Welcome To The Golden Minerals HUB On AGORACOM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: It will NEVER EVER BE THIS CHEAP AGAIN
Keep in mind that there is no investment silver in ANY quantity at any retail level to rationalize that graph. Note that the dearth of silver FIVE years ago when it was first starting to dry up a bit,,,,is now being seen as beginning in gold. That is the timeline. ScotiaMocatta has gold in quantity and investment size now,,,,but predictably will not have it in about 5 years - if it follows silver's example. So with the price at the bottom (likely) for both metals, this represents the last BIG chance to get gold. It will NEVER EVER BE THIS CHEAP AGAIN. And you can bet that it is going out of the western banks in record quantities at these prices.....
Yeah, this is a preliminary bottoming pattern. If you look at Kitco's technical charts all precious metals have fallen out of their bull channels that by definition renders the bull markets dead. All except gold which is down ON the up trend channel. But when one brings up copper, the bull market there looks healthy. Not so for zinc, aluminum, lead, and of course, nickel; all are technically finished for bull markets. All LME warehouse stocks are going up except for zinc....and therefore the shortage or abundance factor is not working to regulate price.
Of course you know where the discussion is going. This has been a huge intervention and the system is hoping that the TA funds are going to be setting the prices. What I think is going to happen is that they will have sent some more funds into bankruptcy because they have insulted THEIR means for picking investments. With the bear markets in EVERYTHING now, these funds will whither. They need bubbles for success, not a world of bear markets. So in a measurable way, the US has crippled the investment world by disallowing investment into commodities, paper and otherwise. This, bodes poorly for the supply of commodities in the future and the US had better hope that the BRIC nations go into a deflation and stop using resources,,,,or all vital commodities are going to be going into crisis of supply EN MASS! Even worse than we have seen.
But cheer up, all they've done is prove that TA doesn't work if 1) mass scale central bank interventions can take down prices at will (therefore why invest in them if the plug can be pulled at will?) and 2) nothing is fixed in US financialand except the price finding mechanisms have been disciplined and cast into question/doubt. The US, which has done this deed, is now a even more the rogue state than before,,,,and it has, by the nationalization event of the Freddie and Fannie demonstrated that it is going to default on the dollar. That means this whole mess is temporary and that paper assets are therefore riskier than ever. It will encourage countries to make a run for remaining resource stocks - the physical ones. This whole event won't matter except it has bought some time at the cost of casting into doubt the very veracity of the paper market system. For the US it has made this a statement that it will be going into a third world state of health.
TA doesn't work on manipulated markets and maybe the point will be driven home this time!
New Message
Please
login
to post a reply