Why Silver Miners Are Hoarding Silver [View article]
GPL held silver because they couldn't get it all processed. Silver processors only want to take the highest grade first. It is fine to stockpile silver and gold if you can cover operating cost plus the pittance you need to validate your stock price, but in general its best to sell to reliable long term sources that actually use the stuff not just on the spot market where the flood the market with paper and then try crashing it to close 90+% of the paper out and steal away the rest at low prices.
Silver demand will only go up. Suppliers need not create an artificial shortage or hoard it to make it rise. Given silver is the best conductor and depositing it on solar cells and semis leads to almost 100% loss, silver has a very bright future.
6 Silver Stocks For The Central Bank Reflation Trade [View article]
This bounce in price is somewhat a dead cat bounce. They have been punished with silver as it fell from $47 to $31. With the silver mineralization bonanza after the last run up after this next round of new veins are used up and Latin America coring out all the old silver mines we may be seeing the end of easy silver mining growth. Of course, this is a long term perspective that is greatly lacking.
The problem with silver right now is too much paper and too much gambling. Fundamentals are being thrown to the curb bot on the upside and the downside. Thus we are seeing unwarranted heavy volatility.
Mining Companies Not The Best Way To Bet On Silver [View article]
I agree with the author. The historicals on miners are bad vs silver itself. They tend to rise slower and fall faster and harder than silver itself. You can juice it by buying them up on specific news such as earnings or new mine results though, but that is more a professionals game than a individual investor's strategy.
Miners' Many Hurdles Keep A Lid On Gold And Silver Stocks [View article]
Most people are upset that as the price of gold and silver rise companies are using it to pad executive pay and channel bonuses leading to lower and lower margin profitability and worse metrics overall. It isn't just poor management, its corporate raiding by management. A lot of mining companies simply don't have the shareholder's interest in mind making owning gold or silver outright a better choice to benefit from the metals run up.
Gold is preferable to a currency that devaluates because it is printed and handed out to the well connected. In the US its bankers. In Greece its government employees. In Iraq and other countries its the politically connected. Those who don't get the handout subsidize this terrible misappropriation of wealth and is the primary reason to end fiat money. The misallocation of assets is worse even that the devaluation itself as we have seen in the US. Now US TBTF banks hold a increasing disproportionate amount of assets from this and choose to sit on them and gloat over the rest of America that faces rising unemployment and rising prices. America would have been 10x better off if the TBTF banks went under and the assets fled to strong well managed stable banks that actually did what banks are suppose to do (take deposits and lend). Rather TBTF banks need no deposits because they borrow from the Federal Reserve discount window for free and want to lend to no one because they can lead to the government which must finance the amount it spent lending to the banks or paying people for unemployment because businesses can't get a loan.
Farmland also requires that you pay taxes and pay for water, equipment, labor, and then requires you to pay the dairy co-operative etc. In the end you get stuck selling to a government supported organization that represents you buy ripping you and every other farmer selling the same stuff off.
Gold and Silver Stocks to Accumulate Over Summer [View article]
Alll these companies are doing fine at $30-$40 silver prices. They are absurdly cheap here. GPL even raised cash to increase $ per share near the top of the silver stock run up and is also being punished. General fear and illogical thinking are making these stocks very attractive here.
$100 Silver? Six Silver Stocks to Consider [View article]
Silver miners are raging buys here not because silver will recover so much as as long as silver sits over $30 they will continue to make good profit. If it rebounds to $40 their bullish momentum will go back up and they will be sporting 50-100% gains later. Not to shabby.
Industrial silver demand is rising for solar and other industries that need it for its antibacterial and conductive properties. I expect its over 50% YoY demand growth to continue for the next 5 years. That means the bulls will get the last laugh.
7 Profitable Silver Stocks That May Be Able to Ride Out the Storm [View article]
GPL and EXK produce silver below $10 an ounce. Even at $30 their existing price justifies their share price. BTW if Comex still can't meet silver delivery demand the price of silver will skyrocket past $50. It made paper silver contracts evaporate but physical silver is even more precious now. Banks are scooping it up now while the price is artificially low.
Why It's Time to Sell Silver Stocks and Buy Bank of America [View article]
I agree with Einstein. What you are looking at on BACs earnings are synthetic. Market to market BAC isn't making a thin dime and relies solely on Federal Reserve discount window 0.25% rate to generate profit. This is a classic TARP bank with tons of hidden losses on their balance sheet and temporary Federal Reserve backstops for their garbage assets. When the backstop[s end and the discount window rises BAC is in trouble. Also when interest rates rise BAC is in trouble. Their PE ratio is far from assured.
As for silver miners, they benefit from dollar depreciation and inflation. The simple fact is the profits from silver miners are not valued at contracts selling at $40 per ounce. More like the low $30 range. The miners should blow out earnings if silver stays at $40 for a prolonged period of time. The peanut counters will get shelled shorting these stocks just because silver is toppy at $50. They don't need $50 to generate earnings in excess of the estimate.
You can short silver but shorting silver miners will make you look like a fool long term.
Approaching Market Tops, Takeovers and Technology Stocks [View article]
I would guess these players would start licking up smaller silver players first. If you see that then a big merger may be on the way in mining.
The tech runup is very justified on earnings and I enjoy hearing about NXPI which I own and have mentioned several times before. The scary part about tech is while great companies are there the top of tech's rich valuation is looking very scary (CRM, RAX, NFLX, etc.) Stuff that trades well over 80x PE gives me the jitters unless their growth is approaching or over 50% which isn't the case. So when the overpriced top of tech blows off I hope the strong vibrant and growing middle part holds together or we will see another 2000 dip into another recession.
Good article. I actually like the junior silver miners right now that can expand production. That includes the 2 I own Endeavor and Great Panther that were listed on this. This is a great article for people just discovering silver as an investment over and above heirloom silverware.
U.S. Gold: The Accidental Silver Miner [View article]
Actually on GPL, EXK and others their profits from higher silver prices will also have a disproportionate amount of earnings rise. I believe EXK is trading at about 13x this years estimated earnings. So no, I don't think most silver miners are over valued.
Buying current producers is certainly better fundamentally than prospective future mines since it takes 1-2 years to get it fully operational and the results may vary. Another words, a bird in the hand is worth 2 in the mine and a few years later.
I think that if oil and gas go to $140 then the gov and Bernanke will have to raise interest rates and reign in QE etc. simply because inflation will burn throughout the economy. Simply put, the US needs to make sure oil doesn't derail the economy via inflation even if that means killing the recovery. To not do so invites a Jimmy Carter type stagflation.
The better approach is to cut strategic reserve purposes and or open it up to keep speculation from driving oil up too far in the short term similar to how Bill Clinton handled it. Libyan oil really doesn't significantly dent oil production, and oil stockpiling is increasing because real demand is not rising. So most of the run up is fear.
Why Silver Miners Are Hoarding Silver [View article]
Silver demand will only go up. Suppliers need not create an artificial shortage or hoard it to make it rise. Given silver is the best conductor and depositing it on solar cells and semis leads to almost 100% loss, silver has a very bright future.
6 Silver Stocks For The Central Bank Reflation Trade [View article]
The problem with silver right now is too much paper and too much gambling. Fundamentals are being thrown to the curb bot on the upside and the downside. Thus we are seeing unwarranted heavy volatility.
Mining Companies Not The Best Way To Bet On Silver [View article]
Miners' Many Hurdles Keep A Lid On Gold And Silver Stocks [View article]
5 Silver Stocks That Could Surge Higher [View article]
Why China Is Right About Gold [View article]
Why China Is Right About Gold [View article]
Gold and Silver Stocks to Accumulate Over Summer [View article]
$100 Silver? Six Silver Stocks to Consider [View article]
Industrial silver demand is rising for solar and other industries that need it for its antibacterial and conductive properties. I expect its over 50% YoY demand growth to continue for the next 5 years. That means the bulls will get the last laugh.
7 Profitable Silver Stocks That May Be Able to Ride Out the Storm [View article]
Why It's Time to Sell Silver Stocks and Buy Bank of America [View article]
As for silver miners, they benefit from dollar depreciation and inflation. The simple fact is the profits from silver miners are not valued at contracts selling at $40 per ounce. More like the low $30 range. The miners should blow out earnings if silver stays at $40 for a prolonged period of time. The peanut counters will get shelled shorting these stocks just because silver is toppy at $50. They don't need $50 to generate earnings in excess of the estimate.
You can short silver but shorting silver miners will make you look like a fool long term.
Approaching Market Tops, Takeovers and Technology Stocks [View article]
The tech runup is very justified on earnings and I enjoy hearing about NXPI which I own and have mentioned several times before. The scary part about tech is while great companies are there the top of tech's rich valuation is looking very scary (CRM, RAX, NFLX, etc.) Stuff that trades well over 80x PE gives me the jitters unless their growth is approaching or over 50% which isn't the case. So when the overpriced top of tech blows off I hope the strong vibrant and growing middle part holds together or we will see another 2000 dip into another recession.
12 Shiny Silver Stocks [View article]
U.S. Gold: The Accidental Silver Miner [View article]
Buying current producers is certainly better fundamentally than prospective future mines since it takes 1-2 years to get it fully operational and the results may vary. Another words, a bird in the hand is worth 2 in the mine and a few years later.
$140 Oil and How to Profit From It [View article]
The better approach is to cut strategic reserve purposes and or open it up to keep speculation from driving oil up too far in the short term similar to how Bill Clinton handled it. Libyan oil really doesn't significantly dent oil production, and oil stockpiling is increasing because real demand is not rising. So most of the run up is fear.