Showing posts with label EDR. Show all posts
Showing posts with label EDR. Show all posts

Sunday, April 14, 2013

silver analysis by tekmnd, a guy who invests and risks his own money in the markets

silverrrrrr produced by endeavour silver

dear friends, the gold and silver prices are in a free fall, the blood bath in the miners and explorers sectors is far from over yet, so what's going on? let's post an interesting analysis made by a buddy of mine and the co-host of the informedtrades.com community, tekmnd. he is (among others) a trader and a silver buyer himself, so he prefers to do his own due diligence, you know? what does it mean? as you will discover soon, his analysis is completely different from the silver gurus analyses you can get all over the internet and/or mainstream media. unlike the silver gurus who are often coin dealers, newsletter writers, commodity (indexes) promoters etc and thus there is often a conflict of interests indeed, tekmnd invests and risks his own money ...

the silver analysis was originally posted here at InformedTrades yesterday, enjoy my re-print:

Silver dropped pretty hard this week. When I hear comments from the 'silver community,' it is so obvious that no one gets it.
Let's break down what happened-
US Mint lost money last year. Bullion demand was way down.
The world silver interim report in Nov showed that supply was way up and growing, and demand was declining. The week the Interim report came out, Sprott's headline was "demand is about to overtake supply."
The mint scaled back production and forced a sell out right after.

The sell out was sold as a big rush of demand.
The mint sell out was pushed as a shortage of supply when it had nothing to do with the physical supply of silver. I saw several videos claiming that the mint selling out was because producers couldn't keep up with supply when that had nothing to do with the sellout (and supply is at record high levels right now). The sellout was from the mint scaling back production to force all supply to sell out before the new release came out.

David Morgan first made videos suggesting price would go over $50 this year, and then made a video with a graph showing the price going into the hundreds.
Silver doctors and BrotherJohnF made videos/articles with false claims of silver costing $30 to produce, and said it meant silver would have to shoot up soon.
Silver doctors ran articles asking people if they were "all in" because price was about to shoot up.
Jim Rogers said that you couldn't buy coins when they were on sale.

Not mentioned by any of the so called experts was the Nov Interim report showing supply at record high levels.
Not mentioned was that less bullion coins sold in 2012 than in 2011 or in 2010.
Not mentioned was that many miners production levels beat estimates in 2012.
Not mentioned was that silver reserves and resources had a major increase in 2012.
Not mentioned was the fact that inventories have been massively increasing.

Instead people were told that costs to produce are $30 when they are $11.
That supply is down when it is up.
That demand is overtaking supply when it is down.
That industrial demand is increasing exponentially when it was down last year and down 3 of the last 4 years.
That producers can't keep up with demand when inventories are at almost record high levels.

Anyone even catching on to the fact that my last vid showed that Fresnillo is growing by 75% to 100% in the next 5 years? That increase alone offsets the expected increase in industrial demand.

Anyone talking about the fact the reserves just majorally increased at many producers pretty much making the silver running out lie now a total joke? KGHM has just increased their reserves to 40 years of silver reserves (meaning they have proved that they can mine silver out for at least the next 40 years as long as silver is over $22 per ounce spot). Pan American, Fresnillo and Hochschild increases their reserves and resources every year. In fact, increasing reserves and resources on an ongoing basis is Pan American's mission statement on every financial statement they release.

Nope- you were told that "supply is tight, silver is running out, demand is up, industrial use is increasing (down last year, and down 3 of the last 4 years), and that the price decline is all a big conspiracy."

The 2013 World Survey comes out in 11 days. It is expected to yield results that are not favorable to the price of silver. Price is dropping heading into the release of this report.

I have said for 3 months this would happen (price would drop heading into this report).
Please pay attention next time 

Cheers
Tek


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a great update, dear tek even if so sad for gold + silver bugs ...

and yes, at my favorite coin dealer, there was never a real shortage in physical gold of silver supply in the last few years. only in late 2008 there were almost no silver coins available and the premiums of physical silver coins/bars shoot up to 40% above the paper silver price. at that time my dealer started to sell silver concentrate in 1 kg bags (which means there still was enough silver to buy)

anyway, go gold bugs go and lets crash the fraudulent paper money system now 

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what about one of tek's videos?
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... and this is the jim roger's interview tek refers to 

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last but not least, a news release i just got right now. there was a landslide in the 2nd largest U.S. silver mine and world’s largest copper mine kennecott in utah which is owned by rio tinto on april 10th, so the supply side could be hurt to some degree soon. read the whole news release here
~~~

eof

Tuesday, April 13, 2010

endeavour silver (TSX:EDR)

addendum april 15th, 2014: i know what is the problem with the low, low, low gold + silver prices in 2013 + 2014, my dears. well, there was an investors' lunch event in munich few days ago and endeavour was also there. it was a nice update about the company, which mastered to reach a output of 6.8m ounces of silver in 2013, but you know what? two of its 3 mexican silver mines produce silver at all-in-cost around or even below the current silver price, which is $19.5 per ounce today. got it? there are producers who earn no money or even lose money to over-supply the market at these  low, low, low gold + silver prices. of course the price can't go up if there is sooooo much supply even at these levels. what will the producers do if the metal prices go up? probably complain that they have no gold/silver left as they've sold it so cheap in 2013 + 2014 ... supply + demand pattern, as so often in the long run 

1oz silver from endeavour silver

what about the investors' lunch with endeavour silver representatives 2day? hmmmmmm, i think i'm rather the folk festival than the noble restaurant type of guy, you know? well, of course it was delicious, all that small portions on huge plates with funny decoration, tasty wine, etc.  ... 

OMG! do u know what did i like most? the surprise gift ~ the nice company's 1 oz silver coin! well, i'm probably more an investor than a good eater :-). yabbadabbadooo, my growing collection of 'my' silver companies silver coins now includes:
  • endeavour silver
  • first majestic silver
  • scorpio mining
  • nevada pacific gold (that company doesn't exist any more! btw, do u think about old, old, old silver roman coins right now? do they still have any value? is silver better than paper? any other thoughts?)
what about endeavour silver? of course, i enjoyed the chance 2 meet the old-known-faces behind the company in munich again! of course, i own already few shares of that promising silver producer. of course, i increased my endeavour holdings after that damned crashy october 2008, so my position is +115.56% right now. what's the best? well, there is NOTHING TO WORRY about! they have 2 profitable operating silver mines, they are looking for the 3rd mine (exploration vs. acquisition), there is no further need to dilute the existing share base as the cash-flow provides enough money in order to finance future growth (unless there would be some major acquisition opportunity out there), the production records should continue further and, in the long term, the silver price increase could continue as well, so the share price should go up, isn't it? 

so what to do? well, let's lean back + enjoy the company's development + the rising share price of that IMHO low-risk portfolio position + let's hope if there will be some significant company and/or market related price corrections on the road i will be wise enough and still solvent to increase my endeavour position on dips :-)

1oz silver, endeavour silver


addendum june 6th, 2010: folks, i've just bought few more shares of EDR (@ CAD 3.52) today. they've have been somehow stronger than their peer group in recent general market correction, let's interpret that as relative strength ... LOL

successful endeavours + good luck, my dear endeavour silver