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Gold bugs, take note: A new S&P report indicates gold miners (GDX) could face pressure on...

Gold bugs, take note: A new S&P report indicates gold miners (GDX) could face pressure on their underlying credit ratings to the point that new projects are curtailed, investment is reduced and dividends could be cut. S&P says major gold miners have adequate financial flexibility to deal with low gold prices 12-18 months, but the commodities boom has added 10%-15% in production costs.
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Comments (6)
  • HBWOW
    , contributor
    Comments (622) | Send Message
     
    Two comments:
    The manipulators have got their yoyo to play with the market again.
    Higher costs and higher prices LIKE everything else except housing.
    11 Sep 2012, 01:02 PM Reply Like
  • User 509088
    , contributor
    Comments (1101) | Send Message
     
    look for small plays who are fulfilling their options and buying out claims. especially the ones other small plays are willing to sell to for stock. you don't give up a claim unless you're fairly sure you're getting something for it besides air.

     

    funding it from bought stock and production.
    11 Sep 2012, 01:08 PM Reply Like
  • User 280239
    , contributor
    Comment (1) | Send Message
     
    I shall take my chances,gold will hold
    11 Sep 2012, 04:10 PM Reply Like
  • tombmanager
    , contributor
    Comments (11) | Send Message
     
    in my IRA (longer term), I'm averaged in at $54 - hold it? Thoughts.
    11 Sep 2012, 04:12 PM Reply Like
  • tombmanager
    , contributor
    Comments (11) | Send Message
     
    I'm an interested gold investor. The dollar looks bad and getting worse, so, gold stocks and hard gold looks like where to be.
    11 Sep 2012, 04:13 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4267) | Send Message
     
    Right now I am long NUGT and very happy with the recent price jump. S&P is trying to turn good news into bad.

     

    Yes, production costs for gold and other precious metals are going up (just like most things in our inflationary economy.) But when inflation affects prices, that's good for the price of gold and the producers make out like bandits on the spread.

     

    And yes, mined assets deplete, just like drilled assets. But that only makes further exploration efforts more profitable when they strike paydirt. That's why we want gold in the first place. IT'S RARE AND IT'S GOING TO STAY THAT WAY until the cold fusionists figure out how to turn lead atoms into gold, or until Jesus comes, whichever is first. (Your apocalypse may vary.)
    12 Sep 2012, 05:49 PM Reply Like
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