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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (154127)	3/9/2020 9:25:59 PM
From: sense	Read Replies (1) \| Respond to of 217747

In Ten Days... Gold Silver Ratio from 88 to 98... One of the biggest anomalies I've noted in the markets recently... Gold miners haven't participated uniformly in market moves recently. There's an obvious divide apparent the last few weeks, which I've easily enough identified as being a market focus on the shares of the larger company gold producers, only, and then, only those with better yields are finding a lot of support... while the rest are finding none. I've noted that suggests what we've been seeing isn't a play in gold at all... but a play in yield... with traders abandoning other choices in yield to focus on getting high quality yield in gold. I don't even think that means that they were expecting that gold miners will be less likely to have their productivity disrupted by... what we see happening in the markets now.... events that surely will disrupt revenue flows much more in a lot of other businesses. But, the gold shares have all been hammered pretty hard right along with others in this market ? And, why not ? Because... the price of the gold they produce isn't obviously declining just now ? But maybe it will ? Or, maybe it will go the other way ? And then, today's market action ? Far and away the largest cost item in mining is the cost of moving dirt around. That takes a lot of oil. So having your biggest cost item plummet by half... yeah, that can't be good for the bottom line ? The normal timing you'd expect to see... when there are disruptions occurring because of changing oil costs... and those begin to impact the cost of mining ? That normal pace in the timing of change... has been wildly disrupted. That's bad news for high cost oil producers... but its great news for miners... or it will be... as soon as the price of a barrel drops the price of a gallon of diesel. Among other things that means... is that the division apparent now between producers with a nice yield and the rest of them... is likely to be sustained, and grow... because the hunt for high quality dividends isn't going to go away... and lower costs will make the profits grow. This isn't a market that's ready to reward you for hawking drill tests, geological reports and feasibility studies from junior miners. It's a market that's buying gold stocks... only because many have a yield that's better, more reliable, than the comparable alternatives in the market just now. So, its mostly a gold MINER story, not a gold metal story... ? Gold as metal ? Gold has already been re-monetized. Basel III makes it a tier one asset again. So, the trade in metal... the suppression of gold and silver... is mostly about enabling bankers (and clients like China) in accumulating gold. Since the re-monetization has already occurred... the right point of focus is the corruption in the trade... the price suppression (like in oil today)... and the inevitability of the fixed price of gold (as fixed now by market manipulation) being liberated to trade freely again ? Re-monetization will be followed by... re-pricing... only once the bankers own enough of the gold that a price reset works to let them off the hooks that are being set this week. Silver ? Silver is diverging from gold, on a rail. And that should continue. Because silver has about half its demand tied into consumer electronics... and sailings from China. But, in China, no one is buying cell phones now ? The boats aren't sailing ? Silver is going to be hammered lower as the reality of the supply chain choking on silver starts to become apparent. That will make silver the most incredible turn-around play... in the future... at the point when we come out of the depression and the sustained lack of investment in silver supply development... suddenly imposes supply constraints. But, that's a play for another day.