Gold and silver prices are down

richc said:
IIRC all the gold ever mined on earth would fit into an 75'75'75' cube. That's a small office building.

Most goes to jewelry. Almost 50%. 20% or so is held in private investment. Another 20% in government reserves.

It works out to about 200,000 tonnes. Current estimates are that about 50,000 tonnes are in ground reserves. Unless large new deposits are found there's not much left. And what is left is increasingly difficult and costly to mine.
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Yeah all true I think.

I think while it’s more difficult to find gold, it’s not because it’s mostly gone, just that the low hanging fruit is mostly gone. Massive open pit mines of high grade are hard to find now, but there’s plenty of gold you just have to use underground mines or do better more technologically advanced methods to find the big high grade deposits. As the gold price goes up, lots of lower grade deposits become economical.
 
Varmint said:
Yeah all true I think.

I think while it’s more difficult to find gold, it’s not because it’s mostly gone, just that the low hanging fruit is mostly gone. Massive open pit mines of high grade are hard to find now, but there’s plenty of gold you just have to use underground mines or do better more technologically advanced methods to find the big high grade deposits. As the gold price goes up, lots of lower grade deposits become economical.
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It's not different than oil. Higher prices validate more costly mining processes.
 
richc said:
It's not different than oil. Higher prices validate more costly mining processes.
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Yeah, I think peak gold is like peak oil, not close to true.

And we don't want to reach peak gold, cause one of its important features is that you can find more of it at roughly the rate of inflation. If there's no more gold to be mined, it loses usefulness for backing fiat (which it might become again someday).
 
Went to the Coin & Precious Metals show in Manchester yesterday (still going on today). Plenty of physical gold, silver, platinum and collectibles available. Most prices are sky high, though, for the most part. But vendors/buyers are also paying nice premiums for stuff walking in the door. Opportunity to get CASH for as many oz’s of PM’s that a person would want to move, if anyone is so inclined (just saying...).
 
samandglove1 said:
Went to the Coin & Precious Metals show in Manchester yesterday (still going on today). Plenty of physical gold, silver, platinum and collectibles available. Most prices are sky high, though, for the most part. But vendors/buyers are also paying nice premiums for stuff walking in the door. Opportunity to get CASH for as many oz’s of PM’s that a person would want to move, if anyone is so inclined (just saying...).
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I went yesterday too. ASEs were between $33-$36 each. Wild.

It was busier than I remember and for once I wasn’t the only person under age 90 at a coin show.

You’ll get a higher premium selling PMs here on NES than to any dealer (just sayin...)😎
 
Gold and silver bounced today I assume cause of the bangin’ CPI numbers (7.2% annual rate of inflation in March).

Mining stocks didn’t move up however, probably cause higher fuel costs are a major drag on mining profitability.

Stocks are up, ignoring the risk of high inflation causing the Fed to back off on stimulus.

The Fed is pretending this is just temporary inflation, as if one can print $10 trillion and get no inflation in consumer goods. It might take a couple more months like today’s data to show how wrong they are.
 
I can't remember a time when PMs had more macro going for them and so little investment interest at the same time. I do think that the crypto market has distracted/redirected potential investors. IMO that's creating a considerable buying opportunity in PMs which I'm taking advantage of as much as possible.
 
Win said:
I can't remember a time when PMs had more macro going for them and so little investment interest at the same time. I do think that the crypto market has distracted/redirected potential investors. IMO that's creating a considerable buying opportunity in PMs which I'm taking advantage of as much as possible.
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yeah not just crypto but the general stock market. Why buy gold when you can buy any stock and it goes up every week?
 
ASHDUMP said:
What ETFs are you guys holding with respect to gold and silver? Or watching for that matter....?
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For gold I always keep and eye on JNUG and NUGT as the volatile ones. GDX and GDXJ plus many others are safer plays for the gold miners. For silver I watch (and have owned) AGQ, SILV, SILJ, SLVP, SLV, and PSLV.
 
ASHDUMP said:
What ETFs are you guys holding with respect to gold and silver? Or watching for that matter....?
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I don't own either but for physical metal I like PSLV and PHYS, because they're backed 100% by physical gold, not paper derivatives like SLV and GLD. I wouldn't touch those two.

For miners I own some GDXJ and a lot of SILJ but GDX is also fine, lot of overlap between GDX and GDXJ.
 
Varmint said:
I don't own either but for physical metal I like PSLV and PHYS, because they're backed 100% by physical gold, not paper derivatives like SLV and GLD. I wouldn't touch those two.

For miners I own some GDXJ and a lot of SILJ but GDX is also fine, lot of overlap between GDX and GDXJ.
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I have GLD that I've been trying to unload at 168.50 for the past week or so... I will check out Sprott gold.
 
Someone probably dumped a billion in paper gold on the markets this morning when it looked like gold was going to breach $1800.

That's the way the game is played, we'll eventually overcome the big banks due to demand, but they can create any amount of "gold" and dump it to drive down the price at key resistance levels. Kind of like the Fed in reverse.

It's easy to tell when gold or silver tanks and the miners barely move - then you know someone is manipulating the gold or silver futures price.
 
Granted, you won't get rich on dividends alone, but GORO and now FTCO, recently spun-off from GORO, are paying monthly dividends. FTCO starts on 30 April.
Always good to see that little credit in the account each month. GORO is optionable, but the strikes and premiums aren't the best. Hopefully, FTCO will be optionable soon, too.
 
NavelOfficer said:
Granted, you won't get rich on dividends alone, but GORO and now FTCO, recently spun-off from GORO, are paying monthly dividends. FTCO starts on 30 April.
Always good to see that little credit in the account each month. GORO is optionable, but the strikes and premiums aren't the best. Hopefully, FTCO will be optionable soon, too.
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My paid newsletter's answer to a reader question on GORO, FWIW. This is from Feb 2020 though, before things tanked.

Wondering what you think of Gold Resources GORO. I got in under 4 but I think it may have room to run. Good share structure, insider ownership, no debt and several exploration possibilities. Plus it should double AU production in 2020. Thanks

I owned this during the 2008 to 2010 period and did very well. Its a well run company with a tight structure. The only issue I see is their reserves and resources are limited. So this is not a takeover type of stock. The stock faces big resistance in the $7s. It is trending well now though. They will need significant exploration success or a big move higher in the sector to run past $7.
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