Base metals, like copper, and gold were down today also. Actually, the price of gold dropped by about $100 over the past two business days. So, as usual, mining stocks for precious metals got creamed and base metal miners were somewhat down. I bought some mining stocks that were on sale. What's interesting about it is that many of those companies have been announcing their 2nd Quarter financial results over the past week or so, and most of them had a great quarter with really good revenue and net profits. Yet, their stock prices still tanked with the decline in the underlying metal prices.Traders are selling paper silver and silver contracts on the open market. The investment thesis has not changed.
As Rick Rule says, people mistake inevitable and imminent. Silver is poised to make new all time highs, but its uncertain when that will happen. In the meantime, we have a sale.
What I am planing to do, and this is not investment advice:
I looking to buy PSLV if the silver price drops down further. I don't want to buy physical right now because the premiums are outrageous (around 30% for silver eagles).
If gold drops below $1700 then I will likely buy physical gold. The premiums for gold are significantly lower. The 1 oz. gold eagle coins can be bought for around a 7% premium.
The trade with gold and silver is pretty straight forward here. If you believe the Fed will get ahead of the curve or at least in line with it with regards to inflation, then sell. If you think the Fed will crab walk their tightening, then this selloff is a gift. I believe in the latter. - Peter Bookvar Source_Quote
Since not one member of the silver community has taken a swing at this one ... I'll go first. I think there is a pact amongst certain bullion banks that when substantial manipulation is required, and they need some dry powder, the pact has them to settle contracts jointly by EFP. After extinguishing those positions cloaked behind the OTC wall, they are free to re-enter the comex market to establish fresh positions and push prices as they see fit. Notice how the OI doesn't decline after positions are closed by EFP. That implies that new ones are re-opened.
On a beat down, maybe it would work like this ... let's say some banks are long and some are short. They do the EFP and settle per the pact agreement. Then they both go back to comex and sell like hell. After the smash, the pact is over and they go back to fending for themselves ... either continuing short or closing their short at the new low price.
I'm looking forward to Tuesday's mornings print of the comex report to see if the EFP game continues.
They really want to make silver appear like an asset not worth buying and not worth holding. Have the whole world pretend that their silver futures price has something to do with real supply and demand. Exploiting our current day zeitgeist of instant gratification and short term rewards to the maximum. The prices drops are only meant for those still trapped in the Matrix to not want to escape their fiat mind prison.
For all of human history, silver has been tied to the price of gold at a ratio of around 15:1. Today the ratio is around 60:1. So it should, but it won't. Anyway, buy & hold.I just saw the news that Palantir bought $50M in gold bullion over the past year or so. If more people and organizations follow that lead, I can't imagine that the price of gold wouldn't go up, or at least hold steady for awhile. If so, wouldn't that help keep the value of silver up as well?
Keith Neumeyer lays out the silver investment thesis in clear terms.