Saturday, June 16, 2012

Grandich thinks American beer is butch

In case you read the neo-Nazi over at his blog, yakking about liberals and conservatives, and how liberals like gay imported beer while big butch hairy-balled "conservatives" like Miller and Bud....

Here's an imported beer for you. Like most imported beers, it's a higher percentage alcohol (12% in this case), while queerbait closet-fag Jesus-worshippers in the USA only drink 2%-4% beer.

Oh, it also tastes like beer, instead of dilute urine. That is, it tastes the way beer has always tasted for the past thousand years, because it's made the way beer was made for a thousand years, before the Americans destroyed brewing forever by turning it into an industrial process. I.e. it's a conservative beer.

Oh, in this particular case, it's actually made by people who worship Jesus for a living - they don't just mouth the words and pretend to have read the bible once.

Though I have nothing against Budweiser... nice and fizzy, like soda water, good for when you have heartburn. Or on nights when you don't want to get drunk.

PS, conservatism doesn't mean "I get to act like a cunt". You, sir, are not a "conservative": you are a "cunt", that is your party affiliation. Now go vote for the Cunt Party this fall.

Oil will go to $60 or lower. Says who? Says the Saudis.

If you're one of those people who follows the gold:oil ratio as an indicator of future cash-cost pressures on mining, you'll love this story that showed up yesterday on FT Alphaville:

Opec compromised; Saudi Arabia becomes lone player

and see also:

Bearish on Oil: Saudi investor says the future is natural gas and that “in ten years electric vehicles will be everywhere”

I think you can ignore the bit about the future of transportation: I don't see how you'll ever wean the world fleet off of gasoline and diesel. To me, the important takeaway from this story is that Saudi Arabia fucking hates Iran. The Saudis hate Iran so much that they're going to sabotage the price of oil by over-pumping, in order to destroy Iran's economy.

See this paragraph, spoken by a wealthy Saudi investor, underlined bit was what struck me the most:

“… you have to understand our geo-political equation and vulnerability. Our two most dangerous enemies are Iraq and Iran. Both are Shia, and both are trying to destabilize the Arab world and our Sunni kingdom by funding terrorism. Our only weapons against them are our wealth and our oil. Their current vulnerability is their financial fragility. Their financial reserves are a fraction of ours, and they desperately need money to prop up their economies. The ruling council has decided that over the next two years we have a brief window of opportunity to impoverish and weaken them by driving down the price of oil. Iraq and Iran need to produce and sell their oil at well over one hundred dollars a barrel. In the next twenty four months, we will gradually increase our production with the objective of breaking the price of crude down to sixty dollars a barrel. Aramco is raising its capacity to produce significantly more crude. Note that at the same time Iraq, Russia, and Libya are already increasing their exports, and Iran and Venezuela also need to sell more. Strategic reserves in the consuming countries all over the world have been topped out, and large amounts of oil are stored in tankers.”

They're happy to drive the price down to $60; they are also cognizant of the fact that if they do this, driving out the speculators might give them an overshoot to $40.

Oil price is supposedly a major cost input to mining. So the miners' cash flows should go up.

There. That made you happy, little goldbugger, didn't it?

Friday, June 15, 2012

Aftermarket comment - someone was scared late this afternoon, so they decided to go out with a hail of gunfire and take the rest of us with them, the cunts

I was entranced for the last half hour of today, as an Anon iceberg came in after 3:30 to puke shares into thin bids of Bear Creek Mining. It truly was a thing to watch.

Turns out the same thing happened with Guyana Goldfields, Extorre, Sulliden, MAG, Sabina, Tower Hill, Timmins and Jaguar for what it's worth, B2Gold to some small extent, and even Fortuna Silver!

Yamana and Goldcorp were left unscathed. Coeur actually went up.

Let's see, I'm gonna open my GDXJ excel file and check some other names:

Dundee? Yup. Banro? Yup. Avion? Hell yeah. Kirkland Lake? Yup. Nevsun? Yup. Exeter? You bet. All these stocks were similarly clobbered.

Endeavour? Not really. PZG neither, nor Alamos.

CGA? Actually shot up like fuck before the bell.

So... what actually happened today? Did someone puke a huge amount of GDXJ before the close, so the fund was forced to dump shares into nonexistent Friday afternoon bids?

Might be that Monday is "kid in a candy shop" day.

Or of course, the whole world is gonna end. Who knows.

Market Comment....

Given that I'm a brilliant contrary indicator, here's what I think should happen, and so you can try to plan around it:

Everyone freaks out, maybe even before lunch, deciding they absolutely don't want to be in the market over the weekend, so everything collapses in a plague of volatility this afternoon.

The S&P is through with its rally, people will think, and it should start going back down now, and after all it was only a rumour that drove it up yesterday.

OK? That's what I think will happen, therefore that's what I think won't happen.

At this point I curse the meaninglessness of human existence and run to the false safety of charts:

Yeah? China doesn't look bad, looks like it's bottomed.

Yeah? Emerging Markets doesn't look bad, looks like it's bottomed.

Yeah? JNK:LQD doesn't seem to be showing fear. Island bottom at the start of June makes it look like one day of fear made the risk-on crowd go "yeah, right", and ignore everything since.

And yet? VIX looks like it's... well... waiting for something.

So I guess the bet is that things will go up from here or down from here, but won't stay where they are, come Monday.

OT: The Jean Paul Sartre cookbook

In case I'm not the last person on the internet to have ever seen this, follow the link to read the Jean Paul Sartre Cookbook.

Here's how it begins:

We have recently been lucky enough to discover several previously lost diaries of French philosopher Jean-Paul Sartre stuck in between the cushions of our office sofa. These diaries reveal a young Sartre obsessed not with the void, but with food. Apparently Sartre, before discovering philosophy, had hoped to write "a cookbook that will put to rest all notions of flavor forever.'' The diaries are excerpted here for your perusal.

October 3

Spoke with Camus today about my cookbook. Though he has never actually eaten, he gave me much encouragement. I rushed home immediately to begin work. How excited I am! I have begun my formula for a Denver omelet.

October 4

Still working on the omelet. There have been stumbling blocks. I keep creating omelets one after another, like soldiers marching into the sea, but each one seems empty, hollow, like stone. I want to create an omelet that expresses the meaninglessness of existence, and instead they taste like cheese. I look at them on the plate, but they do not look back. Tried eating them with the lights off. It did not help. Malraux suggested paprika.

October 6

I have realized that the traditional omelet form (eggs and cheese) is bourgeois. Today I tried making one out of a cigarette, some coffee, and four tiny stones. I fed it to Malraux, who puked. I am encouraged, but my journey is still long.

and so on....

Friday videos: Echo Beach

Here's Martha and the Muffins, back before Martha Ladly (the other Martha) left the band to design album titles for Orchestral Manoeuvres in the Dark, back before Dan Lanois convinced them to be a self-important artfag band, doing a song about summer and stuff, cos we finally have been allowed to have some here in the Blasted Plateau of Tsang Canada.

I should try to post some more old videos by them. They were good once.

Thursday, June 14, 2012

Changes to the TSX indices

News article came out a few days ago explaining some changes to the various TSX indices.

The main composite index is dumping Extorre, Guyana Goldfields, Great Basin Gold and Mercator Minerals, because they're utter fucking jokes now.

International Tower Hill Mines, Jaguar Mining, Exeter Resource and Timmins Gold are being dumped from the S&P/TSX Global Gold Index cos they don't actually have any gold and also suck™.

Nevada Copper is being dumped from the Base Metals Index. Cos they also suck™.

Wednesday, June 13, 2012

Monday, June 11, 2012

Peter Grandich likes Lupaka Gold

Uh-oh! There goes the neighbourhood!

(Not a Grandich client, but apparently Peter's now friends with Geoff Courtnall.)

Gold - optometrist version

So, tell me how it looks right now:

No good? OK.

(flips the lens)

How about this:

Does that look better, do you think? Or worse?

Fun bit of snark today from Felix Salmon

Nothing specifically to do with us nutter goldbugs, but Felix Salmon wrote a hilarious bit of snark today about the idiocy of CNBC.

Basically, he feels sorry for Martin Wolf appearing on CNBC, and notes they ran a shock-value graphic on an instance of Greek debt that stopped existing in March.

Boiling it down, the only reason to watch CNBC is to be entranced by the pretty colours and whooshing noises. Sorta like all news in the USA. And Canada and England.

And they wonder why the 21st century is seeing the death of traditional media....

Three guesses: what's Hussman's opinion on the economy?

Yeah, so PragCap just ran an article that says John Hussman says the US is already going into recession.

In other news, the sun rose in the east today.

Hussman's such a fucking loser.

If you want to believe Bloomberg....

Bloomberg says game on for solar again...

Bloomberg reports that the world’s largest solar-panel makers are boosting production this year on expectations that demand in China will double, "a surprise shift as the $36 billion market migrates from Europe to Asia." According to data compiled by Bloomberg, the world's five biggest producers of polysilicon solar modules, led by China’s Suntech Power Holdings and Yingli Green Energy, will increase shipments 27-37% from 2011 levels. Bloomberg states that China, which trails only Germany and Italy for new installations, will dominate growth this year and become the top solar market in 2013, after European nations cut subsidies for new projects.

The interesting thing here is that a large part of silver demand is for manufacturing solar panels.

Ignore that REE stuff. If you want to buy REE, either buy Molycorp or stay the hell out of the space.

Sunday, June 10, 2012

All Star Charts

There's a good post over at All Star Charts, go have a read:

Using Intermarket Relationships to Measure Risk-Appetite

There's nothing in there that would confuse someone who's been reading Biiwii's newsletter.

Here's the conclusion:

All of these measures of risk appetite are telling us that things are not so bad and that we should be looking to put risk on, not off.

I have to add this blog to my list over on the right side of the page, there. Always a good read.