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Failure To Reach Budget Resolution Sends Dollar Plunging, Silver At New Post Hunt High

Tyler Durden's picture




 

Following news that an 11th hour attempt to resolve the budget impasse between Obama, Reid and Boehner has failed, the dollar, and all related carry pairs, are getting obliterated. At last check the EURUSD was north of 1.4350, while all Yen funding pairs rose back to intraday highs. Which in this bizarro world also means that futures are now at highs: yes -  a government shut down is bullish for stocks. The good news for those who continue to believe, what is only being realized by others, namely that the dollar's days are numbered is that silver has just touched $39.85: a fresh post Hunt Brother high. Gold is following suit.

And the carry basket:

 

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Thu, 04/07/2011 - 22:49 | 1148151 Yen Cross
Yen Cross's picture

I cleared out @ swaps. I saw the spike into Asia. Plus  I want to see wholesale numbers and what Fisher has to say.

Thu, 04/07/2011 - 23:34 | 1148361 macholatte
macholatte's picture

Following news that an 11th hour attempt to resolve the budget impasse between Obama, Reid and Boehner has failed ...

 

and the converse is.....

    ...when the budget does get passed all the hysteria will pass too and PM's will crash back to pre-hysteria levels....

or

something else is at play, like, say, war(s) in the middle east and stuff like that there.

Thu, 04/07/2011 - 23:38 | 1148388 Turd Ferguson
Turd Ferguson's picture

No shit. Maybe they can pull Kosherdakota out of his Minnesota igloo again tomorrow to talk the dollar back up.

Thu, 04/07/2011 - 23:44 | 1148413 long juan silver
long juan silver's picture

Somewhere a used mattress dealer is missing his sidewalk barker.

Thu, 04/07/2011 - 23:48 | 1148429 Long-John-Silver
Long-John-Silver's picture

and that mattress dealers name is Math Man.

Thu, 04/07/2011 - 23:50 | 1148442 long juan silver
long juan silver's picture

I am Long JUAN Silver.

Speak when you are spoken to fly pimple.

Thu, 04/07/2011 - 23:53 | 1148455 Richard Head
Richard Head's picture

You've got it wrong.  Long juan silver is the ex-billy the bastard.  The retardedness is obvious!

Fri, 04/08/2011 - 00:01 | 1148488 long juan silver
long juan silver's picture

You shouldn't drink and drive. You endanger the rest of us that are responsible.

Fri, 04/08/2011 - 01:20 | 1148749 Yen Cross
Yen Cross's picture

You all made me Laugh my third lung out. Love you guys! Fly Pimple? WTF. Never heard that one. A scab on the ass of humanity is my best! A wart on the nose of your ? I'll leave it at that!

Thu, 07/14/2011 - 04:32 | 1455245 robins
robins's picture

You should use www.fanbullet.com to buy Facebook fans as well as twitter fans. We purchased some buy facebook likes Facebook fans and we are quite satisfied with the results. It is completely legal because the fans are real and they don't join your page until they check it and find it interesting.

Thu, 04/07/2011 - 23:40 | 1148400 Ergo
Ergo's picture

Silver just hit 40.005 for May.  Watched it as it happened. 

Once again, I'm happy and sad.  Happy to watch my account grow.  Sad that it's at the death of the dollar.   

Fri, 04/08/2011 - 00:01 | 1148480 Missiondweller
Missiondweller's picture

Who the hell is junking everyone?

Fri, 04/08/2011 - 00:53 | 1148672 Ergo
Ergo's picture

Blythe, maybe? 

Fri, 04/08/2011 - 06:42 | 1149111 mick_richfield
mick_richfield's picture

The US dollar is 0.85 ounces of silver.

Federal Reverse Notes are not US dollars.

Long live the dollar.

 

Fed delenda est.

Fri, 04/08/2011 - 09:34 | 1149538 r101958
r101958's picture

Each Morgan dollar contains 0.7735 troy ounces of silver. That goes for the Peace dollar too. Now, the Silver Eagle is a full troy ounce.

Fri, 04/08/2011 - 09:39 | 1149558 r101958
r101958's picture

Each Morgan dollar contains 0.7735 troy ounces of silver. That goes for the Peace dollar too. Now, the Silver Eagle is a full troy ounce.

Fri, 04/08/2011 - 05:21 | 1149045 Yen Cross
Yen Cross's picture

I am looking forward to some more Junks. You pissant F/X scumbags! I stand corrected. Barney FRANK FUDGE PACKERS!

Thu, 04/07/2011 - 22:50 | 1148152 I think I need ...
I think I need to buy a gun's picture

its a good thing mcdonalds is hiring 50000 people for their MCJOBS!!!!! World NEws Tonight assured us that these are moving up the ladder jobs!!!!!!Add that to Home Depots massive hiring this spring and everyone will have a job shortly be shore to add an hour on each end to pay for gas to and from. What a great economy!!!!

Thu, 04/07/2011 - 22:51 | 1148165 Caviar Emptor
Caviar Emptor's picture

Maybe that's where Fed's "other assets" are going

Thu, 04/07/2011 - 23:04 | 1148216 Long-John-Silver
Long-John-Silver's picture

How are all these new minimum wage employees going to afford $5 gasoline or a $40,000 electric car?

Thu, 04/07/2011 - 23:11 | 1148241 Professor Hindsight
Professor Hindsight's picture

Obama will finance the car with 0 down at 0% for sideways8 months.

Problem solved.

Thu, 04/07/2011 - 23:38 | 1148386 Hansel
Hansel's picture

∞  <---- that's right, I'm too legit to quit

Thu, 04/07/2011 - 23:13 | 1148259 Caviar Emptor
Caviar Emptor's picture

...and $200/month smartphone plans, $200/month cable and $10 Big Macs?

Thu, 04/07/2011 - 23:43 | 1148417 Long-John-Silver
Long-John-Silver's picture

Ditch cable TV, that shit is obsolete. We get our video over the Internets now.

Thu, 04/07/2011 - 23:55 | 1148454 long juan silver
long juan silver's picture

Isn't it hard to see on a Commodore 200?

Fri, 04/08/2011 - 00:06 | 1148503 Long-John-Silver
Long-John-Silver's picture

I have a shiny new I-pad 2.

Fri, 04/08/2011 - 00:15 | 1148520 long juan silver
long juan silver's picture

Small family, eh?

Fri, 04/08/2011 - 00:56 | 1148688 Mentaliusanything
Mentaliusanything's picture

Picture beer and pretzels being sprayed everywhere. Thanks for the Sarc i needed that smart retort

Thu, 04/07/2011 - 23:04 | 1148219 High Plains Drifter
High Plains Drifter's picture

yeh the company is on the DOW.  that is all this country is about anymore. stupid fucking junk food burgers.........beam me up scotty wherever you are .........

Thu, 04/07/2011 - 23:10 | 1148250 johnnynaps
johnnynaps's picture

Add another hour for the increase in your grocery bill. And, don't forget to add 6 more hours so you can hedge inflation with the purchase of an ounce of silver. Oh, and another hour for the increase in property tax. What! I can't work over 34 hours a week? Wtf! Guess I'm gonna have to work a second job at BK just to pay my health insurance.

Thu, 04/07/2011 - 22:48 | 1148153 Mr. Denny Kneel
Mr. Denny Kneel's picture

That chart looks psychedelic or my kid put acid in my tea again

Thu, 04/07/2011 - 23:31 | 1148359 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I wish your kids would drop acid into everyone's tea.  That might actually solve our problems.

Fri, 04/08/2011 - 02:57 | 1148936 GoinFawr
GoinFawr's picture

He does kinda look like Abbie Hoffman...

Thu, 04/07/2011 - 22:52 | 1148157 long juan silver
long juan silver's picture

Ah, the Hunt high was $50.

During the Hunt brothers' accumulation of the precious metal, prices of silver futures contracts and silver bullion during 1979 and 1980 rose from $11 an ounce in September 1979 to $50 an ounce in January 1980

http://en.wikipedia.org/wiki/Nelson_Bunker_Hunt

Thu, 04/07/2011 - 22:56 | 1148179 mcmoo
mcmoo's picture

Headline reads, "silver at new POST Hunt High".

Thu, 04/07/2011 - 22:56 | 1148188 long juan silver
long juan silver's picture

And what does my post say?

Thu, 04/07/2011 - 23:05 | 1148215 Filthy Rotter
Filthy Rotter's picture

That you don't understand the word "post"?

Thu, 04/07/2011 - 23:18 | 1148228 long juan silver
long juan silver's picture

You obviously insert the word randomly without seeing it. How does your mother feel about the habit?

Thu, 04/07/2011 - 23:12 | 1148249 Careless Whisper
Careless Whisper's picture

$50 in 1980 adjusted for the always transitory inflation is $128.50

 

Thu, 04/07/2011 - 23:21 | 1148295 long juan silver
long juan silver's picture

And your point is?

Fri, 04/08/2011 - 00:32 | 1148591 Richard Head
Richard Head's picture

Hey willy the bastard, don't you get tired of embarrassing yourself with your stupidity here, over and over and over again?

Thu, 04/07/2011 - 23:21 | 1148306 RockyRacoon
RockyRacoon's picture

Finally, a relevant number!  Saved me the trouble.

Fri, 04/08/2011 - 02:36 | 1148897 macktheknife
macktheknife's picture

Hey RR,  Can't tell you how many months ago, I read the nice entreaty by one of the old hands- for the old posters to get back on Zerohedge.  I discovered ZH , I guess, about a year ago, and, I am embarassed to admit, that I took to posting here, like a teen takes to foreplay lubed with buttered popcorn - I loved, beyond compare, this community.  Then, I don't exactly knbow why - well, I was called a sociopath one too many times, I stopped participating.  Of course, as I suspect, I have followed very closely, every day, just without participating - I think there are many old posters doing this.  What I want to say is -  I want to thank people like Rocky Racoon - that have soldiered on.  I  used to say, how much Cog Dis, Do Chen,  Chumbawumba - all of them, mean to me each day. You are all very much appreciated.  My sense is, the discourse HAS deteriorated some - there simply do not seem to be as many knowledgebale people particpating - that being said, we all really do, just wnat the conversation to continue - the Math Man, the Jon Nadler - and, sucks, I can't even remember the names of some of the trolls that preceded them- but we need you all- we need the conversation to continue.  Tyler has done a magnificent job of nurturing this place to mainstream presence- WITHOUT compromiing ANY integrity.  

I wish some of the older posters would participate - I have so sadly watched MsCreant's post become fewer and fewer (I'm melting, I'm melting).    My point is, ZH is such a lone voice- becoming more valuable each day, and let's all make whatever effort we can to keep this alive.  The discourse is getting weaker, not stronger - and we need to Man Up.   Again I thank Racky, and Do Chen and Cog Dis, and Colonel Cooper- and, JFC -  Turd.      And, Banzai, whoever THE FUCK you are in real life - even if you are some Asperger's freako scriptkiddie -  keep it the fuck up -  your image/cultural knowledge is perfect, and your skillset Bespoke.  You, and your audience, are bobbing along in sync-  keep doing exactly what you are doing- and, if you ever get the sense that maybe you have pushed it a little too far-  just step down on that pedal.   I want to see your mind producing images that are as easy as a greased dildo exiting from a seizing meth ho's butt.  

Fri, 04/08/2011 - 06:24 | 1149101 zhandax
zhandax's picture

Just reply "Its highly functional sociopath to you, fucktard".  Great conversation starter.  

Noli sinere te ab improbis opprimi

Fri, 04/08/2011 - 06:52 | 1149126 mick_richfield
mick_richfield's picture

I think that WB7 is, in real life, still WB7.

There's no way that a site this good will fail to attract more than its share of trolls, shills, freaks, and twits.  All that is necessary for evil posters to win is for good posters to do nothing.  Don't let the illegitimi carborundum you down.

Now, please excuse me.  I learned from one of the paid establishment shills around here that I can dig up silver for 5 bucks an ounce!   I'm going out to get a shovel.

 

And ... Fed delenda est.

 

Fri, 04/08/2011 - 07:16 | 1149162 Ricky Bobby
Ricky Bobby's picture

The arrival of trolls and misinformation dispensers is confirmation of the importance of this site. I won't be suprised if it is censored at some point.

 

Res publica mortuus est, vivat imperium

Fri, 04/08/2011 - 11:48 | 1150103 RockyRacoon
RockyRacoon's picture

I'm glad you're still here.  Perhaps, and I say this at the risk of incurring some wrath (junks), the problem is the nature and quantity of articles which are "off topic".   The depth of articles into "real" economics and finance are seemingly less encountered.   Maybe it's just me, but I recall having to look up half the terminology used in articles.   It was quite an education.  Not so much any more?  Like I say, maybe it's just me.

Thu, 04/07/2011 - 22:57 | 1148184 quasimodo
quasimodo's picture

No shit, but the article states "post" Hunt high.

Albiet not too much longer and the Hunt high will be a distant memory

Thu, 04/07/2011 - 22:57 | 1148192 long juan silver
long juan silver's picture

And what does my post say?

Thu, 04/07/2011 - 23:03 | 1148214 quasimodo
quasimodo's picture

That time of the month?  Anyone here knows about the $50 threshold during the Hunt run up--your point is?

Thu, 04/07/2011 - 23:09 | 1148243 long juan silver
long juan silver's picture

Silver is $11 and 25% south of the Hunt high.

Did you get beyond 3rd grade math or 5th grade reading?

Thu, 04/07/2011 - 23:19 | 1148294 quasimodo
quasimodo's picture

No shit Sherlock Holmes, Mr. Obvious much?  But thanks for the wiki link at any rate

Thu, 04/07/2011 - 23:22 | 1148299 long juan silver
long juan silver's picture

Study it but I'm sure Bunkie already has an employee to walk his dogs.

Fri, 04/08/2011 - 01:10 | 1148718 WaterWings
WaterWings's picture

Does he pay late 70's wages?

Thu, 04/07/2011 - 23:04 | 1148217 Filthy Rotter
Filthy Rotter's picture

That you're a gobshite?

Thu, 04/07/2011 - 23:13 | 1148257 long juan silver
long juan silver's picture

The Gobshites are a Celtic punk band from Boston MA USA .

Nope I guess I'm not.

Thu, 04/07/2011 - 23:14 | 1148275 Spastica Rex
Spastica Rex's picture

"Ah, the Hunt high was $50."

 

Thu, 04/07/2011 - 23:24 | 1148315 long juan silver
long juan silver's picture

The post Hunt high is $39. Get out much?

Thu, 04/07/2011 - 23:03 | 1148208 Bay of Pigs
Bay of Pigs's picture

He's too fucking dumb to read and comprehend anything. Ignore the troll.

Thu, 04/07/2011 - 23:25 | 1148277 long juan silver
long juan silver's picture

You've proved your own imbecility with that drool down the shirt front fat boy.

Thu, 04/07/2011 - 23:28 | 1148337 sagerxx
sagerxx's picture

Yes.  Feedeth not the Troll, for they shall vex you with their drooling and farting and general muddying of the waters, for they shiat in their own pants.

Thu, 04/07/2011 - 23:34 | 1148369 long juan silver
long juan silver's picture

Yeth, yeth, yeth. I have waitith 10 minutes for the firsth fart joke.. Your wit is wonderuth....well...maybe not.

Thu, 04/07/2011 - 23:07 | 1148222 Long-John-Silver
Long-John-Silver's picture

China is the new Hunt Brothers. Good luck screwing China like the Hunt brothers.

Thu, 04/07/2011 - 23:18 | 1148287 long juan silver
long juan silver's picture

Arrest that country for commodity price manipulation!

Thu, 04/07/2011 - 23:20 | 1148300 Long-John-Silver
Long-John-Silver's picture

If something can be manipulated...they are.

Thu, 04/07/2011 - 23:23 | 1148325 long juan silver
long juan silver's picture

You sure are.

Thu, 04/07/2011 - 23:23 | 1148304 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

We are all Hunt brothers now.

Thu, 04/07/2011 - 23:25 | 1148333 long juan silver
long juan silver's picture

You can only dream of reaching up to touch the hem of greatness

Thu, 04/07/2011 - 23:34 | 1148372 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I ripped the hem and wear it as a toga now.

Thu, 04/07/2011 - 23:34 | 1148377 long juan silver
long juan silver's picture

You lie. You wear it as a thong.

Thu, 04/07/2011 - 23:54 | 1148452 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I do at Burningman.

Fri, 04/08/2011 - 00:04 | 1148493 long juan silver
long juan silver's picture

I do in a toilet.

Thu, 04/07/2011 - 22:50 | 1148159 mt paul
mt paul's picture

eye eye skipper 

we'll add the ballast... 

hope you can drive

a submarine...

Thu, 04/07/2011 - 22:50 | 1148161 Caviar Emptor
Caviar Emptor's picture

1995 was just a warm up. Back then it was more about politics with finance playing second fiddle. Remember: Reagan had proven that deficits don't matter ! :-)

Now we got politics AND a financial picture that's always in some state of touch-and-go, always ready willing and able to collapse. The real economy has less support. And as usual the focus is all on the paper economy, or how to rig things so that cronies and insiders get rich while the gettin' is good. 

Fri, 04/08/2011 - 07:17 | 1149164 Ricky Bobby
Ricky Bobby's picture

+1

Thu, 04/07/2011 - 22:52 | 1148162 johnnynaps
johnnynaps's picture

No need for QE3 now.....government vacations have the same outcome.

Thu, 04/07/2011 - 22:53 | 1148163 Rusty Shorts
Thu, 04/07/2011 - 23:17 | 1148283 Unlawful Justice
Unlawful Justice's picture

My new fun thing to do.  

Thanks RS.

Thu, 04/07/2011 - 22:53 | 1148173 RobotTrader
RobotTrader's picture

Thu, 04/07/2011 - 22:56 | 1148187 Id fight Gandhi
Id fight Gandhi's picture

Bet we see 40 cross tonight!

Thu, 04/07/2011 - 23:09 | 1148232 Long-John-Silver
Long-John-Silver's picture

I'll be sleeping well tonight.

Fri, 04/08/2011 - 00:23 | 1148556 long juan silver
long juan silver's picture

Potty pants are greatest invention since the surf leash!

 

Fri, 04/08/2011 - 04:35 | 1149016 StychoKiller
StychoKiller's picture

You win!! Give that skinny old man some steroids...

Thu, 04/07/2011 - 22:59 | 1148191 DoChenRollingBearing
DoChenRollingBearing's picture

Thx Robot, I was about to go over to Kitco and check PM prices, you saved me the trouble.

Fri, 04/08/2011 - 11:48 | 1148328 RockyRacoon
RockyRacoon's picture

http://finviz.com/futures_charts.ashx?t=SI&p=m5

http://finviz.com/futures_charts.ashx?t=GC&p=m5

Edit:  Somebody finds it necessary to junk links to charts?  JFC.

Thu, 04/07/2011 - 22:59 | 1148203 rocker
rocker's picture

It's about time Robo.  Better late than never.  It's far from over.

Thu, 04/07/2011 - 23:09 | 1148223 boricuadigm-shift
boricuadigm-shift's picture

Robo,

       Buying physical gold/silver yet?  I remember the good ole days when you were DOW/S&P bullish...  Lately you sound PM bullish... What do you say?

Fri, 04/08/2011 - 00:42 | 1148628 Hook Line and S...
Hook Line and Sphincter's picture

Robo is a micro-fractal of central banking chicanery, talk it down and embrace the discount. The chick with a dick likely has more Gold and Silver than all the thread participants combined.

Love your style Robo!

Hey, if it works...

Thu, 04/07/2011 - 23:10 | 1148248 traderjoe
traderjoe's picture

Your best comment ever.

Thu, 04/07/2011 - 23:11 | 1148255 baby_BLYTHE
baby_BLYTHE's picture

Robo's fine. Just buy physical in addition to your ETF holdins :)

Not to late btw, we are just entering Hyper-Mania phase. We are only in the 3 inning or so of that IMHO.

Thu, 04/07/2011 - 23:16 | 1148279 Spastica Rex
Spastica Rex's picture

b.o.r.i.n.g.

Thu, 04/07/2011 - 23:39 | 1148394 boricuadigm-shift
boricuadigm-shift's picture

:-)  Perfect!   Tks!

Fri, 04/08/2011 - 01:31 | 1148781 Vlad Tepid
Vlad Tepid's picture

Wow!

Fri, 04/08/2011 - 09:55 | 1149604 falak pema
falak pema's picture

those rusty shorts look shorted and wetted...

Thu, 04/07/2011 - 22:55 | 1148178 New Survivalist
New Survivalist's picture

Shutdown, bitchez!

Thu, 04/07/2011 - 23:01 | 1148202 DoChenRollingBearing
DoChenRollingBearing's picture

At a minimum a great oportunity to see if anything dire happens.  If not, hey, let the non essentials go!

Thu, 04/07/2011 - 23:14 | 1148262 Long-John-Silver
Long-John-Silver's picture

The economy might actually improve.

Thu, 04/07/2011 - 23:20 | 1148301 rocker
rocker's picture

'The economy might actually improve.'  

Long John Silver, while I know you know.  If you knew the U.S. is now Japan. As in, "We are Japan" I say. 

Where would you want to rest your money, in equities or PM's.  Enough said.

Fri, 04/08/2011 - 07:14 | 1149159 mick_richfield
mick_richfield's picture

I think it's totally unfair and discriminatory, probably racist, and arguably homophobic, xenophobic, and Islamophobic -- that people are always saying "let's shut down the non-essential" parts of government.

I say, let's shut down the essential parts. 

US out of North America!

 

and, above all  ... Fed delenda est.

Thu, 04/07/2011 - 22:57 | 1148180 Id fight Gandhi
Id fight Gandhi's picture

Having the dollar collapse on no deal and shut down won't be a net positive for the markets as I'm seeing it.

It is true the bears stopped shorting. They just went into metals.

Thu, 04/07/2011 - 22:58 | 1148196 vote_libertaria...
vote_libertarian_party's picture

...aaaand stock futures love it!!!

 

???

Thu, 04/07/2011 - 23:02 | 1148199 mt paul
mt paul's picture

silver 39.83 $ per oz 

DXY 75.37

3 bps off 52 week low

Thu, 04/07/2011 - 23:00 | 1148204 Caviar Emptor
Caviar Emptor's picture

Maybe after a week in shutdown the American people will say to both Dems and GOP: "Shutta you Pie Hole!" "And stay shut!"

Thu, 04/07/2011 - 23:02 | 1148206 Twindrives
Twindrives's picture

Last one out turn out the lights in Washington D.C.

Thu, 04/07/2011 - 23:03 | 1148213 live free
live free's picture

I have been trying to get physical gold for the past 5-6 days... and this is the first time my coin dealer has let me down in 3 years of doing business with him... I was suppose to get some on Monday, then Tuesday, then Wednesday, then...  The wholesaler hasn't delivered and no one is selling now.

B

Thu, 04/07/2011 - 23:09 | 1148227 High Plains Drifter
High Plains Drifter's picture

where do you live?  i always like to add to my black market list......

Thu, 04/07/2011 - 23:12 | 1148252 live free
live free's picture

NH

Thu, 04/07/2011 - 23:15 | 1148270 Long-John-Silver
Long-John-Silver's picture

Gold has been sitting on a compressed spring for months.

Thu, 04/07/2011 - 23:06 | 1148224 baby_BLYTHE
baby_BLYTHE's picture

Feels good to be part of the 1% of the population that owns metals.

How can anyone have confidence in the dollar if congress can barley pass a budget resolution for 1 week let alone a fiscal year!

Thu, 04/07/2011 - 23:54 | 1148462 trav7777
trav7777's picture

seriously, are you really actually a cute young chick who is a PM bug?  Do you own a unicorn?

Fri, 04/08/2011 - 00:26 | 1148573 thefatasswilly
thefatasswilly's picture

lol

Fri, 04/08/2011 - 00:48 | 1148649 Hook Line and S...
Hook Line and Sphincter's picture

baby_blythe has a vibrating unicorn horn, and is definitely NOT who she purports to be.

Fri, 04/08/2011 - 01:23 | 1148761 Vlad Tepid
Vlad Tepid's picture

I think she really is Trav.  But she uses half her stash on the Ganja weed, whereas a true bug would be all in.  TO bad really...

Fri, 04/08/2011 - 01:55 | 1148822 Burnbright
Burnbright's picture

Is that a proposition trav?

Thu, 04/07/2011 - 23:09 | 1148226 Caviar Emptor
Caviar Emptor's picture

King Dollar slumming it with the rest of humanity tonight. Long live King Krone!

Thu, 04/07/2011 - 23:09 | 1148230 Mr Lennon Hendrix
Mr Lennon Hendrix's picture
Silver is Popular?

When did silver become the go to investment?  Same with gold, when did gold take over the headlines in such an epic way?  I have been caring less and less about all the hoopala, and now all of a sudden I check into the mainstream headlines and it is 'Gold, gold, gold!'

I remember when I came to the conclusion that I should write about how silver will be the best investment of the next decade.  I had been reading Zerohdege (The first rule....yeah yeah) for about six months when I read The Wizard of Oz with the interpretation that it was about monetary policy and decided that to buy silver was the only investment worth making (up to a point, of course, as diversification and a balanced portfolio is necessary).  I thought this because silver was not only going to become recognized as monie very soon, whether or not fiat was put back on such a standard, but because it would not be confiscated.  It would be ridiculous for the government to confiscate it.

Along the way, I realized that the government would not be able to confiscate gold, because they were inept, so I recognized gold as a safe haven too, even though silver has a better upside.  It was only a few months after I had been writing that I called the move that I should be famous for-that JP Morgan was shorting silver and we need to blow them up.

I distinctly remember the conversation buried in piles of ruble on the Zerohedge site which was between myself and MsCreant.  We agreed that silver could end JP Morgan's and thus the Fed's raping of the financial system.  This was mid summer, I think.

So now Alex Jones yells into my ear that Keiser came up with the battle cry, and Keiser yells back.  Although I will say I heard Keiser say Zerohedge started the idea once.  Why he doesn't say it more, I am not sure.  We are wearing masks, why not get the Zerohedge party started in earnest?  I am down.

Thu, 04/07/2011 - 23:11 | 1148256 tekhneek
tekhneek's picture

Yeah. I remember that. I didn't comment much but I read back to those conversations. I joined in November 2010 but still read the archives daily.

It's just beginning man. Imagine what we'll be writing a year from today.

Thu, 04/07/2011 - 23:14 | 1148276 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

By then our powers will be so eloquent we won't need to write; hedgers will be communicating telepathically.

Fri, 04/08/2011 - 00:52 | 1148669 Hook Line and S...
Hook Line and Sphincter's picture

My solar plexus is nagging at me, whispering that telepathy just might be the only way we'll be allowed.

Fri, 04/08/2011 - 02:02 | 1148831 Burnbright
Burnbright's picture

telepathically... or in code. Where the Aurum at G!?

Fri, 04/08/2011 - 08:37 | 1149355 mick_richfield
mick_richfield's picture

I knew you were going to say that.

Thu, 04/07/2011 - 23:31 | 1148358 watchingdogma
watchingdogma's picture

Diversification is for pussys!  If you know what's right, why are you hedging?  That diversification crap was made up by money managers that needed work.  Look at the DOW for the past 10 years. 

Or run this through your knoggin - if you did buy and hold at the beginning of the year, and you had the choice of doing so with either Silver or the DOW, excluding dividends and bankrupt DOW dogs, what year was the last year that you would be ahead now if you bought the DOW.... 

1988

 

Thu, 04/07/2011 - 23:38 | 1148389 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Calm down!  I wasn't specific. 

Thu, 04/07/2011 - 23:39 | 1148392 wisefool
wisefool's picture

agreed that silver could end JP Morgan's and thus the Fed's raping of the financial system.

The only reason I would accept your PMs for labor or foodstuffs is because I know that you'll covet that shiny dirty metal you gave to me. And you would then bring back twice as much labor and foodstuffs to "reclaim" your "PMs".

Sorry to take a biblical tact, but half shekles could have been melted back into shekles, or fiat student loans for shiny physcology degrees.

Thu, 04/07/2011 - 23:58 | 1148473 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You got me wrong.  I like to conduct energy around the sacred emeralds I have on my stone's table.

Fri, 04/08/2011 - 00:02 | 1148490 wisefool
wisefool's picture

+1. The person who junked me could learn from this post. We got some basic rules here. If you have the energy to junk, you should get off your ass and explain why.

 

Hurst was a terrible engineer.

Fri, 04/08/2011 - 06:46 | 1149117 Bicycle Repairman
Bicycle Repairman's picture

"The only reason I would accept your PMs for labor or foodstuffs is because I know that you'll covet that shiny dirty metal you gave to me. And you would then bring back twice as much labor and foodstuffs to "reclaim" your "PMs"."

If don't want to accept PMs, fine.  Your neighbor will.  As for wanting twice the labor in return if you can get that deal in the marketplace good luck.  Otherwise I strongly suspect that you'll be shining my shoes for a long time.

Thu, 04/07/2011 - 23:09 | 1148231 Hollywood
Hollywood's picture

They will probably pass a law for a work stopage with full pay and benefits.

Thu, 04/07/2011 - 23:10 | 1148234 tekhneek
tekhneek's picture

Ah, well. Cool spike but, in terms of the trend this is just a bump in the long road ahead for Silver's exchange rate.

Fucking dip already though, God damn. Their manipulation is just opening more volume for longs. They need to get better at suppressing the price. I'm tired of paying these premiums.

In other news: April 29th, 2011 - SILVER ILLEGAL FOR US CITIZENS TO PURCHASE

Thu, 04/07/2011 - 23:28 | 1148346 Long-John-Silver
Long-John-Silver's picture

We are at the point where manipulation just chums the water an starts a feeding frenzy.

Buy now while they still trade fiat paper for PM's.

Yesterday was the dip, today is the new high, and tomorrow you'll wish you had bought yesterday.

Fri, 04/08/2011 - 00:12 | 1148517 rocker
rocker's picture

'In other news: April 29th, 2011 - SILVER ILLEGAL FOR US CITIZENS TO PURCHASE'

LOL on that.  First they put margin calls on Silver contracts.  I don't think that would help either.

Especially when China tells their republic to invest in the shiny white.

But hey, best yet, The CB's, (GS, JPM and C), along with the hedge funds can play up to a million dollars of oil contracts with just 50K on a day trade.  When will the sheeple figure this out. That the FED is funding this crime against the poor. 

Thu, 04/07/2011 - 23:10 | 1148245 alien-IQ
alien-IQ's picture

as oil hits $111, gold at fresh new all time highs and silver less than a dime away from $40...the wealth effect in all it's glory for all to see.

ain't Amerika grand?

Thu, 04/07/2011 - 23:31 | 1148351 RockyRacoon
Thu, 04/07/2011 - 23:14 | 1148253 monopoly
monopoly's picture

Dollar right at major support here at 75.40, if it loses that only one left at 2008 low at about 72. Then, this will make the movie Armageddon look like a tea party. (no pun intended). And of course futures are up. They need to keep ramping everything just to stay even as the dollar sinks into the abyss.

The scary part guys. I bet there are not 5% of the sheeples in this country even have a clue what we are talking about, much less take action.

This bull market in gold, silver, PMs has a long, long way to go. Notice how the dips are becoming smaller since we bounced off of 1310. I want to add more to physical, and as in years past, always waited for the inevitable dump. Well, still waiting.

Thu, 04/07/2011 - 23:15 | 1148269 baby_BLYTHE
baby_BLYTHE's picture

Will we lose more than 8 million jobs this go around?

40% U-6 here we come!

Thu, 04/07/2011 - 23:14 | 1148278 Misean
Misean's picture

I show 75.35 now.

Thu, 04/07/2011 - 23:16 | 1148286 alien-IQ
alien-IQ's picture

75.40 reached and breached. Now 75.31 and falling hard.

Thu, 04/07/2011 - 23:23 | 1148324 Misean
Misean's picture

OK, so now, what carry trade is nigh unto getting vaporized?

Thu, 04/07/2011 - 23:38 | 1148398 alien-IQ
alien-IQ's picture

not sure about anything anymore...but what does look clear to me is that right now...I see nothing but air under the $DXY until 74.26 which would take us back to the Dec. 1, 2009 low. Beyond that...we're Zimbabwe.

Fri, 04/08/2011 - 04:47 | 1149022 StychoKiller
StychoKiller's picture

How do you say "oh crap!" in Zimbabwean?

Dollar Index = 75.19, Au = $1468.60, Ag = $40.15.

Xse, Xse, Hong Kong!

Fri, 04/08/2011 - 12:03 | 1150176 Ben Fleeced
Ben Fleeced's picture

Mavi!

Thu, 04/07/2011 - 23:46 | 1148424 Bringin It
Bringin It's picture

The scary part guys. I bet there are not 5% of the sheeples in this country even have a clue what we are talking about,...

I agree that aspect is profoundly creepy. 

It's like Invasion of the Body Snatchers .....Hewwwww Agrrrrha!!

Who would have thunk so many would choose to self-lobotomize?

What a spectacle!!

Fri, 04/08/2011 - 02:06 | 1148837 Burnbright
Burnbright's picture

Who would have thunk so many would choose to self-lobotomize

They don't call it the Zombie apocalypse for nothing!

Tue, 04/12/2011 - 00:00 | 1160481 Bringin It
Bringin It's picture

I'm bored with bringin it.  I wnt to be "Zombie Apocalypse" from now on.

Thu, 04/07/2011 - 23:11 | 1148260 Misean
Misean's picture

The inability of the spendaholics to agree on a rate of increase in spending is causing this?!?! Hmmm...I find that hard to believe. What else is afoot?

Fri, 04/08/2011 - 04:47 | 1149024 StychoKiller
StychoKiller's picture

Rumours of US Combat boots treading on Libyan sands...

Thu, 04/07/2011 - 23:12 | 1148266 boricuadigm-shift
boricuadigm-shift's picture

Count up - $39.93

Thu, 04/07/2011 - 23:17 | 1148291 Long-John-Silver
Long-John-Silver's picture

I need to go to bed but this is like watching really good porn.....

Thu, 04/07/2011 - 23:23 | 1148309 boricuadigm-shift
boricuadigm-shift's picture

$39.94 - I can't sleep either.  I hope it passes $40 before midnight!  I will track every penny.  This is historic!!!

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