GPL...the mystery wrapped in a puzzle surrounded by mystery
It's hard watching the value of my GPL shares drop, especially during that time period when silver prices were racheting to new daily highs. Many of us are convinced silver will hit new highs sometime down the road...this year. And, there is no negative news on GPL. So when the stock tanks on a day like today by 8%, even though there has been a decline in silver prices, I was prodded by kindred spirits to buy a couple more thousand shares at $3.30. Will that turn out to be a good investment, at least short term, in this zaney PM market?
That is the mystery, wrapped in a puzzle, surrounded by an enigma? (How did Winston put it?) GLTA.
It is a case where computer trades without any knowledge. In the past GPL would have never even sold off since it did not reach highs with silver. Years ago it would have probably even have been up because PEOPLE would buy because it was a value and not overbought. People would switch from overbought stocks to undervalued within the same sector. Now with computers nothing makes sense. What does happen is after the computer programs finished people wake up to the rediculously oversold stocks and buy them up. There is no reason why this should be below $4. None.
Something else I look at regarding gyrating silver prices. Gold is holding firm above $1500, a sure sign that precious metals as a whole have not fallen out of favor. And the more important indicator, the dollar index, keeps falling and is now significantly below 74. A fall below 73 on the dollar index will certainly pull silver out of it's funk. In the meantime, silver does it's dance.