It is highly likely that China will no longer cooperate with the West on gold now that it needs more and a price higher to stabilize its reserves. They also might be interested in saying #$%$ loudly. Could be exciting.
And no matter what the bankers say, they are the ones that need a higher priced asset to fix their balance sheets. Debt and company stock shares won't do it because they are not permanent. What a grand experiment. It failed.
If you can't mine it profitably, say you mined it with $35 in various costs, but do not mine it. Then buy it from the COMEX for $16 off the books. Send that to your customers as silver that cost you $35 to mine. Even if you are officially losing money on the sale, suddenly you have $20 an ounce in unaccounted for money you can put in a brown bag and take home. Winning! And now you know why the miner CEOs don't care. They can make money for themselves, at the expense of the company, by reporting cheap purchased silver as expensive mined silver.
Provident has about 250 2015 Kooks selling for under 19. That is a good deal. Buy back is 17. The 2014's are selling for over $40 on APMEX. Which is crazy. You can get them for 25 other places. If you want a coin, and you can get kooks for Eagle prices, do it.
People I know are starting to ask me where to buy gold and silver. Which is weird. They never cared before. Gold and silver have been flat for like 3 years. These are successful people, not dipshits. Then they ask why the premium is so high. What do you say to that? How do you explain the price on the screen is the price of a hedge, not the price of a product? Most of the people on this board don't even understand that. But, anyhow, something is going on.
And the trade keeps on getting better. Copper, the most over valued asset on the planet, continues to choke and sputter on increased mining and global depression.
Actually, reality is that simple. It is people who think there is magic out there that make things hard for themselves. This is a comparison of apples and apples, supply and supply, demand and demand., fundamentals and fundamentals.
This trade is what is known in the industry as "winner winner chicken dinner". Math is your friend.
Copper getting an enlightened beat down today. This trade is going viral. So far this trade is in the green.
I think you can't go too far into details. They are both metals with monetary history and industrial uses that are used up every year. Silver only appears to be a byproduct because no one is allowed to have a profitable silver mine. The reserves you are talking about are geologic estimates. They are not actual silver supplies.
The truth is probably somewhere in the middle. Here is some basic math for the wise silver accumulators to show how stupid low the silver price is vs copper:
17 million tons of copper are mined every year. It all gets used. Copper is 2.70 a pound. 14.6 troy ounces in a pound. Copper is 18.5 cents a troy ounce.
20,000 tons of silver are mined every year. It all gets used. Silver is $16 a troy ounce.
Two useful commodities that get consumed. Copper is mined at rate of 850x that of silver. To find a relative value based on amount mined every year. To be valued the same way as copper, Silver should be at .185 x 850 = $157.25 per ounce. To be valued the same way as silver, copper should be 16 / 850 = 1.8 cents and ounce.
The hedge fund trade of 2015: Short copper long silver. One of them is priced 1000% wrong. My guess is copper is being pumped up more than silver is being held down. Silver prices rise after the first melt no matter what. Only new subsidized silver is available near spot. The rest gravitates to $26-$40.
The evidence is in. M2 is up 5% since October. M1 is up 6%. The pace of money creation never even slowed. Nothing changed but the rhetoric. The only possible outcome of this financial system is still right on schedule.
Silver is through the monthly downtrend line. Silver leads. For gold to follow and test its monthly downtrend line, it needs to be around 1480. It will revert to the mean, and possibly cross it. Don't listen to the dummies and the shorts. Put them on ignore. Everything trades. They have not been correct about a single fundamental, or made a dime shorting in years. Silver should test the 19 area before gold. If it gets above it, 1480 will likely fail to stop gold. The reality is, gold's absolute minimum price should be in the 2400 to 2500 range by any fundamental standard.
I was going to post yesterday not to leave stops in. But I figured everyone knew that. Anyhow, target hit. Stops run. recovery was instant. Paper is just a game. They always take it down through stops before a lift off.