You obviously could have bought a bit lower by waiting, but I believe you will do well with your investment. I too am considering adding to my holdings, but two things are holding me back at this time. First, I believe we will get a small correction in gold near term, but I am reasonably confident that PM's have put in their bottom during early November. Second, I am not so hot on small Brazil mining companies after my sorry experience with JAG.
I was driving down the highway last week and passed a large semi loaded with lumber. The thought went through my mind that the lumber represented wealth as it was the result of growing the trees harvesting them and processing the raw product into finished lumber. The lumber was a store of wealth and could be traded for other items of value, or sold for dollars. The federal reserve with little to no effort, could print money and buy the lumber, which would be synonymous with stealing it. It could be viewed as a wealth transfer, which is exactly what the dollar printing is, a transfer of wealth from those holding dollars or dollar denominated assets to those receiving the newly printed money, namely the very wealthy federal reserve big member banks. You could say the same thing for PM mining or any other productive activity.
The owner of the lumber spent time, used his land and water resources, and labored to end up with a truck load of lumber, something of real value. The federal reserve prints dollars to buy (steal) the lumber and that is supposed to stimulate the economy? Maybe Krugman can explain it to me, but I doubt it as I am a very dumb knuckle dragging engineer and he is an ivory tower PHD (Post Hole Digger) economics professor who is always right, just ask him even though he would not know a PHD if it knocked him on his butt.
Stock is moving lower in pre market as you predicted, but the entire sector is moving down. Do you see PAAS making a new 52 week low?
The premium is confirmation that paper silver, where the published price quotes are derived, is beginning to separate from physical silver. This may be indication that the manipulation is coming to an end, supporting Smallwood's recent comments on silver pricing.
Investors are probably discounting LUGCF because production is in Brazil, but if things work out favorably for gold, all three should do very well
Could it be that you finally going short is a contrary indicator? I have stayed out of the general stock market as I fear when I go long it will drop after the long run up. I fear going short the market because I doubt the fed will let it drop, rather, they will print more money. End result is the value of the market goes down but the nominal price goes up. Measuring with the dollar is much like trying to measure with an elastic yardstick, it is tough to get an accurate reading.
As pf 9/30/2014, short interest is 6,143,886 shares from NASDAQ site. Care to suggest where you get your numbers?
per NASDAQ web page, short interest is 6,143,886 as of September 30, and about 1.1 days to cover. Where do you get your data? GG stock will likely go up but there will be far more influential factors than a short squeeze.
Settlement Date Short Interest Avg Daily Share Volume Days To Cover
9/15/2014 38,489,138 2,763,839 13.925970
More rule making that is ineffective as all the rules and laws are already on place. What is needed is enforcement, but with the fox governing the henhouse, there will be no prosecutions, so this announcement is nothing more than meaningless chin music.
Short interest is high at 38,750,062 as reported for 8/29/2014 on NASDAQ site and a squeeze is probably coming, but it is probably not starting from near 47 million shares short as you suggest.
I agree that there was no reason for KMR to be at lofty levels above $100 and possibly not above $95. I wrote covered $100 Sept calls a couple weeks ago based on that premise. My question now is what is a reasonable price when all the dust settles. What we have now is a situation where the whole is greater than the sum of the parts, possibly due to a lower payout % dividend payout and company tax and business/tax options for the future. Market participants will sort it out in time, they are collectively so much more intelligent than this fellow.
C&P from NASDAQ short interest page, "8/15/2014 8,314,907 ". Your shares short is roughly 4 times too high.
C&P from Yahoo key statistics page "Shares Short (as of May 30, 2014)3: 8.84M". Yep, a short squeeze is coming but probably not of the amplitude you have in mind.
One of these days, weeks, months, or years, you will be correct. Up till now, not so much, but I am thinking it will be sooner than later. The down turn has gone on long enough to suit me.
Pump or bash is your call, the pm stocks are down so I am buying. I believe the way to win the game is buy low sell high. I am financing my PM related purchases with sky high S&P stocks that I am selling.
I do not believe the question Gregory asked had anything to do with going to the store to buy groceries, but rather which will store value, gold or cash dollars. With dollars, you are putting your faith in the federal reserve to control the number of dollars in circulation thus your wealth. The only way for dollars to hold value is for inflation to be zero as congress has mandated to the fed. The fed in their wisdom has decided that 2% inflation is stabile so you can count on your dollars losing 2% in value every year on average and if the fed gets it wrong, they are sure to err on the side of more inflation. Gold on the other hand has over time been a store of value.
Money is defined as a store of value and medium of exchange. Dollars do not store value and gold is not a medium of exchange at least for now, so technically neither is money. I keep cash obviously for paying the bills, but I certainly do not keep it for a store of value.
Just because you cannot buy groceries with gold does not mean you should not own some. You cannot buy groceries with your car or the fence around a persons home, but that does not mean they have no value and should not be owned.
Given the above, I do not believe the choice you claim is all that obvious.
Nearly 3000 Dec $5 calls traded today and 2700 Dec $5 puts traded today. As you say Parisclockman, somebody knows about the something in the works.
We are already doing this exact "proposal" by different name(s): welfare, free medicine, food stamps, housing assistance and the list goes on. It does not work and will not work just because the fed does it, why? Because it does not get to the root problems we have created and perpetuate. We are misallocating resources by not purging failing businesses and non performing debts; we are not addressing problems of the medical monopoly or better cartel; we are encouraging sloth by paying more in welfare than a person entering the work force earns; we do not pay a decent rent on savings, namely interest so we have capital to invest and retired people who saved for retirement to have an income to spend; and the list goes on. Basically these folks think we can solve our problems by redistributing money from the folks that earn it to those that do not, or by punishing the work ethic and rewarding sloth. That is more of the existing problem! Good for PM's and PM stocks though.