Rapidly rising dollar should soon be seen as a threat to GDP as the cost of our exports will be less affordable to our trading partners. Janet Yellen and company must be sweating bullets. Currency wars are in progress!
Last week on tuesday EXK closed at $531. Right now, EXK trades at $4.43. Down 16.57% in just one week. And what was the earth shattering news for miners to collapse? Oh yeah. The yen is crashing and the dollar is gaining strength. Nothing like fiat currency "printing" at the opposite sides of the earth to get physical metal prices moving down.
It's a new world where nothing is valued by free markets as central banks running our banking cartels can figure it all out for us. And so we precious metals investors just sit and take the pain....for now. GLTA
"I am a precious metals bull, but not a perma-bull, as such a position does not allow the flexibility a trader needs in order to generate profits.........
We are now of the opinion that gold will trade lower and re-test the $1180/oz level, silver; if it breaks below $18.00/oz, then it would experience a severe drop to the $15.00/oz level and the miners as represented by the Gold Bugs Index, the HUI, will test the low of 190 that it made in December 2014 and possibly go on to test the 150 level formed in 2008.
The current environment favors the bears so a short trade would be better than a long trade" - Bob Kirtley
But I disagree. Just bought another batch of EXK at $4.78. But you never know. I'm looking for a bounce back from these lows.
Silver, suppressed as it is today, needs to rise from it's current ashes and regain some footing. Silver cannot be held down below it's cost of discovery/production. And right now, silver prices will not justify any new miner's attempts to make a profit starting a silver mine. The cost of new production will not be rewarded with any kind of profit at today's spot silver price. So....we are at a floor in silver prices.
But when will silver prices start rising? That is the "silver" question. Electronics, solar panels, jewelry, and minted coins. The appetite for silver is not on the wane. Silver will rise from today's ashes. And EXK represents an excellent supplier of this much needed metal. So I , for one, will wait and accumulate EXK at these fire sale prices. Any contrarian will tell you.....buy at the lows when everyone else despises your investment choice. Silver's role in this world is not finished. Silver is currently priced extremely low, but it is not finished.
As Karl Marx wrote in "Das Capital": "Although gold and silver are not by nature money, money is by nature gold and silver."
Yeah. It's an upside down world. At least for now. Things may be crazy until the monthly jobs report is released on Friday. But i picked up another batch of EXK shares today. I get cross-eyed when I see these low prices. But what do i know?
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.