Wednesday Coin Score - Saturday Special Sale and an Update on the Mining Stocks

Another Wednesday and another trip to the coin store to pick up another ounce of silver for the stack. That's alot of anothers.

Technically Teach, that might be correct but I say alot . . .alot.

Now let me teach you a little thing about stacking and why it never pays to buy PROOF SETS!

So today I picked up another ounce of American Junk silver. And as usual I let the clerk pick out the coins. Sometimes I get very old and warn coins and then on other occasions I get some really shiny "formerly" Proof Set coins. (The Franklin Half is not a proof and never was a proof coin).

See Teach, the lesson here is when you go to sell the Proof Set, often you just get the value of the silver and nothing for the condition.

Don't get me wrong these are great coins, and I am happy to add them to the stack.

And for coin collectors, proof sets have value.

But for stackers of silver, there is no bonus for the coin itself. The price of silver is the price of silver.

Speaking of the price of silver . . .

Last week silver got monkey hammered!

And in that honor, I made a special Saturday trip to the coin shop!

An absolutely ordinary ounce of American Junk.

I don't think I was alone in the buying as the coin shop had zero Foreign Sovereign coins and zero Silver Rounds.

Time to take a look at the Gold Mining stocks and the HUI Index

The Blue Line was the last line of support for the HUI at 252.43 before entering a dreaded Bear Market.

This line was tested back in March of this year, that time the HUI rallied. This time is a different story.

The battle along this last line of support raged for much of August into September. However, the Bears have made a break through and the longer the HUI remains below 252.43 the more the Bears will be embolden.

Targets for the Bears in the HUI are:

232.61
213.16
203.50

I post these numbers for "entertainment" purposes and not "financial advise".

The disclaimer is placed upon the advice of my Attorney. He is a real legal "beagle", so he says, but I think he looks like a Corgi to me.

Anyway, he has to be a good lawyer because how many dogs do you know that can tie a tie? Bonus he takes Milk Bones dog cookies for a fee. Sweet!

I will note that the LOW on Monday came in at 233.46 which is pretty dog gone close to the first BEAR target level of 232.61.

As to my general thoughts on the precious metals market these days I will make a few observations.

First, we never really got a late Summer into September rally which is odd.

Second, a Fall rally into new "highs" is a rare thing.

Third, "IF" we are starting to retrace the crash of March 2020 then silver and gold as well as the HUI could drop significantly. That is a big "IF" but it is what is on my mind.

Fourth, I like the idea of cheaper silver but will I be able to get physical?

Things to think about.

Peace out and STACK ON!