The success or failure of the price of GDX is SOLELY based on the underlying miners. Duh.
The underlying miners PPS is 100% based on 2 things;
1-Price of Gold and Silver.
2-Cost to produce it.
Forget profits loss balance sheets for now. The perception is 100% of the price.
For the last 3-4 years, miners have cut costs significantly. A good thing.
Gold and silver? Rising, why? AMong other things, watch the DXY, strength or weakness of The DOLLAR.
As Yen and basket of currencies strengthen against the dollar, gold and silver rises.
Demand-The world is realizing Fiat currency is becoming worth less and less. People cannot save /bank money. They are being incentivized to SPEND and/or borrow.
And look who is buying gold. Not just the little guy. Russia, China and now, going un-noticed MARK MY WORDS, the Saudis. They are accumulating and about to embark on a huge buying spree with the 2 Trillion bucks they are cashing in from the sale of oil assets.
This is the beginning of the demise of the dollar and new bull market for gold and silver.
Been going about it the same way Larry. Lately playing CDE and rolling out into stacks. On this next move coming, spreading out into GDX again too. Just for the momo trade.
But, the douchbag or destroyer or whomever he is, is missing the point.
The ratio WILL dip below 70 and when it does, by that time, AG will be $21 and on the move WITH AU.
They will be moving in tandem, but AG should outpace AU slightly, thus the ratio will be dipping.
pivot point for silver. They believe it should bust open from here.
No argument from me.
It's like one or the other is in a twilight zone universe.
One group says we're all getting sucked into buying in what they say is a bull trap and PMs will be going down. Goldman Sachs leading the pack, and with due respect to the bugs, Goldman IS a force to contend with. IF they are wrong, or worse,lying, it will make "The Big Short" seem benign.
And, the other side says we are in inning 1 of possibly the greatest bull market in Gold and Silver ever,and some of that group prognosticating silver will be even stronger, due to VERY limited supply AND intense short manipulation which will come to an end at some point in the not too distant future. I expect nothing less from Bugs, so THEY have to work harder to gain my respect.
But,this is measurable.
Time WILL tell us who is right.
Meanwhile, I will continue to STACK, as stacking physical seems safe and a REAL hedge.
And, for the kicker, miners is the leveraged play.
Silver just getting started? Nice relationship move today, after a slow start.
Coin sales getting brisk.
the Yen. Japan is going to try VERY hard to prop up the dollar but they have ZERO chance. What they can do is shoot themselves in the foot by weakening the Yen. They're DONE! Dug too deep.
Watch out and let's hope they don't do anything stoopid!
Welcome to the party. Yes, $6 is a bit of a wall, whether you want top agree or not.
But, regardless of "who you think you are", when you post a roadmap like that, your credibility gets a ?
Since yur obviously on my side of the trade,I wish you luck and will gladly read your posts, as the price of admission is free here.
But, friendly suggestion.....sounds like you need to tone down the ego thing, no matter WHO you are! haha
For years, BUGs talk of an end, just around the corner.
I am long metals and miners, but not a bug.
IMO, there will ALWAYS be parking places. They just might cost a bit more.
That's why we own them.
IMO, it will survive.
I use no analogies.
Next year, 5 years, all will still be in place, just different prices,different values.
Someone wants to buy 20 silver dollars, they will, just might cost $50 each or $100 each or $35 each......but there will be plenty around for sale.
Here's my short version of the result of the relationship;
Our monetary system will NOT fail us. Gold and Silver will rise, possibly significantly.
Silver could/should outpace in that relationship.
Roughly 80/1 is not sustainable.
It will be closer to 35/1
Our monetary system is relying on gold and silver and it will not fail us.
Free markets will prevail.
The fiat dollar will be the last, to win the race to the bottom, and prevail with silver and gold behind it, and much weaker than it is today.
Obviously, I watch SLV, but NEVER EVER buy it except in a momo play for a trade.
I buy and own miners, and PM/miner mutual funds + I stack the physical (coins and bars).
The bloggers are out in force trying to sell their following and newsletters.
They are spouting the now usual conflicting technical analysis. They are trying to sell readers on their expertise by using conflicting and confusing data, thus creating an environment where they want you to believe only they know how to time the backing and filling.
They are despicable.
Look, the Government is trying desperately to get inflation up.
They are even backing forced WAGE inflation by supporting HUGE minimum wage increases.
Forget about trading today and tomorrow. Buy solid gold and silver miners AND physical.
a few years from now, we should be way ahead or at least, keeping up with the inflation about to come and continued currency devaluation.
Iam a believer in gold and silver. I am merely, well not merely, I am saying eventually there is a strong likelihood, the US will enter the negative I rate world, in one way or ANOTHER...and I believe they are currently experimenting with Central Bankers around the world. Eventually, they will reduce debt BUT in the meanwhile, they will debase currency to the point of no return.
Nobody NOBODY anywhere understands what will happen to our currency with all this printing AND the manipulation of interest rates.
I am proposing the concept that they WILL eventually reduce debt BUT along the way, devalue the dollar. No one speaks about it this way.
Imagine if we are the strongest, safest, 3 legged dog in the world. (we are)
We go negative and CHARGE 1.5% or more, for investing in our T bills.
THAT'S how we pay our debt back. And,it's the ONLY way!
You chartists out there have been silent while witnessing the 50 DMA cross over the 200 DMA. Yeah, I know, Golden Crosses aren't everything they are purported to be........unless they are.
I guess only time will tell eh?
IMO, CDE is positioned to increase parabolic like move from here, IF what I think is going to happen to AG prices this year.
Sandy-I am not saying inflation is success. That a bare statement.
I am pointing out, if you have no demand, and you have deflation, IF the government, or anyone installs measures to reverse those ailments, the only "measurement" of success is demand inflation. The opposite of failure is always success.
How to achieve it is another story.
But, if you're an investor, you'd better be following that playbook, because, that's why PMs MUST go higher.
We are in a data driven state of deflation now.
But,at the same time, you have currency inflation meaning, you need more fiat dollars to buy the same item than you did in the past, you are in a state of REFLATION. Printing dollars and injecting them into the economy to ARTIFICIALLY stimulate the economy.
REFLATION ultimately MUST bring inflation.
The Fed is in the unenviable position of printing money until the economy gets back on it.s feet.
And until that happens,the printing press is open.
THEN, the ultimate goal is inflation--demand inflation, which is the ONLY measurable way to determine ACTUAL success.
GOLD and SILVER are the ONLY currencies that have ANY possibility of retaining value.
Hate to say it, but anyone who doesn't see it is blind or ignorant.
Buy for the future! Buy physical and second, buy miners.
Merely trying to point out as strongly as possible; Much of what is viewed as intentional, is actually pure mistakes. They are given far too much credit. They are largely incompetent.