First Majestic Folds, Sells Held Back Silver Production
First Majestic made waves last month when it said it was holding back its silver production due to low prices. The CEO of First Majestic called on other silver miners to do the same one month next year.
First Majestic announced this week that it had sold its held back production.
What's next in the silver miners vs. the bullion banks battle?
So far the holding back of selling of silver production has backfired for First Majestic, why they are trying to time the market with selling silver at a later date makes very little sense, it's called speculating and that's always very dangerous.
None of the other miners believe in this theory that silver is so undervalued that they should hold back the silver they mine, so I wouldn't expect anything to change. They can still keep operations going at $15 oz and even lower, so that's all they really care about.
Well I guess it was a statement of sorts and since nobody joined the boycott there is little point in holding out.
Hope they saved some for today. $1 an ounce on their total is significant.
The market didn't listen as their hold back was too small and the time period too limited too to make a meaningful difference.
The cartel idea is a bad one too as they would get persecuted while the bullion banks wont
How about looking at it this way:
If they did not sell double quantity this quarter, then their stock of unsold will remain at elevated levels and they are still withholding that quantity.
Not saying it's so, but it is worth considering.
How about...collusion in service of "the good" (whatever that is??) is still collusion. And that's what FM was calling for. Two wrongs don't make a right. Around here silver is all anybody talks about...rest of the world, the real world, nobody gives it a second thought. But integrity, though rare, that's still respected in most parts :)
CEO at First is considered to be a mining genius by many,
and therefore not the ideal person to choose to question.
At 6 bucks a pop, FM shares could be the kind of spread-bet
win that would make Bitcoin gains look like chump-change.
However, the silver market only has whatever stability the
gold market is prepared to afford it - and its too early to call.
Sooner or later, the metal in the rocks will be needed to soften
the hard place that will exist in the exchanges. Until then though,
spread bets are all off limits - although I suddenly feel very tempted : )
but this is glass half full stuff. i like AM take here too. they have held. there was not much in the pot. keep playing your cards and sometime soon you will flop the nuts while your stack continues to grow. I like FM as one of my first dips back into paper. i think i can i think i can i think i can. handle it. 10% just last friday. buy early sell late. that was a big day. i hope someone had that daytrade. looking at a pretty good gap lower to start as of now...under 4.55 i am going to take my first nibble. paper floor??? no, of course this can go sub 4 but it too could go boom. Uno i like that meing! peace