Wondering where you see the next support. Looks like a little just under 5 and then maybe 4.40 and then 4. Can you share your thoughts as this whole sector continues to get hammered. Thanks
yea another nasty day for the miners on a relatively flat day for gold and silver. i figured 5.36 would be a level to watch and it broke through that easily. who knows where the bottom is it's already crazy oversold. the market appears to have lost all sense of valuation in the mining sector it matters now what the price of gold or silver is. the market is basically pricing in a top for gold and silver with nowhere to go but down for the metals and thus the miners are a sell as prices will never recover. some miners have a valuation not seen since 2004 with much lower gold prices back then. it's crazy cheap one would think if you buy here you're guaranteed to make a lot of money going forward. sentiment can't get any worse can it? analysts will downgrade to lower price targets because the stock prices keep getting lower and lower beyond their targets so they lower their targets to save face. no analyst has predicted this kind of decline. i saw a video on youtube where peter schiff is talking about how the fundamentals for gold and silver couldn't be stronger and how we're in a debt bubble that we have no way out of. he predicts gold hitting 2500 or even 5000 one day as this all plays out.
It's funny. On my Mozilla new tab page, I see an old tab for EXK on google finance. It says the share price is $6.87. It's hard to believe that we were at that price not too long ago. I don't think I have ever seen a sector beat down THIS bad. I was on the sidelines in the summer of 2011 when the share price dipped below $8.00. I thought it was scary to even think about getting in at that price. Then in just under a month, the share price went from $7.55 to over $10.00! All we can do is sit and wait for this thing to turn back around.
Were getting hammered because of US dollar strength and long bonds. Pms are also getting hammered because funds within Canada have been selling, they were overweight, but not now. I do expect an inverse of gold to the dollar and silver for the ride. China is having currencies and growth real estate problems, but that means they may need to buy more gold and, not copper. Forget about what is being said about this from the TV media. Read the article in Baron's - miners beaten down, time to buy. Hedge funds could be buyers if we see general stock market weakness. EXK may be the best of over 50 miners for a takeover - post below. The only concern that I would have besides the EURO, AUS and CAD is if pm type hedge funds go under. Politics and Washington should have little effect, but FED policy is still a plus for us. The jobs report should be 160,000+, but I wouldn't count on the numbers increasing going into summer. The FED knows this. We have retail fear and bashing on that fear, but as someone with longer term thoughts, I'm not selling, even though EXK is green for me having bought most of my shares very cheap a few years ago. Central banks all meet on Thursday and I don't expect any news that will hurt us, another post is needed for that.
And also I might add it is mainly paper gold and paper silver that is lowering the price of these commodities. Probably little gold in the vaults of the bullion banks. That is why Germany cannot get their gold back till 7 years of so.
Hedge Funds will not go under.
This gigantic last leg of the takedown was started when 1) Soros rumor of Selling, 2) GS lowering expectation of Gold Price, and Chinese Holiday.
Then massive shorting of futures contracts into Gold and Silver etc Exchange Traded Funds such as GLD. And because of the strong dollar people were already taking there funds out of ETF's into other ventures. Not to mention people in other countries not wanting in on ETF's because of the exchange rate. Currently the US is losing in the exchange rate with other countries. Japan starte the latest round.
Also, the rules are bent so bad that the covering of the shorts from Bank of America, Newedge, Scotia, JPM, etc......these bullion banks have so much power that they do not have to cover till far n the future. Thereby not letting the price of gold , silver etc go up.
I think it's pretty clear that support is a myth with this stock. I have read articles and posts alike that tout support numbers and we break through them with no problem at all. I don't think we will see any real support or heavy buying for that matter, until this downtrend has stopped. It's a scary thought that people thought $8 was a buy. Then $7. Then $6. Now, here we are close to $5. It's insane. It has to stop soon. RIGHT???
Sentiment: Strong Buy
Support (charts and FIB) is for day or short term traders. Currencies react faster than pm charts, but currencies and charting should really just be used for short term trading. Corporations always want to buy cheap silver. Banks play the game. The government is caught in the middle, but they are controlled by banks, the rich and rich corporations. The big question and may be the big issue for this summer, or forever, is will China keep their US treasuries.? If not, buy gold.
"It has to stop soon..Right" ? All I can say is, at this point is I think I'm going to opt for a medically induced coma so I can spare myself the anguish of watching the price action daily. Reminds me of an auto crash where everyone driving by slows down to look ....Unbelievable ! Do we have a grounds for a lawsuit for "Cruel and unusual punishment" ? A 'falling knife" is an understatement ..
It would stop in a mili-second if enough people got some courage to call Investor Relations and demand Brad come out and make a SIMPLE statement: "We understand our stock has fallen recently, but wish to reiterate that nothing FUNDEMENTAL in the company has changed". Stock would stop it's bleeding instantly. NO-ONE knows if there is now a "SUPRISE" waitng at earnings time. (well No-one, but the big boys who Brad already talked to).