Market Commentary from March 2020

As a gold/silver mining investor, I have mixed feelings this week. On the one hand, I should be exhilarated that Washington has once again lost its mind and is printing money like a banshee, pretending that debt doesn't matter. However, at some point, it clearly does or else we wouldn't have to pay taxes, and the government could just send everyone a check every month to pay their bills. Clearly, we know that won't work. So, this money printing is like pushing an economic nuclear button. At...  more

Yesterday I was feeling somewhat confident that the cornavirus would peak in April or May and then the economy could begin to come back to life. I thought that perhaps by the end of summer, the economy could be back on its feet. However, then California and New York ordered all non-essential businesses closed without a date of when work would resume. The fallout from this virus is still unknown, but we know that the number of cases is only now starting to expand. That means it will be a while...  more

I've always been leery of Friday the 13th, well this was the worst one of my life. The last two days have been brutal. Big institutional money sold their miners, getting out of any risk-on trade. GDX and GDXJ were pummeled, which carried over into the stocks. The HUI crashed from 217 on the Thursday open to 163 on the Friday close. Ouch!  more

I think we are all in a bit of shock by the gyrations of the market this week. The volatility has been historic because of the Coronavirus. No one has a clue what comes next or how far the markets will fall. The miners are still not getting a bid. My portfolio is still down 12% from the recent high two weeks ago. So, even with gold at $1673, it feels like we are losing. A big reason for that is the terrible performance of silver, with the GSR currently at 96.7. Without silver, sentiment in the...  more