Gold and silver prices are down

Varmint said:
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.
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A large portion of the cost of mining is fuel. I suspect their cost of mining per ounce has gone through the roof.

www.gold-eagle.com

The Rising Cost Of Producing Gold

Ever wonder how much it costs to produce an ounce of gold? Most of us tend to focus on the market price for gold since that is what we hear referenced on a daily basis.
www.gold-eagle.com www.gold-eagle.com

The smaller producers do not have the economies of scale that the big guys get.
 
DJBrad said:
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%
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I think miners have a low price to book value cause their assets may not be worth much, since you can’t easily move them.

But if you look at cash flow, miners are crazy cheap. Investors prefer to buy a tech stock that has never and will likely never make a profit.
 
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richc said:
A large portion of the cost of mining is fuel. I suspect their cost of mining per ounce has gone through the roof.

www.gold-eagle.com

The Rising Cost Of Producing Gold

Ever wonder how much it costs to produce an ounce of gold? Most of us tend to focus on the market price for gold since that is what we hear referenced on a daily basis.
www.gold-eagle.com www.gold-eagle.com

The smaller producers do not have the economies of scale that the big guys get.
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Diesel and rubber yes, but these are juniors who are years away from that mattering, so it’s just sentiment.

But inflation is why gold producers got wrecked in 2022, cause oil and commodity prices went nuts and gold didn’t, so their profitability tanked. That trend has reversed so right now gold miners are making great profits.

The stocks of producers are actually not bad, it’s junior miners particularly explorers who are in the toilet.
 
richc said:
The smaller producers do not have the economies of scale that the big guys get.
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The juniors we’re talking about are mostly not producers they’re developing mines or resources.

You’re right that nobody wants small mines cause their costs and risks are the same as large ones. So nobody wants a junior developing a 1-2 million ounce deposit. Those stocks will only do well in a raging gold market when the turkeys fly, but they’ll never become mines unless they’re very close to another producing mine.
 
Gareth Soloway was just pointing out that after hitting a triple top there tends to be a pullback before new highs are inevitable. He predicted 4-6 weeks.
 
Win said:
Gareth Soloway was just pointing out that after hitting a triple top there tends to be a pullback before new highs are inevitable. He predicted 4-6 weeks.
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3rd test of all time high seems to always fail.

Gold will probably retest $1900 on debt ceiling deal but if they are late with the deal that could drive gold to new highs.
 
Dollar is strengthening, momentum machines selling on technicals, and investors not currently spooked by anything. Just waiting for the next "loud noise" in the economy.
 
richc said:
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Problems with counterfeits keep getting worse because the counterfeits keep getting better. These are 2 recent ones that came in. The dollar would fool an inexperienced collector who might just think it's been cleaned. The eagle is a lousy counterfeit, it even has medal alignment instead of U.S. coin alignment.
 

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richc said:
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Saw a listing that went down shortly after on FB marketplace for about 20 eagles and a few buffaloes. I’m glad I didn’t pounce as this video you posted is excellent. I’m amazed at the counterfeiting techniques available nowadays.
 
DJBrad said:
Saw a listing that went down shortly after on FB marketplace for about 20 eagles and a few buffaloes. I’m glad I didn’t pounce as this video you posted is excellent. I’m amazed at the counterfeiting techniques available nowadays.
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Sign of a bull market I guess? Like when people break in to steal your copper pipes.
 
So I thought the debt ceiling deal would be negative gold since it’s risk off, but it seems like the market took it as a green light to spend more and print more.

Also, gold might have just made a higher low, at $1950 instead of $1880-1900. We’ll see in the coming weeks. Fingers crossed.
 
MaverickNH said:
Getting in this thread very late…

Best option for precious metals? Physically owning them - like, under the mattress.
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Yeah, buy some gold and silver from the most reputable dealers, or from people you trust. I’d build up some physical coins in your possession before investing, unless it’s money tied up in retirement funds then you could invest it. GDX, GDXJ, SILJ, these mining ETFs are a great way to get great prices on PMs in the ground. It’s a bit late to get good deals on physical PMs since supplies are always very limited.
 
Please don’t wave to my Dad if you see him in his yellow Wrangler. He’s almost 92 and should keep both hands on the steering wheel.

I worry he might kill someone but he drives so slow it would only be a flesh wound.
 
Varmint said:
Anyone care to explain this one? Job news?

Could be. Stocks don’t react to bad news cause Fed, but gold does.
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I've read it was the jobless claims news. Claims increased more than expected. Which may be an indicator that the economy is slowing. Which may persuade the Fed to stop raising interest rates.

Who knows!
 
If the Saudis couldn't prop up the price of oil with preemptive production cuts, and a person needs more evidence that the economy is slowing, I marvel that anything can convince. It's unimpressive that the jobs numbers have had the impact that they have in the past, concentrated in service sector as the better numbers have been. Moreover, if/when folks start paying back their student loans, they're not going to be able to keep funding the service sector as they have, jobs or no jobs. This market reminds me of Wile E. Coyote running off a cliff. It's been amazing to see how far it can go horizontally after the ground has disappeared beneath its feet.
 

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