Tuesday, June 28, 2011

"I gotcha back so you best to watch your front...

....cause it's the niggaz who front that be pullin stunts"
- The Genius GZA, 'I Gotcha back' 

I'm to the shooting range with a friend to give a couple of guns some testing. One of them will be my new Hi Point CF 380, which I intend to carefully review. Of course, I'll post my review for you when I finish. In the interim I'm going to touch on silver.

As if I need an excuse, her necklace is silver.
I'm holding off on buying, because I no longer feel that 33 is the bottom. Although in earlier posts I set my buying target at just over $34/oz (and silver is currently $33.90), continued trends have led me to believe that it will continue a plunge. I'd been expecting a dip, but was basing that expectation on events such as the end of QE2, and general market sentiment.

The oil release took me by surprise, and I feel it is heavily contributing to the hurting silver market. In a normal market, I would expect silver to rise again with gasoline, but I feel that by the time oil explodes again (Two months?) the worst of QE2 will be rolling through. 

My hedge buy around $34.50 also has given me further confidence to probe the depths. I am considering buying another hedge against an upward spike if it breaks past $35/oz again. Today's charts haven't found any really constant level of resistance, and have been fluctuating up and down wildly. I'm not particularly interested in watching second by second, given my longer-term views on the subject.

Paper players might be a bit more interested in examining kitco.


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