Funny how the mainstream media, in this case CNBC, likes to trash the precious metal market for it's viewers. But they are dead wrong...again. And what is their motive? CNBC headline today:
"Watch: Soros Is Selling Gold. Should You?"
However, it was only yesterday that billionaire George Soros (considered one of the more astute traders of commodities) filed a report with the SEC reflecting a huge increase in his gold holdings:
"In a 13-F release issued by the SEC after market close yesterday, it was reported that Soros Fund Management LLC, founded and chaired by billionaire financier George Soros, significantly increased its gold related holdings, most notably, through the purchase of over $25 million dollars worth of call options on the GDXJ Junior Gold Miners index.
This stunning move by one of the world’s top performing hedge funds, suggests a powerful surge ahead for gold equities. It should be noted, that in the forty years prior to 2010, the Soros Fund averaged a 20% annual rate of return..............
In summary, as of May 15th, 2013, Soros Fund Management LLC reported owning over $239.2 million in gold related positioning, with over $25 million dedicated to call options on junior mining stocks."
So.....it looks to me that the sheeple are being misled once again in order to scare them out of holding onto their precious metal investments. So sell at the lows so the bullion banks can buy at a discount. GLTA
And as EXK hits today's 26 month low our U.S. treasury secretary announces he is now forced to juggle government spending accounts since the U.S. has reached it's extended (compromised) debt ceiling. But, don't worry. Our government has the juggling capacity to rearrange accounts until sometime next fall before our congressional buffoons raise that god awful debt ceiling yet again. Meanwhile, Bernanke churns out $85 billion a month to.......do exactly what, again????
Silver and gold are due for some respect, regardless of those that worship at the metastasizing fiat alter. Get religion! Get your PM investments lined up.
A long term PM bull like myself invests heavily in EXK, other miners, and lots of physical based primarily on the concept that the U.S. dollar is over printed and the country is over indebted. History tells us that our much abused fiat currency is destined to become worthless. But I am beginning to suspect that the "powers to be" have more than one ace up their sleeve.
The latest gambit in supporting the U.S. dollar is the recently floated scheme suggesting the U.S. will overcome Saudi Arabia as the world's biggest producer of oil. We are now looking like a energy resource rich country and our current account deficit should drastically shrink as our oil imports of the past were a huge component in our trade deficit. We are now being told that the U.S. may become an oil exporter. And the oil fracking business is supposedly going to drive job growth. All great factors supporting a strengthening country and a stronger currency.
But fracking technology has been around for over 40 years so why the big revelation today? And fracking will open up oil production in countries around the globe which spells doom for the "petro dollar", one of the major crutches supporting the U.S. dollar as the "reserve currency".
So what's my point? Something tells me the banker/government syndicate can drive this U.S. dollar move upwards longer than most suspect. And how many more aces do they have up their sleeves? It's going to be a bumpy ride for PM's and, unfortunately for my EXK investment.....a PM price turnaround may not be close at hand! I'm hanging on for now as fundamentals will eventually catch up and burn the game players using fiat currency as their weapons of choice.
GLTA! If we see a $3 handle on EXK, I may have to secure a heavy prescription of prozac. Ha ha
“One of my colleagues, who was in Tokyo, just told me there were stunning $500 premiums on one ounce American Gold Eagles, and there were none to be found anywhere in Tokyo. So the Japanese were taking advantage of the price drop to buy seemingly everything available in terms of physical gold in the entire country.
They were dumping their yen and other currency positions and putting massive amounts into physical gold. This was happening as fast as the Japanese could do it, and they did not mind paying quite a premium for physical gold. What we have seen around the world has literally been a run on physical gold. People all over the world are simply turning in their fiat money for physical gold, and silver as well.
What we have seen recently was a manufactured, but complete capitulation in the gold market. This may surprise KWN readers, but I firmly believe that gold will break to new all-time highs this year. I also believe that we will continue to see a split between the paper market and the physical market, and it will be the physical market taking gold to new all-time highs.
There may be a paper market that trades virtually every second, but if you want real physical gold it is becoming harder and harder to come by. This will just translate into people paying higher premiums for the physical metal.
I would also add that right now if you want brand new Silver American Eagles you are going to have to wait two months for them to be delivered. So the retail physical market for the metals is on fire right now, and the same thing is true for the big money buying the 400 ounce fine gold bars as well.”
Keith Barron....KWN website
A 50% rise from here would take us to somewhere below $7.50/sh. That's almost laughable. Well, perhaps not if silver is not destined to go back up above $35/oz. But it seems to me that with all the fiats exploding in volume....just by printing press power, silver has nowhere to go but up.
My prediction: When silver rises back to $35, EXK will visit a price above $9.
Enough said. This is a ridiculously low stock price for EXK. It's a time to be patient...because time is on our side. And, yes. if I had more dry powder, I would use it now!
I empathize with you Beast. I also suffer from EXK exhaustion but I just can't let go (due to fundamentals). I'm not going to Dubai to lift my spirits. I think I'll just go catch that new flick, "Oblivion" instead. Ha ha
It might be cheaper for EXK to buy silver at "futures" prices on the COMEX rather than mine it from the earth and going through the trouble of refining it. When these paper prices go below the cost of producing silver ingots, then these miners with cash reserves would be better off closing down mine production (temporarily) and buying up "futures" contracts and then demanding delivery. Guess what would happen to the price of silver under such a scenario?
Bernanke "jawbones" the dollar up and keeps interest rates low simply by making noises that the Federal Reserve is considering ending QE "sooner rather than later". This BS is really blatant manipulation of currency and interest rate markets. Silver miners should do the same thing. They should band together and appoint a spokesman who could announce the miners plan to shut down production and start purchasing on the COMEX if silver prices sink much lower. Just suggesting that plan would jump start silver prices.
I'm just saying.....
I doubt silver will go extinct. History repeats itself and although there is some discourse going around that silver is losing it's monetary and "precious" metal value, we have over 2000 years of history demonstrating silver used as currency. Didn't Jesus get sold out for 30 "pieces" of silver?
This recent panic selling bodes well for future prices. Everyone should read Adam Hamilton's article recently posted of the 321gold web site. Panic sell offs almost always result in a doubling of prices off extreme lows within a relatively short period of time. He posits that we most likely are looking at a "V' shaped recovery.
But what do I know? I just keep my fingers crossed. LOL
Remember all the MSM pundits coming out of the woodwork Monday (3 days ago) telling us gold and silver were now being sold off by even small investors all over the world. So in light of what was really occurring we have to ask ourselves (once again) if those pundits were just lying, deceitful shills for the big bankers or were they just completely blind?
Now we find out that the U.S. Mint sold a all time one day record of gold coins yesterday (2 tons) and more gold was sold in the first half of April than in the previous 2 months.
Additionally, today Bloomberg now prints this:
"Gold prices climbed in New York on signs that demand is rebounding among consumers and investors.
Gold retail sales tripled across China from April 15 to April 16, the China Gold Association said. In India, demand climbed to the highest this year, according to the All India Gems & Jewellery Trade Federation. The nations are the world’s top bullion buyers."
Yes, physical and paper prices for gold seem to be disconnecting and as far as demand is concerned....I'm not worried and I'm not listening....to those big bank analysts who churn out the most disgusting garbage an analyst can churn....deceitful propaganda!
Metal prices will rise on physical demand and EXK will rebound from these fundamentally ridiculous low prices.
"US Mint Sells Record 63,500 Ounces Of Gold In One Day"....yesterday, 4/17/2013
"According to today's data from the US Mint, a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone.
Punchline number one, as the chart below shows, is that the more the price of gold fell, the more aggressive the purchases of physical gold through the Mint became, rising to 96,500 oz in the last two days alone. Buying more of something you want when the price drops: what a stunning concept - explain that to the algos who nearly crashed the German stock market overnight."
Quoted from Zero Hedge article.
I guess nobody wants to buy gold anymore...especially if you listen to the main stream media! Silver follows gold.
Beast! I remain an optimist in silver and a total pessimist on the dollar and treasury market. I am convinced along with the likes of Jim Grant and Peter Schiff (as well as numerous others) that the dollar is headed towards a zero value. Silver prices may not rocket to the heavens with the collapse of the dollar but it certainly will have more purchasing power than it has ever experienced in the past. So many markets are rigged by central banks and their connected banker friends which may represent the "new normal" but artificial markets are subject to horrendous movements at the drop of a hat or the flight of a black swan.
I don't know about you, Beast, but I view my precious metal investments more as insurance than as an investment. If they start rising into a screaming bubble, then I will sell. We have not seen that bubble yet. GLTU
P.S. It still is painful going through these sharp declines.
From Oct 2010 to April 2011 (less than 6 months) EXK's share price went from $4/sh to over $12/sh. Just an observation but, yes,.....anything can happen!
EXK share price is now trading where it was in Oct, 2010. Seems to me EXK has been an expanding profitable silver miner and has grown nearly exponentially since then. Fundamentally, how does the current share price make sense? I dunno.
Has it ever been this low? Of course, if the price of silver does not start rising, then earnings will fall and PE will rise. Where this silver market is going in the short term is anyone's guess. As I sit looking at my depleted EXK shares I can only admire those who sold out just weeks ago when EXK was touching $7/sh. My basis is much higher than that! Oh.....the pain!!!!!
I'm starting to feel really stupid but, nevertheless, I will not be shaken out of my EXK shares and let someone else enjoy this bargain basement entry point. "Stupid is as stupid does...." GLTA
"Here are the 2012 costs per ounce of some leading miners included in the industry number, according to this method:
Hecla Mining (HL) - $24.62 per ounce
Pan Amercan Silver (PAAS) - $20.81
Coeur d'Alene Mines (CDE) - $ 27.72
Endeavor Silver (EXK) - $24.91"
But who cares in a world where money is created for free?
The Debt to the Penny and Who Holds It
( Debt Held by the Public vs. Intragovernmental Holdings )
Current Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
04/12/2013 11,972,610,122,573.13 4,835,630,263,700.38 16,808,240,386,273.51
Jan 2014 call option with a strike price of $7.50 is now on sale for a measly .35! A mighty gladiator draped in war armor upon seeing this stunningly low price would drop to his knees and kiss the earth for a chance to conquer this easy quest by purchasing as many of these call options as possible.
Is there any chance in the lower kingdoms that EXK will dwell below $7.50 by the end of this year? I'll take bets on the "over" for this strike price. Dare I say....it's a gift from heaven!