Mining Sector Ideas

[bigworld]

gfp: Rinear thinks the big rise and abrupt fall on Friday were due to short term traders worried about the geopolitical events, especially between Iran and Israel. I expect a slow and steady climb from here, with back filling. If gold and silver are rallying with the DXY strong and the 10 year above 4.5% then the paradigm has changed. Inflation and geopolitical worries are driving the PM markets now. Central bank stockpiling puts a floor under the metals. At some point Comex will not be able to provide delivery for futures buyers who want deliver of the metal and not a roll over to more contracts. When that happens the incredible level of leverage in the metals will become apparent. It could get ugly for the money center banks that hold big naked short positions (probably at the behest of The Fed.)