Silver Miners’ Q4’19 Fundamentals

By Adam Hamilton – Re-Blogged From Silver Phoenix

The carnage in the silver miners’ stocks has been apocalyptic, fueled by the astounding COVID-19 stock panic.  As terrified traders frantically dumped everything and ran for the hills, silver and its miners’ stocks crashed.  That catastrophic anomaly has potentially created epic contrarian buying opportunities.  The silver miners’ recently-reported Q4’19 results reveal whether their fundamentals support a massive rebound.

As long-time silver-stock traders are painfully aware, this tiny sector is no stranger to adversity.  Only the most-hardened contrarians dare chasing the white metal’s occasional monster skyrocketings.  Back in late February, silver was rallying nicely as gold surged over $1600 on mushrooming COVID-19 fears.  But over the next 17 trading days silver collapsed 35.8%, with nearly 3/4ths of that loss in the final week alone!

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The Demise Of The Financial System Is Imminent

By Egon von Greyerz – Re-Blogged From Gold Eagle

“Next five years is not about winning but surviving.” This is the headline of an article I wrote in early August 2019. At that point I was primarily thinking of economic survival. But now the world is facing multiple threats and multiple failures. As I have already stated, the Coronavirus is not the cause of global market crashes but the catalyst.

But even if I have been totally certain that the world will see an economic collapse greater than any crisis for 100s of years, this is the worst catalyst that anyone could have expected. Yes, a global virus was always one of the potential risks but of all triggers, this one was certainly the most unwelcome and horrible.

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Three Stages Of Bull And Bear Markets

By Mark J Lundeen – Re-Blogged From Gold Eagle

What a wild week; I’m overwhelmed!  In my articles I usually find a narrative theme with which to insert my graphics in.  But this week the only theme that comes to mind is what an awful week it was – just awful.  Come to think of it, that’s actually a pretty good theme to use for a week like this.  So all hands standby for heavy rolls to both the port and starboard, as here’s the Bear’s Eye View of the Dow Jones.

Every day this week the Dow Jones saw a 2% day, a day of extreme-market volatility and almost broke below its BEV -30% line on Thursday.  It’s hard to believe, but the Dow Jones saw its last BEV Zero (all-time high) just a month ago (twenty-two NYSE trading sessions ago) on February 12th.  Since then the bottom has fallen out of the stock market as painfully evident in the BEV chart below.

Starting next week, I’m recalibrating my Dow Jones Corrections based on something more than just a 30% decline.  Thursday saw the Dow Jones’ BEV value close at -28.26%.

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Do You Solemnly Swear?

Stay with me on this… the purpose will become clear soon.

Assume (without laughing or crying) that our U.S. senators are honest individuals filled with integrity. Yes, I know, but stay with me…

They voted during the impeachment trial for President Donald Trump. They swore to uphold the following oath:

Do you solemnly swear that in all things appertaining to the trial of the impeachment of Donald John Trump, president of the United States, now pending, you will do impartial justice according to the Constitution and laws, so help you god?”

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A Week Of Stock Market Turmoil With More To Come

By Mark J Lundeen – Re-Blogged From Gold Eagle

Can you believe it? After a week where the Dow Jones saw four days of extreme market volatility (Dow Jones 2% days), and the NYSE saw two days of extreme market breadth (NYSE 70% A-D days), the Dow Jones closed UP 455 points from last week’s close. After all that the Dow Jones in its Bear’s Eye View Chart below is little changed from last week.

Looking at the Dow Jones in its daily bars (next), it’s very apparent how after Friday, February 21st someone (Mr Bear?) changed the rules. From October 1st to February 21st average daily volatility for the Dow Jones was only 0.50%. In the past two weeks it has leapt to 3.01%. And though the Dow Jones closed up 455 for the week, looking at the chart below one thing comes to my mind – Mr Bear is once again hard at work.

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Socialism And Gold

By Keith Weiner – Re-Blogged From Gold Eagle

Most people assume that the central bank prints money when it buys bonds. They further assume that this increase in the quantity of money causes an increase in the general price level. And, this leads them to assume that the value of the money is 1 / P (P is the general price level). Therefore, when the central bank prints money to buy bonds, it is diluting the value of the money held by everyone—in proportion to the amount printed divided by the total amount in circulation.

This is not even wrong. So let’s look at how it really works.

Of course, as we’ve said many times before, the dollar is not money. It is irredeemable credit. And so is the Treasury bond. The difference between the currency and the bond is maturity. The currency is credit of zero duration and the bond has a duration of e.g. 10 years.

The Fed is not printing, but merely exchanging one irredeemable credit for another.

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Mr Bear Took His Pound Of Flesh From The Stock Market This Week

By Mark J Lundeen – Re-Blogged From Gold Eagle

At last week’s close, with the Dow Jones’ BEV value at -1.89%, I said I’d remain long-term bullish as long as the Dow Jones stayed above its BEV -7.5% line, or even if it remained in single-digits BEV values.  As it turned out I could only remain long-term bullish until Wednesday of this week with the Dow Jones closing at a BEV of -8.78%.  Thursday the Dow Jones closed with a BEV of -12.81%, and Mr Bear’s slaughter of the innocents on Wall Street continued on Friday, closing the week with the Dow Jones seeing a BEV of -14.02%.

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