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Monday, August 8, 2011

"I'm Mellllllllttttttttingggggg!!!

An official, "holy crap!" - at this moment, gold is only $3.50 less per ounce than platinum.  A year ago, that difference was about $350 per ounce!

Of gold, silver, platinum and palladium, only gold is in a "bull" (upward trending) market right now.  The other three are in a "bear" market trend (for some reason I don't understand).

I believe we'll see a correction over the next couple of days with gold, but it will continue its upward overall trend until our government changes its inflationary/dollar devaluing policies.  I also think the other three precious metals will resume a bullish stance in the very near future.

This is obviously a very simplistic view of PMs, and I'm just some guy on the Internet - so don't sink money into anything without doing your own research.

That being said, if ANYONE out there has a differing point of view that has some logic associated with it, I honestly want to hear it.  At this point in time, I see nothing to stop all PMs from continuing their general upward trends.

All of our global buddies - and our global creditors - were all lining up this weekend voicing their support of our debt.  In unison, they all say it's 'da bomb' and the best thing since sliced bread.  It was a regular love-fest.  The dollar is actually up in relation to most world currencies right now.

It will be interesting to see how willing they are to keep buying our debt paper.  Putting their money where their mouth is, so to speak. 

I think they will be much less enthusiastic in reality.  The Federal Reserve will be warming up the dollar presses (and the keyboards for the electronic version) to be the go-to guys for our debt.

I think the broader markets understand this, and that's why we're seeing this run-up in gold, and a cratering in paper wealth, such as stocks.  The Dow Jones average is right now down 370 points - almost ready to cross into the 10,000 range.

I don't understand why crude oil is dropping like it is.  It's down to around $83 a barrel.  I heard some mention of an expected drop in global demand.  The "experts" are saying that gasoline should drop by 30 cents a gallon over the next couple of weeks.

Sweet!  I hope they're right.

I swear, this is what it must have been like sitting on the deck of the Titanic watching the iceberg's approach.  The deckhands telling us to disregard that little "ice cube" out there, while touting the strength of the ship's superstructure.

"No chance of any harm, regardless of the dangerous path we're taking.  Dontcha know, this ship is too big to fail?"

Just checked gold and platinum.  Gold is at $1718 and platinum is at $1717.  And the Dow is down 417, only 26 points from the 10,000 range.

The Wicked Witch is melting........

Copyright 2011 Bison Risk Management Associates. All rights reserved. Please note that in addition to owning Bison Risk Management, Chief Instructor is also a partner in a precious metals business. You are encouraged to repost this information so long as it is credited to Bison Risk Management Associates.

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