IMF has stepped in and announced "activating crisis fund next week" to the tune of 1/2 trillion dollars. Reason, expected "Threat To International Monetary System". Co-incidentally, the Federal Reserve Bank lost a case in the Supreme Court and must release information about "secret" funding with banks since 2008. Throw on top of that problems with Ireland, Greece, Portugal, other insolvent countries, Japan's woes and we have a party!

I really have nothing to say about investing except some natural resources, 25-50%. I am in neck deep, but thats not for everyone. I may hit some out a bit in advance of the weekend, seems a bit risky at this point.

I have been reading a wack-job recently, still trying to figure out genius or crackpot. Most likely crackpot. He claims to have predicted currency issues in 1985 would happen in 2011. This same guy says June will be a critical point for precious metals, and gold will hit 5,000 an ounce no problem by 2016. To read up on him, Martin. A. Armstrong. He has the dubious award of one of the longest US held prisoners with no trial, makes him more interesting to read with such an honor.

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