Winter Update, Gold and Silver Slaughter, Elantra Update

Winter never arrived in Boise this year. I used my golden shovel once. This week, it's been raining every day and pretty miserable.

I thought about going to Butte for St Patrick's Day. St. Patrick's Day in Butte is complete chaos, debauchery, and drunken-ness. I'll tell you this. I will find some corned beef and cabbage- somewhere. Now that I think about it, I have these giant 4 leaf clover earrings that I am going to wear and Butte might not be the best place to do that.

A little about commodities. Gold and silver are getting slaughtered. I cannot tell you how sick I am of watching those manipulated markets. Can you imagine the plight of bankers if they were not able to control these markets with paper leverage? Imagine if physical gold and silver were allowed physical price discovery? Prices would be twice what they are now. I buy gold anytime it cracks 1400. Silver if it gets below 30 is a buy. I have this giant urge to fire up a new trading account but I simply can't participate in a game where the players can steal your money and get away with it. Like MF Global did with thousands of account holders.

Oil inventories shot up today just as I predicted in "Top Calling the Oil Market." The price went down a buck or two. These ridiculous prices are just not sustainable. I read an article last night that stated two giant east coast oil refineries and one in the Caribbean have been shut down because of non compliance with some EPA bullshit. These refineries account for 50% of all east coast gasoline consumption. That means we will have to ship gasoline hundreds and thousands of miles from Indiana and Texas. Interesting note. No sooner had the IEA stated on a public website that the EPA was responsible for the refinery shutdowns...and thus the rise in gasoline prices, than the report was redacted. Hours later, the same report was present with nothing being said about the EPA. Odd? Three words. Obama. Election year.

The Hyundai Elantra has exceeded all of my expectations. I am currently averaging 35.5 MPG. I will save over 4000 dollars this year in fuel costs. I paid 15,800 for my stickshift version which will pay for itself in 4 years. If gas goes up from here, that time horizon will go down. I am trying to envision the idiot who buys a Chevy Volt. Really. I saw this piece of video last week where this guy is drooling all over his Volt like Obama himself cast this character. Even the media kind of half ass tries to promote the Volt.

The Volt and Obama are quite similar. The hype on both was large. Both have failed to deliver any kind of success. Obama says he's gonna buy a Volt in 5 years. He'll be buying a used one.

Comments

Fredd said…
Gold:

Yes, this is a manipulated market to a certain degree. $1700 per oz is wildly overinflated. But it reflects world uncertainty of US power. Right now, our projection of power is almost nonexistent, except for a drone strike here and there.

Remember these same perceptions were in place when Jimmy Carter called the shots: he was perceived as utterly weak. And gold prices went through the roof back then, up to around $835/oz.

Then Ronald Reagan set things straight, and in two short years, gold returned to earth at around $320 per oz in 1982.

Doesn't anyone remember that except dumb ol' Fredd? Oh well. Short gold now. Once President Romney sets things right, gold will return to its proper value of around $800 oz. "DZZ" is a nice instrument, a double short on gold. I hold quite a bit of DZZ as we speak. Not an investment for the timid, however.
Anonymous said…
Romney will not set things straight. Obama light IMO. 1700$ reflects the price of debased USD. I agree the PM market is paper manipulated. For sure the chinese, russians and others love the downtrend while they suck up all the physical. Once the paper market is exposed for the sham it is ...well guess what. No gold available. China then backs the juan with gold . Presto! American dollar toilet paper.
Always On Watch said…
You have an Elantra?

I bought mine in 2009 and love it. Back then, of course, gasoline wasn't nearly as expensive as it is now. And I don't drive much, either. Still, I love the fact that I rarely have to stop in to the gas station and be raped by the present prices at the pump.

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