Short squeeze on GSS or short squeeze on gold? I suspect you mean gold, and given the confluence of factors, not the least of which is the change in the market from a 4 1/2 year bear to the start of a new bull, a squeeze could very well be in the cards. It is exciting thinking the implications of such But frankly, it's exciting thinking of the potential here even without a squeeze.
First, the buyer referenced in today's news is an experienced participant in this industry, and that they bought these shares so close to the market price at $.66, this is a huge vote of confidence, and sets very strong support in the current high price range just below $.70.
Second, doing this to pay off debts, clean up costs and help pay for expansion in a newly rising gold price bull market, that is exactly the time to do something like this.
Lastly, with what's going on with the strength of gold, on the verge of a massive breakout, to begin the second leg of this new bull market, the pause in GSS's price today is a screaming opportunity. I increased my position by 50%. And as I type, GSS is back up over $.70. Lovin it.
Good comments. Thanks all. I will say, the much lower average daily trading volume of AUMN does worry me some, especially if I wanted to build a large position. Some days it's pretty good, but then many others it drops way off, so not ideal.
Update: I purchased both, but the largest position was AUMN. I love its exposure to Silver, which in a sustained bull market will far surpass Gold in appreciation percentages. I also love its low o/s count. Both of these provide the added leverage I seek to maximize returns as the new Bull in Gold gets underway in earnest. There is of course much more to like about AUMN that can provide tremendous upside. I just like these two facts right now especially. GLTA
As far as highly speculative plays go in a hot market segment, potentially still very early in a new long term uptrend, I have filtered out dozens of other precious metals penny plays, and these two remain. I am struggling with which I think is better, especially on the fundamental side. I thought to put this choice out to the board and see what input others might care to share? Thanks.
I anticipate GSS resetting at an entirely new and higher price range in the coming months, and then rising very nicely as this early new Bull market in Gold gets underway. Today's GSS is different and better than yesterday's, and the market will recognize that. They already did in a little way when you look at the hart and see that the recent run up lead the Gold miners rather than followed. Keep in mind also, we are coming off an historically long bear market in Gold, and evidence of a bottom in Gold now has been tremendous, a real change in character. The timing for GSS looks good for a number of reasons.
GSS a Gold producer and turn around play with quite a bit of upside in actual production beginning the second half of this year, 2016. They have also significantly lowered their cost or production to well below current Gold prices as part of a new strategy to become a low cost producer. This news came out over the last month or s0, and no new analyst revisions yet, though I expect them.
Current price is $1.66. Coming off so long a Bear market in Gold, as Gold continues its new uptrend, this target price and so many others among the Miners will turn out to be way too conservative. I also note the opinion printed not too long ago that EXK was on its way to becoming a major player in this industry. GLTA
As we know, EXK recently announced they would be curtailing production due to the very low Gold and Silver prices, not stopping of course, just cutting back, I think it was as much as 25% or so. This made sense to me strategy wise. Then, as Gold began to show signs of a bottom and possible new uptrend, I began to think they might reverse that decision, and began wondering at what level Gold and Silver prices they might do that. The more I think about it, however, I'm not sure that is what will happen, anytime soon anyway.
If this is in fact a new uptrend in Gold, and recent action does suggest the bottom is now confirmed, their strategy of cutting back production in favor of continued exploration and development still makes sense from a longer term perspective. If prices are going higher, I am thinking they will continue to wait and not change their strategy, in favor of still higher prices down the road.
So if true, and I think it is very possible, even likely, so if true, what does this mean to the investor?
IMHO, it means there will likely be more leveraged, active junior minors that could give greater short term gains, and that EXK will be a longer term play, with its bigger gains much further down the road of a new bull market in gold and silver. EXK might even be more volatile to the downside.
It's a much bigger discussion than can really be had here, or that I want to get into, but I will make a couple of points in response to your question:
One, negative interest rates is virgin territory. Scary territory in fact.
Two, think about it from an individual's perspective. What would you do if you went to the bank, and instead of them paying you 2% interest on your checking or savings account, you had to pay them 2%? You would not be happy. You would look for alternatives. You would be worried about the larger environment that caused something like that to happen. You would likely begin to change your behavior, be more cautious, worried about the future.
Three, now think about that from a global perspective. The stock market is falling, so that's not the best alternative. The US Dollar, generally the safest place among the currencies, is falling, so that is not the best alternative. What is? Well, Gold, silver, they are going up, and not only that, but have been going down for so long that the new uptrend may only be in its very earliest stages, with plenty of upside still to go.
Four, think about this. with central banks around the world, including the US Fed, having used all their traditional ammo to try to bolster the economies, and even with interest rates at historical lows, near zero, some now negative, what can it do to improve the situation, raise rates? During a global recession? Not the best idea. The Fed's have shot their wad, and this is the best they could do? Scary.
Food for thought.
I read that too. I also read that Hong Kong is on the verge of some serious derivatives trouble that like the trouble with the German bank in Europe could have further positive and big ramifications for Gold. And on top of that, I have now read in the last 24 hours or so of four (three or four) central banks that have already gone to negative interest rates, Sweden the most recently reference. Even Yellen when asked did not preclude that as a possibility in the US. This negative interest rate environment has long been a considered a potential major catalyst for calamity and for Gold running to new all time highs. Then look at the US dollar, falling further. If the dollar, currently down around 95.36 were to break below roughly 94, very key support, that could be the start of a literal free fall and new bear market in the dollar which would result in a further explosion to the upside in Gold. More pieces to the new uptrend in Gold., and the tremendous potential upside for it... even more so for Silver... even more than that for the miners.
Gold can be volatile, but that said, this is some very strong, and long waited for, price action for precious metal. Anything is possible, but this looks to me like it's about to blow past $1200. Some analysts peg the next major resistance level quite a bit higher. Little MUX, with such a solid balance sheet, and such solid longer term support on its chart, is positioned beautifully to go much higher near term as well. GLTA
You don't think there's a tangential relationship and correlation between gold and silver, and gold and silver miners? Of course there is, and though you may not care to consider and monitor the industry group aspect of a play, I and I suspect others do. A single post that a few people want to add their input to on a correlated and relevant topic doesn't hurt anyone else on this board. I appreciate the concern over off topic posts, especially when they seem to take over a board, but that is NOT the case here. This is a tangential but absolutely relevant topic for a serious investor or trader. And if no one wants to reply, they won't.
Thanks guys. I appreciate the input. In case anyone is interested, here is the list of silver miners (pure plays or significantly primary silver miners) that I have established so far:
SLV (Silver ETF)
USLV (Triple margin on SLV, to the upside)
SIL (Silver miners ETF)
HL, SLW, CDE, AG, SSRI, SCHN, EXK, PAAS, GPL.
Note: I like HL; I am intrigued by PAAS and need to do more DD. I left SAND off since it is a different type of play than I am looking for.
If anyone would like to continue to add to this list, that would be great. Thanks again. And MUX just hit $1.60; gotta love it.
I really like MUX, its solid financial position and growth strategy, and yes, it's solid technical base that could easily support a very strong uptrend from here should that happen.
That said, I am looking for a play or two in the silver market. I know many gold miners mine various secondary metals like silver, but I am hoping to come up with if not a silver pure play at least a miner that mines silver as their primary metal. Can anyone help by providing a name or two or even a list? Feel free to share your thoughts on any of them as well. Thank you.
I like silver now, especially if we see a technical consolidation sometime soon, and I know of multiple jr and sr gold miners who mine silver as a secondary metal, but I do not know many miners where silver is their principle ore. Can anyone on this board provide me a list, or the names of some other silver miners? I would like to follow more than just HL in the group. And if you have any thoughts on any of them, all the better. Thanks. GLTA