Gary and Chris switch from comments on the conventional markets to comments on precious metals.
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Yes Lawrence ! Good is bad and Bad is good by strong We WILL WIN !
Good thing is that I am buying. Low price is welcome. It has same price with when the silver was 7-8 dollar.
Yes ! Very temping ! First Majestic realy a nice stock to buy ! Crazy 7,76 CAD ! I looking to !
My first chunk of 200 was at 8.21 and my second bid is 7.61. I am not jumping in with both feet . The fact that they can withhold the silver means that they are not desperate for money, which is opposite to most of the silver mines.
Lawrence, it seems a good idea that FMS started this…. do you know if they shut down their production too?.. otherwise, how could they continue to pay their staffs?
Genesys,
This happened suddenly so I haven’t had time to do much research. The couple hundred shares I got on Monday are too little to motivate me to do much work due to my busy schedule. I can only guess. They only withhold 30% of the silver production so they still sell the rest. Second, they have been making a lot of money over a year ago and marketing their silver round for several years. So their treasury seems solid. I can see their treasury have over 200 million cash and equivalent. They should be OK. If they have some problems, they should be able to secure some loan using the silver storage. In addition since they are the few industry allies of Sprott, they should be able to get help from Sprott. However, if silver keeps lagging, it would be a problem since they have been losing money since last year.
Once I get the next chunk shares filled, I have to do some research.
Thanks for asking.
Man… my concern is one Piranya can bite but cannot win a battle… it needs the whole group… 🙁
I don’t think most miners will do anything until they cease to exist. Bankers might be planning to bankrupt them and take over their asset. Since most silver miners are beyond their reach so the result is much fewerp silver producers which is good for silver price. First majestic is one of the best, if any silver miner can survive, it should be among them. I feel it is a gamble.
I own AG and am glad they aren’t selling all their silver at these prices. CEF isn’t selling theirs either!
CEF stores their gold and silver most at Yoyal canadian Mint and some at Scotia Bank. They should be 100% backed by physical.
All positive Man !
Get Avi on! come on Doc its been ages
Fair enough, BK
The market is saying it has no confidence in gold or silver right now. Both GDX and GDXJ got smashed in the face today as guys rushed to lock in gains ahead of a technical setup that looks like it will be taking gold and silver down. That was where today’s dollar strength really showed up in my opinion. Silvers in particular took a face-plant and is off more than 2% as it seeks a meeting with Octobers lows (and below) and I believe it is a precursor that will see gold following.
Of course, that is why it is so dead quiet on the site today. All the bulls have evaporated into the night and no doubt a few got their arses handed them on a platter as they had once again loaded up on miners in anticipation of a big breakout. What nobody ever seems to believe is that just because the big ETF’s are at technical support that they cannot still go lower. Basically, a few guys are jumping the gun as usual and trying to time the absolute bottom. A risky play given golds poor sentiment readings.
Not even close to being “dead quiet”, Bird!
Sure seemed dead 8 minutes ago. Maybe it will pick up.
Bird….This silver bull is still here…oh & I also hold a small amount of gold…& yes I am bullish on that also.
Bird….my observation is that you only show up when the metals get smashed….toot..toot…toot… don’t seem to hear much from you during rallies in the metals…..just sayin….
You said that before. But you are wrong. I ordinarily post every single day unless I don’t have an internet connection (often the case) or when I was sick last month. You probably misunderstand me anyway. I am actually a gold mercenary and I don’t care if it goes up or down just as long as i win!
Birdman… what’s your thought on Fed view of USD… will they defend or will they let it rise slowly?… (I just guess rising fast is out of the question).
Sure Genysis, I would say as a general rule the Fed does want to see the dollar in decline because that is the clear manifestation of inflation percolating in the system. Over the short run though there are compelling reasons to see the dollar strengthen as it has been doing. One outcome is that it pushes down commodity prices in the futures markets which can be beneficial to companies seeking to lock in contracts on supplies. Anyone taking advantage of current low prices will see profits widen next year as the differential between input costs and sales grows. So this period of dollar strength might be fleeting and commodity prices could well start rising again in the New Year as the dollar sinks back. Nothing has really changed in the big picture anyway if the dollar appreciates for a few months and then goes back down. I don’t think anyone at the Fed is losing sleep over it.
Thanks Birdman… I just try to guess what’s behind Fed’s message on Oct 6 on concern about strong usd. They sure know their message will tank USD fast and hard… Just guessing how they want USD to look like for the best of business growth and inflation.
Stop talking about deflation. It is sickening. Since you guys don’t shop, it is better to asking your wives.
Don’t think about deflation as the price of vegetables and chips Lawrence because that will just result in the wrong conclusions. The guys are referring to the global growth outlook which has grown increasingly dismal.
GDP is falling almost across the board for large economies. Meanwhile, in the past months we have seen oil, copper, grains, softs, metals and most everything dropping like a rock. The Goldman Sachs commodity index is hitting lows daily even as the global burden of debt is growing to levels that are intolerable and wholly unrepayable.
That is what deflation is about.
The inflation you may be seeing showing up in stock prices and housing will be fleeting in the bigger picture. Keep in mind that assets can inflate wildly as they have done during all these rounds of QE but that the debts incurred to create them endure.
A recession will bring about a reconciliation of the differences and as unemployment rises those same assets will almost certainly decline. I believe a recession is still a year or more out. Stock markets usually lead the economy in such cases. So what should worry us most is a major corrective period in equity markets that will precipitate and lead an economic slowdown.
Asset prices are going to meet their Waterloo.
Inflation was defined as expansion of money supply. It has been changed to mean anything now.
Not in my mind, Lawrence!
True enough Lawrence. We are all aware of that definition. But it pretty much got thrown out the window when the money supply was massively increased yet prices barely responded at the retail level. The thing is that the CPI is accurately tracking the Million Prices Project which puts into doubt the claims of John Williams that inflation is anywhere near as high as he claims.
Anyway, you mentioned shopping. So I assumed you were talking about store prices for goods. Have you seen the price of gas lately? That is certainly deflating in line with the crash in crude this past while.
Birdman,
I am in agreement with you. Not everything is going up in price. Some things are actually declining. Inflation is not as high as John William’s claims. And the expansion of the money supply does not guarantee a rise in inflation.
Mr. Miller,
Depending on your time frame you are correct. Three months ago gas up here was over $4 and today it is down in the mid to high $3 level.
Same is definitely true with housing in my neck of the woods.
Give us some examples of your own.
Bird…the inflation we are all seeing is in the price of food…which are connected to grains, etc…..beef, pork,chicken..all traded as commodities and all up up up….
My sister in law operates a restaurant. She said the price for meat and veggie has gone up 30-60% since last year. She gets it from whole sale. She is very frustrated. I also noticed in the shopping centres, either price is up or the package is getting smaller. Only thing which you don’t have a lot of increase are some stuff from China. Since these price varies more than stock market, it is hard to tell.
I feel that I live under communist propaganda again, LOL. More supprisingly people believe in them. At least at my old times, people laughed at the government stats.
Did they really laugh?
People made (and still making) a lof jokes about those. Chinese(Russions as well) don’t believe in the government.
Interesting, thanks Lawrence
One example is a joke saying – there is a combat troop and a guy from statistic beareu left in a desert, who do you think survived? Answer is the guy from statistic Beareu since since he is good at mixing anything with water.
Also I have been watching a show where man is exposed to 24 ladies to get a date, kind of match making show. There was a lady from Chinese Bureau of Statistics. When she said that she is from China Statistics, whole theatre burst into laughter. She became very famous later on since she always brought up how serious they treat the result and people kept laughing and she enjoyed the focus.
I was referring to declines that we see in the futures market, Lawrence. Those do not immediately feed into current numbers. Prices are deflating though. There is no question about that but it is not in the retail level quite yet. Give it time.
I’ll be impressed if you’re right about the prices of necessities declining at the retail level, Birdman.
So true, Lawrence, about believing gov’t. It’s Americans’ faith in their gov’t that allows such outrageous deceptions.
Al, should be Russians not Russions, typo.
Gator, almost all commodities are currently in decline and have been since 2012. Look at any daily chart for yourself. Gold is down, silver is down, so is corn, wheat, soy, cotton, sugar and most recently oil.
Bird..I agree..BUT ..oil being down is reflected in the current price of gas which is declining….grain,meat,poultry are not down…look at the futures contract for cattle,pork bellies….which is reflected in the retail price….all up up up ….
Fed has no power. Fundamentals will prevail. Governments are accumulating PM. Paper promises will fail. Buy physical, work hard, pray without ceasing.
I agree with all you are saying, Wayne. Fundamentals will certainly prevail!
HEAR-HEAR.
Gold is about to get crushed. Bottom 567 , then big rebound. I know.. I know..) just wait until this time next week
We always have time for a little humor Chartster!
Ok, oil too. Lol
That guy Bo that was on the show last week was wrong in his prediction, but he’s real close to it! Just missing an important piece. After the was he will be back on target.
Maybe he will.
In your opinion, what was the important piece that he missed.
Thanks
After the washout
The missing piece for most is not in the charts, it’s in the structural moves the central banks and new platforms are doing. They are taking away the vapor paper and converting assets. All is about to unfold! Exciting times if you are on the right side of the move
Interesting point, Chartster.
I happen to agree re: structural moves.
The moves made in the following days will be mind blowing for many. Very exciting times!
Okay, I will keep my eyes open!
At 2 PM PDT, gold is bouncing off of $1240 a few times. I will be extremely interested to see if it can hold that line through tomorrow. That would certainly be a good sign, would it not? I frankly do not think it will hold, though.
$1242 (rounded) as of 2:38 p.m. pdt, Derek
$1242 (rounded) as of 3:28 p.m. pdt!
I see 1,203 being broke this week. Then,, crush!
Next week gold is fawked. Just a heads up fellas.
I went short at 1246.00
Good call Superman. I,like your style and 1246 was a good entry point. Gold is going down.
THe stock market should get pummeled next week as well.
Hi James,
Could you give some of your reasons for those feelings.
Thanks
Happy 32nd Anniversary in the markets, Al!
Thank you Chips,
Actually it is a bit longer. I simply incorporated my company 32 years ago today. I would change absolutely nothing if I had it to do over!
That’s great! And, it’s an inspiration to me as well. I only wish I were 32 years younger (haha), I’m 56. I got a late start at becoming an entrepreneur, but things are moving in the right direction. You might not see me on Shark Tank, but I’ll be in the mix.
First Majestic Silver is punished for holding back silver sales. Its stock took a near 15% hit since the announcement.
Gold stocks has never been so bad relative to gold. Gold/XAU ratio is 16.3. It is the lowest ever as I remember. When I started to invest in gold/silver in 2004 the ratio was 3.3.