FOMC Minutes: QE to taper off regardless of unemployment rate.

Remember that QE until Unemploymennt at 6.5%? I guess they really don’t see Unemployment to ever get to 6.5%

Well, that seems to explain the recent Gold moves.

This is really disappointing. I guess the idiot inflation hawk-gold bugs are pressuring Ben too much. I really hope that’s not the case.

Maybe there is no need for a Blow Off Top on the Markets. The trend could be broken today.

bchad - buy SLW at $32 grab ye silver with both hands below $27.

I’ve been meaning to shift gold exposure to silver exposure, but this news is potentially deflationary, which would be anti-silver too.

Assuming that the market panics and the Fed goes back and says “oh, don’t worry, we still plan to buy a lot”, then this would be a sensible time to do silver.

Why a silver miner vs physicals, though. Are you just trying to lever up on the growth idea?

I would pair trade Gold/Silver at this point. Today was ugly. At the climax when the Dow was going below -100, the opera singer lady who lives below me started howling her climax, it was eerie.

I started to sell calls on GS and CAT, so I’m on the right side for now, but got chopped up a bit when the Minutes came out, my platform froze around 1:58pm, and I knew it would either be good or bad… turned out bad. But now I’m bearish going into tomorrow, all my wounds are licked and I’m locked and loaded.

We still got some big numbers on the calendar too. CPI, Lead Indicators… Even the might BAC is solidly below 12 again.

Do both. Not to split hairs, but SLW isn’t a miner, it’s a streaming company…basically a financial that’s tied to the price of silver instead of interest rates (back when interest rates actually mattered to banks). SLW below $32 is way undervalued. You can do the math pretty easily based on thier contracts. That PPS implies an average price of silver around $18-22 over the next few years. IMO, that’s a steal.

Buy the physical below $27. (I’ll be picking up some gold too below $1550 but with less enthusiasm.)

I’ll have to disagree with lockheed on pair trading silver and gold. The risk reward isn’t that attractive and silver is too volatile to be on the wrong side of.

Yeah, I actually thought SLW might not be a miner and googled to check and one of the sites called it a miner and so I left it at that.

IIRC, then, SLW owns silver mines but does not actually mine them, yes? So the stock trades primarily on the value of its assets, which is the silver in the ground. It will presumably go up as the price of silver goes up or as the cost to mine it goes down.

Is that a fair analysis, or at least, am I on the right track?

Kinda. SLW doesn’t own any mines, just the rights to the silver (and sometimes gold) that comes out of them. They provide a lump sum of cash to miners that need capital for the rights to some-to-all of their future silver. Since most of the silver is mined as byproduct of gold and copper mining, the mining companies are happy to sell it to SLW for a little over $4 an ounce.

They basically print (hard) money.