Goldman and banks had assisted in another real estate bubble, this one belonging to China - as said. Real estate adjustments and money asset amendments don't happen overnight. For the near term, this makes it's easier for banks to short gold and drive fear into the gold market. There are are other US and global factors to consider beyond China's new currency policies and discussed taxation. In time, I believe that the Chinese will turn to buying more gold in place of real estate.
The world isn't in for another financial debt meltdown, but should be. This time banks are pushing for higher rates. The likes of Goldman Sachs had pushed multinationals to expand into China and Russia. Banks made money with the dealings, controlling currencies and rates, while buying their clients real estate and providing M&A transactions. Their clients were both ( thousands of ) Chinese and Russian national companies and US multinationals. Now, the likes of Goldman are saying, guess what! - you need increasing interest rate protection and we will buy it for you. If US multinationals post losses overseas, then our manufacturing data and employment numbers won't help the stock market.
The problem for China is their gold. Goldman and banks has caused another bubble in China, and so Goldman and banks are betting against gold. This is just another manipulation swing and it will reverse. Banks are swingers. That's how they make money without being loyal to anyone. A quick type - latter.
Most were probably tired of my postings about derivatives and the flow of money within the last two years in relationship to gold price setting banks.
Gold prices are set twice daily by five banks via teleconference, while three banks set silver prices.
What matters more to banks
The price of gold movements determine the value of derivative securities. Bonds and interest rates react as the connecting lever to stock indexes. All events, including Fed policy, non farm employment data or world tensions is used as a manipulation tool for banks to help conduct their business of dealings thru out the world. If there is a large group of deals on the table, derivatives are strongly used, which often is useful in deciding when to open a position for a swing. Currencies provide the opening - wet ink and closing - dry ink needed. Dealings are large trade, M&A and real estate. It has been known for months by currencies bets that Russia was going to call back some of their money holding up our wall of debt. If they continue, Russia may ask for natural gas to be paid partly in gold. Oil worldwide is already showing higher payments in oil. ---- Thumbs up for your post, your a buddy.
With my post on Monday, I gave a honest opinion ( problem factors) about earning results. I mentioned going forward yesterday, that higher silver prices will be needed. I posted positive in the last three months as short term, opposed to my 'liking mention views' for the future - two years out. I also said that profit taking and down times would happen. I said a month ago, never trust JPM and the banks. JPM selling their shorts for good, while not playing other OTC silver markets - NEVER.
I'm sure many made money by buying going into the last week of December. Many folks are short term traders. I make an occasional swing trade with EXK, but like you, I also invest elsewhere.
I also like to share general thoughts on economics and about the 'system'. I'm sure that there will be more discussion about silver. Again for now, it's day-to-day.
One problem factor was operating leverage - the ratio of fixed costs to variable costs, which is often a problem for mining companies. So EXK had high fixed costs compared to variable costs.
EXK is still too labor intensive with high plant and equipment costs. Operating costs didn't magnify the glory of production numbers in (return) because of silver prices. I would like to see their union contract.
Their business plan going forward is excellent. We do need higher silver prices and some solid gold vein production. Solid gold production should be a given in time. Give it time. Our large hedge funds use mapping and I doubt that they will sell.
I understand that about links. I was referring to directions or pathways. Yes, the index that I wanted to make reference to was the DXY. Thanks
Never go to any spam third party website and never-never give information for any signup if you use MS programming including IE. They will turn off your 'data execution prevention' and your NAP. If you turn DEP back on, within a second it will be off again. There is no security to stop this.
The US DRY Dollar will be weak, but we are seeing manipulation overseas. I'm a bit more focused on China and the transfers of bank funds in Europe - euro, than the obvious job report numbers for metals. So the DRY, which is what I'm watching shouldn't still be considered a consideration (last post) for direction of metals. Because of large transfers of funds in Europe and US bond holdings we have a weak dollar, but don't trust that for metal movements today. I would hold mining holdings, unless you quick trade.
They both moved somewhat together in direction including the U dip. Historically the dollar and EXK mostly move in opposite directions. My mention of 'inverse' means the opposite of normal as EXK was following the dollar in direction. EXK doesn't often follow the dollar - inverse . AND I probably should had said inverse of normal.
Today we had a dollar inverse to the chart of EXK. We have some smart money here. One reason is the Russian ruble. Russia’s ruble turned stronger on Tuesday after taking a hit. USDRUB -1.37%. Politics aside, Russia doesn't want a weak ruble. The London gold setting banks stayed with their morning fixing so corporate investment banks doing business with Russia could close several large deadline asset deals. ADP private jobs report and Friday's employment report will be worth only a blink as with blinking Putin.
I wish that I could find 10 million in gold coins like that couple did, while walking their dog. They live just up the road from me. From where I'm sitting now, I can look out of a glass door (20 feet) and see large nice looking rocks from a past gold mining operation. When I lived in New England, my dad found one gold coin, dated 1794. All I ever found was old medicine bottles and marbles.
"Revenue was up 2% to approximately US$67.9 million as a result of the increased precious metals production ..."
"At Guanaceví, the plant operated well above plan in the Fourth Quarter, 2013, processing over 1,300 tonnes per day (tpd) at higher than planned grades and recoveries. As a result, Guanaceví achieved record silver production in the Fourth Quarter, 2013 and reported its highest ever annual production. Throughput, grades and recoveries are expected to pull back closer to plan over the long term."
"At Bolañitos, mine output was reduced in November, 2013 to the 1,600 tpd capacity of the plant and grades and recoveries continued to exceed plan. As a result, Bolañitos also set both quarterly and annual production records in the Fourth Quarter, 2013. No excess mine output is planned from Bolañitos near term to fill the El Cubo plant to capacity, as the focus is now on expanding the El Cubo mine output."
Revenue from the sale of concentrates is subject to adjustments upon final settlement. Concentrate sales are subject to mark-to-market accounting treatments resulting in quarterly closing prices used for a significant portion of metal sales. Reported revenue and realized prices include adjustments to prior quarter sales on final settlement.
El Cubo will dance this year and San Sebastián will rock (pun) with rich high-grade ore of both gold and silver in future years.