Well sold about 40% of my MUX the last three days near this top in the hopes that we get the correction we've been anticipating. I think we will, hopefully somewhere in the 2.20 maybe even spike down to fill that gap at 2.08. Yesterday's action in the miner's was completely contrary to the rise in the metals and over the course of the last 10 days or so I've watched the miners sell off hard late in some sessions in spite of gold and silver being positive. The is pattern I have mentioned before in that it often portends to a smash down in the metals forthcoming and there is no doubt they have had a pretty good run and are due for a correction. Both are overs sold on the RSI. I'm not alone here is some of the commentary from Ed steer's site this morning.
If you're looking for the reason for such a giant decline in the precious metal shares, against a backdrop of increasing bullion prices, I don't have one. When we at GATA saw such a dichotomy ten or more years ago, it was pretty much always a precursor to a price smash by JPMorgan et al. We'll see if that holds true this time, but in the face of everything that's going on in the world at the moment, I highly doubt it.
Based on the volume figures in gold yesterday, it was pretty easy to tell that JPMorgan Chase et al were keeping a lid on the price. Even more to the point was the terrible performance that the precious metal equities put in yesterday as well. I'm still trying to figure out what for-profit sellers would unload shares like that in the face of rising precious metal prices.
I know that the general stock market got hit, but that doesn't come close to accounting for what happened to gold and silver stocks. I could see that happening if gold and silver were down on the day, but that was far from the case.
Now if you're a T.A. person, the fact that the shares aren't confirming the move up in both gold and silver is a bad sign for the metals themselves. The mysterious selling at the New York close that we've been seeing in the shares a few times during the last ten days or so, may be "da boyz" painting the charts to make it look that way, and they are old hands at this sort of thing. While JPMorgan et al are managing the precious metal markets, I'm always on the lookout for "in your ear." We'll find out soon enough if this idea has any validity to it.
Here are some last quarter figures from the Canadian Mint as well on Gold and Silver sales. Pretty staggering numbers considering according to JPM. Goldman Sachs, Armstrong, Christensen and a few others say we are in a bear market for gold and silver. Those figures relative to last years don't speak bear to me, rather quite the contrary. Then again these fools never differentiate between the real deal physical and naked non backed paper which is in fact what people were dumping.
However, the Royal Canadian Mint issued its second quarter report for 2013 yesterday, and this is what they had to say about bullion sales in general, and gold and silver maple leaf sales in particular:
"This is the first quarter in the Mint’s history that revenue has exceeded CAN$1 billion. The significant improvement was driven primarily by bullion demand. The fragile stability of the European economy and hesitant recovery in the U.S. combined with the decline in the gold price throughout the quarter to drive demand for the Mint’s bullion products to unprecedented volumes."
"The volume of Gold Maple Leaf (GML) sales increased 144% to 403,000 ounces compared to 165,000 ounces in the same period in 2012. Sales of Silver Maple Leaf (SML) coins increased to 6.4 million ounces from 4.0 million ounces in the same period last year, which is a 60% increase."
"During the twenty-six weeks (H1) ended June 29, 2013, sales of GML coins increased 123% to 664,000 ounces while sales of SML coins increased 53% to 12.1 million ounces." |
