Commodity Carnage (August 15, 2018)

by FI Fighter on August 15, 2018

in Copper, Copper Update, Lithium, Lithium Updates, Nickel, Nickel Updates, Precious Metals, Precious Metals Updates

Very tough times in the commodities space right now, with most metals getting annihilated on a daily basis… Just check out some of these charts!

Gold and silver have gotten kicked in the teeth lately…

From Gold Price.

Sub $1,200/oz gold and sub $15/oz silver… again!!!

Who would have thought!?!

I know in 2016 when silver was flying high over $21/oz, I really thought in my heart of hearts that the days of sub $20/oz silver were forever behind us…

Hah!

As usual, I don’t know jack about anything…

But still…

It’s hard to imagine how any silver miners can make money selling at these low levels… As for gold, only the “best of the best” are going to be able to generate free cash flow at these depressed prices…

Sentiment towards precious metals has been in the gutter for awhile now… yet somehow, things seem to be able to get even worse… still…

Gold Miners Bullish Percentage Index.

Ummm, not so bullish at all…

It’s like a bottomless pit of destruction and pain…

Base metals aren’t doing much better…

From Kitco.

No, I don’t believe we have yet reached the Depths of Despair, last visited in late 2015/early 2016 when many mining stocks were trading at absolutely ridiculous valuations (i.e. negative enterprise values)… but it seems like we are heading there…

 

Right now, USD is indeed King Dollar, and everything else is trash… especially commodities.

 

So, buckle up…

 

Things could be getting very interesting as we head into the fall months…

 

Last time around, I “backed up the truck” when I sensed absolute despair in the air… and made life-changing gains.

 

Obviously, no one has a crystal ball or anything like that, but my own intuition is telling me that despite all the negativity and smackdown of late, we haven’t experienced capitulation yet…

 

But if things don’t get better in a hurry, we could be in for a washout event with these miners… Personally, I’m still holding out to see double digit BEET RED beatdowns… which were the norm from ~November 2015 – January 2016.

 

When there is indeed blood in the streets, it’s the time to get most interested again in commodities…

 

Seriously, when the year first started out and I was cashing out of commodities and mining stocks, I really thought that I was going to move on with my life and talk about something else on this blog… Many of these mining stocks were flying to new heights, setting record/52 week highs and everything seemed so freekin AWESOME!

 

To be honest, I really am sick and tired of commodities, all this volatility, and I need a change of scenery

 

However, when there’s this much carnage in the sector, I almost can’t turn away… and although I sold out of many shares, I still own some positions, along with many friends and family…

So, I’m almost forced to stay fixated on this “perpetually beaten up and hated” sector…

 

But, as someone who really believes in “buy low and sell high”, well, it is what it is…

 

Thanks for your patience and understanding!

 

Happy Hunting!

Related Posts :

{ 0 comments… add one now }

Leave a Comment

 

Previous post:

Next post:

Copyright © 2012 FI Fighter