Great Basin Gold Faults And Recovers [View article]
Hi par4,
Yes I think GBG is about 18 months behind schedule, which means around summer 2012, Burnstone will kick in.
Right now is bargain time for GBG and gold sector, however, I think gold price will go lower before going higher later in year.
Therefore, the trick is to buy at the low and hold for the increasing production to drive the share price by year end.
That is a capsule of my thoughts about GBG.
As for the sector in general, I would stay away. They do not have the increasing production that GBG will have to drive prices, and gold is going lower.
Glance At Big Golds: Barrick, Goldcorp [View article]
Hi Andean,
It seems to me that Goldcorp was not playing in a fair playing field with their inside knowledge of that Andean property.
With public information, they were originally paying about $1400 per reserve ounce for Andean. With the increased resources, they were still paying about $1000 per ounce.
This is in comparison to what the industry was paying per reserve ounce which was below $500. The Andean acquisition carried considerable risk of failure.
And that way without any mining infrastructure in place, just the rights to mine the property.
Glance At Big Golds: Barrick, Goldcorp [View article]
Hi lucky lenny,
Thanks for your comments.
As for a share buy back, that would be an interesting idea. With the cost of debt so low; the ability to concentrate the profits on fewer shares is an interesting idea.
As for buy out, note that Barrick is the largest market cap player in the gold mining space.
Glance At Big Golds: Barrick, Goldcorp [View article]
Hi Golden Oxen,
Thanks for your comments, and yes that is the point. Miners can not sell their metals at the marginal prices, as each ounce that comes out comes with significant effort. Also the ore bodies are not stable geologically and have vagaries that make them difficult to mine going forward; it is not like a factory manufacturing site.
Even open pit operations, have grade imbalances, and blank areas.
As for oil, did you notice the price peak today, with the Iranian actions. Note that the oil equities all mostly leverage the oil price. This is simply not happening with gold equities.
Glance At Big Golds: Barrick, Goldcorp [View article]
Hi bang,
Thanks for the comment.
I would try to figure out the grades and ore quantities mined if, I thought they would be a viable investment, in the first pass.
But as written above, I believe the market rates them as performs only and no out performance, so I will not bother.
For example Barrick has 26 operations, so it could be quite a task to work on it, and I do not know if all the information is available and in the public domain.
The term "short" as in short term thinking may be relative. I tend to agree that both gold and silver are in powerful uptrends. I am merely saying that for the intermediate term, (within this year), I am afraid the gold and silver prices will languish. This will in turn dampen investor's sentiments and will reflect upon the miners, even if they are profitable.
However, I would like to see some upwards actions in my investments, as least within this year, so that is why I am mainly out of precious metals investments.
Gold Miners: The Run Is Done [View article]
The golds and miners have been good to me.
Since I said so much about them in 09, 10 and 11, I felt I had to speak out with a few pieces about the run being done.
The run I speak of is the last 10 years.
As the markets go back to growth, similar to end of 90's, gold and precious metals will suffer IMHO.
Yes, Venerability knows her gold stocks.
I am independent and beholden to no one, perhaps only my readers.
Good luck.
Marco G.
Gold Miners: The Run Is Done [View article]
The run was not specific, but in general, the run of precious metals for the last 10 years -- 1600% gains, not enjoyed by me, but just a statistic.
My take on no leverage is here:
http://seekingalpha.co...
Also about NGD, their run was in 2009 to 2010 going from sub $2 to $teens. Their growth is now limited.
I see GBG running like NGD, but maybe later this year and next.
Maybe the time will come back to gold and gold stocks in the future, but IMHO, the run is done.
Marco G.
Great Basin Gold Faults And Recovers [View article]
Yes I think GBG is about 18 months behind schedule, which means around summer 2012, Burnstone will kick in.
Right now is bargain time for GBG and gold sector, however, I think gold price will go lower before going higher later in year.
Therefore, the trick is to buy at the low and hold for the increasing production to drive the share price by year end.
That is a capsule of my thoughts about GBG.
As for the sector in general, I would stay away. They do not have the increasing production that GBG will have to drive prices, and gold is going lower.
Marco G.
Glance At Big Golds: Barrick, Goldcorp [View article]
It seems to me that Goldcorp was not playing in a fair playing field with their inside knowledge of that Andean property.
With public information, they were originally paying about $1400 per reserve ounce for Andean. With the increased resources, they were still paying about $1000 per ounce.
This is in comparison to what the industry was paying per reserve ounce which was below $500. The Andean acquisition carried considerable risk of failure.
And that way without any mining infrastructure in place, just the rights to mine the property.
Marco G.
Glance At Big Golds: Barrick, Goldcorp [View article]
Thanks for your comments.
As for a share buy back, that would be an interesting idea. With the cost of debt so low; the ability to concentrate the profits on fewer shares is an interesting idea.
As for buy out, note that Barrick is the largest market cap player in the gold mining space.
Marco G.
Glance At Big Golds: Barrick, Goldcorp [View article]
Thanks for your comments, and yes that is the point. Miners can not sell their metals at the marginal prices, as each ounce that comes out comes with significant effort. Also the ore bodies are not stable geologically and have vagaries that make them difficult to mine going forward; it is not like a factory manufacturing site.
Even open pit operations, have grade imbalances, and blank areas.
As for oil, did you notice the price peak today, with the Iranian actions. Note that the oil equities all mostly leverage the oil price. This is simply not happening with gold equities.
Marco G.
Glance At Big Golds: Barrick, Goldcorp [View article]
Thanks for the comment.
I would try to figure out the grades and ore quantities mined if, I thought they would be a viable investment, in the first pass.
But as written above, I believe the market rates them as performs only and no out performance, so I will not bother.
For example Barrick has 26 operations, so it could be quite a task to work on it, and I do not know if all the information is available and in the public domain.
Marco G.
Silver Could Double By Year's End [View article]
You have just wrote one of the most important comments, that everyone should have a look at.
Yes Silver is in a bull market.
Yes Silver is volatile.
And Yes, the timing can never be predicted.
Great comment!
Marco G.
Silver Leading Gold Downward [View article]
The term "short" as in short term thinking may be relative. I tend to agree that both gold and silver are in powerful uptrends. I am merely saying that for the intermediate term, (within this year), I am afraid the gold and silver prices will languish. This will in turn dampen investor's sentiments and will reflect upon the miners, even if they are profitable.
However, I would like to see some upwards actions in my investments, as least within this year, so that is why I am mainly out of precious metals investments.
Marco G.
Exit Gold Miners [View article]
Yes I was wrong about GBG, when it was at $2.
It is a lot better bet now at $1 IMHO.
Marco G.
Silver Leading Gold Downward [View article]
I suppose the emerging downtrends is my writer's license, since it was new to me.
As for whether it is an up or down trend, there is only one way to find out ---waiting.
Marco G.
Silver Leading Gold Downward [View article]
I suppose the charts above are not convincing....
Somehow, I was under the impression that silver leads gold because of the smaller dollar value, and the resulting volatility.
....mmnnhh.
Marco G.
Silver Leading Gold Downward [View article]
No I left last summer, and just trying to decide whether to come back in or not.
Anyways, where is the bottom?
Marco G.
Investing In Billion Barrel Oil Discoveries In Kurdistan [View article]
I would agree with your comments.
The price of oil is above $100 and is looking to stay that way.
Great opportunities in oil and gas.
Marco G.
How Will CME Performance Bond Reductions Affect Precious Metals Prices? [View article]
Good work and much insight here. Thanks.
Marco G.