Typing these words from a beach chair on Ko Samet, Thailand.

The Company is inclined to agree with an article in today’s Barron’s though you might need a subscription to read it. Basically the article argues for The dollar rising to the 80-82 region, a 19% downside for gold, and a 45% downside to silver. The Company agrees completely; we have made arguments to this effect in posts below.

The dollar will likely slide a bit more before it begins an upward move. Currently there is strength in the euro which actually makes no sense whatsoever. The positive euro action was spurned by jawboning by the ECB but jawboning isn’t going to keep the euro afloat, and the European sovereign debt crisis, its real cost to the ECB (read: Germany), and the blunt and obvious need to devalue the currency in order to keep the union together… Well, to be frank, the Company sees a euro crash likely. In the very least it will likely move in an inverse relation to a rise in the dollar.

In regard to the broader US market, we see either chop or downward motion this week. As we have indicated in previous posts, the Company expects a major market correction this summer through Halloween, and then a rise. Much of the volatility in recent days has been, we think, because of hitting market top.

In the medium-term, the company is awaiting a large market drop, the timing of which is impossible to determine but we think July, after which we will begin accumulating financials (BAC, GS, etc) in anticipation of a post Halloween rise. While we think the commodities bubble has popped, the Company is nevertheless interested in accumulating precious metals around a market bottom (we believe commodities will follow the broader market down) and so we are waiting to start accumulating silver around $20, etc. This is less because we think there will be an appreciable rise in precious metals and more for the purposes of diversification and as a more sensible way to save given currency markets these days (with Goldmoney for example you can easily convert your metals into any number of currencies).