muses of the moment

May 19, 2010

The action in gold

Filed under: Dollar Crisis, Economic Crisis, Fiat Currency, Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 2:07 pm

It’s a scary market out there today. This is to be expected during an ongoing currency crisis.

Here is a post from Jesse to give  little insight.

If the trend is broken it will be time to step aside. Until then we sell strength and buy weakness, slowly. For most it is better to take small incremental positions and then just let them ride the ups and downs.

Sage advice. Physical gold and silver is the ultimate currency, it will take hits as other people figure that out.

And from Jim Sinclair’s website (he has said this before): 

Gold will trade in ranges of $100 to $150 a day in the foreseeable future therefore if you do not have a private wire to God as your advisor, be careful trading.

Groovygirl says: The time to trade gold is over. Buy on dips and hold for insurance in the mist of a global financial crisis and global currency crisis.

Side musing: from John Williams at, here are the real facts of our economic situation. You pay for the detail, well worth the money. (groovygirl comments in blue)

Market Fears of European Financial Instability Should Shift to Fears of U.S. Financial Instability (This will be fun.)(Real inflation is at almost 10% people, the governments stats are delusional! Those on a fixed income/social security are screwed. This is why you want to NEVER, EVER switch your 401k to an annuity, even an inflation-adjusted  one. Because guess what inflation-adjusted percentage they will use?)

– Perils of “Core” and Seasonally-Adjusted Inflation
(Numbers don’t lie, so the government changes the formula for their own benefit.)

– Housing Starts Keep Bottom Bouncing
(There is no rebound in the housing market. It is stuck, and it will stay stuck until debt is restructured or wiped out.)) SGS- Annual Inflation: 2.2% (CPI-U), 9.5% (

Gold and silver are the insurance against these awful stats. Your house will not keep its value, your social security and fixed incomes will not keep up with real inflation/living expenses, and investors are moving what capital they have left from market to market because there is no safe place in a global currency crisis except physical gold and silver. It may go up and down, but it will still be standing after the other currencies have been “revalued”.

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