Rally over? I suspect everyone is caught up in semantics. I believe the rally is only beginning in silver, and that this is part of a retrace within the rally.
If in fact there has been naked short selling on an institutional level, and this is now being debated and argued in lawsuits - then, the fuel for the silver to actually attain a natural market is just beginning.
Only those who do not believe there to be any manipulation at all will believe this rally is over. This is not 1980. In 1980, Feb - the market got killed by the destruction of the Hunt Bros as well as a competing market for your money - namely interest bearing bonds and CD's.
We cannot go to 5% or higher without forcing the hand of our govt to default (acceleration to default - in fact). In 1980 we were not even close to default, although on our way there. We are (NOW) at the threshold of default. To go to high interest bearing instruments will be risky and short lived.
Not 1980 / this is a new world.
Standard requirement would typically be to average the agreed upon quantity per day for a paticular time period.
I believe that once AXU averages 250t per day for 30 days they will declare that commercial production has been achieved and will receive the funds from SLW.
<<the disbursement condition for the $11 million includes attaining 250 tonnes per day for 30 consecutive days.>>
Are you sure of the way that is written. I thought it was an average of 250 tpd over 30 days. Do you mean they could have 300 tpd for 20 days and then fall to 240 for one day and have to start the 30 days all over? If you are right then it may be many monthe before 30 perfect days in a row. But that would not mean they were not averaging 250 tpd or better.
You are correct "tburke", the disbursement condition for the $11 million includes attaining 250 tonnes per day for 30 consecutive days. SLW & AXU management & employees all want this to happen ASAP.... us shareholders also!!!! The silver rally is just beginning, the next leg that is!!! Even with the recent drop the price of silver is still $29.33, a buck $.33 higher than my calculation that generated a $16.32 share price by May 2011. Austrailian flooding tradegy not well publicized here. The effects on commodities will be significant especially in coal & agriculture. Will drive other commodity prices as the cost structure increases due to a reduction in supply. I can't believe no one in the USA pays attention to this stuff!!!
We have a sell off, as opposed to the end of a rally. A lot of what you see are stop losses being triggered in hedge funds and on large firm commodity trading desks. You can tell by the nature of the moves on the way down. It will come back, as it has for the past several years when this has happened.