Whats going on

Discussion in 'Stocks & Derivatives' started by SilverSanchez, Jun 4, 2012.

  1. SilverSanchez

    SilverSanchez Active Member

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    - Fear is returning - Gold oversold and the stock market is overbought
    - People covering shorts in Gold and the Gold Miners
    - Stocks are being sold/shorted
    - Notice mainly the PRODUCERS are up today - this means people want security

    Hopefully you accumulated unheadged, good margin, producers over the last few months

    I hope you also purchased a portion of physical metal at 1550-1600

    Volatility is possible (a down after ups) in the short term - but probably trending up from here on for the rest of the year.


    REMEMBER

    Smart money doesn't care about resource ounces per se

    They care about resource ounces provable (through BFS/DFS) to be extracted at a healthy profit

    (This is an example not a recommendation)

    Cerro can prove they can monetize their ounces at a profit of US$1000 per ounce ($666 for Cerro and $333 for Goldcorp under current JV) and the strip ratio is less than 1 (meaning ore is from surface) - they wont have any issues getting funding (or shouldn't).

    Another company can prove they can monetize their ounces at $900 per ounce ($700 profit) BUT they have a high strip ratio and need to dig 40m to get to the first ore and ramp up will take 1 year to get to the high grade ore - (they will find it harder to get funding)


    You gotta think like an economic geologist/banker not a greedy gold bug.

    Dont try to pick the bottom - try to pick the best value

    (none of the above is advice - just my person opinion and comments)
     
  2. SilverSanchez

    SilverSanchez Active Member

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    Here is what I got so far this correction

    SLR, CJO, AXE, NCM, LNC, ALK

    Here is what I missed so far

    EVN, TRY, KCN, CCU

    Here is what Im thinking about - trying to think outside my norm
    BHP, MZM, TLG, OZL, RHL, IXI, OOO, RDV, ENY

    Again no recommendations - just letting everyone know what I'm up to - any input or discussion is welcome ;)
     
  3. Silverthorn

    Silverthorn Well-Known Member

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  4. GoldenEgg

    GoldenEgg New Member

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    Goin to wait until after my tax return comes back , maybe 6 weeks or so , then i will be able to sink 5000 into NCM
    Thinking about putting 2000 into FML within the next couple days , whats your opinion about them Sanchez?
     
  5. lucky luke

    lucky luke Active Member Silver Stacker

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    LOL and how many people are likewise sweating on their tax return for a good cheap purchase or two (or ten). I don't fancy our chances of getting "cheap" by tax return time though. Pity. :)
     
  6. havo

    havo New Member Silver Stacker

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    why not just be short the asx200?
     

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