Have we hit the bottom or is this a dead cat bounce?
Have we hit the bottom or is this a dead cat bounce? I am not unloading any of my positon. I have actually added somewhat yesterday at $23.91/sh. Will only add more in the teens & will reinvest dividends. Thoughts anyone?
Sources read here indicate that the big banks are getting desperate. The signature of this type of desperation is capital controls that limit the convertibility of currencies. Bank of Cyprus may need to cover losses by selling gold. However that’s small potatoes in comparison to what’s going on in the paper gold market. Reports read here indicate that this takedown represented 15% of worldwide production using naked short sales in the futures market to depress gold in an effort to buoy the dollar. This is nothing more than the destruction of PMs as a safe haven to give the impression of “value” to fiat currencies including efforts to increase stock market investment.
Meanwhile Japan is using the opportunity to depress the Yen to increase exports. And much of the rest of Asia is buying PMs to such an extent that there is unavailability at most sources in Asia. China is encouraging its people to buy PMs while here all efforts are meant to discourage it. Their ultimate aim is to replace the dollar as the "reserve" currency, with a lot of help from the Fed and US politicians.
Going forward there is little likelihood that central banks will back off in defense of fiat currencies, which means lower PM prices. Other efforts are to force people into stocks to take away investment in the PM markets, which will also depress the gold price. You can witness this going on as the mass media is trumpeting the rise in the stock indexes while ignoring any momentary positive rise in the PM markets.
Nobody is an expert here. We hope that it is credible experts we are relying on. Having said that, most “experts” seem to have totally missed the magnitude of this takedown.
just a bounce. im a huge metals fan. u have to realize tho that right now everyone is piling into us investments because everywhere else sucks. and the dollar will appreciate. so for the rest of this year i would imagine people keep pulling out of metals. so id step aside. we will be in a downtrend for a bit yet. plus whenever u have huge dumps like we had people get spooked for a while. slw could see 15-17 by end of summer i think is possible, once people realize the us is no better than the rest of the world that will b the time when gold and silver pops big so whether that is the end of the year or another two years... gold and silver will see new highs before odumba is outta office tho. and u can take that too the bank. dividend is getting nice tho. maybe buy 1/3 of desired position in slw at 21/18/15 and avg in at 18 i qould think ud make 100% w/i a few years.. completely off subject check out stock llen... has had a lot of reisistance at these levels but could be on the break through has fluctuated b/w 1.80-2.30 for 6 months fundamentals are improving tho
Tough call here. I have loved the price point ever since the $26-$27 range. I bought some then, bought some more around $24 and finally bought some more this morning just below $22. If you have a long term view, this is a no brainer. I think the panic is subsiding and people are starting to realize it was overblown. I cant see it going much lower at this point. If it does go to around $20, I will get some more but I would guess the fall from these levels is not going to be much especially since SLW is still extremely profiting from silver at these levels.