By: Doug MacKinnon

Doug MacKinnon — Tue, 23 Feb 2010 22:20:02 +0000

I was out at San Simeon CA a few years ago at the William Randolph Hearst Castle, Museum and Gift Shoppe. Here’s a guy that had his ducks in a row. Daddy buys a silver mine, hits a major gold vein, drops dead and leaves junior the cash. Now, that’s investing.

By: Dave

Dave — Wed, 11 Nov 2009 19:51:06 +0000

Buy good silver stocks, like SLW, HL, SVM, etc.

By: paul

paul — Mon, 09 Nov 2009 23:20:16 +0000

what is basically the best way to play the silver game without buying options?

By: Rich

Rich — Sat, 03 Oct 2009 15:36:22 +0000

When everybody “knows” something in the competitive market, it may not be so valuable. In this case, everyone “knows” inflation is around the corner, gold and silver are in short supply relative to Federal Reserve Note Treasury Debts and silver is supposed to be a better deal than gold percentage-wise. People “know” gold and silver exchanges and ETFs have naked shorts they cannot hope to deliver for physicals. They may default and have to deliver them in cash if gold and silver prices do not fall. This is not bullish for gold and silver no matter what herdthink says.
Last fall we buy-stop trailed CDE down into the swoon to all-time and made money with trailing sell stops. This was despite a CDE investor relations department and son-in-law CEO of a previous CEO and officers who were totally non-responsive to serious repeated public questions about Bolivia risk, reverse split and repeated broken CDE promises on mining targets.
CDE conference calls were shams, with nothing of substance discussed by either the company or the institutional analysts who funded CDE.
CDE finally released a little public info on OPIC coverage on Bolivia, but not the necessary details or limits. Altogether a CDE corporate governance rating near zero, dedicated to awarding stock options to insiders at 48 cents and up and warrants to underwriters with similar low-priced advantages.
When we see $495 bogus hype reports like LB HMM, recommending CDE near 22 after it was 36 cents last November, at a PE ratio above 67, we go the other way. We like to buy low and sell high.
Gold and silver are both up four times after the dollar fell 83% versus gold and silver. Gold and silver so far peaked in March 2008 at 1033 and 21.44. We do not view gold and silver as a bug or religious cult.
Re inflation hype, we had a 15.3% collapse in GDP last year and watched unemployment in honest shadowstats.com terms hit 22%, with money and credit collapsing over 12%, durable good import production prices falling 33% year over year and house and car prices and sales at generational lows and not turning around anytime soon despite Fed, Treasury mass media propaganda about green shoots. Where exactly is the inflation?
Banks are not lending, credit cards, equity lines and shadow banks are collapsing. We are not on the Constitutional
(Article I Section 10) gold and silver standard, most people do not have savings, so the President and Fed cannot inflate 69% like they did in 1934 changing the price of gold from $20.67 an ounce to $35 overnight. (Derivative leveraged gold is still officially priced at $42 an ounce and may see that price again in cash free markets, based on Sir John Templeton observing assets correct the amount they are financed – woe 125% DiTech loans top value.)
In fact, despite announced IMF PR puff gold sales which go to China, now the leading gold producer, Central Banks have had to buy gold to support its price in their fight against overwhelming deflationary defaults. When surplus trade nations are done buying gold which is dwarfed by deflating dollars, look out below. Government owned banks are losing the inflation battle which worked for two generations, a Jubilee. The scarce dollar may have more upside now than gold and silver. When we consider Big4 Insiders are two times short gold and four times short silver, this is not a bullish (or popular) outlook for either. We never made much money following the madness of crowds.
JubileeProsperity.com
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3251493

Comments on: “Wall Street’s Favorite Silver Stock” – Luke Burgess

By: Doug MacKinnon

By: Dave

By: paul

By: Rich

By: stockcrazy10