RE: Q: Do you sitll own gold and silver after Frid The fundamental change with respect to silver and gold took place several months ago with the announcement of QE3 or whatever the number is now... the change occurred when the dollar stabalized, refused to go down and the Euro rallied. The all clear was in place to buy stocks. The change came when the commodity index (CRB) buckled, here not too long ago and most commodities except gasoline started down. The change came when investors saw that the FED backstop was behind the stock market and JPM and friends were aggressively attacking the price of the metals, selling almost everyday after the London PM fix...
the fundamental change for gold and silver took place some time ago...at least in the minds and trading plans of those that move the markets...Buy equities, sell metals and miners...Friday's action was only a continuation of that mind set, maybe a culmination.
Money supply can be created but if it doesn't turn over in velocity it doesn't add to either GDP or inflationary expectations. The velocity of money is in a worse downtrend than gold and silver.
Tonight there is a little 1% plus crack in the Hong Kong market - tighter rates on real estate, I hear. The Shanghai market, notably as measured by the FXI is already hurting. Watch for this item to close below its 50 day moving average...
https://stockcharts.com/h-sc/ui?s=FXI&p=D&b=5&g=0&id=p23156381989
Credit is contracting in Europe. The sequester is at hand in the US...these are all deflationary, recessionary fundamentals....Nothing has changed here that hasn't been in place for months....
No, nothing changed on Friday, probably won't change for a while ... Money is being created but it is not circulating. In fact the rate of circulation is declining, hence commodity prices are falling, the US stock market probably would too if not propped up by the FED and its followers. Look at the Canadian market to see an unhealthy picture.
When the FED changes its policy with respect to excess reserves and forces those out into the market in the form of loans....then things will change.
by the way - long First Majestic for the long haul - expect a great opportunity to add coming up...rather down...when FR/AG announces they'll up the bid for their latest acquisition, owners of which I would think would rather be FR/AG owners than of CDE....A little cash will probably swing the deal...