Gold and silver prices are down

[strangenh]

Looking at this web site again: it says "transparent design/manufacturing premium, which is ~30% of the precious metal value." I did the math on some listed pieces, and it looks more like ~46% premium over spot gold, still pretty reasonable for retail jewelry.

Metal_Value/0.70 = Price . . . i.e., 30% of the final sale price is their markup - that's what they mean by 30%. Their wording is confusing (misleading, really) outside of a sales department's gross profit calculations, I agree. If something is $1000 retail and it's got 20% GP on it, it means the cost to the seller was $800. Not how one would read "30% of the precious metal value." But '30% of the total sale price' is accurate.

 

[HappyHarry]

Metal_Value/0.70 = Price . . . i.e., 30% of the final sale price is their markup - that's what they mean by 30%. Their wording is confusing (misleading, really) outside of a sales department's gross profit calculations, I agree. If something is $1000 retail and it's got 20% GP on it, it means the cost to the seller was $800. Not how one would read "30% of the precious metal value." But '30% of the total sale price' is accurate.

I understand the difference between markup and margin, but they specifically word it to imply that the 30% is markup when they say the premium is ~30% of the metal value.

 

[strangenh]

I understand the difference between markup and margin, but they specifically word it to imply that the 30% is markup when they say the premium is ~30% of the metal value.

Yes, I agreed.

 

[FPrice]

A slight off-thread question (but not TOO far off).

Has anyone ever heard of or had experience with Nevada Goldbacks? Supposedly a "voluntary" currency which is accepted in several states. One of which is New Hampshire?

5 Nevada Goldback Gold Currency (NEW) - Money Metals Exchange

The Goldback is the world’s first voluntary currency to be made of a spendable, beautiful, small denomination, physical gold. Order 5 Nevada Goldback Gold Notes today online or call: (800) 800-1865.

www.moneymetals.com

 

[Win]

Any thoughts in Revival Gold in Idaho RVLGF?

 

[Varmint]

Any thoughts in Revival Gold in Idaho RVLGF?

Erfle has been recommending them for years but it’s never done well. In theory they should do great as an optionality play, large low grade ore body that will become economical if gold takes off above $2100.

But the stock never seems to do well for some reason so I'm not a fan, especially if you’re only going to buy a few gold miners.

 

[Varmint]

Some stocks I like better than Revival Gold:
Lion One (LOMLF) - explorer developer in Fiji
MEAUF
MAUTF (explorer developer in Cote d'Ivoire)
Marathon Gold (MGDPF)
PROBF

I like these but not so cheap anymore:
SKE
PRMNF
IAUX (i80 gold)
Osisko Development (ODV)

 

[Win]

Some stocks I like better than Revival Gold:
Lion One (LOMLF) - explorer developer in Fiji
MEAUF
MAUTF (explorer developer in Cote d'Ivoire)
Marathon Gold (MGDPF)
PROBF

I like these but not so cheap anymore:
SKE
PRMNF
IAUX (i80 gold)
Osisko Development (ODV)

Thank you!!!

 

[Varmint]

Thank you!!!

I listed only gold stocks since you have a lot of silver stocks already.

 

[richc]

In 2007 I bought my wife an engagement ring that cost the equivalent of 9 ounces of gold. Today the ring is worth about the same and the gold would be worth 3X what I paid.

Was the ROI worth it???

 

[Varmint]

Was the ROI worth it???

Depends which day of the week you ask.

 

[Win]

I messed up - a cautionary tale. I was watching a circulated 1913 Canadian $10 gold piece on Heritage this past week. I don't have one in my collection. They aren't rare but I do like have a variety of coins. So, I'm thinking if I can buy it for around spot, I'll take it. Well I did just that. Bought it at $960. I'm sure some of you see my mistake already. I got slapped with an additional $60 in tax. Crummy! I should have added foreign silver dollar in that auction or something to get to $1,000. Oh well. Live and learn.

 

[NH_Realtor]

I messed up - a cautionary tale. I was watching a circulated 1913 Canadian $10 gold piece on Heritage this past week. I don't have one in my collection. They aren't rare but I do like have a variety of coins. So, I'm thinking if I can buy it for around spot, I'll take it. Well I did just that. Bought it at $960. I'm sure some of you see my mistake already. I got slapped with an additional $60 in tax. Crummy! I should have added foreign silver dollar in that auction or something to get to $1,000. Oh well. Live and learn.

Next time send it to my house

 

[ASHDUMP]

 

[smokey-seven]

So how do the retailers determine what the price of a piece of silver or gold is in relation to what they are selling?

View attachment 752339

 

[richc]

So how do the retailers determine what the price of a piece of silver or gold is in relation to what they are selling?

I imagine that it would be like US currency used in Canada. It's up to the retailer to offer an exchange rate. Some were fair, some sucked.

If this starts to take off there will certainly be a place for businesses that will buy/sell gold and silver from retailers and such, and will suggest an exchange rate.

 

[Win]

If this starts to take off there will certainly be a place for businesses that will buy/sell gold and silver from retailers and such, and will suggest an exchange rate.

I'd love to see more brick and mortar coin stores!

 

[strangenh]

Quick, accurate assay methods are going to be the real enabler. It's about $3k for a low-end portable XRF device, today. About $1K for the lower-end of resistivity testers. A growing demand will eventually drop the prices through competition.

 

[Varmint]

Quick, accurate assay methods are going to be the real enabler. It's about $3k for a low-end portable XRF device, today. About $1K for the lower-end of resistivity testers. A growing demand will eventually drop the prices through competition.

Knowing Thermo there’s probably a 200% markup on that XRF. Some stuff they sell is 10x markup.

 

[Win]

Here are some crazy numbers I found on twitter yesterday...

 

[DJBrad]

And gold just tapped $1975. Will she hold above or travel back to $1950?

 

[richc]

And gold just tapped $1975. Will she hold above or travel back to $1950?

Well, I'd expect one or the other.

 

[DJBrad]

Well, I'd expect one or the other.

If one we go back up. If the other we go further down. $1800’s.

 

[richc]

If one we go back up. If the other we go further down. $1800’s.

I don't see that happening, honestly. There's too much fear and anxiety about the debt ceiling, stupid high federal debt, and world conditions.

But I'm generally wrong... so there's that.

 

[richc]

Interesting... NGC and PCGS rated Saint Gaudens $20 gold coins have a large margin over spot prices.

https://www.pcgs.com/prices/detail/st-gaudens-20/67/most-active

 

[DJBrad]

I don't see that happening, honestly. There's too much fear and anxiety about the debt ceiling, stupid high federal debt, and world conditions.

But I'm generally wrong... so there's that.

I agree. I don’t think we will see $1900 broken. It’s absolutely nuts that senior gold producers are trading for less than cash in the bank. Now is the buy of a lifetime for miners imho. But I also could be wrong

 

[richc]

I agree. I don’t think we will see $1900 broken. It’s absolutely nuts that senior gold producers are trading for less than cash in the bank. Now is the buy of a lifetime for miners imho. But I also could be wrong

Which gold producers are selling for less than cash on hand?

 

[DJBrad]

Which gold producers are selling for less than cash on hand?

Moreso cash in the bank and assets in the ground plus production.
SSR mining (SSRM) has a price/book of .95

Revenue of $1.11 billion
Profit margin of 9.48%
Debt/Capital of 8.98%

 

[Varmint]

Here are some crazy numbers I found on twitter yesterday...

View attachment 753428

Junior miners are currently valued at about $25 per ounce of gold in the ground. In 2011, major miners were buying juniors at $1000/oz. And gold was cheaper.

 

[Varmint]

If one we go back up. If the other we go further down. $1800’s.

We won’t go below $1900.

Miners and silver are predicting a retest of $1900, maybe when they raise the debt ceiling.