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  • The 4 Million Share Trade At Exeter Resources [View article]
    @JSRR1950 - I agree it is a bullish development (and seemingly so does the market) as the large bulky gold funds I wouldnt imagine would strategize so much to hide holdings.

    Of course, anyone trying to hide holdings are doing it for a reason as they probably want to acquire more shares without a large jump in price, which smells like a fellow miner.
    May 1, 2015. 11:22 AM | Likes Like |Link to Comment
  • Is Venezuela The Reason For The Recent Weakness In Gold Prices? [View article]
    @awmanzel - Remember these countries (China, Russia, Venezuela, Argentina, etc) are not very happy with the US and that means they would love to see an end to the USD hegemony. After all, that is what is keeping the US as the sole superpower.

    That means that the last thing they want to do is dump gold for USD's, as replacing the USD would mean the return of gold to the financial system. Venezuela's deal sparks more of desperation rather than desire - remember they did not SELL the gold they LEASED it.
    Apr 28, 2015. 10:24 AM | 4 Likes Like |Link to Comment
  • Is Venezuela The Reason For The Recent Weakness In Gold Prices? [View article]
    @PeaceDividend - I dont think we have many of the details of the deal yet so I wouldnt make these numbers "hard numbers". But its not $1 billion its AT LEAST $1 billion, so that means that if the country swapped the whole 1.4 million ozs they would have gotten more than the $1 billion discussed.

    Not sure if many more details will be published, but the point here is Venezuela got USD (at a multi-year high) and Citigroup got gold (at a multi-year low) with interest. I think we know who won out here...
    Apr 28, 2015. 10:21 AM | Likes Like |Link to Comment
  • Is Venezuela The Reason For The Recent Weakness In Gold Prices? [View article]
    @fishfryer - I agree with you that it is not a very smart move by the government. From Citi's POV looks pretty decent...
    Apr 27, 2015. 04:34 PM | Likes Like |Link to Comment
  • Is Venezuela The Reason For The Recent Weakness In Gold Prices? [View article]
    A $1 Billion dollar gold deal is a lot of money, moving the price of gold a few % points over the short-term while possibly collecting some profits on the shorts doesnt sound like such a strange possibility.

    Whether you like Citigroup or not they certainly have deep pockets and the ability to do just this. Markets are far from honest...
    Apr 27, 2015. 03:52 PM | 3 Likes Like |Link to Comment
  • Russian Gold Reserves Jump In March: What It Means For Gold Investors [View article]
    @Benni - thanks for the comment.

    Its the old inflation/deflation argument though i'd argue that QE is setting the stage for future inflation. Tinder waiting to be lit and the scary thing is that CBs are increasing QE because, as you have said, they dont see any inflation. I'm not the only one as Alan Greenspan has mentioned this a number of times.

    Unfortunately, I dont think we have any chance of true deflation and the fact that this view is EXTREMELY contrarian is even more surprising (and comforting). Very few people are positioned for higher levels of inflation and markets tend to hurt the most people...
    Apr 24, 2015. 11:16 AM | 1 Like Like |Link to Comment
  • Full 2014 Industry Gold Production And All-In Costs Show Gold Is An Excellent Investment For Patient Investors [View article]
    @Aricool - IMHO it is much safer playing the metals than the miners as if you believe that the status quo (production cost versus market price) is not sustainable then over time you will be right. You just have to make sure if you dont get stopped out.

    Of course the advantage to miners is that if you get the right companies you can make (or lose) money no matter what the gold price does
    Apr 22, 2015. 09:43 AM | Likes Like |Link to Comment
  • Full 2014 Industry Gold Production And All-In Costs Show Gold Is An Excellent Investment For Patient Investors [View article]
    @littleralph - it will be interesting to see what happens with ANV. You're right bankruptcy could mean continued production for quite some time. But then again, mining is a very tough business and I would argue it is much tougher than the airline business.

    As for the rest of the miners, they wont cut production unless they absolutely have to, but again the nature of the business will cut production for them. Mining is a business where you have to constantly replace reserves, but to do so requires plenty of foresight AND exploration. Cutting exploration now will save money and allow operations to continue, but will mean that future production will be cut regardless of what miners want.

    That means we could see a rising gold price even as production falls (and shovel ready assets increase significantly). That's what I think is likely - though it may take a few years.
    Apr 21, 2015. 05:46 PM | 1 Like Like |Link to Comment
  • The 4 Million Share Trade At Exeter Resources [View article]
    @bally22 - a great question but unfortunately i'm not familiar with the Chilean industrial water market. The value obviously increases for project owners closer to the discovery, but how much is beyond my knowledge.
    Apr 20, 2015. 09:44 AM | Likes Like |Link to Comment
  • The 4 Million Share Trade At Exeter Resources [View article]
    @Doug5380 - yup i'm sure KGC is gunshy to buy anything but if you look at it strategically, to be able to service their debt they need (1) a higher gold price and (2) more production to take advantage of that price.

    Its one thing to twiddle your thumbs while you have no debt and a lot of on-balance cash, but with a lot of debt you just cannot do that - they need to increase cash flow and hope/expect better gold prices. Companies like XRA are really a minor purchase (with an extremely generous premium we're still talking a sub-$100mm net purchase price for XRA).
    Apr 20, 2015. 09:42 AM | Likes Like |Link to Comment
  • The 4 Million Share Trade At Exeter Resources [View article]
    If your position is large enough you have to declare it as you've become an insider, but there's quite a bit of delay that can happen between the purchase and declaration
    Apr 18, 2015. 07:47 AM | 1 Like Like |Link to Comment
  • The 4 Million Share Trade At Exeter Resources [View article]
    Yup trades in a new quarter have quite some time until they are declared. But because this trade is a considerable portion of the company's market cap, we may see it as an insider transaction
    Apr 18, 2015. 07:46 AM | Likes Like |Link to Comment
  • What It Really Costs To Mine Gold: The SilverCrest 4th Quarter Edition [View article]
    @paullev - SVM is an interesting miner with a much better profit profile. Operating in China does lead to a discount on the share price though...
    Apr 1, 2015. 10:07 AM | Likes Like |Link to Comment
  • What It Really Costs To Mine Gold: The SilverCrest 4th Quarter Edition [View article]
    @alcshrink hopefully it is of benefit!
    Mar 31, 2015. 08:49 AM | 1 Like Like |Link to Comment
  • Novo Resources: Upcoming Drilling Results Provide An Opportunity For Educated Speculation [View article]
    Yeah it is an interesting move but you have to remember that Millenium may not be in a strong financial position and may need the money. The latest statement that I can find on Millenium (http://bit.ly/1E5CcRx) for midyear 2014, seems to show $4mm in cash and around $37mm in borrowings. There's a bunch of other stuff in there, but maybe they felt the $3.8mm was more valuable than the potential for a small-scale operation.

    It can go either way b/c Millenium obviously doesnt value the property very much (AU$12-15mm ish by this deal) but I dont know if Novo would have chosen to spend the $3.8mm if they didnt find it of value. Especially considering their CEO is running a tight budget ship here. Personally, I like the deal as there is no rush to get a FS out there any more and now its a complete 100% ownership (much less complicated).

    As for the Bob Moriarty talk, I wouldnt make an investment based on his advice - he makes some good calls and some very bad calls. The Wits-type basin is the dream here, but that is not an easy search and it certainly is very risky. Mr. Hennigh, Novo's CEO, still believes the potential is here BUT they have to proceed with an income base first before they can explore the rest of their huge property interests.
    Mar 26, 2015. 02:20 PM | 1 Like Like |Link to Comment
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