This sell-off in the miners has become silly. One particular stock AUMN (which acquired ECU Silver) is now selling at a little over 20 cents per old ECU-equivalent share. At one time in 2007, ECU was over $3.30/share. This valuation implies that AUMN's silver in ground is valued at 30 cents/ounce. That is retarded. A couple years ago silver miners were selling for $1/oz in the ground. The price of silver is higher now and margins have exploded.
I don't know when this sell-off in the sector will end and the next move up will commence, but I just got off the phone with a longtime friend in NYC who told me that he just spoke to a very plugged-in "insider" (i.e. politically connected) type who told my friend that a massive QE in Europe and in the U.S. is coming and that this is the flush in precious metals that you want to use to back up the dump truck and buy because there might not be another opportunity like this going forward.
Back to Soros, I've noticed over the years that he has had good success as a market-timer in gold and mining stocks. As a matter of fact, he was the largest shareholder at one point in the predecessor company (Apex Silver) that became Golden Minerals that took over ECU. He sold Apex almost at its apex. At any rate, it is my strong belief that he uses GLD to index the price of gold for trading purposes. He's smarter than me and must know the potential Enron-type legal structure that belies the GLD trust structure. I would also bet a lot of money that Soros, given that he is a Holocaust survivor and concentration camp escapee, has accumulated a massive personal holding of physical gold.
For what it's all worth...
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