Timing the Dips…Gold & Silver Pushed Back by Margin Calls

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Good Day,

I hope this finds you well on this dawn of the coming summer.

This is one of those notes I send out to show, later on down the road, how easy it is to understand what is going on with the dollar and gold and silver, and what you should consider doing about it.

What I mean is this: I was talking to a client last week and she asked should she get some silver at the then current spot price of $47 or maybe wait. I suggested she wait because red hot price runs always cool off and pull back, and since the fundamentals haven’t changed a whit get in after the pull back. That will establish the bottom of our new “trading range.”

Here’s the basic skinny on what is driving this current dip (as of this writing spot gold is $1475, silver is $34.75):

The Comex (the world’s largest physical commodity futures exchange, located in New York City) significantly raised the margin on silver future contracts. Simply means they are forcing out the weak speculators who can’t afford to play and who are selling out their positions.

It’s the basics: a lot of selling forcing commodity index prices down, with the added dynamic of speculative profit taking. I watched this exact scenario countless times in my time.

Nothing else has changed. The dollar is toast, long term, and gold and silver have a long long way to go. Much hay was made of silver index pricing getting close to $50 recently, which is the historical high. That, of course, is a bunch of horse hockey because adjusted for corrosive inflation silver would have to get to $130 to match that 1980 price in real terms. Silver is still way undervalued in current dollars, even at $50.

I don’t debate the outcome of the dollar anymore because that reasonable conversation is over. The strategy now is about moving over some remaining purchasing power out of the dollar and into hard asset money, gold & silver.

So it’s very simple: Get a good deal and buy on the dips. It is inevitable you’ll going to have to get some real money anyway at some point, so do it on the dips and get more for your paper currency.

It’s just that simple.

So, take action now and begin the process. Either way,  you’ll be reading back these words in 4 months and you’ll have the added perspective and understanding that what you are witnessing is the real deal and nothing on earth is going to stop the final collapse of the dollar.

It is your job to simply find out if this is real and true and to then use the same strategy people always use in this kind of economic environment.

And that this approach is prudent, it is safe, and it makes the most amount of sense…

Either that or place all of your hope and faith in Obama, the US Government, and the Federal Reserve to tell you the truth and to look after your best interests.

But you’ll have to deny all of your personal experience, all historic precedent, math, and your own decent common sense to really buy into the official story and explanation.

My mission right now right now is simple:

  • do the right thing
  • lead others to understanding
  • get as many into the boat as possible

Read the website, give me a call. We have figured out how to get you to the other side of this paradigm shift intact and with little to no reasonable risk.

I look forward to it…

Best regards,

Aaron Kutchinsky