Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
The US is till the safest for silver miners. Here are a couple of links that suggest the nationalization of mining operations is underway.
http://silverinvestingnews.com/12822/argentina-new-law-hampers-silver-miners-barrick-gold-pan-american.html?utm_source=Resource+Investing+News&utm_campaign=830cb3298b-RSS_EMAIL_CAMPAIGN&utm_medium=email
http://www.zerohedge.com/news/south-american-silver-plummets-bolivia-announces-it-will-nationalize-one-worlds-largest-silver-
This is copied from an email I received from Equedia after the flash crash in gold/silver back in March. I believe it still applies to the PM market today.
Dear Readers,
Eventually, the market will tell the tale.
I urge all my readers to listen carefully to what I am about to say - to read between the lines and listen to the facts presented. From there, feel free to make your own judgement.
Since the crash of 2008, high-frequency traders have caused U.S. commodity futures prices to disconnect from market fundamentals of supply and demand.
While those involved in high frequency trading (HFT) claim that it brings more liquidity and price discovery, it hasn't. As a matter of fact, it's forced retail investors out of the picture due to the volatility it has created.
The United Nations Conference on Trade and Development just published a report that HFT's impact on commodity prices have clearly taken away from the fundamentals of supply and demand:
"(The) recent price movements of commodities are hardly justified on the basis of changes of their own supply and demand. In fact, the strong correlations between different commodities and the S&P 500 at very high frequency are really unlikely to reflect economic fundamentals since these indicators do not vary at such speed."
Practically everything in our world has been turned into a financial instrument.
As I mentioned in 'More Stunning Results," if you delve deeper into the way the world's financial system works, you will see that the amount of leverage through derivatives and paper trading are at astronomical levels. You will see that more value of this trading exists than the world's overall GDP combined - by more than 10 times.
Leverage and HFT's have given path to a new wave of manipulation, making price discovery via supply and demand fundamentals next to impossible in the short term.
Over the last year, and in particular the last few weeks, the blatant price manipulation of both gold and silver have been extremely obvious.
When Silver is Faster than Light
I just mentioned how derivatives and financial instruments are influencing real market fundamentals. The guys over at Nanex Research just showed us how unbelievable manipulative trading can be:
"On March 20, 2012 at 13:22:33, the quote rate in the ETF symbol SLV sustained a rate exceeding 75,000/sec (75/ms) for 25 milliseconds. Nasdaq quotes lagged other exchanges by about 50 milliseconds. Nasdaq quotes lagged other exchanges by about 50 milliseconds. Nasdaq quotes even lagged their own trades -- a condition we have jokingly referred to as fantaseconds."
A millisecond is equal to 1/1000 of a second.
What does that mean?
The flaws present in today's trading systems can easily be leveraged to manipulate prices. In the SLV case (a silver-backed ETF that tracks the price of silver), it means that some traders flooded the system with sell orders which, due to the security holes that exist, caused silver prices to drop considerably.
These high frequency traders clearly took advantage of the flaws and exploited the SLV by making trades that, when computed, exceeded the speed of light and thus throwing out real time market fundamentals out the door.
The fantaseconds Nanex refers to is a term that defines a unit of time measurement which was unveiled back in September 2011 when a "time warp" was recorded in the trading of Yahoo! stock.
At the time, exchange timestamps revealed that the Yahoo! trades were executed on quotes that came into existence only 190 milliseconds later - meaning the trades technically occurred in the future.
By taking advantage of this flaw traders can execute quotes before they even exist in the system. That means these traders can set their own prices by bypassing other current market orders.
Because the silver market is small, it doesn't take much to manipulate its price. But what about the much larger gold market?
A Gold Manipulation Example
On February 29 in the Asian market, gold was closing in on US$1,800, up more than 15% from December. Silver rose just below $$37.50 - up more than 40% from its December lows.
Technical charts and analysis clearly showed that both gold and silver were pushing past major resistance point and looking to climb much higher. I explained this in a previous letter. Even the mainstream financial media were beginning to take notice that investors both large and small were acquiring precious metals.
That same day, the European Central Bank (ECB) gave 800 banks €529.5 billion ($710 billion) of new loans at 1% for three years using almost any form of collateral (see What You Don't See Behind the Scenes). Again, I stress that this is just another form of Quantitative Easing, which would generally send gold and silver prices much higher. It did...but only briefly until N. American market trading began.
News of this round of quantitative easing was the last bit of news that was driving up gold and silver prices prior to 10 AM Eastern time in the US.
Right at 10am, an order to sell around 1 million ounces of gold came in (worth about US$1.8 billion dollars.) Minutes later the same seller sold another 800k ounces. That one seller sold 1.8 million ounces of gold (worth about US$3.24 billion) within minutes.
At the same time, around 225 million ounces of silver were sold on paper contracts - that's more than 20% of the global silver supply - all happening within minutes.
When selling anything, the objective is to get the highest price possible - especially when you are selling nearly 2 million ounces of gold worth well over 3 billion dollars.
Someone who is looking to sell a position of a million ounces of gold at the highest possible price would spread the trade out over time and among different brokers. Someone selling an entire lot in a single transaction is obviously looking to knock down the price of gold rather than engage in a genuine market transaction. In other words, that type of selling is generally associated with manipulation.
(Manipulation - although illegal - happens all the time. They are often collaborated efforts by hedge funds, institutions, or retail investors with tons of cash. But manipulation is also hard to prove - there are day traders, algorithms, and so many factors that could influence trading activity.)
So why would someone sell more than US$3 billion worth of gold like that? Did this person truly believe gold would drop? Or was this person looking to force the price of gold down? More importantly, who is behind this and why are they doing it?
You Be the Judge
The price of gold has climbed dramatically right alongside the rapid rise in debt the US has incurred. That means the price of gold is an effective report card on the value of the US dollar, the US government, and the US economy.
Manipulation aside, the prices of gold and silver tend to rise as the US dollar falls or the US government or economy grows weaker. This relationship creates a huge incentive for the US government to suppress gold and silver prices.
Bernanke has downplayed gold (click to see video) as a form of money many times before. He doesn't like seeing gold go higher. He wants people to buy treasuries - not gold.
So what's the best way to suppress gold and silver prices? Make people afraid to own it.
Volatility has already wreaked havoc on investor sentiment given the events of 2008. Stock market volumes remain extremely low and investors continue to look toward risk free returns - even if those returns are losing money when adjusted for inflation. What better way to have investors exit a market, or shy away from one, then by making a market even more volatile? Given 2008, it doesn't take much nowadays to scare off investors.
So whose hammering gold? You be the judge.
Pan Asian Gold Exchange Gets Axed
On February 29, the same day both gold and silver were crushed, it was announced that the Pan Asian Gold Exchange (PAGE) had effectively been killed before it could go into operation.
Apparently, a part-owner of US origin and possibly affiliated with a large US bank had managed to get 24% of the voting control of PAGE, then appointed enough members to the board of directors to succeed in postponing the commencement of operations. At least one of these elected board members was alleged to be a former member of the US Federal Trade Commission.
If you remember from a letter a few weeks back, PAGE would have given 320 million retail customers and 2.7 million corporate clients in China the ability to buy gold in 10 ounce increments with the click of a button - with all contracts 100% backed by physical gold. This would've given complete asset protection for investors - much more protection than those overly leveraged paper contracts that are traded on the COMEX and London markets.
That means gold would've climbed dramatically as physical demand seriously outweighs supply.
The US and the exchanges that currently control most of the gold and silver paper contracts would not have liked this.
But it's not over.
According to reports, other part-owners of PAGE have announced that they are reorganizing and looking to begin operations of a new exchange operating the same way as planned for PAGE.
China is already the biggest holder of foreign reserves and gold. They will continue to encourage their citizens to own gold because eventually, gold-backed currency could reign supreme.
The world already knows they are losing their purchasing power because of the amount of liquidity the Fed and the ECB have let loose.
Countries and central banks around the world are continue to hoard gold (see The Hoarding Has Begun).
And it's just the beginning.
Countries Continue to Hoard Gold
The Turkish government, facing a bloated current-account deficit that threatens to derail the country's rapid expansion, is now trying to persuade their citizens to transfer their personal holdings of gold into the country's banking system.
According to WSJ:
"Government officials say the banking regulator will soon publish a plan to boost incentives for consumers to park household wealth inside the financial system. Banking executives said they are considering new interest-yielding gold deposit accounts that would allow savers to withdraw gold bars from specially designed automated teller machines.
The moves come after the central bank in November announced that lenders could hold up to 10% of their local currency reserves in gold, in part to tempt Turkey's gold-hoarders to deposit jewelry, coins or bullion at banks.
Economists say the policy shift is designed to change Turks' historic preference to store a high percentage of personal wealth outside the banking system to decrease exposure to currency volatility or financial crises, which have periodically hit Turkey's economy in recent decades. The effort also forms one front in a broader battle to lift Turkey's low savings in order to curb the fast-growing economy's ballooning current-account deficit--a pressure point many investors fear could upend an economy expected to have grown more than 8% last year."
Click Here to See the Video
The End Game
Interest rates have been falling for over thirty years. The Fed is no longer in control. Speculators are the only ones left buying US bonds. And they'll keep buying them as long as they can profit in risk free paper. But when the Fed floods the market with QE and bypasses the open market (illegally) by buying bonds directly from the Treasury, it forces many of the bond traders out.
There is a reason why we have just recently experienced a heavy selloff in the bond market. Soon, there will be shorts and the money will be transitioned over to the commodities market - a market that will rise as more money is printed to buy the bonds that investors don't want.
For now, we must be patient. We must understand that resource stocks may fall with the market. But in the end, when commodity prices are the only thing that is rising - the stocks associated with it will too.
Judgement day will come.
Patience is about all I can say here. Many of you say you bought USSIF as a long term investment...then you have to be prepared for this rollercoaster ride. I believe this is not your typical pump/dump penny stock or some type of scam as many on Yahoo would like for you to believe. This is an operating, legitimate business with cash on hand and making a profit. Maybe this will help to ease your anxiety a bit.
Here is just one reason why investing in the US, ex- US Silver Corp, is better and safer than abroad. Not saying that this cannot happen down the road here too.
http://resourceinvestingnews.com/34088-export-ban-and-foreign-investment-cap-signal-growing-resource-nationalism-indonesia.html?utm_source=Resource+Investing+News&utm_campaign=35b2e4a46d-RSS_EMAIL_CAMPAIGN&utm_medium=email
This should be good for all miners including, but not limited to, USSIF.
http://equedia.com/blog/view.php/What-You-Dont-See-Behind-the-Scenes?mode=coverage&coverageId=18101
Looks like my cycle observation is coming to fruition. Too bad there is such low volume.
I bought into this last week. I noticed a cycle that it tends to follow and am hoping that it keeps the trend. Not much of a following here I see.
I will send you the information Money.
Well, now that I know a bit more about where you stand pricewise I can offer you some of my suggestions. But, the terms of use says that I cannot post about other stocks on this board. Let me know how I can get this info to you other than this board as I do not want to be barred from Ihub.
I almost forgot...be wary of PIMCO funds unless you are well versed in bonds. If you are looking to buy one of their funds, make sure that you check to see what the fund itself invests in. You do not want to get caught with a fund that is heavily invested in the PIIGS for example. (Portugal, Ireland, Italy, Greece, Spain). Greece was recently downgraded to junk bonds!
I like your way of thinking "Money"! My outlook on this market is not very optimistic. Almost the same way that I felt just before the crap hit the fan a couple of years ago. I do not see how this market can just keep going up with no real fundamentals to support it (fudged government numbers to keep wall street happy). I see a major downturn happening with inflation already seeded and growing, although you will not hear that in the MSM. The true numbers are skewed as to not show reality. Example: Higher food and gas prices are not factored into the Gov't inflation numbers which gives a false number to the public. I call it "shadowy accounting practices". So, hedging your possible losses with dividend paying stocks, like PVX, are a great way to protect your bottom line. You should always keep some extra cash on hand just in case there is a major downturn so you can dollar cost average your position(s). I have a few very sweet dividend payers that are diverse among different sectors, but I need to know what your willing to pay for the individual stock. Example: $1-$5/ share, $5-$10/ share etc. Let me know and I will give you some of my picks so you can do your due diligence on them. Also, dividend payers are for longer term holdings. That way you get both the dividends and the capital appreciation. Ignore the short term swings.
I believe that they will be taxed higher and therefore dividend cuts will be soon to follow. But, as I stated before,PVX has a tax loss pool that could allow them to continue a high dividend rate for a few more years. It would be a matter of personal opinion as to whether you should sell or not. You need to weigh out whether you believe commodities will continue to rise, what your objective is with your investment timeline, will they be bought out etc. Hope this helped.
First off, I am not a CPA, so you may want to consult someone with more extensive knowledge in this area. But, as far as I know, I believe that if you sold the spinoff for a loss, then you can claim that as a write off on your taxes. Example: You received a spinoff (100 shares @ $10/share). The value is $1000. You then sold it for $5/share. You can take the loss of $500. Just like any other stock you sell at a loss. Remember that there is a cap per year on losses, but you can carryover losses to the next year. I got out of PVX because of this spinoff thing but it seems that they are doing fine pps>$8. the only thing I see as a difference is the dividend seems to be a tad lower than when I owned shares. It still pays approx 7% so it really is not a bad dividend machine! And you know that oil will keep going up. I hope that I helped you with your question.
Where is everyone?
I have been following this stock since right before the uplisting. I bought @ 4.20 and sold @ $5.10. In essence I bought the rumor and sold on the news. I still like the prospects of this company for growth and believe it to be undervalued. Tomorrow is a big day for shareholders as this will serve to uphold the guidance or take it down. I watch other message boards with concerns about OTC Journal but I find them to be outdated so I will not bore you with the information. I was hoping to see more feedback about what others think the Q1 EPS will be. Any way, I am here to support BSPM all the way to the Russel2000!!!
I bought back in @ $4.05.
I got out at $8/share. I do not like the share exchange. Good luck to all holders.
My pick is .0083
RTTNews) - Provident Energy Trust (PVE_UN.TO: News ,PVX: News ) reported a fourth quarter net loss of C$20.34 million or C$0.08 per unit, compared to a loss of C$43.25 million or C$0.17 per unit in the same period last year.
Quarterly funds flow from continuing operations declined to C$76.34 million or C$0.29 per unit from C$81.78 million or C$0.32 per unit in the previous year period.
Revenue from continuing operations for the quarter was C$469.36 million, down from C$1.02 billion a year earlier
This should help out PVX!
http://www.theglobeandmail.com/report-on...
The Alberta government is rolling back most of its year-old royalty hike and launching a study on how to trim red tape as it attempts to revive its political fortunes and woo oil and gas investment back into the province.
Effective next January, the province will drop its top royalty rate on natural gas (NG-FT4.460.010.34%) from 50 to 36 per cent, while the highest rate for non-oil sands crude (CL-FT82.310.200.24%) production will drop from 50 to 40 per cent. The bottom rate for both will remain at 5 per cent, and the government has indicated a willingness to make further concessions that would favour deep new wells designed to use new technology to access oil and gas pools.
Those figures constitute an almost complete return to royalty rates prior to a new regime that Premier Ed Stelmach set in place to give the province a greater share of windfall energy revenues. Before that change, gas royalties ranged from 5 to 35 per cent, while oil royalties fell between zero and 40 per cent.
My pick is ACDU = .0064 by Friday close.
These divies are based on the amount of shares each shareholder has: ex- 1:1 or 1:250 means 1 divy for each share you own or 1 divy for every 250 shares owned. Or you could also look at it as since there is a set amount of shares offered, fewer shareholders would imply that each shareholder holds more shares, ex- 100 shareholders, than if there were millions of shareholders. Therefore fewer shareholders would get more divies because they hold more shares individually. I am only theoretically speaking about the latter half of this message.
My end of the week price is .0071
Thanks for the replies. I will keep following this board and hopefully we will all make some extra $$$.
I am new to bio-stocks and really do not know much about all of the processes involved with FDA approval, etc. However, I am invested in DDSS. As far as I can see, this seems to be pretty much a done deal. The chances for approval seem to far outweigh the chances for denial. The thing that perplexes me a bit is that the pps is still so low and what would be the cause of this. There does not seem to be too much interest on this board but I look to ihub for informative discussions more so than Yahoo because, well, just read the posts! Can someone fill me in as to my concerns about this? TIA
January 21, 2010
Hi OTCBlaze Members,
DDSS is getting started with 3 weeks left until the FDA approval decision date. As we said before, the rumor is that approval is likely. Either way, we expect the pps to rise in anticipation of the date. We're up from $2.01 to $2.39 already.
Here is another article from Seeking Alpha. It is a little outdated but still has some relevant points especially if the dollar continues its slide.
http://seekingalpha.com/article/127942-canadian-energy-trusts-the-best-long-term-income-and-dollar-hedge
Amazing day...and week for PVX! With oil and natural gas both down today, PVX still managed to gain .17/share. Maybe people are finally realizing that dividends really do pay off :) Hopefully $10/ share by end of April. IMO
Here is a paragraph from the article I saw the info in:
Lastly, there is one overlooked variable in the case of Provident Energy and that is the fact that Provident has built a 'tax pool' that will allow it to avoid taxation until at least 2016. Most of the Canadian Royalty Trusts have been building these pools, but it is either not recognized or not understood---thus we get the extreme bargains in the share prices.
It was found on Seeking Alpha ( Provident Energy Trust: Income for Today and Tomorrow)Nov 6, 2008
They have also spun off some of their assets into MLP's, so down the road they may opt for that route in its entirety.
If I am not mistaken, PVX was restructuring so that the new law in 2011 would not affect them intil 2014 or 2016. I cannot remember exactly the dates or the specifics. I will try to find where I saw that when the 2011 deal was first inked out.
Me too! I have been in this since it was over $10.I averaged down when the market dropped like a rock. I figured this could not go to zero due to the tangible assets. My average is at $7.19 now. Gotta love the monthly dividend even though it has been slashed since it was .10/share but this will increase as the pps goes up. GLTY
The ask jumped to $8.20 premarket??? Hmmmmm.
Watching this thing all day is not accomplishing anything for me except for, well, maybe an ulcer! I really believe that it will move when we see some $$$ figures from their spinoffs. This latest PR shows that IOVE is dedicated to showing transparency to us shareholders. Patience WILL PAYOFF!
Or just use Turbo Tax and it will do it for you!
I agree with you completely.
I just received a reply from Mr. Kehl.
Steven,
Thank you for explaining who you are, It is my pleasure to inform you that we are working with Richwood, and have placed many orders with them to date. We have also made a long term commitment, it appears now that the only thing lacking is the funds needed for Richwood to purchase the wood necessary to complete our orders. I am sure with your assistance and the other investors the remainder of the money will come in quickly.
Oh! bye the way, I work out of home with a staff and love it, however, I do have a showroom and offices in an industrial plaza at 4306 Enterprise Ave, Naples, Florida 34105
Thank you
Sincerely
Michael J. Kehl - Founder
Caribbean Wood Products inc.
1720 16th St. NE.
Naples, F 34120
Telephone: 239-348-1631
Fax: 239-353-1325
Email: michaelkehl@rocketmail.com
web site: www.caribbeanwoodproducts.com