Seeking Alpha

Gold miners (GDX +1%) turn positive as gold climbs past $1,390/oz.: ABX +0.9%, GG +1.1%, NEM...

Gold miners (GDX +1%) turn positive as gold climbs past $1,390/oz.: ABX +0.9%, GG +1.1%, NEM +1.2%, IAG +2.1%, GFI +1.3%, AUY +2.4%, NGD +1.3%. The link between gold miners and gold has been strong lately: The 24-day correlation between the spot price of gold and GDX has remained above 90% for five days, the longest such streak since July 2012.
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Comments (5)
  • PhilosopherStone
    , contributor
    Comments (44) | Send Message
     
    Gold in and of itself has value as a scarce physical resource. Most if not all of the mined gold to date was not native to the planet earth. Gold has many practical uses in dentistry, electronics, and other fields. Its high malleability, ductility, resistance to corrosion and most other chemical reactions, and conductivity of electricity has led to many uses, including electric wiring, colored-glass production, and gold leafing. It will be needed for the vast amount of electronics that will 'someday' be going into space, as those will need to last 100 200+ years.
    12 Jun 2013, 02:44 PM Reply Like
  • Old Trader
    , contributor
    Comments (5726) | Send Message
     
    "Most if not all of the mined gold to date was not native to the planet earth."

     

    So where did it come from, PhilosopherStone? Meteorites? ..... Alien spacecraft?
    12 Jun 2013, 05:13 PM Reply Like
  • PhilosopherStone
    , contributor
    Comments (44) | Send Message
     
    Yes, Meteorites.
    13 Jun 2013, 09:48 AM Reply Like
  • TDWelander
    , contributor
    Comments (639) | Send Message
     
    Nice info Mr. PhilospherStone. We here at this blog try to focus on the practical end of living. Specifically that means what are markets and people currently doing with and using gold. Our biggest distractions to date as usual have been environmental obstructionists getting in the way of gold development projects.

     

    Or, no one I know argues with good stewardship of the land and the planet. Anything these fool so called environmentalists can call a nuisance and get a judge to agree with them ends up obstructing commerce, highly unlawful.

     

    One other point at this blog for your reference. It has been full of traders with substantially unreal or fictional view of reality. Or actually, they have been pedaling a significant minority wall street view bashing gold company management whenever and wherever they can; with little or no substantiation; promoting gold company management turnover where gold production is more sophisticated than rocket science.

     

    Or really stupid thinking has been coming out of the wall street traders recently; mostly due to ignorance of gold mining and refining though. As the lawyers will tell you, ignorance is never an excuse; especially when reality must be front and center.

     

    Wall street traders, at least a noticeable minority of them, have exposed themselves as one more special interest group sacrificing reality as a means to their ends. Or at least part of wall street needs a figurative bashing for their unreal self interest to date.

     

    Any help or influence you have with applicable state and federal government agencies to get after these fools, make them pay for their unlawful orchestrated shorting of ABX and other gold stocks in particular would be greatly appreciated.
    13 Jun 2013, 10:34 AM Reply Like
  • PhilosopherStone
    , contributor
    Comments (44) | Send Message
     
    Thanks for the follow-up and you make great points. Yes, I believe there is science behind it's use. It is useful above and beyond an inflationary hedge. The science of gold and its inflationary protection go hand in hand. It is valuable, because....it has value and is scarce! Maybe I can clean up some coffee spills with my worthless dollar bills. Facebook for example has zero value. This Seeking Alpha site is much much more valuable than Facebook imo. Do they have a ticker symbol?

     

    Obviously we are all here to make money. But making money on a lie vs. making money on the truth is the game this generation seems to have no problem playing.

     

    And yes this shorting gold agenda is downright creepy and borderline criminal. I feel downright sorry for miners right now.
    13 Jun 2013, 12:31 PM Reply Like
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