I have been away afew days.. so no posts.  This interview is worth reading:-

http://armstrongeconomics.files.wordpress.com/2011/08/armstrongeconomics-foundation-stones-out-of-global-system-081111.pdf

.......about the person who fell off the roof of a high rise building who remarked " I am OK so far" as he fell past the fourth floor.  Our situation is no different.  One of the best people to articulate our current situation is Martin Armstrong and here is the link to what he wrote today http://armstrongeconomics.files.wordpress.com/2011/08/armstrongeconomics-foundation-stones-out-of-global-system-081111.pdf
If you already hold a position in Gold or Silver you should stay with it even if they manage to knock the market.  Silver is a little stronger than Gold at present because the stock market is moving up and Silver is a better fair weather performer than Gold.  Large speculative long positions held by hedge funds are focused in Gold while Silver has largely been ignored since the maniplated shake out earlier this year. The differential between the two metals moved out to nearly 47:1 last weak and has since started to narrow again to 44.5:1.  In the very short term Silver may outperform Gold but when the storm comes in Gold will be stronger as it is held by and supported by governments.
Surprisingly, I also think being long the dollar is a good trade.  UUP or EUO depending on your type of trading.  Most of the pundits have talked about the Dollar going to nothing.  It may be in bad shape but most other currencies are in worse shape.  Soon I will do a deal on why I think the Dollar will be strong and why I think we will soon

As we start trading on Thursday, August 11 we begin to see a coordinated effort by governments to hold their banking system together.  In Switzerland there is talk of "pegging" a ceiling to the Aswiss Franc.  In the US,  the CME is starting to ratchet up margin requirements on Gold and the Swiss Franc.  

There are some excellent posts on Zerohedge.com that are worth reading:
http://www.zerohedge.com/news/swiss-franc-plunges-600-pips-peg-speculation-will-it-succeed
http://www.zerohedge.com/news/guest-post-welcome-age-instability

Market price controls will work for a while and it is quite possible that they will be able to engineer a sell off in Gold over the next few days.  Governments continue to treat the symptoms and not the disease. In doing so they are making things much worse.

A market that goes down 600 points one day and up 400 the next on the promise of continued FED easing until after the 2012 elections doeasn't bode well for our future.  Our government is run by wall street and lobyists. The population at large is being increasingly marginalized.  It is hard enough for the youth and minorities of this country who still have a basic respect for law and order to remain passive with such a bleak future  - they won't for much longer.  The fuse has been lit and when the gunpowder explodes it will affect all of us.  Britain is in the headlines now http://www.youtube.com/watch?v=mzDQCT0AJcw&feature=youtu.be   France, Italy and Spain are not far behind.  In the meantime governments continue to manipulate interest rates and the stock markets around the world in a frantic effort to buy enough time for the banks to transfer their bad debts over to the tax payers - they will win for a time but in the end they will make things worse..  All the bad debts around the world need to be renegotiated and the banks must stop trading for their own accounts.  Until this happens and until governments stop protecting their wall street friends we are going to see more up and downs with the net result that few people will know the proper value of anything. 

The 600 point drop in the Dow today was one of the largest on record.  It reflects a loss in confidence of our government more than anything - both parties are equally guilty.  Gold out performed silver today reflecting it's value as a bad weather friend.  Ultimately silver will be stronger than gold but it is more of an industrial metal than a store of value.  The fundamentals of silver are much better than gold - everybody has some gold and silver even if only in the form of jewelry.  Ask yourself a simple question... do you have 43 TIMES the amount of silver than gold - that is the current ratio - probably not !.  Over history this ratio has been nearer to 16:1. So... it is a good bet that silver will out perform gold over the long run as there is less of it around and every year more is used in industrial applications than is mined or recovered BUT in times like these gold is the better safe haven as it is owned by governments across the world.  You can trade in ten 100 ounce silver bars that weigh around 75 pounds for a few gold eagles that fit into your pocket.
In the short term gold should continue to go higher but it is beginning to become a "crowded trade" as many of the hedge funds have gone long and they face redemptions from their losses in other investments.  I have taken a few profits here but gold will be king until we can clean up our corrupt banking - more on that another time.

The market action today brings to mind an interesting article by Martin Armstrong written a few weeks ago.  It wouldn't surprise me if the insiders take this opportunity to clean out some of the hedge funds that only a couple of days ago had cash reserves of  under 4%.  Even if they are able to rally the stock market today with promises of ECB intervention, the damage has already been done.  Hedge Funds are going to have to raise their cash levels and they are going to have to sell stocks and commodities to meet redemptions.  Paulson is reputed to be down 22% in one of his funds this year alone, so he makes a good target..
This doesn't mean long term owners of gold should liquidate but it could mean an uncomfortable week or so for them. 
I think gold is likely to perform better than silver over the next few months with the ratio going back over 50:1