SilverSanchez
Active Member
- 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)
- 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)
