Volume was low all last week too as the price was drifting lower. There was bullish options activity occurring though, particularly in the June $29 and $30 calls. Shorts should at the very least be getting a bit nervous here.
The Hong Kong exchange is ceasing the trading of silver and gold futures effective Monday. All outstanding future contracts will be settled in cash at a price still to be set. Silver is down 5% already in Asian trading. I think we're heading for that $18 handle in silver faster than I thought.
I think AUQ is still one of the better positioned miners out there. Balance sheet is solid and all-in cash costs are not as high as a lot of other juniors. I'm still long here, no need in selling now. Could gold go lower and the miners along with it? Sure, but I've weathered this much of the storm already, selling now makes no sense IMHO.
You did very well here and I admit that you and the others you mentioned were dead right on AUQ and on gold. The buyback now seems like one of the most idiotic moves I have ever witnessed by a company. I figured it would set a floor under the stock, it did anything but. I'm a very unhappy bagholder.
The USD is not necessarily strengthening against most other currencies, this strength is specific to the weakness in the Yen. So long as they are printing nearly twice as much as we are on a monthly basis it will continue to weaken.
This think just keeps drifting lower. I don't understand it when it had broken resistance to the upside earlier this week. Very disappointing price action since Wednesday.
They are trying to make the stock more attractive to larger investors. Most funds cannot invest in stocks that trade under $5 bucks.
I am a long term gold bull but a trend is a trend and right now the trend in precious metals is down. The miners have been raped over the past few months and will gold now trading under $1400 I don't see it getting any better in the near term. With that being said AUQ has been very resilient around $4.60. Gold is down another $20 this morning so it will be interesting to see how AUQ holds up today. If it breaches $4.50 to the downside I think it goes through $4.00 pretty fast. Thoughts?
Split became official this morning. I doubt this changes the direction of this equity but hey at least $14 and change looks better than $3 and change for the time being right? LOL!
I think the ongoing strength in the USD was the one thing that myself along with the rest of the silver and gold bulls did not anticipate. Japan's aggressive Yen devaluation, that far exceeds our own QE was a big wildcard thrown into the precious metals equation. I am short the Yen which in effect is being long the USD. I think the USD can go as high as 125 or so against the Yen.
Where we disagree this time around is on how low the metals will actually go. Due to strong demand for physical gold in China, Russia and India I see gold ultimately bottoming out around $1200 or so. Silver will probably test the $15-$18 range where there will be heavy demand god physical silver. The paper price may go lower but you will not be able to actually buy any silver at those prices.
The writing is on the wall and blood is in the streets, silver is pretty much universally hated right now. A lot of weak hands were shaken out once the spot price breached $26 but once silver breaches $22 to the downside the rest of the weak hands will sell. I'm fully expecting silver to fall through $21 and $20 very quickly on it's way to $18. Gold should bottom out around $1,200 during this same time.
I would not try to catch this falling knife right now. I'd rather buy more silver at $25 than at $22 so I'll wait for a confirmed reversal before allocating more capital. The way things are going I would not be surprised to see an $18 handle on silver over the next couple of weeks.
Unless you have a ton of shares you cannot redeem your PSLV shares for physical silver. If you could it would make sense to buy PSLV when it falls under the NAV and then take delivery. Unfortunately you cannot do that. That would make it a unique fund but it's pretty much just like the rest of the paper vehicles out there the way it is presently configured.
Yeah I remember our battles. You were right and I was wrong. You were talking about buying QQQ. I should have followed you in on that one.