The world according to the goldbug newsletter writer

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THE WORLD ACCORDING TO GOLDBUG NEWSLETTER WRITER
Event	goldbug analysis	recommended action
Broad markets lower	It had to happen	BUY GOLD!
Broad markets higher	manipulation!	BUY GOLD!
Gold higher	The upwave begins	BUY GOLD!
Gold lower	manipulation!	BUY GOLD!
Gold holds steady	it's a coiled spring	BUY GOLD!
dollar lower	fiat crap going to zero	BUY GOLD!
dollar higher	manipulation!	BUY GOLD!
Fed raises rates	inflation is rampant	BUY GOLD!
Fed lowers rates	inflation will be rampant	BUY GOLD!
LIBOR rate rises	systematic breakdown	BUY GOLD!
LIBOR rate eases	liquidity returns	BUY GOLD!
Silver higher	Short squeeze!	BUY GOLD!*
Silver lower	manipulation!	BUY GOLD!*
Gold lease rate up	banks not lending gold	BUY GOLD!
Gold lease rate down	easy to get cheap gold	BUY GOLD!
*or silver

A repost of that Gold:Silver ratio chart

The above is the scrawly chart I put together after the bell on Friday and posted here Saturday morning. Here below is spot silver right now. Click either to enlarge.

It's a bit early perhaps, but I get the feeling that this SLV trade is going to work nicely (and for the reasons stated, too). Please prepare the guillotine for the guy with the sticky-out-head.

The gold:silver ratio: An update

Here's the latest chart in the ongoing series.

Click To Enlarge

I bought SLV late yesterday (link here), and it was very much seat-of-the-pants. So last night I looked in a bit more detail at the current silver state of play. As that chart above explains, this really is an excellent investment right now. Silver will at some point return (don't ask me exactly when, though) to at least 60:1 against gold, and that means that even if gold does the unthinkable and sinks to U$700/oz, silver will still gain from here. However, as gold got the same type of liquidation hammering as silver yesterday, it's much more likely that both move up. Add that to the overbought signal coming from the RSI (which has worked three times more than it hasn't, so odds looked stacked in our favour) and the timing looks right for silver, too. DYODD, dude.

Silver under $10.........

Paulson models the latest in fall fashion

..........but there's more chance of the hole in your tush healing up than there is of buying some actual physical silver at under $10/oz today. There's enormous strain on large players to raise cash right now, and to paraphrase John Lennon, whatever gets you through the weekend, it's alright, it's alright.

SLV could be the buy of the week right here....like a cork being forced underwater. I'm getting myself a few and taking the risk. DYODD dude.


UPDATE just after the bell: For the record, took profits on PBR and holding SLV through the weekend. A reader/e-mail swapper whose opinion I've come to respect wrote the following on the subject of silver/SLV and I fully agree. Today could turn out to be 'revenge of the little guy'... It'd be nice to win one against the big boys for once, no?

".....I guess there is some poetic justice here if, as some say, the massive sell-offs we are witnessing are being caused by forced selling by hedgies struggling to meet margin calls."