Loading ...Possible answers. Gold and Silver is getting publicity on TV, the stock players, momentum players, COMEX players, all paper players are probably clicking and clicking on SLV paper silver and GLD paper gold, and ignoring miners because they know NOTHING about miners.
The stupid media is not pumping individual miners, or miner ETFs. But as great earnings pop up maybe they will get announced. And besides all that? The miners have already OUTPACED the physical metals percentage wise.
In my opinion, all this paper clicking on metals supposedly forces the ETF managers to buy physical metal for ware houses and driving physical artificially higher than normal, instead of when an individual buys some and buries it somewhere. He won’t be selling for a long time.
On the opposite or sell side, re paper clickers? When they decide to sell, all this paper clicking on metals supposedly forces the ETF managers to SELL physical metal OUT of ware houses and driving physical prices artificially LOWER than normal, instead of when an individual sells at a coin store coin show or to an Internet coin dealer or the owner drops dead and his kids sell the physical.
The poor manufacturers that need physical AU AG metal for their product, must be going nuts. And probably them too buying and taking delivery of far more physical than they NEED to avoid higher prices later on.
I made posts on this long ago. High prices cause higher prices, to a point of distortion. Lower prices cause lower prices until a point distortion, before reversing. Equilibrium or stable valued unit of account would cause boring stability.
For example low 72 Dollar caused high $145 oil. The high oil caused over production, and the priced crashed to $28? Gold was distorted down to $250 and Silver $4 distorted by a 120 dollar index. Back around 2000-01.
That’s when I stopped working, designing and fabricating prototype precision sheet metal parts, and started trading mining stocks. I absolutely knew POSITIVE, that the Bozo bankers would be forced to lowering the dollar from 120. We had 12 good years after that, 17% APY gold until around 2012-13 $1800 with the 72 Dollar index needed to help the US producers or exporters.
It got TOO high TOO soon and went to $1060 late 2015. I called the $1060 bottom right here, more than two months before Dinesletter did. Also on occasion I bought a stock that Dines recommended much later. Also I bought some really great performing miners that Dines NEVER bought, like DRD and BTG and so many other good ones he never mentioned.