Truck O’ Molten Assets
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That beeping sound you hear is me backing up the truck, and grabbing some more lovely PM positions as the sun goes down on this day of dollar death.
I’ve mentioned that I love Allied Nevada Gold Corp. [[ANV]] for the long term, almost as much as I like Silver Wheaton Corp. (USA) [[SLW]] on the silver side. IAMGOLD Corporation (USA) [[IAG]] and Eldorado Gold Corporation (USA) [[EGO]] cannot be ignored here either. They are running on Greek kisses and Spanish wishes, but so what? With the dollar (DXY) and it’s proxy, [[UUP]] down 53 cents and 17 cents, respectively, as we speak, I think we may have that turn in the dollar we were looking for at last. If we continue to stay below that magical $80.20 line, I’ll be even more sure of it.
Let’s face it folks, it would be great if the European Central Bank could maintain this Teutonic “austerity” charade with regard to it’s wayward little brothers to the South, but the fact is, if they want to keep their phony baloney Starfleet Federation currency trading with any credibility, they will have to continue to subsidize the mistakes of the least common denominators. And yes, this seems anti-intuitive, to save the Euro by weakening it with these bailouts, but the fact is the world markets prefer stability to necessary nut cutting.
Truth is, the Germans will some day emit a huge sigh of relief when they get their beloved Deutschmark back and they can once again run rampant over the rest of the Europe in currency blitzkrieg, if not via their formerly preferred method of “Large Iron Rolling.” Until then, they will stubbornly continue to try to make this European Union thing work, and cope with continuing annoyance at those who would rather hang out in the sun, drink Ouzo and go sailing, whilst dancing the mazurka and opening large menu diners.
All this brings me back to the punch bowl party over on this side of the pond. With the Euro saved, for this week at least, the robots at Goldman Sachs have been re-programmed to short the dollar and buy Barbie dolls and other such Mattel, Inc. [[MAT]] toys — Hasbro, Inc. [[HAS]] anyone?
We, the proleteriat, can now come back down off our panic chairs and continue with our most profitable line of employment — namely, fondling gold bars until their corners go smooth and sucking on silver ingot lozenges until our colds go away.
I continue to love, and accumulate the above mentioned names, and in addition I am grabbing, as I type (with my other hand) some [[EXK]] , Royal Gold, Inc. [[RGLD]] , Exeter Resource Corp. [[XRA]] and the “N’s” — NovaGold Resources Inc. (USA) [[NG]] , New Gold Inc. (USA) [[NGD]] and Northgate Minerals Corporation (USA) [[NXG]] .
Last but not least, I like lithium (you know why, don’t you?) in Sociedad Quimica y Minera (ADR) [[SQM]] , and I like to say “molybdenum” ten times frontways and then ten times backways. If Thompson Creek Metals Company, Inc. [[TC]] is not bought out by the likes of BHP Billiton Limited (ADR) [[BHP]] or Freeport-McMoRan Copper & Gold Inc. Freeport-McMoRan Copper & Gold Inc. Freeport-McMoRan Copper & Gold Inc. [[FCX]] or even Teck Cominco Limited (USA) [[TCK]] (its fellow Jackson) within two years, then I’ll be greatly surprised unto paralysis.
Peace be upon you, my brethren, as our plan “comes together, right now, over me.”
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We are all robots. I’m on the HAS momo.
That beeping sound was my pager from junior high that all of a sudden came to life. Reminds me of my troubled youth.
CMP did well today for me, and I doubled my position in ANV yesterday. Still holding EXK as well, hoping that silver will quit being the laggard soon. Thanks for the post.
By your hairy udders and the holy stone, EXK will be $6 before this year is out.
Put that in your meerschaum and fire it up.
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FWIW — I’ve been accumulating EXK at the same prices I was buying SLW 16 months back…
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Today was a little too much bullshit for me to make a full judgement one way of the other.
I have a fairly decent position in SLW. I will do a starter in ANV, IAG or XRA unless they get dumped or run away from me tomorrow.
Considering the length of the H&S on Gold, this will be an extended run.
Indeud. Is it possible you may sign on as en ensign on the USS Jackson?
All middies get a cool “starter astrolab” so they can learn to steer by starlight.
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Think so, it might be a crowded ship soon
Apologize if this has been said …but, for fib fans, that h+s target jibes nicely with a fib extension drawn from Dec ’09 highs to Apri ’09 lows. (Last fri hit a perfect 50% retrace …whereupon it reversed and printed a hammer.)
Is this GLD or the POG, itself?
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GLD
Never mind….. I see it on GLD.
Nice observation. Did you also note that today’s high scraped the 38.2% line? Could mean some retrace tomorrow (which is fine, imo).
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Also, note the long term SLW fib chart. If you draw the chart from the 3/17/08 (St. Paddy’s Day) highs to the last November ’08 lows, you’ll see we just slightly penetrated the 61.8% fib retracement only to bounce hard off of it on Friday as well.
That’s why I’m feeling extremely good about SLW… I find the longer term the fib chart (up to a point of about five years), the more consistent the honouring of the fib lines, and especially the “golden ratio” lines of 61.8% and 38.2%.
After that, I find the 50% fib to be useful, and 23.6% and 78.6% much less so.
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And the supportive fib justification/rationalization for SLV is …using the Oct ’08 low, draw to the Feb, June and Dec ’09 highs …each time (so far) it retraces to half way between the 38% and 50% lines before extending to at least 123.6%.
Interesting… will check it out.
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Beauty of a post Jake! “StarFleet Federation currency”…”would rather hang out in the sun, drink Ouzo and go sailing, whilst dancing the mazurka and opening large menu diners”….brilliant!
Many thanks… I was inspired by the reflation of my portfolio. It usually precipitates another manic phase for me.
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Jake
Sincerely impressed with the formulation of your theme via the application of your steady, consistent research and ‘reach down an’ grab’em balls to the walls’ never-say-die fortitude.
And yes, the Working Man is back.
So bring it.
Peace-
He’s back? I never knew he’d left! Welcome back in any case.
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Best post you have ever written. For real.
LOL. Aw c’mon!
I don’t know if I should be flattered or pissed off…. heh.
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Pretty Damn Good….oveh heah
All the good feeling here makes me nervous …but, OK, decent post (although, you mixed-up a Greek drink and a Polish dance.)
Anyway, I’ll just sit here a bit, slurping grape while looking at the daily P&L on a port brimming with pms bought last Friday.
Congrats to all.
Mazurka’s are Polish??
Fack, you learn something new every day… what’s the Greek dance called?
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Tsamiko is the one where they wear the funny shoes, I believe.
Hmmm… I thought there was something catchier than that…. What is that dance Anthony Quinn dances in “Zorba the Greek?”
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Bot $ANV today, Jake. Would like to see Einhorn, Paul Tudor Jones and John Paulson start to defend their thesis right here right now.
Yo Jake, what exactly do you like about ANV so much to put it on the same level as SLW? Can you elaborate? What’s the “story” there?
It’s a junior, so it’s got the “possible buy out” tag, but also has nice asset, good managment… more important — $9 -16 in three months (sept-dec ’09).
Will move like that again.
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‘Starfleet Federation currency’ – roll it over into quatloos?
I’ve been potentially outnerded. I thought it was “credits?”
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never mind (no way to delete)
Building the war chest for some M&A activity:
http://www.bloomberg.com/apps/news?pid=20601009&sid=aVwM2qDmuzy4
Get on with it already!
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Great post Jake, liking the EXK
Good to see you back with us from the land of the extended hangover… 😉
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Treuly, a first rate post. No shit.
Gracias, Senor Yosemite.
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Bernanke is short metals & miners … fucker ! 🙁
Will they(metals & miners) come back to punch his beard off? Thats what I’m thinking … and I’ve backed it up with my cold hard shrinking $$$$’s.
I’m thinking this is “saber rattling via the appropriate house organs” —
In this case, said mouthpiece is the overly credulous New York Times.
Sure you’re going to raise rates, Ben…. sure you are.
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Until this Greek game of chicken stops, this dollar bullshit isn’t going to stop.
Who are they kidding? Its getting bailed out one way or another.
And now Bernanke scaring people with the obvious.
I think this has more to due with the trial balloon put out in the Times (see above) than it does the Greeks/Spanish/Portugese/Eyetals and Micks.
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I love the new dollar bill!
http://ibankcoin.com/henry_fool/2010/02/10/count-me-in-as-a-dollar-bear-too/
Dollar starting to drop off again. Maybe the New York Times effect is wearing off…. (maybe this was just cover to allow those AH’s to get out of their Euro shorts?)
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Silvercorp Metals (SVM) released a very positive earnings report (compared to last year), and announced a quarterly div of .02/share.
I scaled out of most everything else and only own SLW, EXK and SVM (plus an asst of junior, junior minors on the Toronto Exchange), as far as the silvers go. And some GDXJ (I think that is mostly gold minors, though)
As always, thanks for your posts. I’m in school now, and really busy, but still make sure I pull up IBC regularily to see what “the Gint” has to say.
“The Gint”?
Are you referring to Urban Dictionary def 2 or 3 when referring to my good friend Jake?
Your good friend, Jake, Purdy. I have no idea what the Urb Dic def’s are.
Do you like SVM? Are you familiar with that minor? It’s not a company that I see anyone discussing very often, so I bring it up here, to get other poster’s ideas on it.
Crap, now I have to go look it up. And I don’t have time for this. Slap, slap Purdy. LOL
great to hear your voice chanci! how is school? hope all going well– you are missed !!
Hey, Linds! and thank you. School is kicking my butt. I hope you are making lots of money, Lindsay. You are still here, so you must be. I’m doing okay, but went into all long hold positions. Not sure if that is good or not, but it’s what I’m doing. All P/Ms, industrial metals, energy and ag.
I looked of “the Gint” in the Urb Dic, and all I have to say is – triple slap, Purdy!
I have mentioned SVM here, but am not as familiar with it. Did note their nice earnings and subsequent run up. I may even “indulge” here (twiddling fingers, in a Mr. Burns-like fashion).
Pay not attention to Purdy in re “Urban Dictionary.” He sometimes gets a little “OCD” on topics like George Bush or my name. Comes and goes.
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I read they will basically be able to extract all that silver at no cost, because of the zinc and lead mining they are doing…will pay for it.
Huge vein of silver under the Great Wall, and the Chinese Gov’s blessing.
Sounds really good, anyway.
You just need to be cautious when dealing with non-rule of law countries. That’s why I like to pick miners that are for the most part in the US and Canada.
That nationalization risk can be a bitch.
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DOWN GOES FRAZIER!!
(/Cosell Voice)
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silvers are green … AGQ gonna fly
Grabbed a little more SLW and a starter in IAG.
ANV and IAG have such wide spreads on their options – pain in the ass.
SLW is so much more liquid.
Treu… I warned against ANV options. I would just do the stock and watch your position size.
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NY Times: No Gold Rush for Paulson’s Fund:
http://dealbook.blogs.nytimes.com/2010/02/10/no-gold-rush-for-paulsons-fund/
Slow going for Paulson’s gold fund. I consider this bullish for gold — the smart money likes gold (i.e. Paulson) but there is certainly no mania yet.
Another thing to consider is that Paulson is now famous.
He was not in 2005 when he started shorting mortgage pools and buying up CDS’s affiliated with them.
He’s always in for the long con, not the short rip…. that’s how he made $15 bn for his investors (and about 25% of that for himself).
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The long con was being run by the mortgage poolers, not by Paulson.