Always best if a merger means fewer competitors as potash will become an oligopoly industry instead of cartel based. There will be a huge surplus capacity when all of these industry expansions are complete, and the industry will quickly discover that production increases without regard to pricing will hurt everybody. POT will always be competitive in global markets, especially North America and Brazil, but Russian horse-traders aren't stupid. They know you can't just dump huge supplies on the market or you'll end up mining a lot more potash for about the same amount of sales / revenue. High cost players could get crowded out. Maybe Janzen never gets going, but the Legacy mine poses a problem for the Canadian cartel and the huge production capacity increases means high cost mines will remain idled for quite some time.
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.