Commodity Trade Mantra

Posts Tagged ‘Mining Gold’

The $1200-Cost Fallacy Of The Gold Miners

I certainly didn’t believe that $1200-per-ounce industry cost level was correct. But I couldn’t prove it right away, as the gold miners hadn’t released their second-quarter operating and financial results yet. But since the great majority finally reported Q2’15 in the last couple weeks, now we can dispel that $1200-cost fallacy. Gold miners have no problem weathering sub-$1200 gold.

Paper Gold Ain’t as Good as the Real Thing

The pool of unallocated London gold supports paper-gold trading way beyond the amount of physical gold available. This pool is drying, setting up the mother of all short squeezes. People with gold ETFs & other paper claims to gold will have to settle in cash at prices well below the physical market.

Invest Now in Precious Metals or Mining Stocks?

Investors might hold onto bad equities because they believe that the price of the underlying metals will rise – Since the current precious metals bear market started in 2011, it could be another one or two years before things turn around.

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