Silver is currently up 2 cents but the miners are down 2% or more. And the dollar is levitating higher. Is there any viable reason for this?
Our new and enlightened Federal Reserve Chairperson is calming the speculative Mainstream traders with her performance before the House yesterday and the Senate today. It seems that those Wall Street gamblers after listening the Chairperson preach to Congress have come to believe Yellen can put their old game back into play. She sounds so much like their previous idol, "Gentle" Ben Bernanke. And now they see she can sing the same songs that Bernanke was doing so well at doing. And so, taking a cue from Yellen's seemingly confidence in controlling the game, the old market practices based upon the Federal Reserve "put" have come back into play. And my take is that this renewed effort to keep the old game going will last until the end of the day...as in today.
So I offer another one of my mindless predictions. Starting tomorrow, or perhaps Friday, reality will set back in. Gold will visit some number above $1300/oz and EXK will recover all of today's losses and push higher. Time will tell. And notice! We just got confirmation that our Congress still has no respect for debt ceilings and endless credit expansion is something we can all enjoy....from one election cycle to the next. GLTA
It is all crazy sometimes and patience with deep pockets is rewarded. Unfortunately of course we get on the fundamental side of the trade and have to wait (and hopefully make money elsewhere) for the current PM secular bull. How many years was gold and silver up prior to last year? Around 12 years and we may only be halfway into this PM secular bull. I may not own shares here, but higher prices for silver will only help EXK, along with the rest of the sector. Just getting warmed up. Hopefully only normal profit taking days as we march to higher prices!
I think cause there were more sellers than buyers. Also as I think you probably know there have been many periods where the miners have lagged the metal. Last month or so is encouraging in that regard. Try to take emotion out of your analysis. GLTU