John Williams of Shadowstats published a headline yesterday suggesting a 400,000 jobs decline may be reported for October (to be announced on 11/8). Sounds pretty far fetched but if there is any decline whatsoever, the dollar will crash (further), metals will rise, and EXK should catapult way above the 200 day MA. IMO
Great post Mainman! I agree with all your highlights of EXK production gains. Brad Cooke has also provided info that EXK has engaged in significant cost cutting due to low silver prices which should benefit profitability in coming quarters. However, I'm not sure Brad has signaled whether EXK is currently harvesting the "low hanging, easy to pick" metals on their properties simply to lower cost per ounce and improve revenue streams....for now. Any ideas?
"Washington (AFP) - The United States will release $1.6 billion in aid to Pakistan, boosting a flow of assistance that slowed in recent years amid a downturn in relations, an official said Tuesday.
The State Department has notified Congress that it intends to release the funds already budgeted for in previous years including the fiscal year 2012."
Please Obama...increase my taxes so you can find another muslim country to donate more of our money! We don't have any need for funds in the U.S.A. Everything is just fine!
US dollar is now sinking to 79.22. How low can it go? But the better question is how fast will the dollar fall? Or, perhaps not. The next couple of days should prove to be very interesting. If the pace of the dollar decline accelerates, silver and gold will enjoy a healthy rise. There are not really any fundamentals supporting a stronger dollar. However, the gyrations/manipulation of currency markets always can surprise one rather than behaving in a rational manner. Time will tell. Dollar....where are you heading?
And then I listen to the guest speakers on the "Nightly Business Report" tonight and they mindlessly suggested that once the next budget deficit is resolved in March all uncertainty will then be removed, the stock markets can continue their climb to higher highs. Really? Just snap your fingers, debt ceiling vanishes, and everyone can continue to "be happy...don't worry"!
These mainstream commentators never address the problem of ever increasing debt or the benefits of continued (unabated) quantitative easing (free money injections) that must be continued to keep the party going. Don't worry, everyone....the stock market will reach new highs in the second half of 2014. THE CAN MUST BE KICKED DOWN THE ROAD! And...(they must assume) our foreign creditors will continue to slurp up our unlimited issuance of new treasury debt like they have no choice in the matter.
And I used to think the Nightly Business Report had something worthwhile to offer!
The dollar has crashed below 79.50 which some Australian Bank analyst last Thursday suggested was a trigger point for continued selling the USD down to 77. For you technical analysts out there, is that possible? If the dollar suddenly plummets to 77, then gold should rally well above $1350. And there are other "techies" out there that suggest a rise above $1350 should send gold quickly to $1425. And we all know that silver should outperform gold....so EXK is looking extremely bright!
EXK up nicely again and volume is tremendous! Jobs numbers did not disappoint....for PM holders. Next month's should be equally disappointing and with another looming debt ceiling closer on the horizon, I expect metal prices to continue rising.
I wonder how long it will take to get some feedback on the "unexpected" cost overruns on Obamacare. "Signups" by the healthy young as well as price-shocked older folks are not doing so well. So, we've been told, Obamacare won't make financial sense unless the optimistic government projections of "forced" signups are met....and with all the software flaws in the system...we know those projections are not being met. So what are those costs adding up to? Just how significant will they be?
Nothing like raising the rate of deficit spending just as another debt ceiling approaches. And we learn that the "workforce" continues to shrink. Add to that dismal feature the realization that many full time jobs are transforming into part time jobs as that workforce shrinks.
You gotta hang onto your PM investments as they are likely to rise like a phoenix from their recent pile of ashes. GLTA
EXK up today but on lower volume. Tomorrow the delayed NFP for September will be released. Although it is a highly manipulated statistic, it receives special consideration by the FED. And thus, tapering talk may come into play tomorrow. We shall see.
But as Marc Faber says on a CNBC interview today, the FED will never taper. The real question for the FED in coming months, according to Faber, is whether to increase QE to $100 billion, $200 billion, or $1 trillion per month. Obviously, increases in QE will result in higher prices for "real" assets such as gold and silver. EXK will do fine.
If NFP are below expectations, EXK should get another boost tomorrow. If our stock rises, I'd like to see increased buying volume!
The U.S. debt clock clocked in above $17 trillion for the first time today. Another feather in the hat of America's fine achievements! Does anyone doubt that we will hit $18 trillion before the end of 2014?
Today, the debt was reported by the U.S. Treasury to be $17.075. Not too shabby....an increase of $330 billion in one day. Oh yeah. The treasury had to rebalance the books for rigging government accounts since the May debt ceiling was reached.
Will the U#$%$ $18 trillion in "official" debt by the end of 2014? And the answer most political leaders will offer is....."Who cares"?
And if interest rates go back to historical norms of around 6% (blended) on U.S. debt, the interest expense will be just a tad over $1 trillion per annum (on $18 trillion of debt). Again.....who cares? Janet Yellen will cover the bill! Not to worry. All will be well!
As the fiat paper is flying about, some smart thinking people will seek safe sanctuary in silver and gold. So you have to ask yourself. Does EXK print fiat paper or does it profitably mine silver and gold? Any other questions?
" But a lot has changed in the past few weeks, with some analysts questioning the dollar's status as the world's top reserve currency in the wake of the crisis in Washington.
Ray Attrill, co-head of foreign exchange strategy at National Australia Bank , said that if the dollar index breaks below 79.50 it could head down to around 78 - implying a fall of around 2 percent from current levels."
From Yahoo Finance article: "Taper talk could worsen the dollar rout"
Economist, Michael Pento:
"While most are now celebrating the end of government gridlock (however ephemeral it may be), the truth is few understand the consequences of our addictions. The real problems of government largess, money printing, artificial interest rates, asset bubbles and debt have not been addressed at all. Rather, Washington has merely agreed to perpetually extend its lines of credit and to have the central bank purchase most of that new debt.
Instead of placating the fears of our foreign creditors we have cemented into their minds that the U.S. dollar and the bond market cannot be safe repositories of their savings. The eventual and inevitable loss of that confidence will ensure nothing less than surging prices and a complete collapse of our economy."
Currently, the dollar is trading at 79.66. And it was not that long ago that the dollar was above 88. Imagine a foreign country that holds dollars as a substantial portion of it's own surplus reserves only to see the value of those holding decline over 10%. (1/3 of China's central bank reserves are denominated in dollars and a 1% decline represents over $10 billion of losses) If this burn rate continues, especially if we see 1% declines as a day's trading event, then how much longer will foreigners continue to hold onto their dollar based reserves? I'd dare to guess that 3 or 4 more days like today would trigger an exodus out of treasury holdings by foreigners. Bad for U.S. inflation....but "golden" for precious metal investors.
The Congress and our president have done absolutely nothing in their budget planning (or lack thereof) to protect the integrity of our currency. They just keep shooting holes in the bottom of our boat!
P.S. News! Are you making money in your FX trades? You predicted big declines in the dollar!
"But when it comes to the ETF GLD, you need about $13 million worth, or 100,000 shares, if you want to redeem the shares for physical gold. We have a number of our sources who have told us directly that JP Morgan and some of the other bullion banks are in fact turning down investors with 100,000 shares who have asked to redeem those shares for physical gold.
Meaning, various entities or high net worth individuals who have presented 100,000 shares or more to JP Morgan for the purposes of redeeming those shares for physical gold have already been told, or are currently being told by the banks, ‘No, we will not act on your behalf.’
This goes right to the heart of the reason why these ETFs were set up in the first place, which is so the bullion banks could loot them when they needed the physical gold from the vault to engage in the kind of manipulative behavior that we are witnessing today.
The winners in all of this are the bullion banks themselves because they created the game. Meaning, they are the referee as well as a player in the game so they can’t lose because they fix the game. So the ordinary investor has no hope when it comes to owning an ETF such as GLD.
People also have to remember that Eric Sprott’s physical Gold and Silver Trusts have lost very little metal to redemptions. So, while GLD has lost a staggering 34% of its gold inventory because of the looting, the Sprott Gold Trust has lost a mere 1.3% of its gold.
This is why the mainstream media is the ‘Great Deceiver.’ There is no mass exodus from physical gold as the mainstream media would have investors believe. In fact, we have been and continue to see unprecedented levels of physical gold demand that we have never seen in history.
This is why I am telling you as a multi-decade veteran of these markets, as someone who worked at Goldman Sachs, and who served on the Board of Directors at Paine Webber, the gold and silver markets are entirely corrupted and there is no true price" KWN
News! Good luck with your FX trades. That type of investing is way out of my league. Instead, I'll be catching up on missed episodes of "Walking Dead". (And I'm not referring to the U.S. dollar...LOL)
"NEW YORK (Reuters) - Fitch Ratings warned on Tuesday it could cut the sovereign credit rating of the United States from AAA citing the political brinkmanship over raising the federal debt ceiling.
"Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default," the firm said in a statement.
Fitch is the only one of the three major credit rating agencies to have a negative outlook on the U.S. sovereign credit. Standard & Poor's downgraded the rating to AA-plus in August of 2011 during the last debt ceiling impasse."
Debt downgrade certainly should not hurt silver and gold!
China is our biggest creditor and now they want the entire world to dump the dollar as a "world reserve currency". They have never been this vocal before!
"Debt Ceiling: China Calls for World to Be 'De-Americanised.'
"Chinese government mouthpiece says 'Pax Americana' has failed on all fronts ... Xinhua calls for de-Americanised world. China's official news agency has called for the creation of a "de-Americanised world", saying the destinies of people should not be left in the hands of a hypocritical nation with a dysfunctional government. Heaping criticism and caustic ridicule on Washington, the Xinhua news agency called the US a civilian slayer, prisoner torturer and meddler in others' affairs, and said the 'Pax Americana' was a failure on all fronts." – International Business Tribune -
Since China has no fear of risking the value of it's holdings of treasury bills when the dollar loses value after being tossed as the "reserve currency", China's next step, if they are serious about "de-Americanizing' the world would simply be to initiate a mass liquidation of it's holdings of U.S. treasury bonds. Suddenly putting $trillion of their U.S. treasury bills up for sale would decimate our bond market as well as our dollar.
China does not have to fire a single shot to bring down the U.S. So...should we listen to them? China has the power to send silver on a rocket ride. Got silver? Got EXK???
Yellen is known to be quite dovish on "loose" monetary policy to bolster the economy. (There will be no tapering....IMO). This announcement should be bullish for PM's but who knows anymore whether anything can be bullish for PM's.
" WSJ reports that Obama is set to announce Mr., pardon Mrs Janet Yellen as Bernanke's replacement tomorrow at 3 pm at the White House. "The nomination would conclude a long and unusually public debate about Mr. Obama's choice which started last June when he said that Ben Bernanke wouldn't be staying in the post after his term ends in January. Mr. Obama gave serious consideration to his former economic adviser, Lawrence Summers, who pulled out in September after facing resistance from Democrats in the Senate."
Anyone know why EXK took the big hit today?