The massive rise of silver prices at the market close on Friday is potentially a catastrophic event for the short sellers. They were unable to drive the price down, and are now looking at big losses.
In a few hours the market will open in Asia and we’ll see just how bad it is. A gap-up from $67.14 is possible because the short sellers need to close their positions. Grab your popcorn ‘cause it’s gonna be interesting.
Although it is hard to say where any tipping point might be, it seems to me that as more and more capital moves out of active and into passive equity fund management, the essential “discounting” mechanism of the market becomes more and more depressed. Perhaps we have already passed that point, which may be one reason why the indexes as a whole now seem to go up and up—the key driver of securities pricing is no longer driven by fundamentals.
Here's an interesting junior near producer in Tanzania called Lake Victoria Gold, (VLG) trading under the radar at 20 cents. Barrick bought in at 27 cents, where it operates a large mine nearby. There is only 30% of the float available to the public, and it is partly held by the country's largest gold player. Creative financing reduced dilution, and everything is in place to make the first pour by May. This company will be a very small yet profitable producer. I'm not sure why Barrick took a 9% interest in such a small operation. Maybe they'll buy it out and add to its existing mine nearby. I don't own shares yet, but I'm hoping to get in at a few pennies cheaper for a double within a year. I'm not recommending, do your own research.
The massive rise of silver prices at the market close on Friday is potentially a catastrophic event for the short sellers. They were unable to drive the price down, and are now looking at big losses.
In a few hours the market will open in Asia and we’ll see just how bad it is. A gap-up from $67.14 is possible because the short sellers need to close their positions. Grab your popcorn ‘cause it’s gonna be interesting.
Surpassed $69...
My dealer, the biggest bullion bank in Canada, is 100% out of silver. Coins, bars, commemoratives... nothing. Crazy!
My favs were the ones comparing Silver to BTC & major stock indexes.
6 months ago a young Schwab "VP" told me I was too heavily in PM.
When I told him I thought cryptos were Tulip Bulbs squared, he didn't get the reference. 🙃
Sooner or later the millennial VP is going to learn some hard lessons.
Best wishes, everyone.
thanks!
Although it is hard to say where any tipping point might be, it seems to me that as more and more capital moves out of active and into passive equity fund management, the essential “discounting” mechanism of the market becomes more and more depressed. Perhaps we have already passed that point, which may be one reason why the indexes as a whole now seem to go up and up—the key driver of securities pricing is no longer driven by fundamentals.
Merry Christmas to you and your readers, No1. Here is my gift for this week's Weekend Thoughts.
https://www.tradingview.com/x/UdKq9wAi/
All I can say: https://no01.substack.com/p/xmas-comes-early
Maybe next Christmas, if you're nice. Ha-ha... Good tune!
You'll never know! Still 3 days...
Here's an interesting junior near producer in Tanzania called Lake Victoria Gold, (VLG) trading under the radar at 20 cents. Barrick bought in at 27 cents, where it operates a large mine nearby. There is only 30% of the float available to the public, and it is partly held by the country's largest gold player. Creative financing reduced dilution, and everything is in place to make the first pour by May. This company will be a very small yet profitable producer. I'm not sure why Barrick took a 9% interest in such a small operation. Maybe they'll buy it out and add to its existing mine nearby. I don't own shares yet, but I'm hoping to get in at a few pennies cheaper for a double within a year. I'm not recommending, do your own research.