Gold and silver prices are down

Varmint said:
Probably it’s just the system cycling between reporting Dec and Feb futures, which is a $20 difference.

Gold miners are the same price as when gold was $1400. Imagine if oil went to $200 and oil company stocks didn’t go up? Very weird.
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Yeah that’s a very troubling outcome for miners. Back when gold went to $1600’s and back up miners followed along last October and GDX went from a low of $21 to a high of $33 in January while GDXJ went from $25 to $40.
 
DJBrad said:
Yeah that’s a very troubling outcome for miners. Back when gold went to $1600’s and back up miners followed along last October and GDX went from a low of $21 to a high of $33 in January while GDXJ went from $25 to $40.
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Hard to blame investors, every miner stock purchase the last few years has been a disaster. They’re in “show me” mode and that will take a breakout above $2100.

At least the move to $2050 has cleaned up the naked short selling.
 
DJBrad said:
Better yet have him put on one of those leg holder urinary condom catheters so that he’s constantly pissing and the gold price follows.
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Condom catheters still use the internal and external urinary sphincters to control flow. You need a foley catheter to get continuous flow.
 
We beat the all time weekly close by $63 and the monthly close by $50. Technically extremely bullish, even if we pull back next week. The previous highs were intraday and quickly pulled back, this one looked very different.

Silver couldn’t even break $26, but it’s a much easier market to manipulate. If gold keeps going up it’ll drag silver with it.
 
Varmint said:
We beat the all time weekly close by $63 and the monthly close by $50. Technically extremely bullish, even if we pull back next week. The previous highs were intraday and quickly pulled back, this one looked very different.
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And the charts looks absolutely beautiful. GDX as an analog for miners has one of the best reverse head and shoulders. The 10 year cup and handle pattern for gold is complete as well imho.
 
Varmint said:
We beat the all time weekly close by $63 and the monthly close by $50. Technically extremely bullish, even if we pull back next week. The previous highs were intraday and quickly pulled back, this one looked very different.

Silver couldn’t even break $26, but it’s a much easier market to manipulate. If gold keeps going up it’ll drag silver with it.
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This one did feel very different! I'm not counting on much of a pullback next week.

The silver:gold ratio is like 80 right? I think that will add buying pressure on silver moving the price up. Personally I don't spend a lot of time focusing on the gold:silver ratio but it's hard to pass on silver when the ratio gets this high.
 
413dan said:
just looked at APMEX and there is a big banner, gold hits all time high.

wow. this has been a wild day in more way than one.
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I just looked around at a number of PM vendor websites. And what I didn't see are shortages. Or warnings about longer delivery times.

Feels to me like this is not consumer demand driving prices higher.
 
richc said:
I just looked around at a number of PM vendor websites. And what I didn't see are shortages. Or warnings about longer delivery times.

Feels to me like this is not consumer demand driving prices higher.
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It’s not, retail PMs like coins and bars are only 20% of the gold market, so they don’t drive prices, in fact retail demand has been strong for years.

Much of the demand has been central bank buying but I think this recent move is institutional investors starting to see a stagflationary environment on the horizon, and other gold bullish trends.

Dollar breaking below key $103 support probably helped also.
 
Win said:
This one did feel very different! I'm not counting on much of a pullback next week.

The silver:gold ratio is like 80 right? I think that will add buying pressure on silver moving the price up. Personally I don't spend a lot of time focusing on the gold:silver ratio but it's hard to pass on silver when the ratio gets this high.
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A pullback at this level is normal, gold has moved a lot and passed key resistance levels and is very overbought. So you’ll get some profit taking next week probably. Or we might break above $2100 and then pull back to test $2030 or $2000.

A pullback doesn’t negate the key new highs and probably wouldn’t last long.
 
DJBrad said:
And the charts looks absolutely beautiful. GDX as an analog for miners has one of the best reverse head and shoulders. The 10 year cup and handle pattern for gold is complete as well imho.
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GDX busted through long term resistance at $30 and GDXJ did even better clearing major resistance at $36 and $39.

Juniors developers did fairly well while high risk explorers either barely moved or moved huge on naked short covering. I have a few that bounced 60-80% in the last week or two. I think that was purely naked short covering.

But miners are still priced as if gold is headed back for $1700.
 
Varmint said:
GDX busted through long term resistance at $30 and GDXJ did even better clearing major resistance at $36 and $39.

Juniors developers did fairly well while high risk explorers either barely moved or moved huge on naked short covering. I have a few that bounced 60-80% in the last week or two. I think that was purely naked short covering.

But miners are still priced as if gold is headed back for $1700.
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If you are into gold - don't buy miners.

They are just companies.

If you want insurance on world wide disaster, you don't buy companies in the turd world.
 
Reptile said:
If you are into gold - don't buy miners.

They are just companies.

If you want insurance on world wide disaster, you don't buy companies in the turd world.
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It’s okay to simply procure precious metals, guns, and ammo in physical form. I am a firm proponent of that.

Not to sound elitist in any way but resource investing is not for everyone. For investments or trading in miners you must be a sophisticated investor who understands cyclical resource stocks and underlying securities that provide massive upside leverage to the resources they are tethered too.

You must know what a safe jurisdiction is, what the project is, what management is like, what the share structure is, and how the market values such a company which will also tell you how the biggest producers view it.

These are not longterm investments to jump into and let them ride for 30 years. These are 2-3 year cycles and sometimes longer. One must be savvy, understand the underlying commodity, perform due diligence on the companies they invest in, and be unemotionally patient in executing trades.

This is a different facet to the skills of being a skeptic of financial markets and the global economy while also making the best entrance and knowing when to exit such investments.
 
Reptile said:
If you are into gold - don't buy miners.

They are just companies.

If you want insurance on world wide disaster, you don't buy companies in the turd world.
Click to expand...

Miners are speculative investments so they’re for a different purpose.

If we’re right on gold and it goes to $2500 next year, you make 20% on gold, but you might make 100% on large cap miners (GDX) and 10x on the right junior miners. So it’s exciting, and very high risk, probably the most high risk sector.

In late 2015 you had gold miners bottom as gold hit $1400, and over the next few years gold went up 50% to hit $2089 in 2020 and junior miners went up 10x.
 
DJBrad said:
You must know what a safe jurisdiction is, what the project is, what management is like, what the share structure is, and how the market values such a company which will also tell you how the biggest producers view it.
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And do a better job of it than your opponents in the marketplace.

Or just get really lucky and convince yourself that you really know the industry and market.
 

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