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Record Gold/Silver Shorts!

schober
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Record Gold/Silver Shorts!

#165376

Postby schober » September 9th, 2018, 7:38 pm

Mr Hamilton explains all in his inimitable, wordy way
http://www.zealllc.com/2018/rcdgssht.htm
Could it get the gold/silver miners out of the doghouse?
GDX http://tinyurl.com/yavolrbf

Bouleversee
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Re: Record Gold/Silver Shorts!

#165568

Postby Bouleversee » September 10th, 2018, 9:21 pm

It will take more than a 20% increase in my humble stakes in two gold mining shares to compensate for reading that lot and trying to understand it. And I see that they have both gone down again today.

CommissarJones
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Re: Record Gold/Silver Shorts!

#165584

Postby CommissarJones » September 10th, 2018, 11:17 pm

My understanding is that the Commitments of Traders figures are not viewed as being particularly reliable as a market timing indicator. In any case, it all feels a bit falling knife-ish at the moment for precious metals equities, with GDX trading below its 5-day and 15-day moving averages.

It's interesting to see that the gold/silver ratio has moved higher and is now up to around 85, which looks like the highest level in a decade (as far back as my chart goes). IMV, silver would seem to have some serious potential upside asymmetry when this sector finds its feet again; for those with stout hearts, Fresnillo (FRES) is looking rather oversold, according to its RSI.

schober
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Re: Record Gold/Silver Shorts!

#165979

Postby schober » September 12th, 2018, 8:15 pm

He's making the point that the gold miners are fundamentally sound even though their prices are at rock bottom
http://www.zealllc.com/c2018/Zeal081718A.gif
[img src = "http://www.zealllc.com/c2018/Zeal081718A.gif"]
http://www.zealllc.com/2018/gmq218fn.htm

The low share prices are due to a huge short position of the specs in the gold futures market & not that they are struggling to make a profit (earnings up 39% yoy)

The shorts will have to be covered eventually. This could happen gracefully or turbulently. There is the potential for a severe short squeeze. Suppose the $ were to drop precipitously?
$USD http://tinyurl.com/y9euu26g


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