Since I posted a hour and 20 minutes ago, the Dollar has taken a nice fall. I quickly made some Dollar against the Dollar. Give it some time, China is faking their numbers, like us on the upside.
Also what is currently facing the Dollar is largely speculative. I see COT Dollar futures which is long in record numbers (over half a million contracts), not solid as a one -sided bet. Institutional players are now just as prone/happy for a correction as in de-levering. Something which was the recent opposite until last Friday due to bonds like the 2-year. When that happens they'll have to take gold up. They will not be able to stretch the band that much in the following weeks. Some covering on the COMEX should take place. The new year for China is in two weeks.
Sometimes I hedge, counter, or balance the stuff that I own. I have a few shares of EXK that I bought at 3.85. I sold dollar pairs on Monday as I believed banks were starting to close long dollar positions with more likely coming because of manipulated pricing. It's obvious that Greece will be adding debt-swaps to replace perpetual ECB holdings of their debt, along with bonds indexed to growth. I believe that the banks involved as both guardians and investors sold certain dollar pairs as in conflict of interest and for profit over loss, now and later. I bought GNB Monday because I thought that the dollar would be falling on Greek debt examination. I sold GNB today.
I did, a while ago. It's still holding some strength. It was just a small hedge, so my profit was small.
Yesterday US Dollar indicators signals had flashed a bearish Evening Star candlestick pattern with weakening RSI divergence. I then changed course for a quick play with Greece National Bank up over 25% today. I don't plan to hold GNB.
Totally agree, well said, but not sure about more QE. I'll post more thoughts maybe this weekend. I didn't give you that thumbs down.
For the slightly longer term, it may be just as important to watch the US housing market. Consumer confidence, retail, jobs, interest rates and FED policy should reflect from this. We may see some headwinds and swings with gold.
Recently a single EUR/USD trade represented only 28% of all USD transactions (not index weight) as euro zone economy betting has been largely in control of the volume and outcome. Next week is also FOMC and that should place equal eyes on the USD side of the equation or trade. I think that traders will be on the streets next week ready to quickly make theirs bets. The dollar should remain strong for the next few weeks as reactions from other than EUR/USD smaller pairings should be watched for strength or weakness. It's hard to say anything more about this as things could change quickly. Gold could rise or not per central banks and from other material events globally next week. I don't know, but after the Swiss made their announcement it was easy to see where things were going for the next week. Now it's back to each owns economic homework for comfort as the financial media should be increasing confusion.
Gold/silver upward mobility has been anticipated by many. Gold is now seeing some pressure as king dollar set an 11 year high against the euro a few hours ago. Until the Greek vote on Sunday, many will continue to hold gold, but now I would include currency pairing attention and related data. I believe that it won't be a free from thinking ticket as it has been of late.
Correct - All-in by-product sustaining costs of production (including sustaining capex, exploration and G&A costs) were forecasted by company at the beginning of 14 to be approximately $19 per oz of silver produced and all-in co-product sustaining costs of production were predicted to be approximately $19 per oz silver at $1,166 per oz gold. Direct operating costs were estimated to be in the $95 per tonne range.
EXK arrives at per ounce cost revenue minus net income to equal total costs, as in payable not produced. So payable determines cash costs, including derivative and foreign exchange gains or losses. Their is a long list of what is a cash cost and what is either added or deducted such as refining costs.
EXK reported 3rd quarter 2014 earnings of $-0.11, which was a miss. For the coming quarter, analysts estimate EXK will earn $-0.04 per share, a 66.67% increase over the prior year 4th quarter results.
There has been some confusion between the El Cubo mines and other El Cubo vein systems. The plants at El Cubo can't and won't close. Investors aren't as much concerned with lower production numbers at El Cubo as they are with fine tuning operations to increase cash for the development of San Sebastian. Stated a year ago, costs of 50 million. So cash matters. San Sebastian is one hour away by highway from El Cubo so they will need their own plant.
Sony, you made some great call over the years. You also have great thoughts of wisdom. Nobody is always right, but you'll come out of your position smiling. Thanks for all your support.
Sony, I post mostly on a non ya alumni board where most are old timers. I brought up thoughts (here too) that major investments banks want to do more investment deals in Europe on the cheap (dollar versus Euro), per not by China or Russia. Us dollars will be needed for some of these transactions. What we do best is knock stuff down and then profit to rebuild. This is one reason why there is heavy manipulation with gold and oil right now. We won't see 2% rates. I think that many bankers know what Janet will be saying. For now, place aside the politics and banking manipulation and hold your position. EXK won't die and they have plenty of gold and silver that can be mined with profit.
I wasn't pleased when they took on El Cubo. It was too cash sensitive to the nice banking funds attained from other projects that produced. A surprise to some.
San Sebastian is what I've been waiting for. That's a gold mine, or better yet, long veins with pockets. I think that our top fund investor that has12 geologists on staff can see the value over at San Sebastian. They increased holdings by 28% last quarter, maybe on the final decision to develop San Sebastian. Other producing sites shows continued life extensions as well. All of this can be seen with newer satellite heat mapping technology. Our number one fund has a satellite contract agreement. So waiting two years may take a bit longer for San Sebastian and deep recovery at El Cubo. This company has value, even if assets are still buried.
FOMC the quarterly, not just a monthly is this week. the USD is still strong. Everyone is waiting for rate dates including our trading partners.
I don't have a clue where gold and silver will be in mid 2015.
As with El Cubo, cash will be used to develop San Sebastian. The difference is that San Sebastian is primary gold with several heavy extending vein pockets. The one thing that I still like is the Micon Report and references to 20 other geological reports on SS that I had listed months ago. If not satellite mapping, use goog mapping on this area.
Dec 10. Interview with B. Cooke at twst - Wall Street Transcript. Fee subscription. Service has tight copyrights. Article is positive about exploration properties including the San Sebastian project located in Jalisco, Mexico. Results are on the way. Waiting for results. It often takes subscribed money managers and fund mangers days before they read transcripts. Often being done on weekends.
Good luck to the both of you.