2X down, 1X up, ignores the industrial component, and Europe however sluggishly stepped up to the borrowing plate this week, borrowing at one percent and putting their money--------where? Is this TARP investing in balance sheets, new industry, or startups, what? They are where we were Nov 2008.
If the Euro rallies against other currencies, the dollar tanks and gold and silver soar. That is the best scenario in my humble opinion for investors. I don't see a big year end rally in silver, I see a Santa Claus lump of, not coal, more like alumininumimimim.
I think silver is in a sideways stretch for most of next year, I don't see the inflation bug whether real or reported if real. The glut of new housing is insane in a country awash in foreclosed properties. The election rally year is going to have grave headwinds.
The money has been in borrow in expensive dollars, spend, and pay back in cheaper dollars. You've got to make at least 12% on your money to stay ahead.
I will be writing covered calls against my PM stocks all year. The call premium is huge and the real money is about three to four dollars out of the money in the three to six month ranges. Instead of investing however, I hold those proceeds in cash and wait for opportunities. I siphon off about six percent to live on, and slide the scale to meet realities and pull backs. I let rallies go, I pull in the reigns on pullbacks, it's the reverse of income averaging.
That's about sixty K per million, with six percent "cost of living" increases, and a lifespan of 35 years remaining. I plan on my last gasp with the last dime floating to the ground.
If my hand isn't pulling the trigger defending myself against the 28 Days scenario of unemployed zombies looking for "brains", and a job, I should be fine.
Just my opinion but 2x applied when the market perceived SLW as a great growth company. That perception has largely faded since POS went 20+ and no new deals were doable. Perception is now company is a cash generator without a growth component and price will track silver between 1 to 1.5x. Likely closer to 1x as opposed to growth miners that
will track closer to 1.5x
(I know, I know that SLW is a streamer and not a miner so no need to bash me for that TB)
2x on the downside sometimes, or 1x on the upside sometimes. It all depends on many changing variables that at any given day can be positive or negative depending if it's a risk-on or risk-off day. These are the known variables, there are many other unknown variables that most are not smart enough to figure out, you must be a hedge fund or investment bank in order to be privy to that type data. Now throw in basic and real fundamentals and these markets become complex to trade.