I had to buy some shares of these two big leaders today. Big volumes and big drops,has got 'em reeling. We are getting as over-sold as can be down here. So glad I waited to buy - the drops are stunning.
The new mine in Quebec is having problems, Houston. Something about 'vein folding' means less grade and less gold. Gold prices continue to be very weak after a brief bounce to 112. This miner can't seem to catch a break.
is a buy. plain and simple. The big drop in the stock price is a golden opportunity to accumulate shares that pay you to own them, as opposed to a 'rent' or trade. I finally have seen a drop that tells me its time to start accumulating shares again.
GG is down 80% since its peak. Its a bear alright. Silver bullion is down over 70%. Its a bear alright. Four years going on five now, this bear still shows no signs of letting up. Only the lousy sentiment (a contrary indicator) says we might be near the bottom. Technicals say the trend is still south-bound. Be careful if you're trying to go long like me. Sooner or later GG will get another good pop. It finally had a decent quarter last quarter. Costs are coming down as new mines ramp up production and capital spend falls. But all the miners are tied to gold prices. If gold prices drop, all the miners will too. That's why GDX is a favorite for traders. Its all the miners and serves as a leveraged play on gold. Bullion banks (GLD and SLV) are not leveraged and don't have a 'break-even' point. They have less risk in this respect to the downside, but that hasn't mattered much to silver, which has fallen from $50 to below $15.
Agree that 80 to 100 is the silver buy zone and under 50 is the gold buy zone. This bear keeps driving the ratio higher.
That's about a 20 year high I believe. Some shifting might occur from gold to silver here. Silver (in relation to gold) just keeps getting cheaper, but that ratio is getting very high now.
after lagging by up to two points recently. They run in tandem even though GG should offer better downside protection due to its balance sheet and mines. Everything has been blitzed lately with miners.
One can hope they've bottomed. GG and GDX at $13 look good to me, but we need a bounce in gold to get a good bounce here with the miners. A bounce is definitely due after the past couple months. What a disaster!
once $46ish support was broken. We could be headed for $35 or less . At some point the collapse runs out of gas, but the negative mojo remains strong. Down $46 from the peak and its still going down strong. I have to think it can't drop much more than another $10 or so. I will again try starting at $40+ and see what happens in the $30s. The drop is getting carried away.
That's why you buy SLV and especially PSLV when it trades at a little to no premium or even a discount to NAV. PSLV regularly trades at a 2 or 3% premium but sometimes like now (silver is way out of favor) it trades at a small discount. Silver bullion trusts like SLV and PSLV follow or track spot silver prices with little expense. Its the cheapest and easiest way to buy and sell the commodity at a very low cost. GLD and IAU work for gold, but I prefer silver to gold because silver has intrinsic value and gold has very little (in the words of Warren Buffett). As silver prices drop below the cost of production, production will eventually slow. The problem is mines take years to develop and production doesn't adjust quickly in a long-term cycle business.
Commodities are all weak, with oil being the last to fall and still weak. Its a gamble right now, with a bounce at some point coming but when is another matter. I prefer silver bullion trusts to commodity futures contracts because of contango and roll-over fees, but everything is getting whacked right now!
It is precisely because of SLW's very strong balance sheet that I'll wager a small bet on this beaten up mining related stock. The plunge from the twenties to twelve was over done if there ever was such a thing! The tax issue and shareholder law suits will take time to resolve, but the company is basically very sound and remains profitable even if you raise tax on income.
Silver and gold are way out of favor. Shorting metals has become popular with traders, which tells me the market is ready to bounce. I always prefer PSLV to SLV when I can buy it without a premium. I own 'em both and continue to accumulate on weakness with new lows. When silver was in bull market mode, PSLV could trade at a 20% premium. With a bear market going on five years, silver traders are having trouble getting bullish. PSLV trades at a quarter of its all-time high. Down 75% - wow. Not too much further to go if you think silver won't become free!
than the leveraged miners. Gold is the dog and silver is the tail. GG and SLW are getting creamed but the fully unlevered bullion banks (SLV, PSLV, GLD) hold up much better in this lousy market. PSLV is down 75% from its 2011 peak and selling at discount yesterday. I don't think silver bullion has much further to drop!
Cash costs of $10-$12 an ounce for silver sets a floor of sorts. Gold might want to test $1,000 soon. Now if you want crazy gambling, check out NUGT. That sucker moves all over the map, but mostly down, down and down some more.