EXK hardly moved at all by the end of the day after the quarterly GDP announcement as well as the FOMC report. Up next is the monthly job numbers report on Friday. After that, clear sailing for EXK.
I have to agree with Ledlight due to those options expiring. Too many "shorts" with lots of influence and money invested want the price of gold at $1300 or lower. But after Monday PM's could be looking at something a lot better than "green shoots". Sooner or later the physical demand side of PM investing will overwhelm the "paper" side to metals investing. I think we are getting very close to seeing that happen.....perhaps starting as soon as Tuesday.
EXK jumped up 7 cents off it's lows of the day.
But in all seriousness, the storyline for EXK depends almost solely now on the price of physical silver. And as to why physical silver took a hit today is beyond me. But I just read a silver blog that suggested that August and September are historically the best months to see improving precious metals prices. Time will tell.
Good call. Perhaps a lucky one. I'm still waiting for silver price to make it's move upward. But....I won't hold my breath.
I'm not sure if that is a good thing, a bad thing, or something of little value. However, one would think the excitement levels in trading EXK have simmered down.
Many pundits told us the recent rising mining share prices were foretelling us of a coming jump in PM prices. PM prices just took a sudden hit. Manipulation???? One could never say for sure. Regardless, EXK thrives in a rising silver price environment and that is where I will keep focused. I never sell my physical silver.. Economic as well as geopolitical factors should drive metal prices higher so I will hang onto my EXK shares as well. GLTA
P.S. Welcome back CG!
I actually thought EXK's performance today was amazing in light of gold and silver getting hammered down. But one thing is for sure. EXK will suffer like all other miners if gold and silver get whacked some more.
But Janet Yellen goes on stage for the next 2 days as she will be grilled by Congress. I suspect anytime she opens her mouth, she will boost precious metals prices higher. It seems our Federal Reserve is getting less respect now than it did in it's earlier history (of money manipulation).
Hopefully we saw the last day of "fire sale" prices on physical silver before it continues on it's journey to higher heights.
Hey Main...I'm also enjoying the ride on Nov 5's. I sold a third of my calls recently to cover the expense of the entire initial purchase made 7 weeks ago. But now I keep wondering what to do. Does the "greed" factor take hold which taunts much higher stock price or is there some substance to the proposition of rising silver prices...and thus rising EXK price. Let's enjoy the ride for now.
The huge moves upward in price both yesterday and today are done on huge volume. Today we will see 3 times average volume. Looks like lots of EXK buyers like the price they see today. Obviously a good sign for EXK.
If silver price keeps pushing higher, EXK should be able to digest it's recent stellar gains without any moves lower. And many respected PM analysts are now forecasting a breakout in PM prices. But then again....haven't we all ridden that horse before? Time will tell.
I won't make any rosy predictions other than I'm very optimistic! GLTA
It's always interesting how this manipulated statistic impacts PM prices. However, with ADP's better than expected number announced today, one might assume that any "better than expected" number in tomorrow's BLS report has already been discounted. Current consensus estimates call for 215,000 new jobs. ADP announced today that 281,000 new jobs were added.
And here's my estimate on tomorrow's BLS number: Anything less than 250,000 new jobs will send precious metal prices higher. And EXK should benefit.
Plus we have a long weekend ahead of us with geopolitical tensions continuing to mount. When does the "flight to safety" commence in earnest? (as in fleeing to silver and gold) GLTA
Silver up 4 cents at this time. EXK down 20 cents. Sounds about par for the course.
It really amazes me how volatile EXK has been during the recent time frame (couple of weeks) where silver prices keep inching up. Obviously it doesn't make sense. But, then again, what do I know?
Regardless, my sense is that silver prices have suffered their long consolidation period along with gold and are about to start another leg up. EXK will do just fine.
Silver has been slowly moving higher for the last several trading sessions. But EXK has a mind of it's own. It bounces up and down even with rising silver prices, New rich drill results were announced today. So EXK moves lower. What's up with that?
So what's the botttom line? It all hangs on the price of silver. If silver continues to rise, then the volatile EXK stock price will trend upwards....and hopefully with some gusto!
Pullbacks, especially after the rise we've seen in EXK during the last 2 weeks, would be normal and healthy. I don't want to sound like a cheerleader exclaiming that EXK's direction is only going to be up for the next few trading sessions. But then we have James Turk who envisions another aspect to rising silver prices and that happens to be the number of shorts in the PM's who have placed wrong way bets on the direction of the metals. Here's what Turk suggests after viewing this morning's action in the metals:
" The key now is whether we are going to get some follow through tomorrow. Based on what I see as a short squeeze developing, if I’m right you could have another 4 percent or 5 percent up-day tomorrow in silver....
“If silver goes above $22, the sky is the limit on silver because that’s really been the big resistance point. And the interesting thing, Eric, is we have the options going off next week.
Month after month we’ve been talking about how the central planners managed to force the price down into option expiry so their bullion bank agents can have as many of the calls that they have sold expire out of the money. But the market is so imbalanced, which is what I was alluding to on Monday, I wouldn’t be surprised to see the market rally right through option expiry.
This would be an indication that this thing is finally ready to begin a new move upward. You know my longer term forecast is I’ve been looking for something over $2,000 on gold this year, and probably approaching $50 and maybe even exceeding $50 (on silver) in the not too distant future. That would put the gold silver ratio down at around 25/1." From KWN website
Turk, like many analysts, tell us shorts could get "burned this time" and he may be right. Tomorrow could be an interesting day. But I continue to watch all those black swans circling the financial skies. I suggest those black swans should take us much higher if they don't fly away very soon!
U.S. is dissing the current Iraqi government (Maliki) as that country is sinks into chaos. Argentina announces it will probably default on their sovereign debt due to U.S. Supreme Court ruling which protects those U.S. hedge funds who purchased defaulted Argentian debt at huge discounts (and they demand full repayment) during last currency collapse. Russia is openly encouraging the rest of the world to dump their dollar transactions (and some claim Russia pushing the sale of U.S. treasuries). The Federal Reserve floating warnings they may allow banks to charge "gate fees" for holders of bonds and money market funds which, if imposed, will start a run on those instruments just before any gate fee is imposed. U.S. remains quiet about ongoing Ukraine crisis revealing America's super power status is showing signs of cracking.
So what's my point? So many black swans circling U.S. reserve currency status. And signs of inflation are heating up.
Gold and silver are now on the rise. If they continue to climb due to all the tensions in the financial world, then the miners should enjoy a massive breakout. Most long term investors of EXK realize this company is well managed, continues to grow reserves, and usually beats expectations on production. Once silver prices start rising, EXK will likewise show vast improvements in earnings as well as stock price.
So are the tensions just palpable? Are they temporary blips on the radar screen? Or are we now set for another bull run in the precious metals arena? I don't know but most indicators I read are pointing up! GLTA