I guess we have more sellers than buyers even when gold continues to move up. Hard to understand why we're in the red today. We could be having a nice rally if everyone stopped looking for the big pullback in gold. Wasn't 1535 enough? We should have great earnings report for 4q with 1600 gold.
This is why I bought RGLD and FNV along with SNDXF. They usually move up when gold does. We should be pushing 1.30 not 1.20. Hard to watch sometimes. Good luck everyone. JB
Re your second question: After reading Currency Wars I'm sure you already know that the politicians - regardless of which marketing brand they wear - have little choice in the existing system but to continue printing money if they want to keep their jobs. (Not to mention increasingly perhaps their heads.) The current crop of challengers will say whatever they deem necessary to get elected, but at the end of the day they are going to do the bidding of the money masters and follow Obummer's lead in doing all they can to keep the game going - as the song says - just a LIT-tle bit LONG-er. ("Please please please please please, say you will.")
Welcome, michans...No replies yet so I'll jump in just to point out that SNDXF is in good shape on either side of the gold price.
As you said, if gold retreats (assuming it isn't too long term) it puts advanced explorers in a higher risk position and enhances Sandstorm's bargaining position and future profit margin. OTOH, if gold breaks out, it brings a lot of new or more marginal players into the game, many of whom do not have sufficient access to capital without greatly diluting their float or putting themselves in a precarious financial position. (It also increases Sandstorm's income and potential share of newly-exploitable reserves, but these are more obvious benefits.)
The fact is Sandstorm should do well in either scenario, especially considering its minimum cash guarantees. This is in fact one of the many things that make streamers overall a better risk-reward proposition than the great majority of miners.
Hope this is helpful.
Really enjoy the board and will echo the thought of others about the usefulness of the messages. Having read Currency Wars and Aftershock and a few others. Believing we have hard times ahead just curious and would like your thoughts on two items: 1- If gold retreats some will that not help SNDXF to acquire further streams as the mining companies look to take all the risk out of their position? 2- Would the current administration it they won again quicken the inevitable with the continued government growth and spending?
Just curious... Is this your opinion or do you have a thesis for your statement?
I think the COMEX and the banksters will supress the true value of pm's for as long as they can, so that the naked shorts can slowly wind down their positions. Then once that is done, we will see a tremendous rise in the price of gold. But, not until then. However, for the foreseeable future the price of gold will be tied to the dollar index.
Make sure you keep your eye on the $USD Index:
I believe that the dollar index will push between 82 - 83 and that will seriously put a hurt on commodities across the board. It has bounced off the resistance of 80.5 twice, but I think that this next time, it will hit mid 81 before retreating a little bit and then regain it's upward momentum.
Normally when the dollar index is up, gold is down and when the dollar index is down, gold is up.
Also, the Euro fell beneath a key 1.28 point today, which I believe caused a rush into the dollar and gold.
If the Euro falls further, which I believe it will. The next key support is 1.26. If that is breached then commodities will be absolutely crushed.
All I can say, is have patience. Pick your entry points and expect TONS of volatility.