tag:blogger.com,1999:blog-7982981413278241287.post3248672129191154849..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: Goldcorp Offers To Buy Osisko Mining: The Bottom Is InDave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger21125tag:blogger.com,1999:blog-7982981413278241287.post-36135720978062347652014-01-16T21:56:00.865-07:002014-01-16T21:56:00.865-07:00Now all these miners will see the price of gold dr...Now all these miners will see the price of gold drop well below production cost. One by one they will close their doors. The ones that don't will need to leverage their future production against loans willing to also bet on the eventual rise in gold price. But the only loans that are going to take that bet are the ones that WILL be able to guaranty delivery of physical - the central banks and governments. This means that the future of gold mining is a government operation. The stockholders are going to be squeezed out as they are paid off in dollars that saw the value of gold hit rock bottom. And when the paper market is DOA, all debt will then be wiped away in a waterfall flight into real gold. The dollar will fall like a rock. And gold will bid for stable currency at a price in the many many thousands. It will then be central banks and governments that make the market and find its price via open trade between themselves.<br /><br />And if you are holding paper as your proxy for wealth you will be screwed. One will need to be holding actual physical gold in order to bid for currency at the new price. The pre-storm paper will have all been washed away in a 100 year rain.Flounderhttps://www.blogger.com/profile/06142439915401085239noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-59463244209685023992014-01-16T21:12:08.965-07:002014-01-16T21:12:08.965-07:00The miners are screwed and this is no time for opt...The miners are screwed and this is no time for optimism. In order for the price of gold to rise and make it profitable to operate, paper gold (which offers no shelter from the dollar) will need to be bet on by the very people that have no desire to hold physical gold. The physical gold market cannot support a reversal of the downward trend, because it is too small in relation to the paper gold market. And that market isn't on the comex, it's on the forex.<br /><br />Think about it this way. If all of the paper demanded delivery of physical gold (it never will) then the lack of physical gold would be apparent. The holders of the paper wouldn't collect gold but rather fiat currency. Essentially the same thing as selling whatever paper instrument they are holding. And we know that when selling pressure is greater than buying pressure, the price goes down.<br /><br />But the paper will never demand delivery. Because they don't buy the gold as a physical item to create a firewall of separation between the physical plane and the monetary plane. They buy it as a monetary play only. Like just another currency. <br /><br />And when this paper market can no longer deliver physical gold to that small portion that have gleaned physical gold off of it. It will collapse entirely as its price heads to the floor. And no one will know what gold is worth until paper tries to buy it in a physical market only. <br /><br />Then the question becomes - Will gold bid for dollars when the credibility of currency begins its death spiral? One thing is for sure. It wont do so within a market that isn't designed to deliver physical gold, but rather a platform to bet on its price movement.<br /><br />This we learn from the "Flounder of Understanding"Flounderhttps://www.blogger.com/profile/06142439915401085239noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-66998137511529147642014-01-15T14:55:14.792-07:002014-01-15T14:55:14.792-07:00Chinese Consortium Is Front-runner to Buy Peru Cop...Chinese Consortium Is Front-runner to Buy Peru Copper Mine Minmetals, Citic Consortium Would Pay $5 Billion or More for Glencore Xstrata Mine<br />Updated Jan. 15, 2014 1:49 p.m. ET<br />http://online.wsj.com/news/articles/SB10001424052702304419104579322733991515544?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-69146161220928940292014-01-15T06:26:14.303-07:002014-01-15T06:26:14.303-07:00XRA? Exeter Resources? You sure you have the righ...XRA? Exeter Resources? You sure you have the right company and right numbers there? I just met with management. They were investing a lot of cash to develop Caspiche, but they have the ability to stretch the $43mm they have in cash for six years if they have to, which they won't.<br /><br />They have significantly reduced what they are spending because of the market. I've met with a lot of companies and XRA's management and two co-founders are as good as any I've ever been around.<br /><br />Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-87503372280255588352014-01-14T21:43:50.679-07:002014-01-14T21:43:50.679-07:00I don't see how XRA's management can be vi...I don't see how XRA's management can be viewed any better when they are burning through cash at 20 million each year and generate no income at all. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-10933284385300707002014-01-14T13:02:21.898-07:002014-01-14T13:02:21.898-07:00Also ANV got an offer from China Gold Stone. Expec...Also ANV got an offer from China Gold Stone. Expect to see more of this from Chinese mining companies.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-38091180212365112082014-01-14T11:12:49.424-07:002014-01-14T11:12:49.424-07:00It's okay to hate - unless feel obligated to a...It's okay to hate - unless feel obligated to abide to "political correctness," which I don't. The Govt has never really been held accountable to strict rule of law. Nixon pretty much set the trend of the Govt openly lifting its leg on the Constitution. You know, that body of law upon which our country was based that Bush said "was just a piece of paper" and Obama wipes his ass with.<br /><br />I find it truly comical that Obama still has a core group of ardent supporters despite the fact that he's proved to be even worse than W.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-56465204794255565962014-01-14T10:20:19.503-07:002014-01-14T10:20:19.503-07:00sister :-) But thanks for the empathy. I don'...sister :-) But thanks for the empathy. I don't hate, I just wonder whatever happened to the rule of law. Or maybe the entire concept was just invented to be pablum for the masses.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-22531500990132617702014-01-14T05:46:09.347-07:002014-01-14T05:46:09.347-07:00I feel your pain, brother. No one hates our Gover...I feel your pain, brother. No one hates our Government and political/financial system more than I do.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-45682226274814810862014-01-14T04:17:34.749-07:002014-01-14T04:17:34.749-07:00That's a fine policy if one has a shitload of ...That's a fine policy if one has a shitload of cash to buy the shitload of shares. If one doesn't, one gets screwed. I wish there were a law court in the world that would stand up to these manipulators.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-28054896496188582252014-01-13T21:08:51.058-07:002014-01-13T21:08:51.058-07:00Those aren't true juniors. I'm talking ab...Those aren't true juniors. I'm talking about a stock like XRA, which has 30mm ozs of gold and gold-equiv copper. It's selling for just above the value of the cash on hand. Put a $50/oz valuation on 30mm ozs and tell what the shares are worth. <br /><br />Before the plunge in the price of gold, juniors with good grade deposits in regions with lower political risk were trading at or above $100/oz net.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-23890548283117646492014-01-13T21:06:31.628-07:002014-01-13T21:06:31.628-07:00Depends on how much you added when OSK went below ...Depends on how much you added when OSK went below $5. We added a shitload at lower levels to get our avg cost down.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-32233496066087405862014-01-13T21:05:50.944-07:002014-01-13T21:05:50.944-07:00Poorly managed. Depleting at a much faster rate th...Poorly managed. Depleting at a much faster rate than replacing. ABX is an abortion. NEM is an abortion. GG is going downhill. There's a lot of reasons. In general they are not well run and the upper management is way overpaid relative to the income they generate.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-195384747485248082014-01-13T19:29:18.537-07:002014-01-13T19:29:18.537-07:00Anyone holding OSK shares since 2011 is facing hav...Anyone holding OSK shares since 2011 is facing having them taken for a third of their peak price, at or near a low in gold. Although I'm thankful I don't have any OSK, I've similarly had companies pulled out from under me for way less than what they went for when gold was higher; and I'm wondering which others are now vulnerable to the same game. This situation sucks. Wish I'd stayed far away from the damned shares and just put it all into physical metal. Not a single company I own has kept up with the price of the metals over the past ten years.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-31201896554414183822014-01-13T19:08:28.796-07:002014-01-13T19:08:28.796-07:00Dave 30-40 X seems a bit rich. ANV, HL, AUQ, KGI, ...Dave 30-40 X seems a bit rich. ANV, HL, AUQ, KGI, AXU Canadian and USA stocks seem like maybe 7-8 baggers would be a lot to hope for? Maybe you mean stocks trading under a buck or around a dime currently?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-61886505925947505822014-01-13T17:15:27.457-07:002014-01-13T17:15:27.457-07:00Dave, it seems that you don't like the major g...Dave, it seems that you don't like the major gold miners like Barrick gold. Why?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-76507116508084203202014-01-13T14:22:03.027-07:002014-01-13T14:22:03.027-07:00As an OSK shareholder facing a huge loss on the pa...As an OSK shareholder facing a huge loss on the paper price, I'm more than a little peeved at being turned into shark bait to save the USD.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-40262505944862716112014-01-13T14:09:34.965-07:002014-01-13T14:09:34.965-07:00Buy a copy of 'The Gold Cartel' and send i...Buy a copy of 'The Gold Cartel' and send it to a gold mining company executive<br />That leaves nobody looking out for the interests of gold mining company investors except GATA and, possibly, gold mining company investors themselves.<br /><br />Such investors who are not already fatally demoralized can do something about the problem. They should consider buying a copy of the new book by market analyst and GATA consultant Dimitri Speck, "The Gold Cartel," which documents gold price suppression, and then sending it to the chief executives of the gold mining companies in which they are invested, along with a letter asking those executives to read the book and respond.<br /><br />Or such investors should write to the investor relations officers of their mining companies and urge them to get a copy of the book for their CEOs.<br /><br />http://www.gata.org/node/13501Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-74581593298656701722014-01-13T11:21:04.852-07:002014-01-13T11:21:04.852-07:00I agree Dave. We have a huge position in PVG which...I agree Dave. We have a huge position in PVG which a few of us believe- will be the biggest gold discovery in N America since Homestake. Kinda like sitting frosty and seeing what happens with this holding.Brianhttps://www.blogger.com/profile/11009623520148094685noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-53580783911674058332014-01-13T10:28:55.723-07:002014-01-13T10:28:55.723-07:00Both games Sunday should be epic. Defensive war in...Both games Sunday should be epic. Defensive war in Seattle - possible shoot-out in Denver.<br /><br />If Jack Del Rio doens't go conservative on defense like he did in the 4th qtr when Rivers got hot, I like Denver's chances to win. Brady/Belichik are always a tough nut to crack though.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-77314541560312144362014-01-13T10:21:33.816-07:002014-01-13T10:21:33.816-07:00Speaking of money, how do you like the Broncos cha...Speaking of money, how do you like the Broncos chances on Sunday ? Should be an epic tilt considering the two quarterbacks involved.Anonymousnoreply@blogger.com