I have been having a playful conversation today because a friend of mine's wife is now in a very interesting predicament. She bought BAC and Citi a while back thinking it was the buy of a lifetime, most likely because of cheerleading on CNBC, and the monotonous game of investing that it is, as to hold it forever.
If you are puking in your mouth, I did too. The sad thing is I told her to get the fuck out on the bounce at $42, and then transfer everything into silver and gold. Now I'm getting those infamous questions, that sheep ask: "How long till it comes back? When will it come back? If I hold it for 5 years will it be even, because $50K is a lot to loose right now....etc."
I'm not going to lie I didnt tell her to sell at $42. I told her in 12 different emails to sell at $42. And I'm still getting the same questions.
This has taught me something today, as everyday, I urn to learn something new. It has taught me that the sheep might enjoy getting slaughtered. I may not be saying it right, so I'll tie it back into the fear of success. If you dont know most people have an inordinate fear of success, albeit clinical. And most middle class really dont have much to lose, and lose they always will, so I'm beginning to extrapolate from these different conversations that sheep love to lose. It might almost be a new phenomenon. I mean I'll put it in simple terms. If you were standing on a train track, and you heard the horn, looked at the train, turned and asked me if you should get off the tracks, and then sat there and got pancaked by the train, most "psychologists" (in quotes because I feel there is no need for that profession) would call that suicidal. I would say NO ITS NOT. Its the new normal. There is no difference between the train and the question being asked. None.
Moving on to more important things, if you were heading past 44 King St. W. in Toronto today and peeked in Scotia's Head Office, this line up for PM's was okay.
See, in a metropolis of Toronto being lets call it 5 Million, you would think more than 20 people would want pm's right? This is just the beginning, soon there will be no line up, b/c there wont be any metal. Already we are seeing Gold bars dwindle as Scotia Maccotta is sold OUT of 1 oz and 5 oz gold bars. HUmmmmmmmm.
I would now like to warn of the possible multiple rate hikes that are coming. This will be a repeat of the Silver slam of May 1st. If they do not raise Gold margin, we will see $2000 on Jackson Hole day, if it continues north to $2100, I will start hedging with GLD PUTS. Dont say I didn't tell you so when this corrects back as its vertical now. It will be healthy, I just hope it doesnt effect POS. But hey, there are some still waiting to pull the trigger right? Sigh....
Thank me lots, cant wait for the new site! Programmer needs more loot, you know what to do!