After fighting an intense battle all week, silver has just broken out and established it's highest intra-day price since March 7, 1980. As this was written, silver hit $31.30.
There are rumours of a fascinating battle playing out between hedge funds, the banking cartel who short and supresses the price with paper shorts and the Comex. I will try and post something on this before too long.
The last time silver was at this price level, the 10 Year bond interest rate was at 12.45% and gold was $600/ounce. In other words, by comparison, silver could still shoot much, much higher.
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And yet my siver mining stocks languish...
ReplyDeleteThe people who buy metals aren't the same people who buy metal stocks.
ReplyDeleteIt's incorrect to assume that equities are going to move at the same proportional rate as the underlying commodity.
Everyone else's mileage may vary.
Quite a few people have been asking me about the weak performance of so many mining stocks when silver had such a strong day on Thursday.
ReplyDeleteMining stocks weak showing will be due to equity options expiring today. If Silver continues its strong rally today (and if the HUI hangs in above 540) I am confident you will see a really big day for mining stocks on Monday.
I'm stupendously long on physical silver, having dumped equities when Ag was $28. Life seems uncertain right now, but fortunately I have a small but very heavy pile of metal to comfort me.
ReplyDelete