I’m sure that you saw the many screaming headlines on Thursday, the global markets are melting down, and the pillars of the EU are crumbling. There were two notable oddities amidst Thursday’s panic for those of us that hedge with precious metals:
1.) Spot silver saw a $5 per ounce selloff. This big dip of 12% in one day represents a great opportunity to either convert some of your cash into silver, or ratio trade out of gold into silver. The silver-to-gold ratio now stands at (48.2-to-1.) In just a few years the ratio will likely be 30-to-1, or less.
2.) The price of platinum is now $50+ below the price of gold. With these two aberrations in mind, it is presently wise to swap out of gold and into platinum or silver. You should always take advantage of brief windows of opportunity when markets are aberrant. Do not hesitate!
IMF a Little More Worried About China. (Thanks to K.A.F. for the link.)
Recession’s second act would be worse than the first
And John R. sent these cheery news links:
Welcome To The Collapse Of 2011 (Karl Denninger)
The Fed Disappointed… The Great Collapse Is Here (Graham Summers)
Morgan Stanley’s Exposure to French Banks is 60% Greater Than its Market Cap… And More Than Half its Book Value (Tyler Durden)
