Gold mining - price of gold drop

[FatJackDurham]

Who was it here that operates a gold mine out west, Mescalero or someone?

With that sudden drop in the price of gold last weekend, I was worried about them. It is so expensive to set up a mining operations, with a 10%-20% drop in gold, how close did that put them to not being able to make a profit?

Hopefully, it was just some profit taking and wont mark a bubble bust.

[Mescalero]

No,
I'm fine, a knee jerk reaction to China's reported 7.6% as opposed to 8.0% expected by analysts.
I was an analyst, wish I could have been wrong as much as these guys are.

[FatJackDurham]

Good to hear.

[Tycer]

Try going to a gold dealer. Prices have not gone down for the refined metal. Spot price is down but premiums are keeping the prices paid stable.

Gold that is traded in the equities market is leveraged and not indicative of anything more than the Dow is of our economic health.

If you are interested in reading more, PM me with your email and I'll send you an article I cannot post publicly but have permission to share privately.

[Tycer]

Read this:

http://www.peakprosperity.com/blog/8153 ... kets-banks

[Blaine]

Whatever.... .... My portfolio has dropped enough the last few days to make me more than a little hacked....Don't go wobbly, it will come back...

[FatJackDurham]

How interesting that there are those being hurt and those not, just based on where they are in the trades.....

[Grizz]

How interesting that there are those being hurt and those not, just based on where they are in the trades.....

sorry, that is always the case.

gold is a commodity with a derivatives market AND another scheme where banks loan gold to traders who pay them a fee to borrow it and try to make money riding those trades. I forget the name of that game, Tycer will remember it. "Carry trade", maybe?

the point is that gold is not a freely traded commodity, there are a lot of leveraged assets sitting around and they do not apply normal direction or velocity, it's like tide currents where the outflow from Glacier Bay hits the flood surge from Cross Sound. Lots of choppy stuff happening.

but, the larger point is that when we see gold hit vertical peaks and stop, it's a good time to trade gold for cash and short positions, and when the dumpage starts we're in watch mode to see when the next buy point might occur. that's when you see the mirror opposite if the up move. gold could go to any number of prior support points and rest there for any length of time. the only trick is to be on the up elevator and the down elevator at the right time.

ps. a gold producer can hedge his crop in the futures market and even out the rock and roll somewhat.

[FatJackDurham]

Too complicated for me........

[Grizz]

Too complicated for me........

a mi tambien

[Sixgun]

Too complicated for me........

Yea, me too. I like to enjoy my investments and watch 'em grow at the same time.......Winchesters and Colts.

What 'ya gonna do with a couple of 2 lb blocks of gold............look at it?---------Sixgun

[KirkD]

I was reading one analyst's report. He said that almost all the 'gold' that was sold over the last week was actually paper ..... gold certificates. Apparently, someone is allowed to print 'gold', although how much people can print is regulated (don't know the details). This keeps the price of gold much lower by making sure there is a lot more 'supply' (at least on paper) than demand. If people actually required real gold bullion in their purchases, the price of the real gold would be much higher than it is today.

Disclaimer: I don't know nothing from diddly about this, so don't trust a word I said. I'm just repeating what I read.

[KirkD]

What 'ya gonna do with a couple of 2 lb blocks of gold............look at it?---------Sixgun

I can't believe a fellow bullet caster would say something like that! Gold is heavier and more malleable than lead. Thus it makes even better bullets than lead does. I'll cast my bullets out of lead if I have to, but I'd much prefer to use gold. As an added bonus, when you are in a gunfight and the other guys find out you are using gold bullets, they all fight each other to be next in line to get shot for some strange reason.

[Mescalero]

Yes Kirk,
I do not make paper.
I produce real gold.
I do not make bullets out of gold.

[smokenrust]

KirkD.
You made me laugh on your last comment.
"Gold is heavier and more malleable than lead. ... I'll cast my bullets out of lead if I have to, but I'd much prefer to use gold."
Seeing how you have so much for casting, I would like to 'barrow' a pound or two for awhile.. LOL
Was just remembering that the ol' Lone Ranger had a private Silver mine in partnership with his old friend and they cast silver bullets for truth. ... Gold for prosperityand honesty? LOL

[KirkD]

Seeing how you have so much for casting, I would like to 'barrow' a pound or two for awhile..

Well, I've got about a thousand pounds sitting in my garage ..... wait a sec ..... uh, make that a thousand pounds of lead, not gold. Now if only I could figure out how to convert lead into gold, I'd have some great range reports .... with some very expensive guns.

[Alan Wood]

Seeing how you have so much for casting, I would like to 'barrow' a pound or two for awhile..

Well, I've got about a thousand pounds sitting in my garage ..... wait a sec ..... uh, make that a thousand pounds of lead, not gold. Now if only I could figure out how to convert lead into gold, I'd have some great range reports .... with some very expensive guns.

Minor problem KirkD with turning lead into gold. Last I heard the resulting gold is rather radioactive! Drat Drat Drat!

[Rusty]

Kirk, you can transform lead into gold but the civil authorities take a dim view of it.

[KirkD]

Kirk, you can transform lead into gold but the civil authorities take a dim view of it.

The hilarious thing is that certain authorities have the privilege of transforming paper into gold and calling it a gold certificate. That way, one can keep his lead and use it for casting bullets. On a more serious side, if a fellow wants gold, I'm of the opinion that he needs to get the real thing, not just some piece of paper claiming to represent gold. The financial institutions that issue said pieces of paper are permitted to 'mint' more paper than what they have in gold on hand. If there was a run to convert said pieces of paper into gold, there would be a lot of people left holding their pieces of paper. From what I understand happened a week ago, there was a run on people converting their pieces of paper into the $US. The analyst that I was reading said that as a result, there is a lot less paper gold out there now, and a lot less enthusiasm for paper gold in the future, meaning that the real stuff may get very expensive over the next two years. As I said before, I know little about all this ..... I'm just along for the ride.

[Old Savage]

Kirk, send me some gold bullets so the proper tests can be performed.

[Sixgun]

Who was it here that operates a gold mine out west, Mescalero or someone?

That was me and Mescalero. We sold it all. He got the gold and I got the shaft. ---6

[Sixgun]

What 'ya gonna do with a couple of 2 lb blocks of gold............look at it?---------Sixgun

I can't believe a fellow bullet caster would say something like that! Gold is heavier and more malleable than lead. Thus it makes even better bullets than lead does. I'll cast my bullets out of lead if I have to, but I'd much prefer to use gold. As an added bonus, when you are in a gunfight and the other guys find out you are using gold bullets, they all fight each other to be next in line to get shot for some strange reason.

Kirk, You got me thinkin' and I will eat my words. Last night I had nothing to do so I went out to the garage and got a chair and set it down and spent 6 hours looking at my lead.

As I have been hoarding this pile and several more like it down in the basement, I decided to melt down a few $20 double eagles as I needed to shoot the Uzi today.....It was cool as the gold was so shiny I could see the bullets fly by the glint of the sun.

For real, I had the barrel of that Uzi smokin' today. 4-500 rounds went flying.-----Sixgun