http://www.bloomberg.com/news/artic...gold-mining-index-drops-to-lowest-in-14-years Clearly you are either clueless when it comes to any real data (which I suspect) or simply arrogant in your ignorance which I know.
SBM 52 week low 7c current sp 97.5c RMS 3.9c/17.5c UML 0.6c/1.7c SAR 20c/50c AQG $1.81/$3.08 EVN 43.5c/$1.285 NST 91.5/$2.69 I have about 30 gold stocks in my portfolio. Granted some of them are still near their lows, others are up about 50% from their lows, and most are way way down from all time highs. But a lot of them are still undervalued if the current aud gold price is sustained. Don't have time to put up the exact numbers for you but if you check the annual reports of the companies I have listed you'll see they're generating significant cash flow at current prices.
If everything in the Australian Gold patch is so wonderful please explain the graph. The 5 year is even worse ??? You need to understand that these companies have been cut to the bone, there is no development or exploration and they are using up their best grades.. The only way forward for them is down. Believe me I am not pessimistic on the metals just the producers FYI 5 year Australian Gold Index Chart
The Wall Street types will now glady do all kinds of loans, secondaries and M&A, etc., in order to "save" these miners -- making even more money in the process, from this whole multi-year situation (which they helped create, "oddly" enough)..
Agreed like FMG taking a multi-billion $ loan from our good friends Goldman. How is that working out for the shareholders ?
A lot of the previous high flyers like SBM/SLR/RMS are still way way below their all time highs, and NCM probably has a big weighing in that index which explains that chart. On the other hand some of them have bounced significantly off their lows as per my previous post, so it all depends on what your entry point is and whether you averaged down. And the PE slapped on the stocks makes a big difference to that chart too, so at the peak people were pricing in blue sky with high multiples, and now it's doom and gloom with low multiples. So share prices don't tell the whole story. I look at it as half full, with the stocks being a leveraged play on the gold price. Of course it works both ways so just a matter of risk tolerance.
Thanks for that article link - I think it explains it all. In the first 6 lines it states: I am curious about the reducing demand for gold? Since you are so knowledgeable and have good supporting data, would you like to explain this? Or what about the unanswered question pending regarding the significance of COMEX inventory.... I noticed you went silent on that one too......
Ok I'll try to answer this one. If the inventory in the Comex gives their pricing legitimacy as you have said then the lower the inventory the less legitimate their pricing becomes.
It's like a supermarket can put whatever price they want on their products but if they're not in stock and you can't buy them then that price is not legitimate.
Hypothetically, yes. But we are not talking hypotheticals - we are talking about current levels that the permabulls keep beating their deception drums. If Comex were struggling to cover, then this may be an issue for consideration. But Comex currently cover the current month in multiples, even though the vaults are not needed for most deliveries. So this is not even close to being an issue. Added that the shorts file intention to deliver, then this makes current inventory not even worthy of mention. So what is the significance?
Yeah agree comex inventory currently probably has no significance, since it's a paper market and very little actual delivery takes place. The thing with hypothetical though is that that's what people (well I do anyway) base their investment decisions on, what they think will happen and not what is currently happening.
I thought the issue I was discussing was that South African Miners and Australian Gold miners are going bust despite an all time high gold price in Rand and a near high in AU$. Who raised the issue of demand - you ! Did I discuss the Comex Inventory no - you did. In my opinion the Comex is irrelevant as it is a paper clearing house and very soon no one will care what the Comex does or says. The demand they (Bloomberg) are discussing is paper not gold. If there was no demand the miners will be stuffed full with gold and silver - no they are not. Is production down - yes no question, Is there a shortage - yes in the retail market certainly and perhaps now or soon to evolve in the wholesale market. The other issues you raise are without import.
Where is the shortage of gold? Also, the yearly production of gold is completely irrelevant to its market price, since demand and offer is driven by the existing over ground stock. So, who cares what the gold miners do? Only the buyers of mining stocks, not certainly the buyers of physical gold. (Just to put things in perspective, yearly gold production is around 2% (or less) of existing stock... Really, who cares?)
Ah, no. It was the article YOU USED to support your argument, while calling me clueless. :lol: :lol: But you answer was as dismissive as I expected, just as you're silence to Comex inventories. Better to read any evidence you use to back the claims you make up!
Yeah it was pretty good. I'll give him credit for that. It's nice and refreshing to have a sensible and productive discussion. However, it was still hypothetical, which is not in the context of current permabull rhetoric.
