U.S. is dissing the current Iraqi government (Maliki) as that country is sinks into chaos. Argentina announces it will probably default on their sovereign debt due to U.S. Supreme Court ruling which protects those U.S. hedge funds who purchased defaulted Argentian debt at huge discounts (and they demand full repayment) during last currency collapse. Russia is openly encouraging the rest of the world to dump their dollar transactions (and some claim Russia pushing the sale of U.S. treasuries). The Federal Reserve floating warnings they may allow banks to charge "gate fees" for holders of bonds and money market funds which, if imposed, will start a run on those instruments just before any gate fee is imposed. U.S. remains quiet about ongoing Ukraine crisis revealing America's super power status is showing signs of cracking.
So what's my point? So many black swans circling U.S. reserve currency status. And signs of inflation are heating up.
Gold and silver are now on the rise. If they continue to climb due to all the tensions in the financial world, then the miners should enjoy a massive breakout. Most long term investors of EXK realize this company is well managed, continues to grow reserves, and usually beats expectations on production. Once silver prices start rising, EXK will likewise show vast improvements in earnings as well as stock price.
So are the tensions just palpable? Are they temporary blips on the radar screen? Or are we now set for another bull run in the precious metals arena? I don't know but most indicators I read are pointing up! GLTA
"So many black swans circling U.S. reserve currency status." Great post - a banking $ reason behind all of this is: Investment banks have been buying fixed-for-floating-rate swaps and buying gold. I saw this three weeks ago as I started to post super bullish. I said this would not be a quick swing trade. Internals - gold to be mined - will also give EXK support, but we may see a few down days in the nearer term.
Pullbacks, especially after the rise we've seen in EXK during the last 2 weeks, would be normal and healthy. I don't want to sound like a cheerleader exclaiming that EXK's direction is only going to be up for the next few trading sessions. But then we have James Turk who envisions another aspect to rising silver prices and that happens to be the number of shorts in the PM's who have placed wrong way bets on the direction of the metals. Here's what Turk suggests after viewing this morning's action in the metals:
" The key now is whether we are going to get some follow through tomorrow. Based on what I see as a short squeeze developing, if I’m right you could have another 4 percent or 5 percent up-day tomorrow in silver....
“If silver goes above $22, the sky is the limit on silver because that’s really been the big resistance point. And the interesting thing, Eric, is we have the options going off next week.
Month after month we’ve been talking about how the central planners managed to force the price down into option expiry so their bullion bank agents can have as many of the calls that they have sold expire out of the money. But the market is so imbalanced, which is what I was alluding to on Monday, I wouldn’t be surprised to see the market rally right through option expiry.
This would be an indication that this thing is finally ready to begin a new move upward. You know my longer term forecast is I’ve been looking for something over $2,000 on gold this year, and probably approaching $50 and maybe even exceeding $50 (on silver) in the not too distant future. That would put the gold silver ratio down at around 25/1." From KWN website
Turk, like many analysts, tell us shorts could get "burned this time" and he may be right. Tomorrow could be an interesting day. But I continue to watch all those black swans circling the financial skies. I suggest those black swans should take us much higher if they don't fly away very soon!
Make it simple - keeping it simple is just fine for mining stock investors.
Look for US interest rate news. A plus is to also watch China rates. Watch Yellen for continued talk on rates. Some FED voting members disagree on the time to raise rates. If the FED and Janet stop the talk about raising rates this year, --- $$$