Some folks seem to have misinterpreted my recent purchase of silver bullion as a sign of precious metals bullishness – kookiness, one might say – on my part. Not at all.
I do agree with my friend Serge that gold could ultimately be on the path to a $5,000/ounce zaniness, but for the moment, I think there's an opportunity for the metal to lose maybe 10% to 12% of its value.
My largest shorts right now – neither gigantic, but largest nonetheless – are GLD and GDX. I think the spread between the wedge breakout and yesterday's high speaks for itself.
And, as for GDX, I think we are at our "July 2008" moment in which the miners have had their last hurrah and are ready to bring the entire equity market down with them.
As for equities……..Chairman Bernanke, make 'em soar! I offer my best wishes and cheers for Dr. Bernanke and his superb team of economists and patriots. Send those stocks higher, Dr. Bernanke! You have my respect…….and my admiration. Shalom.
