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BUT WHO CARES?   ,so is SILVER !

https://stockcharts.com/h-sc/ui?s=gdx

GDX has  an RSI of 78…so keep the above in mind….for those that own the shares I would pay no attention to the RSI cause this gold bull mkt could–maybe-perhaps–g*d willing–INshallah–etc etc –be a once in a lifetime experience–but for those traders, I guess u need to still watch…

Wow thanks for the article. The ideas sound a little familiar! 🙂

Hecla’s hedging moves right at the start of this Bull are pretty much inexplicable … unless perhaps they are doing favors for the riggers? They sure aren’t doing any favors for the shareholders.

I’ve just about quit coffee – I’ve switched to cappuccino!  here’s an easy recipe:

in a large container (I use a re-purposed two liter soda jug) put two fingers of chocolate syrup and three fingers of whole milk.  shake well, fill with strong coffee.  allow to cool, and then refrigerate.

a nice, cold caffein drink for the summer.   when cool weather returns, I may go back to coffee.

Another one that has been late to the party, but might be a good buy on a dip if we get one around maybe $.90, otherwise it could go straight to $1.20.

R6 – looked at options, but only have $2.50 strikes, which pretty much keeps everyone out except for a hail Mary type bet. Maybe that’s a good thing.

https://stockcharts.com/h-sc/ui?s=GPL

I’m no expert on the shares etc….but once upon a time a shares float mattered, when we had an SEC that was awake/not deep in Debbie does Dallas, now I fear that Float is meaningless, especially with all the Dark Pools aka Bank Run Rip Off Centres, where no-one seems to worry etc.

Also one just has to look at the way NEM etc are sat on to control the Hui/GDX, to see that unlimited shorting goes on all day every day and I bet not 1 share is borrowed and delivered within the 3 or 5 day window…

Plus when was the last time anyone heard of a short squeeze on an individual stock……it seems stocks are now just like Commodity Futures, they can trade in unlimited volume.

R6 – yes, beats what we’ve seen for years, much rather see the daily comebacks than the drifts lower and disappointment. I haven’t looked at AUY in a long time. We might just be in one of those sweet spots where we can buy virtually anything and make money. I’ve been buying some Almaden – AAU the last couple of weeks. I’ve always made money with that and it’s one of the only stocks I can find that hasn’t participated yet. Should be a $2 stock again at some point.

Captain – yes, I see your point, their short hedges just add fuel to the fire. Too bad for their shareholders though.

as per our. discussion yesterday; this is preferable to coing in $20 higher and seeing it whittled down all day–gold is 15 off the top and silver 12….

The $ index. is only up .250…but I think the days are gone when gold buyers are gonna have. a. sh*t fit just because of the $…the horse is out of the barn and long gone.

That’s not going to hurt the market — it will help. It shows disbelief — a necessary prerequisite being that wall of worry bantered about.

Indebted producers must think this way because they must pay their masters (bankers) — but for the unhedged — it’s mother’s milk.

Cheers

I’m not crazy about its large float. @950 mill.

https://money.cnn.com/quote/forecast/forecast.html?symb=AUY

analysts rating in July–6 buy–1 outperform–5-hold-1 sell

no stock cam match cde for scope–2 bucks to 15 bucks in 2016

Here comes silver – just jumped, now up $.05

Not only does Hecla hurt themselves and their shareholders, they hurt the gold and silver markets in general. Bummer.

Looks like we got the USD screaming higher this am as the New York Fed felt the need to walk back Williams (or was it Clarida?) uber dovish rate cut speech yesterday.

Will be interesting to see if the shorts use this as another opportunity to cover.

SLV down a whopping $.04

I guess after 3 days like we’ve had, some give back is overdue.

Hi Bill!

No sooner do I post my comments regarding producer hedging last night than I see this news from Hecla Mining:

https://www.kitco.com/news/2019-07-18/Hecla-Reports-Hedges-In-Options-Market-Higher-2Q-Silver-Output.html

” The company said it established hedges that utilize put options on expected gold and silver sales through the first quarter of 2020, locking in a minimum average price of $1,400 per gold ounce and $15.13 per silver ounce.” – ENDQUOTE

In the most recent quarterly report, Hecla published their AISC for gold @ $1760 per ounce, and for silver @ $9.34 per ounce, net of by-product credits. And that does not include the other G&A expenses plus non-cash items that further erode the overall profitability for the company. Big surprise, Hecla lost more than $25 million during the quarter.

Right now both gold and silver are trending higher and looking bullish for the first time in several years. So these guys think its a great idea to forward sell some of their gold and silver output to lock in a gold price below cost, and lose the leverage to a possible breakout run higher? They are losing money and burning through mineral inventory at the mines to do so, while squandering the opportunity to capture higher revenue if at last the market moves beyond these pitiful prices. And the very act of putting these hedges on will just make it easier for the Cartel to suppress the metals further and rob shareholders of gains down the line.

Recall how Barrick was aggressively hedging through the early phase of this bull market and losing money hand- over-fist on those hedges. Thereafter they completed a huge equity offering and blew billions of dollars to retire the hedge book, late in the surge for the metals prices at the time. What damage did this strategy do to shareholders and for what gain?

Recall also how Rob McEwen built Goldcorp and established the company as a premium miner with superb performance, in part by refraining from any hedging activity. By providing shareholders with full leverage to the metals during the bull market run, Goldcorp was one of the best stocks to own. After he left Goldcorp the stock has lost its luster. I wonder if there is a connection?

For the record, Hecla is facing several class action lawsuits right now. The stock is marooned at the lower end of its multi-year range. For investors looking for leverage to the rising trend of the precious metals, why would anyone consider Hecla now, if they do not even have the confidence in their own mine output to avoid the trap of hedging? I note that Hecla rewards inept management with top-tier pay packages though.

Morning Friends

“No one”  knows Silver is still so cheap

Onward Pilgrims

Winedoc

Portrait of a Big Boy
https://railpictures.net/photo/698888/
https://railpictures.net/photo/699200/

Such a fine sight to see …

At least now you can afford to take care of your puter problems. The BEAST is unchained!

I just resolved some malware issues a few days ago, and then last night, we had a thunderstorm, and lightning fried my modem.  fortunately, my isp has good customer service.  now, I have surge protection in depth.

silver is working the night shift!

“…parkin’ on a corner in Winslow, Arizona…”

I bet I’m gonna be in vacation when it hits its target. Figures

the best part is that maybe we won’t have to endure another year of tax loss selling.

Dollar is catching a little bit of a bid tonight. Not sure why, but we’ll see if it sticks. A lot of dovish talk from the Fed heads today.

If I heard right, we have some OpEx going on tomorrow. Should be interesting at the end of a monster up week.

are going to blow the roof off earnings next report..remember all the expense is paid ..what comes in FALLs  all to the bottom line !  I love owning a business with NO expenses…! where Revenue almost = Profit ..

anybody thats ever run a business with a P&L STATEMENT  knows what I mean..

just checked my totol ,after a afternoon nap the Funds got updated  ,very nice close for me….

but no physical anywhere is some goldbug’s wet dream. Total poo