Bullion Master's Daily Commentary

It appears that we are getting the bounce I have been expecting. As I mentioned last week, I think this correction may go through to the end of this week, and as such my plan is to re enter my hedge once the bounce runs out of steam. I will be watching today to see how high this bounce goes and picking an entry for my DZZ hedge.

All of the reports I am seeing indicate to me that the likelihood of a double dip in the main markets is likely. The obvious caveat of course is that someone (Fed?) has been buying futures to keep the stock market elevated far above what the fundamentals would call for. I have ZERO intention of investing/trading in anything other than precious metals in the foreseeable future. I call attention to it simply from the standpoint that if the main markets fall precipitiously, the mining stocks may follow in the short term out of sympathy. Expect volatility to increase from here on out. Do NOT use margin for any reason – under any circumstances. Expect that price will go to extremes in both directions and use that to your advantage.

The end of this week – first part of next week is looking good for a bottom. As it gets closer, we will have a clearer view.