Stock prices Wednesday gyrated on concerns over Big 3 automakers and their decreased sales, falling oil, and continued banking woes. The Dow Jones Industrials managed a negligible gain while the broader S&P500 and Nasdaq lost for the day. There is the possibility that Tuesday’s runup then selloff represented another inportant inflection point. The medium term top has been elusive of late with several false alarms already in play.
The same has been for medium term lows in commodities and precious metals. During an inflationary period, these scarce items take on monetary characteristics, yet it would appear that everything up to and including Elvis, Cleopatra and the 1955 Yankees are being brought in to stop this ship from righting itself. Our convictions are being tested. Will we hold on to them based on a lack of fundamental change or will we bail and provide a starving silver market with some actual metal? I hope that as many as possible go with me and stick to the former rather than opting for the latter. Although I’ve heard if you sell right now, Goldman Sachs is offering a side order of toast to anyone who gives up a one ounce US Gold Eagle. Keep the faith folks; there’s plenty of company on this bumpy ride.