Bear Stearns and Lehman Brothers bounced along the bottom before finding their watery graves. Let’s be perfectly clear about one singular thing: the miners are for suckers, people obsessed with the dissolution of the Federal Reserve and western finance. You people, all of you people, are scandalous vagrants, thieves in the night hell bent on the pain and misery of others. A great shame falls upon your house and it shall cast a shadow that will last for generations to come.
There is no long trade for gold miners, mind you. There are only short set ups. If you’d only remove yourselves from the slothness of your charts, you’d learn that the miners are all losing a shit load of money searching for yellow metal that is decreasing in value on a daily basis. The net asset values for scores of junior miners are exactly zero.
Sure, you might fancy yourselves to be smart day traders, running along the side of the road, avoiding the oncoming traffic. But you can only play this game for so long, as King Dollars reign supreme and the gold trade is effectively over.
In closing, I am reminded of a trade a very good friend of mine took on a Friday afternoon, heading into the weekend. He bought himself 5,000 shares of BSC at around $30, hoping for a few Monday shekels, only to find himself horrendously stupefied by the reality of his error.
This isn’t exactly stratagem, friendo– but facts.
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… I could’ve been first but I chose not to.
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Fail
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Funny thing…
… when I occasionally open my home safe and gaze at my stack of gold coins … Krugerrands, Maple Leafs, Kangaroos and Eagles …
I DON’T feel like a “sucker” !!!
I smile a bit !!!
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When the end of the world comes, and you try bartering with that stack of metal, you will indeed feel like a sucker.
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… bet I have better luck than you do with a stack of worthless GPRO stock certificates !!!
Wanna bet, goofus ???
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I will go to the dark side and become a zombie, no need for me to barter.
Nobody’s going to give a shit about gold in such a scenario. You can’t eat it to keep you alive or burn it to keep you warm. Anybody that has those things isn’t going t trade them for gold for the same reasons stated above.
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… for the record …
the “barter scenario” was certainly NOT put forward by me !
I never mentioned it !
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We clear on that ?
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Alf, you don’t need to feel like a sucker to be one– but you certainly are; Enjoy your shiny toys.
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Ahh hem … FU !!!
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LOL! I remember buying FITB at the close during the short selling ban week and waking up to a 90% gain.
just stupid
Dr. Fly,
Serious question: What would change your mind about precious metals and tier 1 miners? (i agree that many juniors and mid tiers will go out of business). Thanks.
The only thing that will change my mind is another round of qe
Dr. Fly,
Thanks for the response. one last question:
is there any doubt that further QE is just a matter of when? Thanks.
Alf is a sucker on a large scale
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… they say Defensive Backs in the NFL need short memories !
LOL
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Fly, perhaps you missed your calling !!!
YOU … obviously have a “short memory” !
I’ll just leave it at that !!!
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Fire Away !!!
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why
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are your comments…
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SO STRANGE!!
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… why do you not understand where to place a question mark ???
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… did you get past 4th grade ???
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Why would you ever buy gold if the world is deflating?
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… never said I was “buying” Gold !
Said I “OWNED” stacks of gold coins … and I DON’T feel like a “sucker” !!!
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THAT .. is what I said !!!
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I hear wearing bling attracts dem hoes…. so might be a good investment regardless.
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I wouldn’t know !!!
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Wait and boat stocks are any different.
I bought a tiny bit of JNUG today, and sold it almost immediately. Even New Guinean tribes now have currency.
i wouldn’t buy jnug now , should have been bought into the 3’$ at lows .. the chart/vol + gold chart was dead easy to manage there
Jakegint will get his day
I am here from a retweet by downtown Josh Brown. Fly’s got it all happenin’ with the big dogs.
Thank God. I thought you were from downtown on behalf of Mitch and Murray.
The Option Addict effectively sold your friend those shares (via puts) for a king’s ransom. Best trade story I’ve ever heard. I believe OA made like 15,000% on that trade.
fly , how can you dismiss gold so easy into xmas time ? it has retraced close to 50% and there’s shorts trapped in , top of this BCE announced QE ( national bond buying ) yesterday… just asking .. “gold trade over” but futs up 1% …. )
Bood
If you like gold then buy gold. Buying the miners is not buying gold.
Monsieur Fly, good timing on this article. Gold is just now reaching a decent level to reestablish a nice short position, and the timing couldn’t be any better with the Fed Minutes on Wednesday and CPI the day after.
If there is one thing the Fed loves doing and will do without hesitation and without much cover it is slamming the price of gold.
Think about this: Greenspan came out a day or two before the latest Fed Decision and said gold is money, gold needs to be bought here, etc. Suckers rushed in, Fed slammed gold. Muppetized, again!
Now the ECB is saying they are considering buying bullion. In short, no they aren’t. They are creating a fresh batch of suckers to annihilate on Wednesday.
the question that matters for some of you dilettantes out there is wouldn’t you rather own it lower-say $700?