Marco G.

Marco G.
Contributor since: 2009
Company: Goombarh's Edge
Hi revlis,
I am saddened to see GBG struggling with the Tranter issues and the repricing of bought deal. This causes pain for many holding GBG bought at much higher prices.
However, this is the bottom with the decline in gold prices as well. I was watching the action, and looking to buy in later for the anticipated turnaround during the summer.
With the share prices now at almost all time lows, there should be gains from here. IMHO. I am also considering redeploying cash into GBG presently.
Marco G.
Hi Clint007,
I believe that they have targeted Mar 2012 to be listed on TSX, bypassing the Venture exchange.
Marco G.
Hi Craig Cooper,
Thanks for sharing your informative comments.
I don't quite understand the conversion to barrels/acre-ft. Isn't the net/gross figures referring to the length of the possible pay zones?
Marco G.
Hi Jacob Steinberg,
Interesting article. The motive for business is always linked to money.
Why big oil is heading to Kurdistan is as Total says:
"Chevron (CVX), Total (TOT), Royal Dutch Shell (RDS.A) and TNK-BP (Russian private company) are among the oil majors making moves in Kurdistan. Quite simply, the oil majors are moving to the northern Kurdistan part of Iraq, as the oil agreements there have more generous terms than the southern Iraqi agreements have returned, as France's Total observes:
"It's a place where there are important oil and gas reserves and contracts are better" than in the rest of Iraq, he said."
Rest of article is here:
Marco G.
Hi Sandyb,
I am caught between wary for a precious metals price drop, and yet wanting to catch some of the gains for a good junior silver stock.
Marco G.
Hi Ed Caccia,
Thanks for your comments.
I am quite familiar with Orko, but I have shied away mainly because of their links to Pan American (PAAS), (limits the up side).
Tinka is a good story and I believe Otto Rock is very big on it.
As for Arian, I've talked with the company management, and sorry to say, they have not sold me on their story.
Marco G.
Thanks MPB2,
I am starting to like Arcana quite a bit. I will have to take a deeper look at the Shafter project.
Marco G.
Hi James Goodwin,
Yes, the oil is there as the shale is there.
The Nu Tech testing seems all positive and they should know. As in all speculative stories however, management will play the key part in pushing the project forward, and they have done a very good job of this up to the present.
Marco G.
Hi J.D. Lake,
Thanks for the kind words.
This is my biggest holding, and I wanted to get broader attention to it. Yes, I think it might take a few years and quite a few more holes, but the base story sound good.
Shoal Point is obtaining a TSX listing this month for higher tradability.
Marco G.
Thanks for looking and commenting.
There was a small sell-off today Mar 5, 2012 for Shoal Point, due to unknown reasons, of about 20%. The full results will not be known until April.
Perhaps there was some drilling news leakage or it was dis-spiriting to hear about NWest Energy leaving the area and exploring in Argentina in a PR today.
Marco G.
Thanks Another Joe,
Marco G.
Thanks DAG1996,
Marco G.
Hi Venerability,
You have found a typo about CDE, should be 27.57 price with gains of 13%
Marco G.
Hi David Baskin,
Very good article showing the temperament tantrums of of the market participants.
Marco G.
Hi John,
You write:
Whatever the future track, the risk of owning gold and silver at these prices is high compared to the potential return. Therefore, not only does this look like time to sell positions
Good analysis and I agree with you.
Unfortunately, the majority of investors in precious metals are stuck on dogma, and may miss the opportunity that is available right now in other sectors; such as oil.
Marco G.
IMHO, today's selloff on three times the volume is just the beginning of reaction to Bernanke's remarks.
Clearly, investors in the precious metals were expecting further inflation support, and they got none.
Therefore, there will be a widespread exit, that will begin with this drop. Investors will be looking to other sectors and the general markets for gains; and the general markets will move in a bull.
Marco G.
Hi Michael,
You write:
I do think the odds favor continued leadership in junior miners relative to broader small-caps given the way the industry has behaved in prior rising inflation expectations environments
Firstly, gold juniors have not lead the market for over 1 year.
Secondly, there are no inflation expectations.
I beg to differ, in that Bernanke, just stated this afternoon, no further market supports, and the golds sold off. The outlook is that of no further inflation and no need for gold to protect yourself against a declining dollar.
Getting into gold juniors, as a broad move would be just wrong right now. Selected juniors that move to production will be different and will appreciate.
Marco G.
As we are in a burgeoning bull market, this low volatility ETF may hinder you and cause an opportunity cost; ie: missing the gains in the bull.
Note that utilities are laggards presently.
Marco G.
Hi pomperj,
Thanks for your comments.
For all readers to consider, the gold price rose for 2 days in a row and today Feb 24 is holding at $1770 USD, yet the HUI and GDX are in a decline mode today. Gold price holds and gold shares decline? What is happening?
Seems the market mood for gold stocks is not great and some investors are taking their bets out, on any rise in the gold prices.
Something to consider before moving forwards from here.
Marco G.
Hi mezones,
What you are saying is more fundamental support to be bullish longer term.
Shorter term the precious metals may struggle.
Marco G.
Hi PCScipio,
Yes silver has gone into a bit of spike recently, after I wrote this posting.
However, my sentiments were meant for the intermediate term, such as Spring, Summer and Fall of this year.
I agree with the bull trend for precious metals, but what I am saying is not now for buying more.
Marco G.
Hi sbinvestor,
Yes, it is good to take whatever you read with a grain of salt.
Marco G.
lower interest in silver perhaps.
Marco G.
Hi user 59310,
Thanks for the comment.
It is good to view all sides of argument and not be stuck with one point of view.
Marco G.
Hi traxcavator,
I did have positions, prior to exiting the sector.
As in articles and the message above, I find more opportunity now in the oil sector.
Marco G.
Hi streetmoney21,
I may be wrong with US housing, as that is not analysis that I have delved into.
However, as an interested observer, I would say the buys are good with the possible rebound coming.
Marco G.
Hi indianamark,
Longer term, gold and silver will hold higher prices and investors who were in early will benefit; but now is not the time for buying more.
Good luck,
Marco G.
Hi Venerability,
Macro does not play for anybody but himself.
I am beholden to nobody, except my readers.
Good luck,
Marco G.
Hi charles hinton,
Thanks for your comment.
I was deliberately trying to be controversial, but also I felt I owe it to my readers, since I have written much about gold and silver in 2010 and 2011.
Presently, as stated, I am out of gold silver and awaiting opportunities for re-entry.
I am playing in the oil field now, where the oil price trend is your friend.
Good luck,
Marco G.
Hi Eric,
Interesting theory, about the 3 months time lag.
The only difference this time is the bull markets in stocks, worldwide, not just USA, but China, India, Emerging markets and soon Europe after they digest the greasy Greece deal.
So, IMHO, there is a difference this time and gold will wallow sideways for a long while until the bull market is done.
Marco G.
Hi Gus100corrina,
It is accounting terms at discussion here.
Cash costs mainly refer to variable costs and would not include overhead, admin, marketing, depreciation, interest, etc.
It is the total costs per ounces and the resulting profit or earnings after tax for the company that moves the stock prices.
Marco G.
You say:
"Walter De Wet adds some extra context finding that China's new demand for silver "is not very strong at the moment" when one considers that the premiums that previously existed in the Shanghai market over the London silver price have subsided. These premiums at times reached $5/ounce in summer 2011, yet in February 2012, have been more regularly below 50 cents. Demand for physical silver bullion from China has clearly been lower, so the Chinese are now less willing to pay over the spot silver price to source silver bullion."
I think that is the key phrase from this article.
The enthusiasm for silver has abated, presently.
Marco G.