RE: RE: Silver starting to trade - magnumYoyo, Thank you for the great post, facts and figures,more to help clarify the picture, I will inbox you a link to a biweekly commentary by Don Coxe...while I don't agree with all his views,he often has some interesting comments to better one's understanding.
Perhaps my Alberta up bringing figures into much of what I have done more recently. Alberta has been tied to either a boom or bust cycle for all of my years. In chats with friends and business associates in both Edmonton and Calgary over the past few months, I gathered many people, even while Oil was still at $120USD$/barrel, but on its way lower,were battening the hatches for the sky to fall once again. Alberta has had bumper stickers since the eighties saying " If Alberta ever has another boom, may I not p-ss it away this time". Being ingrained with that thought has served me well,we sold an Edmonton home 15 months ago,within a few weeks of the top, have since bought and sold a Kelowna home...sold all our mutual funds in late spring, and will soon rent a home in the Okanagan Valley , and will now let the rest of Canada worry about housing prices,interest rates,employment,etc(we have be fortunate with our timing). My one bad move in all this was my holdings of mining stocks in my SDRRSP/LIRA,but if I sit back and give it 6mos., possibly 24 months,all or most of what I own should return to live another day. Last week I left a nice bottle of wine for our personal banking representative, and he called to thank me and congratulate me for many of the moves we made financially over the past 15 months.
I agree manipulation of most everything that trades occurs at some point or another. For Gold/Silver,the question is now what will change the momentum here, and will the spot price move up to support the physical price and demand, or will the physical price retreat towards the spot price. Manipulation is being done by many these days and I trust very little as a result...Banks, OPEC,Governments,Markets,Oil companies,none can be trusted IMO,they serve special interests and the few...the rules are faint if that and it is survival of the fittest. For now I will continue to conceed the PPT has the trend in its favor and with the Trillions in cash Worldwide about to wheelbarrowed into the ring, I would not go against that trend...possibly soon,but longer term the paper manipulation will collapse. My view though is what started out as an attempt by the PPT to reign in the commodity traders has spiralled out of control, and may now cripple or impair the pipeline that feeds the metals/commodities industry.
Months ago somehow I detached myself from all of what should be taking place in a perfect World to assessing and then reacting to more of what is taking place...this trend is not "friendly" from either of our perspectives,but as I say I'm seeing the manipulated trend and not fighting it until it fails. Several times since the call near mid July 2008, IMO Wallstreet has been directly tipped off in regard to the next wave of manipulation by the PPT. Mid July 2008 the trend was called by Elaine Garzarelli on NBR, a national business program on PBS, she said go long the USD$,short banks...the U.S. Government has since squashed shorting of their financial stocks,but the USD$ has climbed steadily since that call, and almost to that day. Last week,Gartman and one other source almost simultaneously said to short Gold...now after what you just posted,the PM Bulls are saying how could someone make such a bold call,I warned friends that Gold was headed lower as I suspected Wallstreet once again was warned, I will sit here and watch and will try to buy physical Gold lower, if that route fails,I may buy Gold producers. Personally I think the Don Coxes and other commodity/PM's bull writers have done nothing but hurt their followers over the past few months,buying on the way down has not worked IMO. Some I have talked to in the mining sector have been forthright and said they would let their share price fall and then come in and mop things up cheap...I can't say this is happening with all mining stocks,but the waves of selling are happening and will continue so some have accepted the selling, and are using this means of survival.
SST/CS/SWC, they are some of the best to date in smaller mining projects arena, but this market and fragile credit cycle will only reward those making the right move IMO. There will be huge winners and and many will fail, some will not exist in their present forms,ie. FNX Mining mainly a Nickel producer in Ontario, recent drilling on their "footwall portion" of their mine has uncovered PM's,Platinum Palladium/Gold,super,great. In all the metals pricing euphoria,Nickel ran above $24.00 USD$/lb....I have yet to see any decent hedges,perhaps they still have none...but a Company I once regarded as one of the best growth stories in Canada's mining industry over the past few years, IMO was too "GREEDY", and saw no end to the upward pricing cycle for metals, is now looking very vulnerable,shameful.
Perhaps higher Gold and Silver prices lead the mining sector out of this mess, and your positive outlook...it will all be very interesting to see how this all plays out over the next weeks and months.
GLTA,Magnum...all IMO.