Trepidation in the Gold Market Today
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Silver mining is no longer a viable business. These miners just want to operate on a failed business model and burn the investors’ money. They are their own worst enemy. They should cease production or have some mechanism of buffering the loss. I think these mines will go away and at least not making proft for a long time. It is why I haven’t bought any for a while. I may sell my existing ones and buy physical ETF.
My order for SBT.UN is filled. The volume was so light.
Just out of interest Lawrenc, maybe check the new one from Sprott.
Read what they were including in it, looked ok should metel turn around.
Thanks, I have their physical silver trust as well but my cash are in RRSP so I have to convert to US $ every time. The rate is not that great.
Sorry do you mean their miner ETF? I don’t buy miners anymore. I have their mutual fund though.
Listen to today’s editorial with Doc.
I personally am not even close to throwing in the towel yet in this sector.
See my technical note, below, on Silver, Lawrence. The December contract is on thin ice.
My worst case for Silver is now $8.77, BB. For details to help you assess the odds, check out the SIZ14 ‘tout’ on my home page: http://www.rickackerman.com
I will say a prayer you are right about 8.00 dollar silver, Rick. A drop that big will put my pension plan into happy land.
Well, if supplies don’t run out at that price they never will.
Posted on our site, Thanks Professor.
Gold to Xau ratio is getting up there.
Here’s a similar “live” look:
GLD:GDX
http://stockcharts.com/h-sc/ui?s=GLD:GDX&p=D&yr=1&mn=5&dy=0&id=p60556631651
XAU to Gold ratio. Try extending the chart to 3 years and have a look.
Here’s a 20 year monthly chart. Miners have been below their ’08 lows for more than a year vs gold.
http://stockcharts.com/h-sc/ui?s=$XAU:$GOLD&p=M&yr=20&mn=0&dy=0&id=p01068985750
I am not a subscriber so I only get the 3 year chart. All the charts from above are overbought or oversold. Something has to give soon. Time to speculate a little with high risk capital IMHO.
Thanks for letting me know that you can’t see the whole thing. This means that many of the charts that I’ve posted here do not look as they should to many people, especially when annotated!
Oh, I agree that something has to give soon. A rally of some sort is coming soon.
Speculate in what sector, Dan?
Hi Al, I mean the micro-crap gold and uranium sectors; IMHO only. Thanks for this great site also!:-)
Silver dipped at $17.04 when I woke up this morning, then bounced between $17.00 and S17.20 for several hours. Now at noonday silver has broken the $17.00 floor and is at $16.95/ounce, according to Kitco.com.
See my note below, JH.
Shorting gold is the trade and has been since it’s been in the 1300’s. Rick is looking for a target in the low 1100 range,. In other words gold is still a beautiful short.
Al keeps talking about how horrible this economy is and that WW3 is right around the corner. Guess what Al that spin has been going on since Gold has been trading at 1900. All your gloom and doom talk is not going to make Gold go up.
The U.S. economy, in my opinion, is a complete house of cards. That is not gloom and doom. That is a fact.
Regarding World War Three right around the corner. That is a huge stretch. Others are saying that but certainly not me.
I am concerned about geopolitical events, but not to the extent that World War Three is right around the corner. Truth be known, I don’t believe there will be a third world war in my lifetime. Nukes are a huge deterrent!
Hecla is down to $2.51, I think it could fall a lot further so I am glad my target of $2.49 didn’t get filled.
Stewart Thomson:
“The banks are enormous buyers of silver now, as well as gold. I’m a steady buyer too, albeit in “somewhat” less size than these commercial titans. I’ll be a light seller at $18.75. Investors won’t have anything to sell there if they are not buyers into this decline. I’m not interested in “calling the turn”. I’m interested in being invested when it happens.”
I am with you. I will buy until it is the bottom and sell some when my position turns a decent profit. Otherwise I run out of cash soon.
Thank you Rick!
Oops, wrong place!
Numerous bullseyes today — in DIA, Crude and Silver, for starters. I’ve made the one in December Silver publically viewable at http://www.rickackerman.com, since it is absolutely crucial that today’s low hold.
My Cyberark went up 16.8% on 3k shares today and now in a profit position from a loss yesterday and Loco and Rwlk my main ones are up nicely too today. I bought back Rig yesterday and today and took another loss as oil sector keeps declining. Tried this stock many times and always end up with big losses. Will stay away from resources and stick to tech.
$16.80? I wonder if we see $15.
It may take mine closers and supply to dry up before we see a new bull, but it will come.
Eventually.