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  • The FOMC Pushes Down GLD [View article]
    You bring up a reality point that the writers like Fx , Harry Dent and others seem oblivious to. Gold and silver production cost have grown exponentially over the last 20 years or so. The cost of gold production as you say is on average $1100/oz. Barrack Gold has a mine that is the lowest cost production mine at $875/oz. Silver is in dire straits. The average cost of production is around $19/oz. With the latest sell off, silver is being sold for less the production cost. Some miners are getting together to discuss a moratorium on selling any silver into the market until prices rise above production cost. Silver mines with high cost had already started shutting down last summer. Supply and demand will have to balance out somewhere on the profitable side for miners or there will be no supply, hence even higher prices that will bring miners back into the market at some point.
    Some of these guys like to quote the "cash cost" of mining silver or gold to incorrectly show miners doing OK. This is only one of the metrics miners used to help determine the potential profitability of a mine. However, a miner doesn't use "cash cost" alone to determine if he can stay in business or not. That strips out the cost of debt financing, all plant and equipment not associated with the actual mine(s) and production cost, and the Management and overhead cost of the mining Company.
    Back in the day of $200-500/oz gold, the price was more market driven. The cost of mining was not a major factor in the price per ounce. Now, miners consider a mine profitable if the can pull 2-3 "grams" of gold out of a ton of rock.
    Therein lies the crux of why gold and most silver mines will never sell gold at prices that Harry Dent ($200) likes to quote of FX saying the gold price is not justified at $1170 (117 GLD). It will never get back to the 2008 price of $66. Cost have gone up too much and people like Fx take the Governments word on the phoney inflation rate numbers. Food prices and basic things a Family needs are not in the basket that determines the inflation rate.
    Nov 1, 2014. 12:50 PM | 5 Likes Like |Link to Comment
  • SPDR Gold Trust ETF: The Times Are A-Changin' [View article]
    Yes, and if we ever get to audit our gold holdings in Ft. Knox, what will we find. If you do the math on imports and exports of USA gold several people have come to the conclusion that we shipped out more than 5000 tons than we have. The only explanation is that the FED has been shipping our gold overseas! We can't give Germany 300 of the 1500 tons of gold we are suppose to have in NYC! Why? We sold it off and can't replace it for 7 years!
    The dollar is destined to go boom any time now. But don't warn the sheeple!
    Apr 22, 2014. 08:48 PM | 1 Like Like |Link to Comment
  • BitChip The Bitcoin Killer - The Merchant's Solution To The Bitcoin Problem [View article]
    If the Libertarian's on the Right are as bad as Mr. Wagner says, then his Socialist Communist on the left are as bad as the Libertarians. I myself am an Independent and deplore both sides.

    Why would we want to give Casino's the power over our Currency? My personal thought is an Independent NGO should be set up that is comprised of non-bankers of Independent Political affiliation that are thoroughly vetted for background history and suitability. Politicians and Lawyers need not apply. This group must replace the FED which is nothing more than a group of Bankers that's Leader is appointed by the US President. They act in the Nations Banker's interest, not our Citizens or the US Government's for that matter. And yes, the Government/Bank criminals have destroyed 98% of the dollars worth since the FED was established. It's called INFLATION and you can't ignore it.

    This NGO should be working in the best interest of the US citizens first and the Federal Government second. That means this NGO should cut off funding the Federal Government's expansion in tandem with the Official Debt limit Congress sets. The NGO would have no obligation to support the official debt limit, forcing Government to live within their means. If the bit-chip or whatever will be pegged 1-1 to the US Dollar, then this NGO should be responsible for both.

    The current worldwide GDP is around $78 Trillion. The Bankers with their Fractional powers have foolishly issued $720 trillion worth of derivatives, now outstanding. Any significant change in interest rates (like going back to the mean rate) or some calamity in the world will take down this house of cards. Our Government has done nothing to rein in the US Banks ability to use these instruments with Dodd/Frank.

    This NGO must have no reporting responsibility to the IRS or other Government agencies
    without a written court order from a legitimate US Court. The US Government has forced Car makers to put GPS units in our cars as of 2014 models to track our every movement. This should be repealed! Obamacare has given every agency in the US unfettered access to all of our medical and financial information "if" you have had the unfortunate pleasure of having to get insurance thru its exchanges. "IF" Obamacare survives (and I hope it doesn't), then control's over who can see our information needs to be implemented as well as the best firewall technology to keep our info safe. Mr. Wagner doesn't see any reason to keep his transactions safe from the prying eyes of the government. That's his personal opinion only. Our Government has no right automatically violating our 1st, 4th and 5th Amendment rights. They need to get back to containing terrorist instead of our Citizens.
    Feb 3, 2014. 08:22 PM | Likes Like |Link to Comment
  • Precious metals see a bout of major buying, with gold (GLD +1.5%) jumping about $25/ounce in the past few minutes, and silver (SLV +4.8%) soaring nearly a $1. Bearish for some time, Mark Dow reminds gold has been going down for 2 years, but the decline has only recently made the headlines. Gold's post-QE run was built on a number of misconceptions which have all cracked. The longs (silver too) are trapped and the bear market isn't close to over.
      [View news story]
    Silver cash cost to produce is about $17/oz while total cost is around $26/oz. Mines that can, will hold onto their silver on hopes of higher prices. Those with little cash will mothball their mines. Either way supply is about to take a major hit while physical demand stays high.
    Gold is below cash cost and actual cost as well. How long can they hold on until all mines shut down? China is the big beneficiary of these reduced prices. This cits the time frame for when they can back their currency with gold and kill the dollar!
    Jun 28, 2013. 12:30 PM | 1 Like Like |Link to Comment
  • "OK, so I made a bad call at the Barron's roundtable," tweets Bill Gross. "I would still buy gold here. World reflating." After a morning bounce, gold has returned to the session low at $1,388/oz. GLD -6.7%[View news story]
    Totally manipulated, only the big banks doing the manipulation know what to do.
    Apr 15, 2013. 12:07 PM | 2 Likes Like |Link to Comment