PM Daily Market Commentary - 1/6/2016

davefairtex
By davefairtex on Thu, Jan 7, 2016 - 1:06am

Gold rocketed higher today, rising +16.30 to 1093.30 on very heavy volume, while silver rose just +0.03 to 13.99 on moderate volume.  Gold moved up steadily all day long, defying plummeting commodity prices and an almost-total collapse in crude oil.

Gold's rally today wasn't a big short-covering spike, it was a steady move higher that ended up closing quite near the day's high.  By the time the day was over, gold ended up breaking above its previous high of 1088.30, and that also resulted in a close above the 50 MA.  These are both very positive signs.  This is also the third straight up day for gold - something we haven't seen since last October.

Silver struggled higher today, attempting a modest rally but largely failing.  It appeared that falling commodity prices kept a lid on silver prices today.  Silver's failure to rally is telling me that gold's move higher is safe haven in nature.  From what I've seen, solo moves by gold - i.e. when gold rallies and silver doesn't - tend to be short lived.

GDX rose +1.64% on light volume, while GDXJ climbed +1.71% on light volume also.  Juniors are starting to stand out, breaking above their previous high.  I had to use the thin orange line to see the breakout, but it is definitely there.  This is the third day above the 50 MA for the junior miners.  The junior breakout is a positive sign for PM.

Platinum fell -1.26% on moderately heavy volume, while palladium basically collapsed, falling -5.73%, smashing through support, making a multi-year low that dates back to 2010.  This is another sign that gold's rally is a safe haven move.

The buck fell -0.13 to 99.31, the first drop in about a week.  Its possible the buck is just taking a break; to me the dollar uptrend still looks intact.

After moving slightly higher yesterday, SPX continued dropping today, losing -26.45 [-1.31%] to 1990.26 and making a new low for this cycle.  While the pace of the move lower doesn't seem to be accelerating, neither is it slowing down.  So far I'm not seeing any real buy-the-dip; yesterday's "rally" looked more like a dead cat bounce than anything else.  VIX rose +1.25 to 20.59.  While the Shanghai market rallied, it appears that US equities are not convinced that all is well in China.

JNK fell -0.09%, a surprisingly small move given the magnitude of the drop in oil today.

Bond ETF TLT had a great day, climbing +1.35% and moving back towards bullish territory.  Bonds have been a tough trade recently, as direction seems to change weekly.

CRB plunged -2.09%, making a new all time low for this index.  The commodity downtrend continues.

WTIC sold off all day long, falling a massive -2.08 [-5.76%] to 34.06 and blasting through the previous low of 34.53 set just two weeks ago.  In early trading in Asia, oil has now also violated the 2009 low, marking an intraday low - so far - of 32.77. There is no hint of buy-side support for oil as far as I can see. 

Gold's rally is finally happening, as predicted by the COT report, however gold is looking a bit lonely in its move higher.  Silver struggles to follow gold, while platinum and palladium are dropping.  Oil is just a disaster, and the overall commodity complex is setting new lows.  It seems that bad news out of Shanghai seemed to be the trigger that gold needed to take off.  Who knew?

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21 Comments

davefairtex's picture
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shanghai trading suspended again: off -7% in first 30 min

The longer this continues, the more terrified the longs will get.  There is nothing worse than not being able to get out of your trade in a falling market, especially if you're on margin.

And this market drop is with the explicit support of the Chinese government.

US equity market is off 2% in the futures markets as I type.

As Chris pointed out in a different section, oil is now hovering around $32.50.  We may have another day or two before the capitulation in the oil space is through, and at $2 per day, that suggests we might see $28 oil before we see a bounce.

That's just a guess.

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davefairtex wrote: The longer
davefairtex wrote:

The longer this continues, the more terrified the longs will get.  There is nothing worse than not being able to get out of your trade in a falling market, especially if you're on margin.

And this market drop is with the explicit support of the Chinese government.

US equity market is off 2% in the futures markets as I type.

As Chris pointed out in a different section, oil is now hovering around $32.50.  We may have another day or two before the capitulation in the oil space is through, and at $2 per day, that suggests we might see $28 oil before we see a bounce.

That's just a guess.

1929 is 2016.   Can the Chinese go back to the farms...

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Chinese Markets Closed After 30 Minutes Trading Thursday

“I am speechless. I was about to clear my position but I couldn’t since the stock already fell by its 10% daily trading limit,” said Gu Yuan, a Shanghai-based retail investor.  Ref: http://www.wsj.com/articles/china-stocks-trading-called-off-for-second-time-this-week-1452133928

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Question

Dave,

Please let me know if I am reading you correctly here:

Are you saying that because gold moved without silver, and that other commodities are being crushed, that gold is likely just a safe haven move for some people at the moment?  And, that once that mode of support dies off a bit that the move lower by commodities will likely pull gold back down a bit?

Not that I am rooting against PM finally taking off exactly, but I am new to this and still in the accumulation phase........

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silver & gold

Russell-

Yes that's what I was saying.  Normally gold and silver move together, and normally, silver moves up faster than gold.  Yesterday silver barely moved, while gold shot higher.  This always makes me nervous.

Of course today silver actually started to catch up to gold - possibly an artifact of the potential low in crude oil today.  Miners also took off - almost a 4% gain at this point, much more enthusiastic than the very modest move yesterday.  The fall in the buck might have helped.

The usual pattern is, miners outpace silver, with junior miners moving faster than the seniors.  In metals, silver tends to outpace gold.  This pattern "generally" holds both to the upside and the downside.

Today everything looks pretty strong in the PM space, and so if current prices hold through to the close, today will look a lot more bullish in terms of the overall PM space than yesterday.

In spite of my happy comments, today is not an entry point - you'd be buying after 4 rally days, which is (probably) closer to a near term top than a near term bottom.  What I'm happy about is the impact on the overall trend.  If all the stuff starts moving higher, that suggests the next dip might be a high percentage buy point.

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On the same page

Davefairtex,

Good to know I was on the right track.  As a total noob, and someone who feels like they might need to catch up with physical PM a bit before something big goes down in the near future, I have really had to work to keep my emotions in check.  When you are sitting at home watching the price move higher it is hard not to kick yourself for not buying those extra buffaloes/maples at 1100.  It is also hard not to think that "this must be IT!!!!" and run out and stock up before it skyrockets.

I just have to breathe and let the cycles move as they do.....

I always read your posts at about 5:00 am my time, so I will be sure to pounce when you think we might have hit the dip for a high percentage buy.

Thank you for your help,

Russell

 

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Simply the Best.

It's all very personal.  I spoke against gold and for silver yesterday. 

I pride myself as being the best contra-indicator in the business.

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Regret works both ways...

I for one wish that I had waited longer to burn my dry powder...

Not sure how it changes the outlook for PMs but someone sure wanted to take silver home today!

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missing out

Russell-

That feeling of missing out on a rally is common as dirt.  We all feel it.  Emotions are the enemy, as it seems you have realized.  Thats a big deal.  Many people never figure this out.

Try this technique, perhaps it will help.  Each day, write down your "missing out" feeling intensity, on a 1-10 scale, alongside price.  My bet is, you will write down the largest number right around the price peak.  Its at that point that "retail" tends to buy, and the big money commercials tend to unload short.  They have it all carefully calculated - big banks have giant computers that can figure out when goldbug Pa Kettle finally throws in the towel and buys - right there at the top.

I recall a poster asked me, within days of the top of the last gold rally, if I thought the trend had changed and now was the time to buy.  Sure sign of the top.  Not knocking the poster at all - he was the voice of 100 other people who were all thinking and hoping the same thing.  Its just how both people and the market works.

That, and the goldbug press seems to get more excited the higher the price goes.  Predictions of imminent COMEX defaults, articles about gold running out, and they get more frenetic and excitable as price increases.  It is almost like they are being written by the big commercials to fan the flames of "missing out" which eventually culminates in the retail buyer going all-in right at the cycle high.

My sense: emotional articles are not helpful.  Pulse should never go above resting.  Gold is just an insurance policy, nothing more.  Who gets excited about boring old insurance?

Or so the theory goes anyway.  :-)

Dollar cost averaging is another way to remove emotion from the trade.  Just buy regardless of price every Friday.  Or whenever.

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Trading and the Parable of the Missed Elevator........
davefairtex wrote:

Russell-

That feeling of missing out on a rally is common as dirt.  We all feel it.  Emotions are the enemy, as it seems you have realized.  Thats a big deal.  Many people never figure this out.

Try this technique, perhaps it will help.  Each day, write down your "missing out" feeling intensity, on a 1-10 scale, alongside price.  My bet is, you will write down the largest number right around the price peak. 

Or try this approach.....

The next time you miss an elevator because the door closed just as you got to it, ask yourself what the right thing to do is....

1.  Do you throw yourself on the ground caterwauling about missing that elevator?  or,

2.  Do you patiently wait for the next elevator?

It is imperative that you understand that the elevator goes up and down.  If you want to go up, you have to wait for the up arrow.  If you want to go down....the down arrow.  If you want to go up and you get in on a down arrow.....that's your fault.

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Commodities Trading Article

I think the following article has some good advice with regard to PM stocks (hint, don't buy and hold) -

http://www.fifighter.com/precious-metals/2015/12/commodities-make-for-te...

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I also thought, when I heard

I also thought, when I heard it, that the advice given by Gwen Preston in this interview was helpful with respect to PM stocks -

And, I found the following discussion regarding when to buy and when to sell (stocks in general) and overall risk management was very helpful  -

https://soundcloud.com/cknw/money-talks-dec-26-lead#t=0:00

https://soundcloud.com/cknw/money-talks-dec-26-hour-1?in=cknw/sets/money...

 

 

 

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Another Risk / Reward commentary and some helpful PM sites

I just saw this article on Kitco regarding risk / reward in the market -

http://www.kitco.com/commentaries/2016-01-08/Going-Where-Reward-Exceeds-...

 

As far as other things that I check frequently, which may be helpful to someone new to following PM markets, is Seeking Alpha commentary on various PM stocks and markets as well as specific PM stock suggested by various media sites, such as The Gold Report -

http://seekingalpha.com/analysis/macro-view/gold-and-precious-metals

http://www.theaureport.com/

I also try to get insights regularly from various sites (there are many) such as TF Metals Report, SRSRocco and Silver Doctors as well as the Sprott weekly commentary.

http://www.tfmetalsreport.com/

https://srsroccoreport.com/

http://www.silverdoctors.com/

https://www.sprottmoney.com/blog/category/sm-radio.html

 

Another site with detailed information on PM mining stocks, which has suggested recommendations and details of mining companies (although a subscription is required for some information) -

http://www.goldsilverdata.com/

 

That's it from me. I'll look forward to hearing if anyone has other tips on tracking / picking stocks, the PM markets, and/or any other thoughts.  

 

Unfortunately (for me), I've (very painfully) learned too little / too late about the downsides of a commodity market meltdown. The upside is that it has prompted me to learn more about investing in the PM market, which I am eager to continue with. So, I'll look forward to any comments, as it seems that the opportunities at the bottom of this market could be extraordinary as well.

 

p.s. Dittos on kudos that many have expressed to Dave Fairtex and his regular commentary on PM markets (I've learned a lot, thanks Dave!), as well as to the community at large for your contributions to my knowledge ... Most of all to Chris Martenson, as well as to Adam Taggart for making this site available and to the Crash Course which brought me here.

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Great input everyone

I had wanted to write some quip about taking the STAIRS when I miss the elevator, but nothing sounded right.....

I really appreciate all the help, sources, and ideas that everyone is coming through with.

I am waiting for the eventual pullback to hit my limit orders for CEF/PHYS for my measly little IRA sum, and  I am going to pull the trigger in the next dip on more physical but with only a portion of my allotted budget so that I can potentially get the advantage of a DCA approach.  "Keep some dry powder"  ala Mark Cochrane.   My wife, completely independent of knowledge of the concept, asked why we wouldn't just spread our purchases out so we could take advantage of any lower prices that might happen down the road.  She is a keeper!

It's tough remembering that I am not a day trader in this stuff, and I am working to have a mindset about it like the Eastern Cultures that Grant Williams mentioned in a recent podcast... as a way to "lock in" wealth or financial stability.  And, to do so without worrying about the price.  Hell, I sold an old motorcycle a few years ago and turned that into my first ever PM purchase..... silver eagles when spot was about $24!!!!  I rarely even think about that at this point, I just like that I have the eagles.

Russ

 

 

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Re: Great Input Everyone

You may also want to check on Martin Armstrong's commentary -

http://www.armstrongeconomics.com/armstrong_economics_blog

(especially, his forecasts on the markets and capital flows, very important) and their impact on the markets.

You may want to check out Jesse's commentaries (which I find particularly insightful) -

http://jessescrossroadscafe.blogspot.com/

 

Also, as well, Pater Tenenbrarum -

http://www.acting-man.com/

 

I also find Mauldin Economics commentary quite helpful, and Jared Dillian's commentary (read regularly) -

http://www.mauldineconomics.com/

 

Also, Rick Rule, Porter Stansberry (and many others), are very good sources of information (and wisdom) on the markets -

https://www.equities.com/news/there-s-nothing-magical-about-contrarian-i...

So, I hope I am not flooding you with information (I have more sources / sites to list, but don't want to overwhelm).  In any case, I hope these help.  Please check out these links at your leisure ... I came across them over the course of several years, but list them for you to check out since I have found them to be helpful in my own understanding. I have more, but want to be circumspect ... also want to see if anyone else has other sites that I may not be aware of.

 

Best wishes for your investing success -

Mike

 

 

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M-ole, THANKS

For a beginner here at PP.com you are way ahead of the game.  You might want to put all these together and rank them as to importance, as you see them.  Would be very helpful.

 

Also, how about make a daily or weekly summary of all or the best of them.  You might create a new business for yourself that could garner $ for more metals.  I don't know how much time you have (I don't unfortunately) but certainly it might be FUN, knowledgeable, and relevant as there is SO MUCH out there.  Dave seems to favor Armstrong.  Mish's daily is a MUST for me, as also Charles Hugh Smith, Grant Williams, etc. In fact, if you surveyed all the past folks who appeared as guests on PP.com you'll find an UNLIMITED list of great thinkers, analysts, etc.  Too many to mention here.  Peter Schiff, Mike Maloney, Max Keiser are MUSTS for me.  Prins also.  It goes on and on.

A SUMMERY of summaries??

Just thinking of how you can be even more creative.  Ken

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Re: THANKS

Hi Ken,

 

I appreciate your reply and suggestions regarding a periodic summary. I can certainly consider doing something, although I'd be hesitant about ranking anything for importance.  Basically, I am a youtube and podcast junkie always on the lookout for insights and regularly view / read all of the folks you mention.

 

I also like Greg Hunter for news / analysis and Gordon T Long for his explanations, particluarly of financial repression (basically a way for our government in collusion with the Fed to steal the value of our money over time).

 

In addition to Armstrong, I frequently check on Charles Nenner for current insights with respect to cycles. Also have listened to Bo Polny discuss this aspect as well.

 

The daily musts for me are Seeking Alpha, Kitco, Armstrong, Jesse's Cafe Americain, Mish and Zero Hedge.  I also check out the Korelin Economics Report (kereport.com) pretty regularly and really appreciate the commentary by Big Al and Cory Fleck and especially the market insights from Doc, Gary Savage, Rick Ackerman and Chris Temple and the technical analysis of gold and oil (still learning about technical analysis ... the Michael Campbell CKNW broadcast that I listed along with Gwen Preston involves many aspects of it). Not to mention Avi Gilburt and his Elliott wave approach to the PM market.

As far as podcasts, one of the first that I check out every week is Financial Sense Newshour with Jim Puplava.  I also think that the McAlvany report is a must for in depth discussion. As is the Gold Chronicles with Jim Rickards.  I also like the Silver Doctors and Sprott money shows that I mentioned. And I listen regularly several others, including Jay Taylor's Turning Hard Times into Good Times and The Disciplined Investor with Andrew Horowitz. Oh, and lest I forget, Peak Prosperity podcast.

 

And, even with all of that, I still don't understand what to do in this market (although I hope not to repeat the mistakes I've made and hopefully am a little wiser for the effort).

 

Anyway, thanks for your reply and your thoughts -

 

Mike

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Long Yen - Good for gold?
I've recently been following Marc Chandler on SeekingAlpha, who I've heard on FinancialSense and appreciate his currency insights, especially since I recall hearing that the dollar/yen ratio may be a good indicator of the direction in the price of gold.  Specifically, when the yen is rising that it may be a sign that gold will be going up.  Is my understanding correct? I come across so much stuff on the internet that it is hard to keep everything straight.  
 
Here is an example of one article that mentions a connection to the yen -
 
http://deviantinvestor.com/6918/gold-silver-yen-sp-correlation/
 
Here is Marc's article -
 
http://preview.tinyurl.com/ztktpyb
 
If this theory is true, then I wonder whether the FX futures position of the yen might be a good sign. A rising dollar is bad for gold, of course (recently there seems to be somewhat less effect by the dollar, though, maybe showing that gold is simply strengthening or just acting as a safe haven). So, is it only a falling dollar that is significant, or does the specific dollar/yen relationship (versus any other currency) have anything special about it?
 
I'm curious to know what people are following in this respect and whether Marc's observation about the yen may be significant. My apologies if this has been discussed before and I may have missed it.
 
On another note, I was listening to the Korelin Economics Report weekend show (2016 preview edition!), and Peter Brandt, a technical trader, mentioned that gold can move up into the $1120 range in the near term, which I will be keeping in mind.  I also try to keep track of the technical PM charts posted by Jim Wykoff on Kitco and will see what he says (as well as keeping an eye on Dave Fairtex). Here are some recent charts -
 
http://preview.tinyurl.com/gqzmnsw
 
If anyone listened to Gwen Preston's interview from last June that I recently posted (or if you already know this pattern), you'll remember that she mentioned that the beginning of a year typically sees a rise in the price of gold before it swings downward into summer. With this in mind, along with near-term price predictions, I am looking at my PM investments to take any profits off the table this month or next as well as trim positions to minimize losses as well and will wait for another buying opportunity later in the year.
 
Any thoughts about this?
 
Thanks in advance for your insights -
 
Mike
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Full Disclosure and kudos to Robert Kiyosaki
I really enjoyed this video when I saw it, since I can relate to Robert Kiyosaki, being a member of the Baby Boom generation and Vietnam-era myself and having my world view largely developed during the period of the rise of the U.S. in the post-world-war-II era (however, as the saying goes, I have since been 'disabused' of many notions that I have previously held). I've never read any of Robert's works (to my chagrin), but after seeing this video back in June, my admiration for his ideas have grown immensely, as well as my assessment of Robert himself, to the extent that I now follow him and his podcast for insights on how to navigate through the current chaos that is today's world economy (http://www.richdad.com/radio).
 
Here is a link to the video -
 
 
 
I don't claim to have many original ideas (if any) that I can share (at least not at the moment), but what I can say is that the thought that Baby Boomer withdrawals from the stock market has occurred to me at several points in years gone by, which would affect the overall behavior of the market as a result (i.e., the PIG of baby-boomer generation investments moving through the belly of the anaconda snake of the stock market, whereby digestion of the PIG might have gastric distress) which actually was an idea that I shared with family members. 
 
So, when Robert said this in the video, I must say that it really resonated with me (I know that people like Harry Dent have also expounded on the idea of demographics, which this also seems to involve, but I hadn't really been exposed to his thinking at the time of my conversations with my family).  So, perhaps I may have had an original thought in my life which paralleled Robert's (although I hold out the possibility that I received someone else's ideas and subliminally ascribed them to myself).
 
So, perhaps you may want to check out Robert, if you have not done so in the past.  I don't know which one of his books may be better to look into than others (I haven't read any) in order to assess the current opportunities in the market.  If you have any ideas, whether you have read any of Robert's books or not, or if you know of anything else that may be most relevant to this discussion which may help, please feel free to comment.
 
By the way, I have not yet gotten to Chris and Adam's new book, "Prosper!", which I indeed plan on doing (I have heard several podcasts already and indeed the ideas resonate with many other ideas I've heard which prompted action ... for example, I have already installed 25 solar electric panels, with government assistance, for which I am being paid a regular carbon credit for [real dollars!... how cool is that!] for saving on my electric bill, along with a hybrid water heater, i.e., a heat pump ... seems almost as efficient as a solar hot water for an electric home and which also has the benefit of keeping my basement cool where my freezer is located), as well as constructing 28 (or so) raised garden beds along with 30+ blueberry bushes as well as several raspberry / grape / elderberry plants to increase my own resilience ... all this in part as a result of the Crash Course, which was seminal to a change in some of my perspectives and thinking [thanks Chris!]).  
 
Another inspiration was the "Homegrown Revolution", that I saw many years ago now -
 
 
Here is someone else that I've gotten quite a bit of knowledge and inspiration from  (John Kohler of "Growing Your Greens") and heartily encourage you to check out -
 
https://www.youtube.com/user/growingyourgreens
 
(I am also considering a hugelkuture bed next and am accumulating dead wood for the effort ... Sepp Holzer ... he's the man! -
).
 
Anyway, I've come to have a greater appreciation of Robert and what his thinking is lately, and thought I'd share this video with the hope that you may want to look into it, along with other things that he has to say, and see what response it may elicit.
 
Perhaps his thoughts about a crisis coming in 2016 should prompt an examination with thoughtful replies from those who are similarly concerned (I've been thinking about such a thread of discussion that I would label "End Game", with acknowledgement to Grant Williams and Mike Maloney and many others, for their insights as to where we find ourselves at this juncture).
 
In any case, I don't know if this is the forum for such a discussion.  If I have gone on too long, or strayed beyond what is appropriate in this forum, all the blame goes to Ken Pollinger who encouraged me to express my thoughts (just kidding Ken).   :-)
 
If there is a better forum where these thoughts could be expressed, please point me in that direction and I will gladly absorb the collective knowledge of this community (by the way ... has anybody seen the recent reports of crowdsourcing gold mining opportunities? Now there is a subject worthy of further pursuit!).
 
Some of this may be passe for you who have already gone through this path, so ...
 
Thanks for your patience -
 
Mike
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Crowdsourcing Miners

p.s. In case you were curious about my comment (in: Full Disclosure and kudos to Robert Kiyosaki), here is a link to the article on crowdsourcing (which I thought was very cool and was envious that I could not be a part of) -

https://www.streetwisereports.com/pub/na/crowdsourcing-uncovers-best-res...

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Why I am not a stacker
First of all, I am not currently employed (pretty good reason to start with, eh?). Secondly, I've been using excess resources to build resiliency in my life (solar electric [grid-tied, unfortunately], generator for power outages, garden beds, diesel tractor, heavy-duty wood and leaf chipper / shredder, etc.). Thirdly, and most importantly, I don't trust my government.
 
I'm not one who believes that the government will confiscate gold and silver at some future point (although I wouldn't be surprised if they do).  I think that they are going to steal it in another, simpler, fashion. They are going to tax it, big time.
 
When they see the prices take off, after their policies completely fail, they are going to become like a drunk after an all-night party, tipping over every bottle and glass in the morning after in order to squeeze out every last drop they can get their hands on.  They will implement something like an 'excess profits' tax, or some such thing, on assets that have appreciated significantly being held by people who have been eagerly awaiting the day when they can sell these assets and reap the rewards of their preparation and forethought.
 
I do, however, believe that gold and silver are excellent means of preserving wealth. This is why I became interested in the mining companies, since it occurred to me that the stock market is where the big boys play and it would be less likely for our government to restrict profits in this arena, since it is their playground and where they derive a lot of their own ill-gotten gains.
 
So, that is how I started investing in miners (although for many years I had also heard on FinancialSense that they were significantly undervalued relative to the price of gold and were sure to catch up). Jim Puplava also talked about the value of 'gold in the ground', which I thought was a brilliant concept, since no one could steal it from there.
 
Anyway, when I pulled the trigger and started buying, I had no idea about AISC, debt, and other factors that make most of the miners such a crummy investment (in my own defense, I started with buying those companies recommended by a guest on Financialsense, since I knew that I was woefully ignorant).  Also, I had heard the many guests on FinancialSense debate whether there would be inflation or deflation as a result of actions being taken after the 2007 crisis, with all of the money printing that ensued.  I was convinced that inflation would be the result (I was only vaguely aware of the concept of money velocity at the time and didn't give it a thought ... "too soon old, too late smart" as the Pennsylvania Dutch are fond of saying).  Mish, I should'a listened to ya.
 
So, I have painfully watched as the value of what is thankfully only a portion of my investments has been decimated, holding onto them all the way down [ouch].  Satyajit Das, quoting the physicist Niels Bohr, after being described in a (brilliant) interview on The Disciplined Investor (podcast #444) as an "expert", said (something like) "that if, by expert, you mean that I've acquired my knowledge by making every possible mistake, then that is true, I am an expert". While no expert, I can relate.
 
I am comforted by the thought that "what goes down, must go up" [that is how the saying goes, isn't it?]. So, I am waiting patiently for a turn in the value of these stocks and for the next leg up of the PM bull market, sure to come, looking for a few 5 and 10 baggers to recoup all of my losses and make some fabulous gains.  Heck, I might even retire.
 
Mike
 
p.s. I plan on selling these mining stocks at an opportune time and diversifying into other assets in case I am wrong about the taxes on them.
 
p.p.s. As a precaution, I have moved the most severely devalued mining stocks over into a Roth IRA, so that when they do go up it will be on a tax-free basis and I will be fabulously wealthy (as measured by those of us 99 percenters) as there is no chance that our politicians will ever change the policies on Roth IRAs, isn't that true?

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