Metals With McGuirk: Follow the Physical
The silver market is just being silver.
I'm not gonna talk about the gold and silver market on a short term basis today.
The levels are the levels. $458-66/8 and $7.50ish-7.83. Yes, silver can move 30 cents in a night!
The gold market is being supported by sustained physical buying, ref history books : The London Gold Pool.
The silver market is just being silver. I love it.
I'm not gonna waste time talking about the moving averages and trendlines and all the other great technical points in the metals at present. There are many more qualified people at this site to talk about technicals than I. Today is about the individual.
From what I hear and see, "official sales" were confirmed by Macquarie Bank's daily metal round-up. Who cares? I don't give a flying fire-truck. The amount is nothing compared to the currency reserves of Asia . Follow the PHYSICAL. India, CB Argentina, Dubai Jewelers, Russia and the "Stans", Asia's Central Banks , high net worth individuals in the west and so on. There is not much "real metal" to go around.
Rumours abound about Refco (RFX) and Jim Rogers commodity exposures, derivatives, frozen accounts, disgruntled clients, kangaroo sightings on Madison, a ham sandwich and a block of flats. I have no edge, only lotsa "what ifs". Rumours are only rumours- until they are proved- either way. Sentiment is hard to change. Nevertheless, it's uncanny how the market gets first sniff of most things.
Quite frankly, if the Refco mess does have any impact on silver prices, it shouldn't be bearish. Yeah, but paper moves fast, but it can't stay under physical demand for long. Any unwinds of leveraged paper derivatives over the metals, could seriously screw around with the price but it must be temporary- the physical market says so.
This is not advice, Professors don't do that. This is just Lozza rambling on at the bar. Get yourself some physical gold and silver. I don't mean for the fund or the bank that you work for. I mean for your kids and yourselves. Coins, bars, jewelry, I don't care what kind or form.
Maybe I am a lunatic? Ok. Busted. Then again, I'd rather be a lunatic owning some metal, than be a lunatic not owning some. There are some very sexy derivatives out there that may have to be unwound.
By the way, I think physical silver, in your own possession, is the best thing in the world to "own." Not to make money out of, but to have real money.
Someone's taking possession of a fair whack of silver down in the Comex in the last few days. The stocks haven't done much- the ownership has. Was there instance where any speculator in the USA used armored trucks to show that they were not "being delivered" their rightful commodity? Or was that an Urban Myth?
As you may see, there's heaps going on in the metals and associated equities. I'm pretty tight for time at present, so not much buzzin'.
This weekend sees the racetrack debut of our little filly Maitrise. The name came from one of the part-owners, Justin, one very smart trader in the oil markets. He was obviously bored one day at work, the cracks must have been quiet in Asia, and so he went surfing the dictionary and thesaurus to come up with a name for the horse. The filly's mother was our own Kirkstall Lane (see last paragraph), and the lucky stallion was Commands. The name suits her. Lisa thinks she is very "pretty.. I don't care that much for "pretty," I just want FAST!
Justin and I go way back, all the way back to high school, but 2 years apart. We ended up sitting next to each other every day for over 8 years at Citibank, right up until the day the bank and I parted company. He and I went to the same high school, played cricket and rugby on the same teams (and occasionally still do). We got to play rugby against International touring teams in Sydney and enjoyed rugby tours across the globe when we were younger. We have literally toured the world together, generally on someone else's nickel. Just lucky, I guess.
We've been to baseball at Shea Stadium together, but not Yankee Stadium. Why? I dunno. I went to the 1993 World Series in Toronto, after winning a bet here in Sydney, but that's another story. Olympic Games. JETS home opener 1997. Every one of these events provided us with memories and experiences and they all have "a story."
I think it might be worthwhile sharing some of these stories in time. Maybe each Friday, we could have "Lozza's Sports story," describing something, somewhere that I witnessed with my own eyes or was involved in.
I was just chatting to Justin on the phone. He's up in Singapore working with Hong Kong Long, doing oil "stuff" for a major institution. We reminisced about a lot of these events. He started naming them, straight off the top of his head. I decided to jot them down so that I could remember some of them for future reference. Rugby Tours -local and international. NZ skiing. Basketball and hockey at Madison Square Garden. US Open tennis 1997 at Flushing Meadows. Wimbledon. World Cup Soccer. Most major race carnivals in Australia. Fly-fishing New Zealand and Canada.. International cricket matches. Perth Rugby test at Subiaco- Australia/v South Africa. The odd Casino. And the list goes on.
Every event has a story attached. For instance, one involves a street fight, a handgun, a Maori NZ rugby player from our group, the Military Police, a holding cell in downtown Brussells, InterPol. Heroes. But I digress.
Anyway, we've slopped beer on the floor of a few swish restaurants around the world and plenty the night that I was Master of Ceremonies at his wedding dinner. There were so many times that ended with us fronting up to our respective "Mrs" late, pissed and broke.
Anyway, where were we??? Oh yes.... Maitrise, I'll be happy if she runs in the first 4.
Enjoy the day.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter