PM stock shorts: good write-up. As if we didn't know!
posted on
Dec 01, 2009 12:21AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Many gold investors have offered various ideas as to the reasons why the gold mining shares and silver mining shares have underperformed. For several years, my belief has been that every single major gold and silver mining stock is manipulated every single day - no exceptions. Let me offer some facts to support that position.
The short positions just came out in Barron's this past weekend. Barron's reported the short positions for Oct. 30, the short positions for Nov. 13, and the percent change. During this 2 week time period, the price of gold went basically straight up. One would think that the short positions might go down in at least a few of the major gold stocks during a 2 week period where the price of gold goes up $75/oz or so.
During this time period, the NYSE short interest rose 2.3% and the Nasdaq short interest rose 2.1%. A case could be made that the short interest of the gold and silver mining stocks should reflect the increase in the overall market. However, why would an "investor" massively or substantially increase their short positions in practically every single gold and silver mining stock after the price of gold just breaks out after a 19 month consolidation? Are these "investors" who are increasing their short positions across the board incapable of reading a price chart?
I am heavily invested in the mining shares and will continue to heavily invest in the mining shares. I just came from church earlier today. They tell me we are suppose to love our enemies, not strangle our enemies. I will just report the short positions and keep my emotions scaled back.
The ABX short position increased from 9,985,188 shares on Oct. 30 to 14,538,484 shares on Nov. 13, an increase of 46% over a 2 week period. The EGO short position increased from 15,460,717 shares to 17,165,668 shares, an increase of 11%. The FCX short position increased from 22,343,458 to 22,881,810, an increase of 2.4%. The GG short position increased from 8,968,008 shares to 10,449,121 shares, an increase of 17%. The HL short position increased from 28,735,159 shares to 31,704,086 shares, an increase of 10%. The IAG short position increased from 3,605,156 to 6,766,891 shares, an increase of 88%. IAG had been outperforming. We can't have that can we?
The SLV ETF short position increased from 7,835,934 shares to 13,133,787 shares, an increase of 68%. The GLD ETF short position increased from 12,147,164 shares to 13,862,173 shares, an increase of 14%. NEM short position increased from 9,104,819 shares to 12,320,038 shares, an increase of 35%. AUY short position increased from 7,043,329 shares to 8,489,386 shares, an increase of 21%. GBG short position increased from 5,763,567 shares to 7,304,970 shares, an increase of 27%. NG short position increased from 4,539,763 shares to 5,342,429 shares, an increase of 18%.
Now for the good news. The short position for GSS was REDUCED from 8,312,549 shares to 3,307,271 shares, a decrease of 60%. This was the only major or substantial reduction in the short interest for a gold mining stock reported in Barron's during this time period. I do not have a real good reason why the shorts would massively reduce their short position in GSS and not in any other gold mining stock.