While I love the opportunity to purchase more gold and gold equities at lower prices, it appears that the action in the price of gold seems extremely manipulated. This looks like some kind of global shakeout. I welcome others' thoughts.
There are certainly a lot of rumors floating around about a calculated takedown of the precious metals markets including to cover a default of the LBMA. The timing of Goldman's short call was especially suspicious. In my opinion, half of XPL's value comes (or will come from) zinc, so it is somewhat of a hedged play in the pm micro sector. Gold will recover IMO, but it may take awhile. The global printing presses are working overtime and there is strong physical demand right now. I am already overweight in Solitario but now is an excellent buying opportunity that I did not think I would have again.
Yes, it's amazing that you can buy shares so easily below $1.25. I just added another 20,000 to my position today, as the share price is down with the price of gold rising. You just have to wonder why anyone would want to have liquidity at these prices rather than ownership of this company. Its $40 million market cap is a steal for buyers. Yet sellers just continue to offer it out. Whatever.
Agree it was entirely a takedown. Who would sell that quanity of PM's, meeting the bid at every turn and making no effort to maximize the value of the sale. On the other hand who would buy that quantity when it's clear delivery is not going to be made so the position can only result in a huge speculation? Some believe buyer and seller are same party, though disguised, so no loss or gain on the transaction.
No question you think Goldmans short recommendation on thursday was coincidence? And the massive volume on Monday wasn't Goldman covering. This will take a long time to repair, my opinion. We'll need a year of sideways first.
As far as XPL is concerned, the fact that managment got some cash for the NSR and other financing while gold prices were higher is another testament to their skill. I think the company is in a very good position to weather this storm. Though some fund managers will throw the baby out with the bath water, this has created another great opportunity to accumulate a great company at great prices. No doubt that this is a long term investment and we will need time to repair the marketplace, but XPL is not producing gold yet. It's being driven by pure fear/greed at the moment. If you just take a step back, the seller of XPL is saying "I'd rather have Ben's printed US dollars now than proven gold reserves in the ground"(Or my investors are having redemptions and want out of gold stocks, and this is one of a bunch, so sell it) Ok, that is someone's opinion. I have the opposite opinion, and I will act accordingly, thank you very much. That is what makes a market.