"Price and value eventually converge". I agree, but some see EPS as an accounting measure, not necessarily a cash measure for mining companies. Cash can be viewed as the foundation of solvency, so most analysts for miner's judge solvency with other measures that are usually related to the components of EBITDA and working capital. Quite simply for us, growth should bring cash or above ground inventory, that's our flight ticket. It will happen.
So with the solvency factor, it has been seen by some that it holds the price back. EXK's solvency is at 30%, the bottom third compared to other miner's. Our growth profit has been below average. This was a refection of El Cubo, but now El Cubo is in movement. After San Sebastian is brought on-line then we should see a large increase in share price.
Lorde, See the 500 sold at 18:03
After Hours Volume:
After Hours High:
After Hours Low:
4,867 $ 4.70
(17:54:25 PM) $ 4.4796
18:03 $ 4.65 500
17:54 $ 4.70 High 300
17:53 $ 4.60 200
17:51 $ 4.48 500
17:23 $ 4.6281 127
17:05 $ 4.58 500
17:04 $ 4.57 500
16:56 $ 4.56 100
16:42 $ 4.4796 Low 700
16:21 $ 4.5189 1,440
I sold 500 @ 4.65 in AH that I bought at 4.53 during the day. I had too, because I went on margin in that account. This becomes my first day trade with EXK in well over a year. Did swing trade EXK - 4 times this year.
The day session is now closed.
Fed president James Bullard (St. Louis) made a comment that the door is now open concerning a taper in October. Fed Presidents Esther George (Kansas City) and Narayana Kocherlakota (Minneapolis), as well as Fed Governor Daniel Tarullo stated that September FOMC was a narrow decision in discussion.
George is quoted as being more hawkish than both Tarullo and Kocherlakota.
From me - When the Federal Reserve uses hawkish language to describe the threat of inflation, one could reasonably expect stronger actions from the Fed. This is the primary news that sent the dollar up. I expect the economy to show weak legs and if they do taper, it will backfire and send gold/silver higher. More in detail later, it's been a long week. Comments welcome.
Gold will do well if budget talks stall or fail. El Cubo is on the move. If you have a mapping membership with Goog, check out updated mapping. Longer term should be great.
Good post. This isn't in reference to your post. The use of TA with moving averages such at a 35, 50, or 100 at times may be valid for resistance points, but short term charting for gold and silver is not so much. It's just another form of manipulation in concert with computer algorithmic trading. Today, it's obvious that 50% is computer trading. Banks mostly trade on dollar values or pairing values, and they can blow away any short term chart in seconds. Watching dollar value indexes based on dollar value matrixes and news is important. Wednesday, the futures held until the end of an extended trading day. The reason was with every retail buy, banks sold. This was a reason for those who trade to lighten up at the end of Wednesday. I sold my futures.
Good judgment Quail. I had thought that it was possible for a small taper. I though that it was important to watch buying and covering reactions from banks (including notes, Ts) before the announcement as they are notified first (previous post). I bought a few cheap shares, futures and options quickly when I saw a movement. Not enough, but I'm glad for you and others. Again, well done. LOL
It often takes years for someone to understand investing. On how to invest in dollar assets should begin with logic. I suggest reading a few books about general logic, as that will help in defining chance, ifs and buts. Some of the best option traders that I know, understand logic. Learning to understand something/anything where 'chance' is a factor (et; football) requires interest, then logic.
Thanks rlhester: The Yen is often an indicator due to the unwinding of carry trades, where people borrow the Japanese Yen at very low interest rates, converted the money into other currencies, and invested it in foreign countries for a better return than they could get in Japan. This is common practice there. China is considered a closed nation, meaning it's difficult for citizens to trade or invest on any international platform. Their government does supply gold/silver for purchase.
The US dollar also moves up with higher risks in the Euro zone. When the US government sells a lot of US Treasury bonds to pay for budget deficits it helps banks. These bonds are sold in US dollars, which means that foreigners who want to buy must convert their money into US dollars first. And this makes the US dollar go up relative to their currencies.
I posted this on September 11:
"The dollar has headed down and hasn't been supportive for gold/silver. Usually, I'm supportive dollar down, gold up". Noted reasons that I gave in that post and mentioned in others is politics/banking and oil payments not being paid in oil.
As a currency trader, one must look at currency pairing with the dollar as well as knowing what events are important and how to judge the voids. Experienced currency traders most always have field days with entries and exits, but that is no longer always the case with gold/silver.
Having a long gold/silver position in 2009/2011 was a given, but now understanding how banks control both the commodity and currencies market is different. I had mentioned this in a recent post: "Pat my back today and I will pat your back tomorrow". This is about and includes all banks worldwide. Working in international M&A or real estate is a big plus in understanding the correlations.
I agree as I mentioned yesterday that 10B to 15B could be the number, but there are other factors this week including jobs, budget talks and more politics, here and abroad. Because of this, we should start to see metals move up in price, but I'm not sure on an exact time at this moment. Longer term it's a given that silver will increase and EXK should be on a strong path.
Two families living side by side in identical homes:
Family #1 -- On American soil from the Middle East for only a couple of years. Receiving welfare with rent credit of $1300 per month. Free medical, but they have pockets full of large greenbacks. They all drive Mercedes.
Family #2 -- Living next door. Sixty year old wife has a medical condition. Wife had to retire after working as a community elderly care counselor for many years. Then ended up in a rehab nursery home costing $60,000. Husband loses job as a clerk for a small hardware store, then has an heart attack. Could not get private medical insurance due to medical history. Hospital bill is $250,000 and hospital settles for $190,000. Their life savings is 75% gone.
So at 8:30 am on Wednesday comes housing starts and then at 2 and 2:30 pm FOMC and Ben. Then on Thursday comes initial jobless claims and existing home sales. All this will either be 'how sweet it is' or 'the cat's in the cradle and the silver spoon'.
10 B to 15 B a month taper? I'll be watching Treasury yields, mortgage rates and the US dollar.
Then rides in Robin Hood - or not - with all that budget stuff, and who will be the next Fed pawn for banking and special interests.
I have my flowchart for trading currencies in place, which will also tell me - if I should go long gold and/or silver futures.
Posting weather conditions will be difficult as we also have that Syria stuff. We will see thunder and lightening, but clear skies will be ahead.
We both have covered the full spectrum from Jekyll Island to Andrew Maguire to Asian futures exchanges. In several ways during my career, I was an opponent against all the big banks and investment houses. I have an advanced degree in economic and logic, and a B.A. in finance. I believe that in social economics, one can find the results for the failure of health of the American society. This is the middle class, the workers, the victims. There needs to be a middle class, but fairness for those within is a lie.
It's a shame, but every gold/silver action/trade by banks is designed in support of a currency/interest-bearing position. Banks trade on structural supporting balance. Most everyone is a trader, and that's also a problem as to who to listen too.
You, like some of us, have done a lot of truthful honest posting on manipulation.