I have no issue with Thompson, I think he is entertaining and is one of the more accurate analysts out there. And regardless of the day to day spot price surprises this market can throw at us, I think the right concept is a commitment to buy weakness and build ounces of bullion as the real measure of wealth. The fact that price weakness has continued further does not make that philosophy wrong. It is impossible to gauge the tops and bottoms of a manipulated sector, so one must act with conviction and strength. Trying to second-guess what happens tomorrow is not going to be constructive.

I think this is a manipulated market and we are in the midst of a coordinated takedown. However, it is real in that investors are now sellers and significant technical damage has been done. The longer term trend will not be affected by this kind of market action however. Just remember that most people thought a continuation of the uptrend was inevitable last month and they were wrong. Now you have a complete sentiment reversal and most believe that the metals have weeks of downside or consolidatation ahead. I will not be surprised at all if that expectation is also dead wrong. We do not know and we cannot know. The metals and shares are a bargain today so it makes sense to be a buyer if you have commitment. Otherwise sit tight and ride it out, so that you may pay more later but at least you are not going to sweat the short term.

I have not decided yet if it will be more silver or more gold but I am definitely a buyer of more bullion today so I can at least feel good about this correction while I wait for the next uptrend.

cheers!

mike