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: "Meaningful Correction"?
Looks like we are getting our “meaningful correction” early as time runs out for the bad guys. What we have today is fear and panic once again being disguised by yet another in a long but dwindling Pyrrhic victories in the long and volatile war against gold and silver. Auto ignition of the juniors is but a breath away, about to compress the historic technicals into a short wave blast many are not prepared for. That’s just my amateur, unbridled, non-scientific opinion. What a great day to attack! It will be short-lived in my opinion. Way to grab the attention of the madding crowds while the world’s premier gold show is on in Toronto after Ben has asked the banks to take on lower interest rates to help out the homeowners being foreclosed upon. Gloss over the disastrous reports of hedge funds nearing meltdown and sovereign wealth funds from Dubai opting out of trying to save Citigroup. Forget the fact that serious supply and production slowdowns for both gold and silver are screaming “Flashover” imminent. Run from the inevitable as China and India and others continue their voracious appetite for all commodities. Attack gold and silver while “consolidating” and funds are beginning to invest. The US economy teeters on the brink while the dollar swoons and printed paper underpins the bond markets. Oil is smashed to grease the skids. There is nothing but bad news coming out on an hourly basis and the PM shorts are now desperate.. As Jim Sinclair reminds us:“Leverage within the system is increasing exponentially. Bear in mind that the Total Credit Market Debt number excludes the $516B notional value of derivatives of the financial sector…..The global financial system cannot “gear-up or leverage-up” endlessly. When it ends, your suggestion that “This is it” will come to fruition……..The ratios long the majors and short the juniors sold as an OTC derivative by the same geeks that have brought you the end of the financial world as we knew it, also produced the gold share ratio spread. This spread is starting to contract now as the majors decelerated their climb and the juniors in the main have decelerated or ended their decline. ……No commodity share is going down when the underlying asset of the company is going to establish at least an appreciation of 665% from the low. The geeks only look at the momentum of a spread once again forgetting a thing called a market. When the recent OTC derivatives skewing a market explodes, as it will, the juniors will fire out of their silo like an ICBM, doing nuclear damage once again to those criminals and their overloaded laptops.”And recently from MIDAS:“Based on what I have heard about silver the past many months from our sources, I was convinced some big players, like the Arabs, were making their move to take on the major shorts. At the same time, probably because they got wind of their new adversary and other factors, it was abundantly clear one, or some, of the major shorts were getting out while they could. This had to be because on this last leg up to near $20, the open interest tanked. Unlike early 2006, the large specs were not pushing silver up, as per the open interest drop. If the specs were running the market, the open interest would have kept on going……..It is important to note that the Comex is just a glimpse into what is going on in the silver market. You also have London and the Arab world to deal with, and most importantly the Over The Counter Market in the US, which is MUCH larger than the Comex. Since we have no idea what is going on there, we assume it mirrors the Comex, but we cannot be sure. …….. my initial working hypothesis is that silver entered the "investment demand" phase of it’s bull run in early 2005, while gold is only in the early "capital protection" phase and has yet to show any sign of reaching the investment phase…… Outside of an orchestrated, extraordinary effort by the central banks and Gold Cartel functionaries, silver ought to run to the upside, even from here, before we get a meaningful correction, which will come. Based on the evidence, and of what I can see, the Commercial Signal Failure has a ways to go. In addition, there is plenty of room for the specs to MOVE BACK IN on the long side. Who will be selling to them as they buy, if more and more of the major shorts are forced to cover, willingly or not?Another ad nauseam from me … this is why it is SO IMPORTANT to know what GATA knows about the extent to which both gold and silver have been manipulated, their prices artificially suppressed, over the years. This price suppression scheme is on the way out. Thus, gold and silver are likely to act far more robustly than most pundits can comprehend. Those who analyze gold and silver, as they have acted in the past, are likely to CONTINUE to get it WRONG
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