Thoughts on Markets

Thursday, December 18, 2008

Possible Buying Opportunity


Folks, here we go again with the intervention of JP Morgan and others into the precious metals markets. They have been active, but not as noticeable as today. It seems that they just do not want the market to take care of setting prices on its own. The lack of physical metal at the retail and very limited amount at wholesale levels indicate that the prices are being set based upon the paper futures rather than the metal itself. Were the prices to be set by the physical metal, they would be much higher.

However, the recent strong upward moves in gold and silver prices indicate that once if and when the restraint is removed, we will see giant steps upward. The deflation may be having a small impact upon the prices, but the run to the safety of the metals is very strong.

Once again, we may have opportunity to get back into our trading portfolio of mining stocks at bargain prices. If such turns out to be the case, we should be thankful for the intervention. The mining stocks are taking a hit today, but prices remain higher than before this intervention. Here are some: AGXM 0.10; CDY 1.064; CDE 0.95; DROOY 5.5615; GDX 30.42; GFI 8.695; GG 29.22; GSS 1.06; HMY 9.40; IAG 5.32; KGC 16.78; KRY 0.13; NEM 38.37; PAAS 16.10; SLW 5.84; SSRI 14.10; VGZ 1.34; XRA 1.698. They are looking interesting; for example HMY is down 0.88 today. I may have to buy some of that one.

Gold is 844 and silver 11.07. Both are on down ticks.

Even the rich are suffering:
International Herald Tribune
Luxury prices are falling; the sky, too
Thursday, December 4, 2008
Read this article HERE.

An explanation of the Ponzi Scheme from
Seeking Alpha:

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