With everything seeming to sell off today is this the start of something?
With the conventional markets down and precious metals dropping heavy – gold down over 2% and silver down 3.5% – Cory chats with Gary to find out if this is going to continue for a while.
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It looks like Apple dragged down the market. I added some more. I was able to buy back half my XOP position on the sharp drop from 55+ to 54. I am not going overweight into it like before.
Alexco (AXU) – Announced an 10% increase in resources this morning for Flame&Moth and Birmingham. The AXU is up 5% on high-than average volume.
finance.yahoo.com/news/alexco-announces-indicated-silver-estimate-080000144.html
“These resources have resulted in an approximate 10% increase from 50.2 million ounces to 55.4 million ounces of contained silver in Alexco’s combined indicated mineral resources at its Keno Hill properties.
AXU needs to go up several fold just for me to get even. I am patient and believe it will.
BB
I have a link (which I will post in the coming days) that analyzes Alexco based on JUST the environmental group; basically, the company is undervalued even if you ignore the 55M silver and the 400 TPD mill.
Brian
I will watch for it Brian.
>The AXU is up 5% on high-than average volume.<
"And … its gone"
There is a really interesting article about how many Silver miners are starting to diversify into Gold mining in a strategic way and actually grew their gold reserves much more percentage-wise than gold miners even did.
At the end of the article the remarks from First Majestic’s CEO show his feeling that this may be a bad trend, and when the silver price does turn around these companies are going to wish they didn’t get into gold.
I can see the advantage of diversifying a little as precaution, but many investors want to by silver companies as a multiplier on the spot silver price. If they diversify too much then it dissolves that branding in the marketplace. However, most silver companies also produce a great deal of base metals, so one could argue they are already poly-metallic miners to begin with.
FOR HARD-HIT SILVER MINERS, GOLD IS THE SILVER LINING
http://www.reuters.com/article/2015/04/27/us-mining-silver-gold-idUSKBN0NI0AD20150427
How can they say gold is not a good investment over the summer. it is an artificial market and will remain that way until the Chinese own all the gold. These investment banksters should be jailed. Is the US congress a silent partner in this?
Bingo !!! World war ..to boot
The congress critters have all been bribed by the boys with deep pockets to turn a blind eye to all of this. I’ll go as far and say that I wouldn’t be surprised if most of them are trading with inside information. Warminster, this isn’t your grandfather’s congress.
ditto on the banksters should be jailed,,,,but, they own the jails…..
You are only a prisoner in your own mind, Jerry. Otherwise you are free as a bird. Chirp.
wisdom from a canary ……. 🙂 Birdman from Alcatraz
I was being serious. Whenever anyone here expresses they cannot win because some higher authority is manipulating the system or conspiring against them they are expressing a victims mentality.
You are a prisoner of your own thought processes. Freedom is a state of mind though.
I agree Bird,
With some investors its never, ever the fault of decisions made by them.
Its always someone else’s fault.
They point the finger every time to justify poor decisions/beliefs they have made, instead of looking in the mirror & accepting fault.
…..but anyhoo.
You are telling me Skeeta. We live amongst a society of narrow minded blamers. The difficulty for those who refuse to accept any personal responsibility is they cannot learn because they have identified external circumstances outside their control as the source of their problems.
Solutions are therefore impossible in most situations. And so they no longer work through the problems or do any self investigation. I call it the lazy way out. You can pin everything on outside influences and never be wrong.
It’s the Government, your wife, the kids, a manufacturing flaw, the boss, your customers, the Fed, the shady HFT traders, the guy who blogs and disagrees with you, the system which is stacked, dirty brokers, collusion in markets ……and on and on and on.
But its NEVER you in the blamers little world. So they live as a prisoner of their own sorry thinking.
I agree with those remarks Skeet and feel it is important to always take personal responsibility for ones actions. All markets are manipulated, but that is the stage that the whole world plays on, so it comes down to being well-informed, doing your own personal research, taking action, and then owning your actions.
Good luck to all and may the actions you take be prosperous!
The gold market is suppressed by paper markets. Nothing changed because the suppression scheme is still intact.
Gary talks about “20,000 contracts in a 15 minute span”. Sorry to be so clueless but here can somebody see this data?
Mike, I should probly know by now but I don’t, if nobody answers you try silver doctors or zerohedge, I forget which one, look for “Harvey Organ”. He talks about it regularly.
Maybe this can help.
http://finviz.com/futures_charts.ashx?t=GC&p=m5
Going off the cliff.
If you wait about 15 hours there will probably be a very good analysis of what happened today at:
Interesting article. Thanks Bok UK.
After mentioning stocks I trade drop 30-35% at “a little drop” today, gold drops $25?
They don’t budge even 1%, what the heck now? lol
Nobody is going to jail for manipulation, its all legal.
I think the question is, how long do sheeple keep playing a manipulated game?.
Yes Im a sheeple too, baa.
But really, you would think people would just stop and the market closes.
Only those will be charged, are those claiming the system is rigged.
Hush..hush… unless you like the slammer.
On the postive side you receive 3 stink squares daily.
Costs the state I believe $50K per inmate.
A free retirement program. Plenty of rest and sleep too
I am looking for a decline in gold below Novembers lows. 1200 will become firm resistance. Today’s metals drops are just the warmup. Meanwhile, GDX and GDXJ breakouts of yesterday look like they have been invalidated this morning.
Ha..Ha…then short the pig.
Should have gone short a
day ago at the highs.
Could be a bear trap. You always
get caught too.
I view this as “transitory”
Birdman–bought into two diamond mines last week, DDC and MDM and surprised to see my investments behave like gold this morning, over the job component in the PMI. Do you think buying into two diamond mines now was perhaps not wise idea?
Jane, I have no idea. I don’t follow diamonds. Never really had the interest sorry to say. I would be curious to know what inspired you though. Are they industrial mostly? Is the market growing?
Wanted an investment that would rise with a falling dollar, and since I’ve had bad luck with gold, why not try diamonds. Also, the charts looked pretty good, reflecting no huge decline. I know what you’re thinking, diamonds can now be grown in a lab to look exactly like real diamonds, even under a microscope, but that technology is still in its infancy. I plan on being out of diamonds when the rest of the world finds out.
Nope, I have not heard about the diamond growing science. Years ago I was really into semi-precious stones but I always steered clear of diamonds. Just out of my class I guess and the business seemed fickle, arbitrary and subject to weird market forces. To me it looked like a bad gamble unless you were well trained in the art of assessing worthiness of the stones. The closest I ever got was taking a minor interest in a Canadian industrial diamond pit but that never worked out and since then I never gave them another serious thought. Call me a Neanderthal….at least I have a chance of understanding gold and silver.
bird has not figured out that all WOMEN LOVE DIAMONDS………..diamonds are woman’s best friend……..Monroe, M…….1960’s 🙂
Some of the mining stocks require one to use limits when buying, made me a bit nervous, so didn’t go there. I’m already having second thoughts.
Funny and true Frank….The Boot.
On a related note, Sandstorm Gold just purchased a Diamond Royalty stream, so even Gold companies are buying diamonds as a hedge:
Sandstorm Gold Acquires Royalty on Diavik Diamond Mine
http://www.sandstormgold.com/news/2015/index.php?&content_id=437
great info…Shad thanks THE BOOT
I thought it was also interesting that Rio Tinto is operating that diamond mine and that Sandstorm Gold bought this 1% royalty off IAMGOLD for 2 reasons:
1) how many base metal and precious metal miners really have exposure to all kinds of interesting side credits like diamonds, tantalum, uranium, precious stones, or rare earths? This should be taken into account when evaluating any project, because sometimes the side credits mean survival.
Another example or watching the additional credits to a project carefully, and not just the primary commodity is Western Lithium (WLCDF). They are developing their Lithium project into the mine/mill this year, but it also has Potash and Sodium credits, and the last 12 months, got a completely different credit and income stream going recently with its organophilic clay-based drilling additive, Hectaton. It produces this for the oil and gas industry, as well as to support the growth of high pressure high temperature, deep directional drilling applications. So it found a way to get a secondary product going while waiting for it’s primary project to hit, and has 2 other credits with good margins in the Potash and Sodium in addtion to Lithium.
http://www.westernlithium.com/wp-content/uploads/2015/01/Corp-WLC-Feb-2015-Li-Hec1.pdf
My point is to watch the credits on a company as they can be a helper or detractor.
2) The second thing this Diamond mine Royalty takeover from IAMGOLD to Sandstorm Gold is interesting in that is shows that streaming companies may go around an purchase selective royalties from companies that may have 1 or 2 tucked away, but need a larger upfront payment now to fund their primary operations. This could be a trend we see develop further.
when gold hit the 1215 mark this week you could see the volatility spikes , obviously the bullion banks were grabbing massive contracts. Then the whole planet was long going into the meeting … the smack was so obvious to see coming. I think the same thing is happening right now. my phone has been ringing all morning, ” THE SKY IS FALLING ” now that everyone is crapping there pants … once the market starts to sell next week … up gold will go !
I think they will melt it back up birdman … for the final smack !
Maybe Max…but it would surprise me when the downside looks so heavy right now.
Bird,
I agree with that assessment. Most traders are also used to the swings up one day down the next and might be left holding the bag tonight. If it breaks down tonight, it will be big IMO.
The dollar could make a big rally here too.
Again, Gary is most likely correct regarding the conventional markets. As usual.
The dollar suffers the worst month In 4 years . Ends record streak of gains …
And nobody saw it coming. Ha! 🙂
I’ve been saying this was coming long before anyone else and that include you bird.
No you did not, Gary. Not even close. You did not time it or hit the target either so you missed the turn in time and value. Who the heck are you trying to kid here anyway? Meantime you are calling for what…a return to 1.10 or 1.20 after a bounce back? Sorry, but wrong again.
But feel free to show me your chart and target prediction
My UWTI just turned green bebe! Been waiting!
XOP should head to the 56 to 58 area next.
Chartster Good call on todays smash.
Me thinks though that this is just another organized “rinse cycle” before gold takes a trip north for a few weeks.
I guess it won’t be long before we will see which prognosticators on this site are correct. Either way, I’ll be wearing extra “Depend(s)” undergarments over the next 100 hours or so:)
Thanks Confused. Be careful here, because everyone thinks it’s going back up. And that’s when they get ya!
So folks, are we going to get a biggish drop of several hundred points on the DOW taking all the others down?
And thank God the dollar is breaking lower. I was getting really worn out with all the “End of the World” as we know it articles and interviews about how a rising dollar would destroy planet earth and all its inhabitants.
Its what makes me crazy about the armchair analysts. They can take any old trend and just project it out to some final disturbing conclusion and make you believe its all coming true this year.
Oh look, Coca Cola sales are in decline…but should we really be predicting the company will be insolvent anytime soon? That’s what I mean. It’s just plain bad analysis.
The dollar has broken down. The verdict is pretty much in. Anyone out there want to tell me again the dollar is still all bulltard? Ha!!! We did not get a bounce back after yesterday either and now the decline looks more ominous on the chart. Euro meanwhile is on a tear higher. Imagine what will happen if Greece gets happily resolved. We could then see the buck plunge relative to Euro…..so basically, my assessment that a falling dollar will create the opening for rate hikes in the fall is pretty much a sure thing right now (in my own mind of course).
Birdman, I do agree that most analysts only use the recent past as their guide, and then extrapolate that trend out way to far, like the market dynamics are never going to change. Very common…..and they are commonly very wrong : – )
As mentioned last week and earlier this week, I do have 92 as my target on the dollar, where I expect it to turn around, then start the climb back up. On the extreme side, there still could be a blow-off top in the dollar up near 110 later in the year. We’ll have to see if there are any legs to the dollar rally once it puts in its mid-term bottom in a month or so.
If the bullion banks sell short to cause a price decline, then they must cover. This strategy only works if they can generate momentum down greater than the force they are applying; otherwise they are just kidding themselves.
Furthermore I would expect the low of 1143 to hold and a range of chop between 1180 and 1300. This range may apply for another 2-3 months.
Finally, I would be careful trading this. I agree with Gary, that it will be chop and many false moves. If you are bullish, then find a good entry with a clean stop out point and buy and hold. Same applies if you are bearish.
Since I am not a professional gold trader, I would not try to decipher any logic between price swings between 1180 and 1300.
Interesting Doc, so far it seems as 1180 is holding, but I got a feeling gold coming down, seems everytime it stagnates somewhere it comes down.
3-5 year time frame:
– Trading the metals (gold, silver, etc.) is insane. You buy PHYSICAL and store it.
– Buying QUALITY junior mining companies (Current Profit, Potential Profit) on dips, and HOLDING, is genius.
If you need to gamble buy some trading shares or join JASON with the 3x-ers.
Brian
Bird,
The dollar did not break a long term trend line today. Neither did the euro. It’s all an up in the air maybe deal… No matter who’s opinion it is.
No one knows the direction right now.
It did in my books.
Sorry Chartster, I really have disagree with you. Some people do indeed know the direction. Just because others feign ignorance is no reason to conclude it has not peaked and is factually in a fairly steep decline. How can you even trade with so little confidence and claim nobody knows?
I would think it should at least move down to the moving averages same as the over sold loonie but would say that’s it. I don’t believe the USD in a bear…just needs to work off a major overbought.
I concur Bill. As mentioned above, I’m using 92 as a target where the USD may turn around and head up, and a new leg up is expected into the fall, where the dollar could spike up to 110 on the news the Fed did implement a rate hike in September, and if Europe and Japan continue to debase their currencies.
Well Bird,
You think down the USD, I think up the USD. Let’s see what happens , shall we?
This is excellent, at least I think so, opposing views, when everyone agrees something is definitely wrong. Hasn’t someone said that’s how markets are made? Very interesting, good luck to everyone.
Too many people still in the long dollar trade bb.
OK. Lets wait and see. You get the feather if you are right. I have pretty strong beliefs on the topic though. I don’t feel any doubts about my call in this case.
Bird
Diamonds could be replicated perfectly 12 years ago by a machine 3m designed but the inventor that worked there disappeared a long time ago. I think it was 20/20 that did a major piece on how corrupt the industry was/is. I wouldn’t touch a diamon with a 50 ft pole.
I just saw on “Dragons Den” how a guy manufactures diamonds from a human hair.
As for corruption, which market isn’t?
Disappeared? You mean made to disappear? Like he knew too much so now he’s swimming with the fish?
He was the mastermind of the project. They couldn’t locate him period..this was probably 15years ago..
FREE AS A BIRD, OR FISH FRY……..?
I wasn’t aware of that. Poor guy, probably got knocked off.
Or paid huge to keep the pie hole closed and disappear…….!
Or maybe he was promised a huge payment, and then knocked off before he received payment.
or MAYBE HIS MAMA took his computer away.
Diamond distributors or retailer would get a briefcase in exchange for a briefcase of cash. If you were not doing the right things the retailer got a case of crap gems and you go broke. More corrupt than most anything.
Its was quite shocking. They had a hidden camera in a briefcase….
Complete gangsters run that industry a gun point…DeBeers were the pioneers.
So…..apparently…..
Diamonds are a girls best friend,
Yet a Dog is a mans best friend,
Talk about a disparity !
Lot of Lap Dog around.
What if you have a Dog named Diamond?
ruff diamond ……………..the boot
good one.
If you study the history of gemstones..Hollywood was paid big time to promote gemstones in the early movies…Its all BS….
I wanted to get my wife a ziacona instead of the $6000.00 diamond and put it into gold. No one would know. That stupid rinds worth $2k and Gold would be worth $20K today…
I hear you, Bill. Same thing in my court. Bought the diamond because the wife just had to have one to show off to her friends even though NOBODY would have known the better if it was Zirconia. Next time I will buy the knock off and keep my mouth shut. Who needs a damn diamond when a new 4X4 would make life a lot sweeter.
Well put Bird. I was regretting doing the same…Nobody would ever know.
Incidentally that machine could make different color diamonds ie pink the rarest..They didn’t tell how is worked but it used incredible pressure and heat.
If the Russians dumped their diamonds they would be like sand on the beach…
Was just at a buddy’s who is a pretty sharp guy..says he would take food and guns over gold any day…If your going to buy things with your gold in a crisis, all you need to do is run into a guy that has a gun and now he has all 3 and you have nothing LOL
The smaller the rock, the closer you get to the dog house. Lol
Oh, checkout ” the dog house ” on you tube!! Hilarious ( must see )
http://blog.smartmoneytrackerpremium.com/2015/04/chart-of-the-day-56.html