The Daily Reckoning’s Justice Litle comments on the world after the dollar collapses
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It just occurred to me that the recent jump in fuel prices will hurt the mining sector, cutting into their profitability. Just as gold and silver are going into a bull cycle, the cost of production for the miners is going up. Thus, gold and and silver mining stocks will not show quite the magnitude of gains that they otherwise would have. This is just another reason to invest in physical metals rather than in precious metals stocks or mutual funds.
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I’ve heard that The Pre-1899 Specialist still has a few original Model 1893 Mausers for sale. Two different SurvivalBlog readers have told me that they are having their local gunsmiths turn them into .308 Winchester scoped sporters. That concept appeals to my inherent contrariness: an “antique” rifle, available by mail order with no Federal paperwork required, that ends up in a modern caliber. Tres cool.
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A U.S. Border Patrol agent speak out against illegal immigration.
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Wow! Did you see that gold closed at $720 per ounce, and silver at $14.90 yesterday? It is clear that the precious metals bull is gaining speed. My friend the Chartist Gnome tells me that if the closing number for silver stays above $15 for three consecutive market days in New York, then Phase II of the silver short squeeze will come into play. I am told that this likely means the next stop for silver won’t be until it is $18.25 per ounce! (I will reserve his comments on Phase III of the short squeeze until a later date. They are pretty wild.) Buckle your seatbelt. We are in for a roller coaster ride. Look for more stair stepping, punctuated by some sharp sell-offs as this bull market continues. The brief bouts of profit taking might again bring spot silver down under $12 per ounce. Don’t let the sell-offs frighten you. Instead, think of them as buying opportunities.