May 2012 Market Update   Leave a comment

What I’m Buying, Selling and Why

by Jas Malcolm

Gold and Silver are both weakening with gold almost freefalling these last couple of days. It is interesting to see Silver holding up much better than gold, as anticipated. I hope that people heeded my reflections and exited the stock markets as these markets are really looking dangerous.

I’ve sold almost 100% of my gold and silver stocks. I’m taking losses but that is my choice. Take losses and make a new choice. As I sell I continue to average in to buying silver in the Sprott Mutual Fund and Trust units mentioned in Februrary. I will continue to average in from now until July 15th unless I see silver reversing and going higher in which case I will accelerate my rate of purchasing. I average in because in these manipulated markets I have no way of fundamentally knowing when silver should go up, or when the government will bring it down. Therefore every week I buy more on down days.

Nothing has changed from my comments in January and February. I believe gold, and more so silver, are the way to preserve ones wealth and grow it this year, however, there are powerful government forces that see gold and silver as the competition for their fiat currency system, and rightfully so. So although gold and silver can go down short term, and in fact are, it doesn’t change my belief that they will end the year much higher. To me that is all that matters. I buy what I believe and then go do other things. I don’t want to have to watch my investments on a daily basis and distract me from my homoluminous path.

I reiterate that we are just starting to see the markets roil and rollover, IMO. Before this is over the DOW and S&P and other stock markets could be down thousands of points.

You could just sit in cash to preserve wealth rather than be in the markets, but by cash I do not mean bonds. Short term treasuries maybe but it can never make you money. Having said that just ‘not losing money’ is winning in an environment of systemic failure, which I believe we’ve now enterred.

I have also taken steps to convert my margin accounts to cash accounts. I believe we could see market failures this time around. I wish to avoid any potential of my segregated accounts being accessed by my brokerage.

I really feel one has to be very cautious. Even with my Sprott silver investments I have to be cognizant that the markets could be closed for a period of days and I would not be able to access my accounts to liquidate them.

I wish to re-iterate that what I write is not advice. It is what I am doing at this moment in time. Each person must take responsibility for their own information and decisions. If you are a person who is emotionally attached to these markets, and if you aren’t going to be accountable for what actions you take, then this could be a difficult learning experience. None of us has ever experienced what humanity is going through this year, and the markets are a reflection of the emotioinal state of humanity.

Blessings and joy are your eternal assets.
Jas

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