We’re all fixated on gold and silver like idiots. The vast majority of the internet elite are now marching out in goose step formation, declaring “how incredibly stupid” gold and silver truly is, when in fact, none of those bozos were saying it two weeks ago. As far as I see it, I was the only one declaring the industry to be a waste-pit of time and resources– and put my money where my mouth was– by selling it short.
But nothing goes down forever, not even solar stocks or bankrupted boat companies.
I curtail your pessimism by the outright purchase of silver miners. They will bounce off your face and detonate on your balls.
Back to your regularly scheduled blog.
These are the best stocks in the market, ranked by my algos.
And here are the worst stocks.
Now have a look at the percentage losses in the silver and gold sectors, over the past week.
Pretty amazing, isn’t it?
The reason why these stocks are getting killed is due to the corrupt nature of gold/silver miners, pertaining to the absurd production costs associated with operations. Let me put it to you this way: should gold dip to $1,200, many of these junior miners will start losing money, crushing their “NAV.” Granted, the “NAV” is a very mobile valuation metric, based upon the whims of spot gold/silver. But it’s worth noting there is a material difference in the way these companies are valued at $1,400 spot and $1,200, almost to the point of absurdity.
Should gold drop another $150 from here, the precious metal stocks are going to be decapitated, revisiting levels you never knew existed, let alone possible. But if the price recovers from here, most names will enjoy 15-30% runs.
That’s what I call fun.
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well, I wouldn’t say the only one!
From March 2012: http://ibankcoin.com/chivo/wp-admin/post.php?post=76&action=edit
From March 2013: http://ibankcoin.com/chivo/wp-admin/post.php?post=135&action=edit
March 2012: http://ibankcoin.com/chivo/2012/03/13/a-golden-bear-buying-real-estate/
March 2013: http://ibankcoin.com/chivo/2013/03/12/hedged-up-shorting-silver/
Fuck the fly and all his minions
You mother milks goats.
gold and all precious metals are a joke… at the end of times etfs and funds with gold are worthless and someone younger stronger and poorer will take your physical gold.
Your mind thinks psychotically.
I’m tired reading about gold & silver, and wish they’d go down in flames so we could move on.
I do love this site, and I do miss the days when every fly post would have 200 replies within hours (or it seemed that way).
Still reed it daily…
The thing with commodity prices is this has happened before. Through all recorded market history there have been long periods where commod prices essentially stagnate, and shorter (but still fairly long) periods where commod prices surge. Stifel had a nice paper about it a couple years back.
This one is likely over, lads. Its already been as dramatic and as long as basically any.
I believe many or most commods have seen their highs for this cycle. Jake may insult me now. 🙂
Gold and silver have reached generational tops, been saying it for months.
However, this is a trade, nothing more.
Guys, I live in a town of no more than 250k people in the Midwest.
There is a gold shop in the mall, a gold vending machine, in the mall, and you can’t drive anywhere near a major street without “we buy sell gold” signs.
My friends wife cashes her paychecks every week and buys gold and hides it in the house. Shes never owned a stock or even a bank CD.
And, be serious, that can’t be a good sign for the long term future of the gold market. It just can’t.
You live in the Midwest. Most adults are mentally handicapped West of Mississippi.
I think it clearly was a concerted effort by the Fed and its minions to crush the futures on the COMEX wed/thurs/friday by selling it down with an unlimited supply of digital dollars. NOte that Goldman Sachs gave its insiders a big heads up something was coming in the weeks leading up to them publicly stating their bear case. If the inflation storm EVERYONE has been talking about is delayed until 2015 now, this gives the smart money more time to load up. This correction will be nothing more than a healthy buying opportunity. Look at 1975 when gold got cut almost in half only to resume a very strong uptrend within the next year and ran up another 200%!!. Real interest rates are almost getting to the seventies type of spread and this has always been a great time for precious metals. Yes the 30 year bond rate at 3% vs true (non reported govt) inflation figures is wide enough to pay very strong attention to. In the late seventies they were @ 5-6% What is the true spread today?
Cheers to those who identified the gold collapse. As well as a hat tip and a hardy “mwhahahahahahaha”.
http://ibankcoin.com/hattery/2013/03/11/yellow-metal-on-a-cliff/
You were not the only one 🙂 but than again I have nailed every PM move for a long long time with an absolute mathematical precision, so no surprise… ok ok lol
oh and I’ve been long DUST . no pussy trade, you know… 🙂
attack on Patriots day to our freedom away from fiat currency !! goldman and globalists came out w/call at 4 am prior day !done by banks driving price down so they can purchase more at Their prices !! their way of confiscating gold ..get it ? they print paper money and then they don’t have a bid under the market to drop the price only to buy it w/ paper that’s worth less than 8 months ago because of QE and japan’s recent printing ! Rigged ! they release the fed minutes to the bank and Lobbiests a day early !!
you know the market is sketchy when your “best stock” list includes stocks that end in “q”
I am amazed at OSG, or I mean OSGIQ. And of course, fannie and freddies comeback.
The thing to watch, lads, is deficits. I know aScott and Jake will panic to read this. And I’m typing from a phone…
But qe un UN prints dollars. Super super simple why: instead of paying interest to us qe results in the govt paying it to itself. Which lowers the deficit and reduces available dollars.
That simple. Thay, TGAT is how to look at this. Its deficits that create dollars. Qe reduces deficits so it reduces dollars. It does not print them.
This shit is elementary…. Unless you wasted all your parents money on a formal econ education. In which case Jake can just insult some people now.
Dumbass Bloomberg app headline of the day, “Bank of America earnings of $0.20 beat estimates of $0.23.”
Really, you can’t make this shit up.
bought palladium on the incredible dip on monday. sold most yesterday. hoping for another opp today. can’t lump it in w gold and silver.
On April 10th Goldman announced an invitation to prepare to short gold. The actual short of gold amounted to a rapidly executed short on COMEX futures of 100 tons the morning of April 12, which was sort of a wakeup horn and a calibration to prepare for the next move. A couple hours later 300 tons of gold were shorted in 30 minutes, the total representing 15% of all gold mined in a year. This “shock and awe” orchestrated short is described in the following link: http://t.co/dyff00Odhi