Gold and silver prices are down

Varmint said:
I think maybe silver stocks double bottomed today, hitting the Jan 27 lows, but just my gut feel.

gold stocks are bottoming for sure. Eskay is up 20% already.
Click to expand...
That Eskay grab was a good one for sure. That will become a great company if they don’t get snatched up via M&A.
 
Last edited:
IMO PMs are severely undervalued and $200 premium/ounce of gold isn’t stopping me from buying.

I think the tide will soon turn in the crypto/pm debate. The only assets outside of the system are the ones in your hand. Anything digital is either known or knowable. I’m increasingly hearing this “secret” being discussed.
 
Reptile said:
I don't buy gold coins but I looked at APMEX and they are going for $200 above spot.

Is that insane?

www.apmex.com

American Gold Eagle Coins | 1/10 oz to 1 oz Gold Eagles | APMEX®

Buy American Eagle Gold coins online at APMEX.com. The distinctive Gold American Eagle is one of the most popular American Gold coins. Free shipping on orders +$199.
www.apmex.com www.apmex.com
Click to expand...

It's an unusual situation where Covid reduced capacity at the mints, and demand shot up for various reasons. So it's normal that premiums would go up despite the spot price going down.

The capacity issues should be ending, but demand is still sky high, and there's stories that the large Comex bars are also getting scarce - you can order large bars (premiums are also very high on those), and they say you'll get April or May delivery. Yet the spot price goes down - that's the paper market, they can suppress prices - but eventually the demand will overcome the suppression efforts - like what happened to palladium, which doubled in price when demand overcame the Comex paper market's control of prices.
 
Gold might not bounce until interest rates stop going up, or until the CPI starts to show the inflation that’s obvious everywhere else.

The correlation between gold and real inflation as measured by TIPS is really strong. The TIPs in the chart is 10 year yield (1.6% this morning) minus inflation expectations (around 1.4%).

D008CD6C-7EC3-4B71-BC15-4BE967F07257.png
 
Sell the AXU 19 Mar 2021 $2.50 puts for 15¢ and you'll possibly buy in at an adjusted cost of $2.35 per share.
You will not be assigned these shares, if it soars above $2.50 in the next 10 days.

Well, 19 Feb has come and gone. Let's close the books on posts #5299 (HL) and #5301 (AG)...
Both positions expired out-of-the-money, so you ended up with your premiums intact. No further obligation, your credit balances are free to trade again.
 
miniion said:
Good time to get back in AXU, me thinks?
Click to expand...

Its $2.5 right now, that’s certain a solid price, but I think there’s a decent chance the correction is not over. It could see $2.25 or worst case $2.
if silver breaches $30 and goes to $35, you won’t care which price you got, cause AXU will be $4-5.

There are also some silver juniors I like better than AXU:
Discovery Metals, Aftermath Silver, Dolly Varden Silver, Bear Creek Mining.

But these are all higher risk, higher return, more volatile.
 
Varmint said:
Its $2.5 right now, that’s certain a solid price, but I think there’s a decent chance the correction is not over. It could see $2.25 or worst case $2.
if silver breaches $30 and goes to $35, you won’t care which price you got, cause AXU will be $4-5.

There are also some silver juniors I like better than AXU:
Discovery Metals, Aftermath Silver, Dolly Varden Silver, Bear Creek Mining.

But these are all higher risk, higher return, more volatile.
Click to expand...
If I only had a ton more cash on 3/5. Those were some excellent prices.
 
djbradles said:
If I only had a ton more cash on 3/5. Those were some excellent prices.
Click to expand...

Me too, I even sold some stocks to rotate the money into better stuff that was on sale. I sold a small amount of Great Bear, should have sold more.

I think we may see those prices again soon though, at least for silver stocks if not gold stocks. The 10 year is still lurking at 1.56%, it's had a big run and may pull back a bit but if it pushes back above 1.6% I think the metals (and stocks) will go back down.

When the gold and silver miners have bottomed I think you'll see 10-20% gains in individual stocks, not 4% like today (so far).
 
miniion said:
Good time to get back in AXU, me thinks?
Click to expand...

If you're not going to use the options route then put in a stink bid for AXU or whatever - the miners usually V bottom - AXU hit $2.25 last week for a few minutes. It's usually easy to see good stink bid prices by looking at the charts. For AXU I'd use $2.25 or $2 ($2.01 to make sure it hits).
 
Varmint said:
If you're not going to use the options route then put in a stink bid for AXU or whatever - the miners usually V bottom - AXU hit $2.25 last week for a few minutes. It's usually easy to see good stink bid prices by looking at the charts. For AXU I'd use $2.25 or $2 ($2.01 to make sure it hits).
Click to expand...
Good point
 
Weak rally in gold and gold stocks so far, if we don’t have a strong move up I think we will have more downside in gold and miners. Silver will probably follow, especially if commodities pull back.

depends on interest rates, but I think the 10 year will keep going up, hurting gold and eventually the stock market.

If we get a surprise increase in CPI inflation numbers, the gold correction will be over.
 
Varmint said:
And they’ll wait til you find the gold before they nationalize your mine.
Click to expand...
I'm waiting for various country to do this to all of China's 'investments' and the inevitable armed conflicts over the CCP attempting to maintain their colonial possession. Why do I get the feeling we will be their mercenary debt collectors?
 
Waher said:
I'm waiting for various country to do this to all of China's 'investments' and the inevitable armed conflicts over the CCP attempting to maintain their colonial possession. Why do I get the feeling we will be their mercenary debt collectors?
Click to expand...

There’s a misconception that Biden is a friend of China. Yes the Dems were China butt buddies I’m the past, but recently China has started to openly threaten the US petro dollar hegemony - and that puts you up there with Saddam and Syria as Enemy #1. Nothing would threaten the Democrat’s goals of all encompassing more than a collapse in the dollar.
 
Varmint said:
There’s a misconception that Biden is a friend of China. Yes the Dems were China butt buddies I’m the past, but recently China has started to openly threaten the US petro dollar hegemony - and that puts you up there with Saddam and Syria as Enemy #1. Nothing would threaten the Democrat’s goals of all encompassing more than a collapse in the dollar.
Click to expand...
I'll believe it when every position in government isn't being filled with people on the CCP's payroll.

At the rate we are spending towards Weimar style hyperinflation I think private ownership of precious metals is going to get banned again, since FDR's bad ideas are in vogue again.
 
Waher said:
I'll believe it when every position in government isn't being filled with people on the CCP's payroll.

At the rate we are spending towards Weimar style hyperinflation I think private ownership of precious metals is going to get banned again, since FDR's bad ideas are in vogue again.
Click to expand...

Yeah but when they tell everyone to sell their gold to the government, no one will fall for it this time.
 
AXU hanging steady around $2.50 a share. 6 more days to go on the 19 March contracts. It looks like I may have to roll this one forward or simply let it go and use the funds elsewhere. We shall see next week.


BTW, does anyone here have the power spike the price of gold higher and drop the S&P 500 by 15% or more tomorrow? Thanks!
 
NavelOfficer said:
AXU hanging steady around $2.50 a share. 6 more days to go on the 19 March contracts. It looks like I may have to roll this one forward or simply let it go and use the funds elsewhere. We shall see next week.


BTW, does anyone here have the power spike the price of gold higher and drop the S&P 500 by 15% or more tomorrow? Thanks!
Click to expand...

I think we could definitely see a big movement in PM stocks over the next 6 days. Just not sure up or down. Gold miners are now diverging - some are going up like they've bottomed, others are not. Definitely a bottoming process. Silver stocks are totally confused, unsure if they should follow gold miners or industrial metals.
 
I still have a few limit orders out there. Avino at .90 which it almost hit I think last week. USAS at 2.30 and like 5 more.

They all got close not long ago.... If I don't get them then so be it.

No more impulsive buys for me. I'm getting hammered by LODE. I bought at the height of $5. Although in premarket yesterday it shot up to like $6 and then nose dived.
 
ASHDUMP said:
I still have a few limit orders out there. Avino at .90 which it almost hit I think last week. USAS at 2.30 and like 5 more.

They all got close not long ago.... If I don't get them then so be it.

No more impulsive buys for me. I'm getting hammered by LODE. I bought at the height of $5. Although in premarket yesterday it shot up to like $6 and then nose dived.
Click to expand...

The 10 year shot up over 1.6% this pre market; this could cause that gold retest of $1670 or so. Gold is already down $22. Your bids could get triggered.

Gold miners are holding up well so far, but watch out if the general stock market rolls over, that could be the driver to take miners down. Gold might actually go up though if fear returns to the market.
 
Last edited:

Similar threads

Homemade buns and rolls
Replies
1
Views
293
grey
grey
Calcium Hypocholite - local and cheap water sanitizer!
Replies
6
Views
404
240Geezer
2
Gold Question from Newbie
Replies
23
Views
1K
Varmint
Varmint
FREE….seed starting and basic garden planning & questions seminar. 4/6/24 Hardwick MA
Replies
7
Views
280
mousegunguy
mousegunguy
Problem with my ExPed DownMat 7...
Replies
9
Views
512
Andy in NH
Andy in NH
Back
Top Bottom