PM Daily Market Commentary – 5/16/2017
Ok, relentless selling in miners during the day. I'm ready to bet on what it's gonna happen tomorrow: gold is 1270-1275, miners are down considerably.
Vadim, in the event of a broad market sell-off, I've heard mixed info about what miners should do, assuming PM prices are rising. In one sense, it looks like they should go up as metal prices rise. But the risk off nature of a broad market move down could also just drive equity selling across the board, at least initially. Also, margin calls could play a role…but I don't think we're there yet after only one day of selling. I don't know, I haven't done any studies on it myself. I've only heard "experts" discuss it, and they seem to have differing opinions. The only thing I know with fairly good confidence is that longer term, higher metals prices should translate to higher mining share prices. We'll have to see if metals continue to rise or if this is just another head fake. Silver didn't do nearly as well as gold did today.
interesting theory about silver selling:
In 2008, I saw miners do well initially, but then once things started heading south, literally everything got sold. They had to sell to meet margin calls – so even though gold rose initially, once the margin calls started, literally everything tanked.
This is early days yet – literally the first day > 1% move, so I don't think its time to start worrying about miners getting sold off to meet margin calls.
Silver got whacked hard in the afternoon. It felt like the commercials were back at work with their shorting tricks again. There was a particularly nasty spike at a little after 3pm. It managed to bounce mostly back, but my sense is, the sellers are back in silver. The gold/silver ratio started rising again, which is another bad sign.
This is only the first day, but – maybe – we're back to a "safe haven" trade once more, and silver isn't the big winner in that circumstance. I bailed out of my silver (mini) futures contract position after the first nasty dip in the afternoon.
Newsbuoy… You listen and believe this absolute garbage?! I can break down the podcast minute by minute and debate if you wish but what I've learned most of all is f*ck Harvard educated lawyers. They are the most separated from reality with the largest megaphone group I know of…
I actually heard what Danny was saying up and until the 22 minute mark when he wonders into extreme left wing propaganda and it only gets worse from there when he starts quoting MSNBC..
Please let me know what exactly you agree with, and can back up with facts not given by "sources," in this podcast after 22 minutes.
"Sources" have become a medium for opinions these days with the MSM and I for one like to be able to verify..