Price Smashes: A Dream for Us, a Nightmare for these Guys!

While the recent silver price smash is a dream for us stackers...it is a LIVING NIGHTMARE for these guys:

Submitted by The Wealth Watchman

Mining-men

Once again, to demonstrate that I “walk the walk”, and tread the warrior’s path, I’ll let you know that I decided to attack the enemy on Friday afternoon.  This time, the price was just above $16, and as I said I would, I didn’t use the entirety of my current dry powder, but instead, opted to use a portion of it to inflict 20 more silver casualties, by scooping up a solid tube of these:

Seven sins of Obama

This is the latest installment of Chris Duane’s Silver Shield coin collection, and it’s one of this Watchman’s personal favorites of his this year.  Chris has been one of the staunchest opponents of the banksters for years, and has done a fine job of exposing the real criminals in our world.  If you’re wondering where you can acquire some of these bad boys, they can be found by clicking on the image above. 

I’d also like to say that not only has Mr. Duane not paid me to mention his coins, he’s never even approached this Watchman before.  I’m mentioning his work simply because it has been meaningful to me, and because I believe every shield brother here would benefit from it as well.

The Eagles Have Flown

Well, my oh my!  It looks as if others folks besides those of our merry band at the HQ, don’t believe all the:

“OMG, silver’s going to ‘free’!” memes out there.

The U.S. Mint had quite a busy month, and after all the numbers came in, they’d cranked out sales of roughly equaling 5.8 million oz of silver in October! (Note that this does not include any of their 5 ounce coin sales, or numismatic eagle strikes). October turned out to be the 4th-highest sales month in the 30 year history of the American silver eagle coin’s existence, here’s what it looked like stacked up against other months:

Silver Eagles October chart


Lemme give this figure a little perspective here.

In the sales years throughout the 2000′s, the number of silver eagles sold(in an entire year) was around 10 million…each year.

In this past month, the U.S. Mint produced nearly 2/3 as many coins as it did for the entirety of many of its post-2000 sales years.

Furthermore, if you compare it to the 1990′s and 80′s sales figures, it’s even more dramatic!  During those years, the U.S. Mint routinely sold far less(sometimes, almost just half as many) eagles in one year.

1998: 4,320,000

1997: 3,636,000

1996: 3,466,000

1995: 4,590,000

1994: 5,540,500

1993: 5,890,000

1992: 5,544,000

1988: 5,869,000

October silver eagles sales of nearly 5.8 million oz (over 180 tonnes of silver), was greater than 6 entire previous sales years (and on par with another 2 sales years)!

Haha, ok Watchman, you pumper!   So one coin is having a great year!  Big deal!  It’s just one coin!

Wrong again, compadre!

For silver Canadian Maples are on a tear as well!  By the way, am I the only one who gets hungry whenever I read that term: Canadian maaaaaples!

Mmmmmm.

Reminds me of this:

Maple Syrup

Which is a quite appropriate since these little tramps are being snapped up like hotcakes smothered in blueberry syrup!

In fact, during the first half of the year, silver maples had sold over 15 million ounces, a new half year record!  Considering the price attacks that have happened since June…it’s quite possible we could see between a 33 to 35 million ounce silver maple sales figure this year(not including their numismatic strikes).

We’ll also likely see (within 1 million ounces) a 45 million ounce figure for eagles, if the U.S. Mint doesn’t close up shop near the beginning of December as they’ve done the past several years.

If this comes to pass, it will mean that in one calendar year, 10% of the earth’s silver mining supply will be used to create just two coins!

This, in no capacity whatsoever, includes the many other government coins out there, the countless privately-minted rounds, bars, and wholesale 1,000 ouncers that stackers are snapping up!

But, wait, it gets even better!

For during the last 2 days of October alone, the mint sold 1.4 million eagles.

In a world where only 2.2 million ounces are mined each day, this means that eagle demand alone sucked up 1 in every 3 silver ounces mined during that 48 hour period!

Astonishing.

In fact, it was so impressive, that this Watchman reached out to the Doc at SD Bullion, and asked him how much retail demand he was seeing from his unique perspective.  After all, it’s one thing for some big players to buy a slew of coins, but what about the little guys, like us?  What are they doing?

The Doc confirmed to me that within a 48 hour period, around 60,000 ounces of silver, or two metric tonnes, was taken from global supply by shield brothers, and customers everywhere, just at his shop! 

 This is multiples of the volume they normally experience!

The Doc said that the enormous influx of coin and bar-buying, is already sending premiums (the great ninjas of the silver world), creeping up all over the retail scene everywhere!

Though the gold and silver scene is doubtlessly overdue for a brief relief rally, these attacks(which are going on 4 years now), as I said in my warning, are only serving to point the loaded weapon of demand straight at the riggers’ heads.

Price dips are good for stackers here, because so many reserves are being drained, that when they’re finally gone,what will fulfill demand when the powers can no longer hold it down?  

But, there are a few parties out there, for whom lower prices are not good for!  And yet brothers, this is good for us stackers, as well!  Let’s take a look at these unfortunate souls, right now!

An Interview in the Pits

200407101-001

Good afternoon! I’m Flambella Carbonarra, here from SlickKo News, and today we have a real treat for our viewers, as I’m going to talk about the interesting situation in the mining industry! I’m pleased to tell my listeners that joining me, from on site at his company’s famous, crown-jewel,  “Hidalgo Antonio Fallero Guidas” mine, will be John, a CEO of one of the Toronto exchange’s most celebrated silver mining companies!

John, alot of investors have questions about opportunities at your company, and in the mining industry as a whole right now, can you elaborate for us a bit, about what investors can expect in miners?

Hello?  Hello, John, are you there?  I said, what do you think investors can expect from putting their hard-earned cash into mining indexes?

Cameraman, do we have a live shot of John?  We do?  Ok…Let’s feed it.

.

.

.

.

Oh, dear!  Ok, well uh, let’s head on over, to um, Greg, another rising star CEO in the mining space, who’s all the rage around water coolers these days! Greg, what can you give our listeners from your perspective, about what mining investments have to offer them?

Greg?  Greg, are you there!?

Yeah! Yeah I’m here, Flambella!

Oh, thank goodness!

But you better talk quickly!

What?!  Why, Greg?  What are you seeing from your perspective?

Uh darkness, with a tinge of light around the corners, Flambella.  Just darkness.

Darkness?  I’m afraid I don’t understand.  I mean, you’ve got your ear to the ground in the hottest space in the entire mining complex!  What are you hearing from your peers, and especially from your investors?

What am I hearing from investors?  I’m hearing lots of actions being pulled back, Flambella.

Actions?  Uh, I’m sorry, Greg, but again, I don’t understa-

Goodbye Flambella!

Goodbye, what are you tal-   Aaaaaagh!

Mining firing squad

-Fin

Let’s not pretty this up: the mining industry is in the 6th circle of hell right now, and it’s all their fault.

But don’t take my word for it, let’s have a looksy at a few share prices for some silver and gold miners as of Friday’s(October 31st’s) market close:

Great Panther Silver Ltd(symbol GPL):

Current share price: 70 pennies per share.

Top closing share price in 2011: $4.55  

Total loss from the top: 84.6%!  Yowza!

Silvercorp Metals Inc.(symbol SVM):

Current share price: $1.20 per share.  

Top closing share price in 2011: $15.99

Total loss from the top: 92.5%!  Wiped. Out.

Mines Management, Inc.(symbol MGN):

Current share price: 52 pennies per share.

Top closing share price in 2011: $4.18

Total loss from the top: 87.5%!  Blistering!

Allied Nevada Gold Corp.(symbol ANV): 

Current share price: $1.39.

Top closing share price in 2011: $43.71

Total loss from the top: 96.8%

That last figure is about the closest thing to zero from a top that you can probably find, without just calling it quits!

These are just a few examples of the nuclear wasteland dubbed the “Precious Metals Mining Sector”.  I only bring up these examples,because these are a handful of much-lauded juniors, and some primary silver producers.  I’ll also add that, at one point or another, this Watchman has owned almost every one of these shares.  I have the battle scars to prove it, too.  There are only a handful of primary silver mines on the planet, and that bloodbath is precisely why that’s the case!

Who in their right mind would want to go looking for new major exploration projects right now?

I ask you, who?

Who in their right mind wouldn’t just put their mines on “care and maintenance”, lay off most of the pour souls risking their lives beneath the earth, and just wait for better days, instead of throwing away the richest, creamiest silver and gold deposits on planet earth today?

Who in their right mind wouldn’t circle the wagons, by bringing ALL willing CEO’s together, as a matter of survival, and establishing a legal arm with huge teeth and financial resources, to both hound and prosecute criminal rigging banks in every court imaginable?

Oh, that’s right…..99% of the precious metals mining sector’s boards of directors, that’s who! They deserve every bit of what they’re getting.

And let’s get one more thing crystal clear right now: all this talk about “bulls versus bears” is a made-up, fictional bedtime story for investors who don’t have the intestinal fortitude to admit that their precious investment dollars were set upon a sacrificial altar, as a tiny lamb waiting for the dagger of powerful money-interests to fall.

Not only has the dagger fallen, repeatedly, and carved all the meat off the bone for 4 years, but disinfo “news centers” are hilariously trying to pretend how this “freely and fairly traded” market can go on tripping over bullets, and falling down elevator shafts, while demand ramps up by orders of magnitude every single week now.

There is no battle of “bulls vs bears”, this is vintage hilarity in the vein of stand-up comedians Jon “Needleman” and Jeffrey “Pagan”!  

All there is in the mining space is all there ever was: large tech funds, money managers, and speculators, standing as thousands of tiny stalks of ripened wheat…being led around and then cut down by legions of powerful, commercial banks, with mighty, HFT Scythes in hand, who are reaping a glorious harvest among all these suckers right now.

Period.

Technically speaking, the HUI(mining index) is the lowest level it’s been in roughly 5 years, so I suppose, if you like to live dangerously(and we’re talking tight-rope-walking-across-a-windy-Grand-Canyon kinda dangerously), this might be a good time to throw some cash into the fire(err, I mean ring!).  

Watchman, are you recommending miners?

NO!  I’m not!  Let’s be clear: unless you have pros like Dave Kranzler, or David Morgan on your side, you will be the next rack of BBQ ribs to be roasted in the slow-cooker, and your dollars will go on feeding the beast(going straight into the flush profits of JP Morgan or Scotia Bank prop desks), instead of starving the beast(taking even more silver from the dwindling, global supply pool).

Don’t be fishfood, be smart.

Either call one of those guys to help you, or stay the devil away from that dollar-slurping mire.

Conclusion

Never before has this quantity of silver been bought as savings, as money, as “investment” by the world at large.

Never before have so many countries and world powers been responsible for the diverse buying.

Never before have stackers been able to stash away such bulging hoards of treasure so easily and cheaply.

Never before have most miners(with a few notable exceptionshere and here, thank God for them!) been in such denial about what is happening to their precious resources, their shareholders, and their livelihoods.

Their margins, already in the red, are cratering further with each passing day.

Their “Ace card” high-grade deposits, are largely spent, with nothing to show for it.

Their reputations shot.  Their trust and rapport with investors, blown to kingdom come.

Yet…..after all this hard work, for nothing, the current silver coin and bar demand proves, that their dejected efforts aren’t nearly, nearly enough!

Our shield brothers stand strong!  We are unmoved, and unimpressed with this ridiculous display of criminality!

We won’t be chased away!  

We will not yield!  

We aren’t the prey!  

We are the hunters!  

We will stack, and stack, and stack….until the Apple Computers of the world, the solar energy companies, the bullion banks, and the central banks all scramble before our onslaught like headless chickens!

We are the “cyber army”, the shield brothers, and we march on to victory!

This paltry silver you’re mining, gentlemen….is pathetic!

My advice to those who still wish to continue this goofy scam any longer:

Mining truck fire meme


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Never Trust Government, Joy to the World & The 7 Sins of Obama