Posted on 09/28/2014 10:13:30 AM PDT by expat_panama
Well that's just fine and dandy. I'm not saying it will or won't but what is the Total Cost of mining gold from the ground right now? I'm talking from land acquisition, permitting, infrastructure, mining, transportation, processing to reclamation work. Last I heard it was over $900/oz. Many mining cos. will fold up like a cheap accordion. They have no choice. Right now Randgold Resources (GOLD) is in African ebola/AIDS country. So they could have some attrition of miners.
Excellent points.
Will we see ghost towns and vacant buildings in the areas you mention?
What happened was that last Thursday there was a freak windstorm that knocked out towers used by both my main ISP and my back up ISP --which was why every time I wanted to log on I had to climb on my roof and connect the computer & cell phone thru a parabolic reflector I got ducktaped to my roof deck. 8P The next day one ISP came back up but it's been intermittent so I'll type fast today...
There are tens of thousands of different gold suppliers (biggest bunch are Chinese) and they all have different total cost levels across a very broad range. So much for supply; gold demand is mostly jewelry and fashions change so if it's no longer 'chic' and nobody wants to pay more than $100, there will still be sellers. OK, very few but some. Historically --over the past couple centuries-- gold's price in 2014$ has averaged about five or six hundred dollars.
- Stock Price Momentum: The S&P 500 (SPX) versus its 125-day moving average
- Stock Price Strength: The number of stocks hitting 52-week highs and lows on the New York Stock Exchange
- Stock Price Breadth: The volume of shares trading in stocks on the rise versus those declining.
- Put and Call Options: The put/call ratio, which compares the trading volume of bullish call options relative to the trading volume of bearish put options
- Junk Bond Demand: The spread between yields on investment grade bonds and junk bonds
- Market Volatility: The VIX (VIX), which measures volatility
- Safe Haven Demand: The difference in returns for stocks versus Treasuries
-but from what I see those numbers still have quite a ways to go. So we're going into what, negative fear?
The numbers going back to 1950 had me confused until I saw the axis was linear --a log Y shows food prices grew more in the '70's than before or after. What's interesting though is that food prices really haven't diverged much from overall prices --personal anecdotes/impressions not withstanding. Everyone cares that this past year food prices have in fact risen faster than most prices but at the time nobody said anything in 2009 when food prices fell while everything else went up.
Good stuff. It’s critical to know how leadership thinks. Panetta doesn’t seem that sharp, but also doesn’t seem that sinister. Thanks. Are you going to post the housing stuff you heard/learned?
It would make a great commodity short, wouldn’t it?
If you followed their indicators you’d have missed a lot.
yeah, it probably would, but my track record in shorting is spotty because sell-offs tend to be erratic and hard to gauge. Rallies are soo much more fun...
Now, if only anything else would behave.... <^..^>
The market is what it is. There are parts of the market I believe mispriced (both directions) but you can't argue with the selling price. Good on you for making a smart play.
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