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Solar panel prices are falling. Silver at $50 adds what $20(?) to the price of a $300 panel. Polysilicon prices have been a greater influence on the price of a panel of late and those are now falling. When physical demand outstrips physical supply for long enough and depletes the stockpiles of available inventory then the paper suppression scheme stops working. If you need to make solar panels and you have to have silver you will just pass on the price rise to your customer. 10% Wont make **** of difference to demand. People are still buying eggs which have more than doubled. I am happy to sit an wait until those days of £24+ are back. When the BRICS officially re monetise gold you wont be able to buy any. It will be for international trade and the super rich. What becomes the new gold then? Silver Solar and all the other real world demand will have to compete and just pass on the price rise to the consumer. If silver closes above $28 then its time to go all in long whatever that means to you on a personal basis. Follow Patrick Karim on twitter and take him seriously.
Seems to be trading as though the FED will bang the markets lower and they might. However gold is absurdly strong this year, because the eastern BRIC countries are going to remonetize gold and use it as the underpinning of the new non USD system of trading. This is a done deal. Gold on a blockchain will replace the USD in these countries for trade. How long it takes for Mr market to price it who knows I think it has already begun. When this understanding becomes mainstream then hold onto your hats because gold is going to rip everyones faces off. Silver will be dragged with it too. I would imagine then that £8 £7 or £9 sp will be a distant memory for this one as the SP will most likely start with a 2.
patrick Karim ( a chart guy ) has a close above 28 as being a MAJOR MAJOR buy signal. with a move to ATHs within short order. Most elliot wave people are looking at 21-23ish as being a buy zone before a wave 3 move higher towards 35-40. If this sell off is due to a UBS downgrade then that is great news and a dip to buy. There is no doubt in my mind that silver at 35 would see this SP at £15 or higher and that both should happen this year. A return to all time highs of £20 this year is also likely should silver breaks 30.
Let me get this straight. This seeking alpha article says that due to lower ore grades / recovery rate the total amount of silver Fres produces in a year could be as much as 3% lower than expected. This negative 3% shock will cause investors to sell up and run for the hills? Ok i guess that could happen, but as a long term holder i am happy to wait and see what happens to the price of silver as a run to $50 is likley imo ( a year later than I expected but these are markets and they do what they do) At which point 3% less output on a price up over 100% will mean nothing. I am in this share as a proxy for silver which i beleive will run towards $50. everything else is just noise to me. GLA
conflating Ukraine with Cuban missile crisis is a a nonsense. Ukraine could host no weapons that change the geopolitical landscape. Russia would never be invaded. How many people are dead because Russia sent in the tanks? 100k? apologists for this action are reprehensible.
This is indeed a very odd development , but one which could be significant. There have been a lot of false dawns with this one.
I think there were some dividend reinvestment going on yesterday as well. HL executed that with all the grace of an elephant on rollerskates for me. I should really take that decision out of their hands.
I would suggest that today is a reminder to all of what happens when someone HAS to buy the stock. This is against a day of red share prices everywhere else. I see volume of 1,000,000 shares traded which is nothing in terms of exposure for any sort of sized fund
It is most likely a short squeeze.
In the bigger picture i would say that this happening on a day when silver is doing its normal thing is a good omen. This is how this share price moves when an institutional amount of money has to buy the shares.
Todays action is more important IMO then the jan 2020(?) silver squeeze day that was up 20% and then faded. This is a large buyer finding out that the doorway to get into a long / out of a short is very very small.
Canary in the silver mine? The only change i can see is the CPI number that came in hot again. This triggered a major buyer. I would hazard a guess at a short cover when gold and silver did NOT plummet after the CPI number.
COT report shows BBs are the least short in a while. At some point investors will realise that to avoid dilution of your purchasing power you want to be in PMs. PM miners are a close second. Crypto is being shown to be not an inflation hedge. Check out the 70s gold and silver did very well over that period we are possibly heading for a repeat.
well CPI again hot. Dollar dilution is not going away. COT report has BB looking like they may benefit from prices rising. Are we at a short term low? using nothing more scientific than it feels like we could be there or thereabouts i am going to say we are at a turning point. This post could age terribly, but lets see how things play out.
The only thing that can be said about this SP is that sometimes the price of silver and gold is pertinent and sometimes it is not. Right now we are at £8 with silver being at $22. If silver went back to $28 i would expect it to trade a lot higher, since a lot of the negative headwinds for this company came through repeatedly missing production targets which finally seem to be in the past. It could go lower of course, but i am mildly surprised that the SP has held up this well with the sell off in gold and silver prices. I would hope that now the COT shows BBs are long again that prices of gold and silver will rise and this SP will rise with it.
I suppose with real rates rising a sell off is more normal and from perhaps elevated levels with the ukraine war, but still this move has been one way traffic. FRES seems to be ignoring it though, holding its ground which is most unusual.