What the hell is happening to gold and silver?

[JasonC]

I have about 2G's I am looking at putting into mining once the dust settles as well and AGQ was one although on the high side. I would like to see it come under $100 again. What kind of price are you guys waiting for to reenter on this one?

It's honestly too difficult to tell. I mean, we just saw about a 30% drop in the past week. The central banks are up to all sorts of chicanery, so I have no confident guess of where it is going. The huge drop last night seems to be from Hong Kong raising margin requirements (I haven't spent much time lookign into it today so not sure), but those Asians immediately bought it up after the huge drop from the market price, making the price come back (silver was down over 15% at one point last night). In short, I don't have a confident guess, but if I had to guess I think 25-26 would be a bottom; however, this entails another guess on my part that there isn't much left in this avalanche.

 

[cubical]

Guys, don't hold AGQ for more than a few days. The negative compounding will work against you so fast, it is simply not worth holding.

As far as miners, I would recommend looking at royalty companies. SLW is the best for silver. FNV, RGLD and SNDXF.PK are some gold ones. They have all the upside of the miners(though less volume) and none of the risks of higher costs. Hopefully these guys are using these lower prices to pick up new streams.

 

[JasonC]

Any other mining stocks anybody see as a bargain right now?

I'm looking at:

TGB
SVM
IVN
AGQ
NEM

Any advice would be much appreciated. I'm also going to dump a good amount into physical, also.

AGQ is not a mining stock.

RVM
AG
EXK
SLW
GORO
MDSMF

They could go lower, though...

 

[JasonC]

Guys, don't hold AGQ for more than a few days. The negative compounding will work against you so fast, it is simply not worth holding.

As far as miners, I would recommend looking at royalty companies. SLW is the best for silver. FNV, RGLD and SNDXF.PK are some gold ones. They have all the upside of the miners(though less volume) and none of the risks of higher costs. Hopefully these guys are using these lower prices to pick up new streams.

Good advice. I never hold it very long..

On your miners, if RGLD is Royal Gold then I also like that company--just forget the darn ticker symbol.

 

[WilliamC]

It's at $28.17 now

Hell yes and I scored a double handful of Eagles for a little over $34 each!

And I picked up a 1/2 oz George Washington 99.99 silver commemorative coin that fits in with my miscllaneious collection with a Revolutionary War theme!

I was so excited this morning I ran out of the house and forgot my workout stuff, was at the bank when it opened and at the coin store right after it opened.

Next target is $25 and I'll spend another grand or so.

Somebody Stop ME! Weeeeeeee..........

 

[blakjak]

Even by the most “optimistic” bear standards, the drop in GOLD is nothing but outrageous in its scale. It is now trending sub 1600 territory.

WSJ had a good post where it listed some of the reasons. Primarily among them:
1. European countries selling gold to make up losses in their bonds.
2. European banks selling to replenish their cash position
3. Hedge Funds and other funds across the world recouping their equity losses with sales of their gold positions.

Lesson I guess is that even though the macro fundamentals should still point at a long term gold price increase, unless we know details of who is holding gold and their intentions, very difficult to predict the price path…

 

[GunnyFreedom]

I just bought another 5oz of silver at $30 on the way back up. I'm really liking the buffalo bar, but the APMEX overspot has taken over any real gains at over $2.50/z fluxing to $5 in high volatility low quantity....

http://www.apmex.com/Product/42933/1_oz___Buffalo_Bar_999_Fine_Silver_Bar_Prooflike_in_plastic.aspx

But even at $30 I made $5/oz when it hits $40 again. So even though I'm eaten up in transaction fees I still win, jut not by as much as I'd like lol.