"We are very close to or at a major bottom in gold and silver now, regardless of the potential for another short term downleg. This is made plain by the charts we are going to look at in this update. COTs and sentiment are now at extraordinary extremes not seen in the entire history of this bullmarket. This means that when the turn really comes we are likely to see a scorching rally which will be driven by massive short covering that will leave most investors standing, mouths agape."
There seems to be a growing chorus from quite a few precious metals analysts that PM's are not only close to bottoming but that the turnaround will surprise on the upside. (Schiff, Fleckenstein, Pento, Sprott, Morgan, Rule, Willie, etc.) Only time will tell. I can wait.
There is a lot of psychology in investing. One day we will not buy and the next day we will pay more because the whole market is gaining.
It takes patience and intestinal fortitude in investing.
We must remember we are investing in a company...not a stock. The stock price is what we pay. Aren't we all looking for the stock price that does not reflect the value of the underlying company?!
1) I believe silver is worth more.
2) I believe EXG will mine more each quarter of it.
3) I believe their cost per oz will drop
2 of those 3 are a near certainty and the silver price will eventually climb IMO
I can wait.....that can be our slogan of encouragement.
Good luck EXK investors.
I can wait! Because I will be right.
It can happen also that initial assumptions are wrong and/or market situation changes. Nothing is written in stone; good company/stock is a relative notion.
For example, you say that you believe that company will produce more silver every quarter. It is not necessarily correct. If current market conditions persist then all silver producers will be forced to reduce output, simply because it doesn’t make sense to process low-grade ores with loss.
Another example can be related to waiting. If someone waits now, or especially waited during last 12 months, then his/her portfolio would not just suffer losses; it would also lose big opportunity presented by general markets.
Basically, waiting game (i.e. sitting idle and doing nothing) doesn’t have too much merit (sitting idle cannot be meritorious). In my opinion, investors are supposed to be agile and alert, especially talking about volatile stock sectors.