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My gosh, the world’s problems must have been solved while I slept, this weekend. Gold is down over $40 (as of 3 a.m. NY time) from its recent high. Congress must have decided to present “a balanced budget” to the President. The Fed must have decided that things are so good that there is no need for more quantitative easing. War between Iran and Israel apparently is no longer an option. The PIGGS must have worked their way through their deficit issues. The massively leveraged banks, including and especially JPM must have de-leveraged. Housing prices must have turned around and are on the way back to pre-08 levels. There must be a few million brand new, good-paying jobs for the chronically unemployed. Why else would gold suddenly be out of favor? I guess I just don’t look to the right sources for my information, because all of the above has escaped me. Geeze! How could I have missed it???

It’s the same old drill – we have support at $1,550, $1,530 and $1,500. Will the support hold or will we actually visit $1,400? Ya got me. How can I possibly know the answer when I missed all of the above?   But then, I really don’t give-a-damn! I’ll have a quarterly “distribution” the first week in June and if I can save $100 an ounce on gold, who am I to complain? Don’t ask me where gold will be tomorrow or next week. Ask me where it will be next February or March. Over $2,000 an ounce, that’s where it will be. How do I know? I really don’t, but if it isn’t, I will be the most surprised guy you know.

I still believe in fundamentals and the fundamentals are beautifully summed up in today’s “Quote of the Day,” by Jimmy Sinclair, “Liquidity floats all boats, be it equity, gold equity or gold.” And since the EU and the FED have NO OTHER CHOICE but to continue with more QE (to infinity), gold and yes Ranting Andy, even gold stocks will RISE, but I guess we just have to wait for the Fed to announce QE Round Three. We here at Miles Franklin don’t have to agree on everything. Miles Franklin is a Democracy! And I’m the boss and I can write anything I damn please – but so can Ranting Andy. I didn’t hire Andy, and his immense talent, to tell him what to write. Andy and I do mildly dis-agree on mining shares. (Andy acknowledges that the mining shares will eventually start to perform, but not till the Cartel is finally defeated, and he isn’t holding his breath) though that said, last spring I took Ranting Andy’s advice and sold off most of my mining shares and put the proceeds into physical gold and silver and am now down to only one stock, Jim Sinclair’s Tanzanian Royalty Exploration Corporation… and although even this stock has been kicked around a bit lately, (make that quite a bit lately) I will hold it for the long- haul. But it represents only 5% of my portfolio with PHYSICAL gold, silver and platinum representing the other 90%. For those of you who catch the small details and are good at match, you probably noticed that there is still 5% left. Yup, that’s cash…just in case!

Was it a sign from above? A warning? Monday night I took an old friend (we go all the way back to our days at Lincoln Junior High School) to see the Ramsey Lewis Electric Band at The Dakota, a terrific jazz nightclub in downtown Minneapolis. I love it there…I have premium seats that are within 5′ of the stage and the acoustics are wonderful. Back to the “warning”…I parked in a self-service, no-parking attendant lot, across the street from the nightclub and the pay-yourself machine ate my credit card! I think JPM was behind it! Hell, they’re behind everything! Ask Bix or Ranting Andy. And I think there was a gold-related message in one of the song’s Ramsey played – Hang On Snoopy, Hand On. Let gold fall some more, I’m “hanging on!”

PS: On August 21st, Susan and I are taking Andy and Zhanna to The Dakota to celebrate Andy’s birthday and see The Spinners. You all remember The Spinners, don’t you? Remember The Rubberband Man? And next month I get to see, upfront and in person, the Stanley Clarke/George Duke duo and then the absolutely amazing Victor Wooten. These guys are the epitome of great jazz and rock acoustic and electric bass. Music is for me, the pre-eminent way to escape from the day-to-day mess we are living in. And it is a mess it is! There is more to life than gold and silver and don’t you forget it. Go out and live a bit. All we have is TODAY. Live your life a day at a time and live it as though today is the last day you have. Enjoy life to the fullest – it goes by so darn fast!