Its a secret thought of mine that almost everybody here is a rabid contrarian - even the shorts. Why would a normal short go out of his way to fine such an excellent company when the sector abounds with Mediocre companies - many that will be on the verge of bankruptcy (the Short Dream, I guess) if these PM prices should stick around very long... and I'm very much a contrarian, just a cautious one.
I bought in yesterday at 22.16 then spent the evening with nothing more interesting to do than try to find everything I can about what supports the price of Silver. There's over a million Chinese Housewifes, there's dwindling government reserves, there's the miner "cash cost" and there's something being called "all-in" costs. I searched and read more and more late into the evening.... and its a lot of information and no precise way to determine anything. And bless the millions of Chinese Housewives, but their husbands are likely to trade her Gold / Silver for ground up Horn of Rhinoceros powder, so what do they REALLY know about all this stuff anyway?
THEN "The Street" came out with a "Hold" after re-iterating their bullish sentiment over and over when SLW was in the middle 20's.... and lower 20s.
THAT DOES IT. Not scientific, I know, but If the Street is saying Hold then this stock is set to bounce - somehow, someway...
All you need to know is the FED in collusion with the US Government is crashing down paper gold and silver to shake out cash for the stockmarket and silver will be in the pits until this stockmarket which is being supported by the FEDs $85 billion money printing and lots of bulls##t and duct tape collapses and that may be awhile yet. Keep you powder dry for quite awhile..
Growing Chinese retail demand should support the POS, but on the other hand the metal's supply side does not look rosy. There's a significant oversupply which won't go away overnight as it took several years to build. Instead the producers will try to squeeze their costs in order to stay in production and generate cash flow as long as possible. So the bottom in market price might be somewhat flexible and not as robust as investors in the metal or in companies like SLW would like it to be.
The currency race to the bottom along with one of the top teams in the world, Abenomics, has distinguished itself as the premier event of our times.
We no longer are winning the race. Lew knows it, Ben knows it. It's their way of excusing what they're doing.
Thus, the almighty Buck strengthens and PMs lose their luster.
Wait for the pitstop and the lap count.
The buck is still losing steam, just the measurements have changed to protect the guilty.
The games will continue and PMs will have their day.
Buy when others cry.