Money Supply Contraction?!
posted on
Sep 04, 2008 05:19PM
Creating value through Exploration and Development in the Sierra Madre of Mexico
Yes, again I bring it up, because I have visions of the market contracting through bank failures. I'm a very calm person. My wife says I'm "too calm" in moments that typically elicit high emotional responses in typical human beings. I've acquired this unbalanced thinking early in my life to survive where I've come from. It's never left, but that doesn't mean I'm not susceptible to an occasional emotional outburst. While comprehending information and analysis I go through the healthy checkpoints; distill facts, filter out noise, avoid group thinking. This time around is different. I can't help but give in a wee bit to my emotions. If someone has ever been "all in" it's been me. I own much physical silver along with what I think are solid gold juniors. 100% invested in the sector. So, a contraction in the money supply provided by a crash in the markets would definetley bring about one of those emotional outbursts (although nobody knows I'm having an emotional outburst unless it's a jovial one). Needless to say, I feel like I'm in a corner.
As recent as yesterday, JP's son, Chris, posted an article that headline inflation is to slow down largely due to the cyclical rally in the dollar. If this rally lasts a full year like the last one did (05'-06') many juniors will get pulverized. While that may seem like the an even bigger opportunity to get shares even cheaper, it may also result in the complete loss of someone's life savings.
Yes, I know what the fundamentals are, you know what the fundamentals are, everyone here knows what they are, but nothing is ever certain except the past. Sure, gold must go nominally higher, but when? 6 months? 1 year? 2 years? No can say for certain.
The bull is acting more like the Tazmanian Devil... The metal will weather the storm, but will the juniors? Or my psyche?