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Here are 25 reasons posted by Business Insider back in July 2011 as to why one should buy gold. Any idea why this thesis didn't hold up?
1. Gold is a tangible financial asset with no bank or government liability. Fiat money is a debt instrument or note that is the liability of a government or bank.
2. Transactions in gold are fully settled. Both parties hold finished goods. There is no outstanding liability. Transactions in fiat money are not settled. One party always holds a note owed by a bank or government.
3. Gold certificates or electronic credits in allocated gold accounts are redeemable in a real,physical asset:gold. Fiat money is not redeemable. While it functions as a medium of exchange,it lacks any backing in terms of real assets.
4. Gold is,at all times,in all places and under all circumstances,universally accepted as money. National currencies are accepted according to agreements that,like any contract,can be breached or made legally void.
5. In extremis,gold is always accepted. In extremis,such as in a time of war,a national currency (or any form of paper money) may not be accepted.
6. Gold has intrinsic value. The economic inputs (labor and resources) used to produce a gold bullion coin or bar are still present,preserved as a finished product. Fiat money has no intrinsic value,except perhaps insofar as paper can be used,for example,as kindling to start a fire.
7. Gold is rare,valuable and difficult to produce in large quantities. Fiat money can be printed or instantly created electronically in unlimited quantities and at essentially no cost.
8. The rate of increase in the above-ground gold supply is,and has been throughout history,roughly the same as the rate human population growth. The supply of fiat money, because of its inflationary structure,always increases in excess of population growth or sustainable economic activity,thus it is destabilizing.
9. Gold is a consistent measure of value over time and across economies. No fiat paper currency is or can be a consistent measure of value over time or across economies.
10. The value of gold,measured in real terms,is stable over long periods of time. The value of all fiat paper currencies is volatile and always declines in the long run.
11. Gold is durable and virtually all of the gold ever mined still exists today. Neither governments,nor banks,nor paper notes,nor even digital media are as durable as gold.
12. Gold serves as a store of value and a preserver of purchasing power. Its value,in terms of real goods, is about the same today as it was 2000 years ago. Measured in fiat money, prices inexorably rise. Fiat money inevitably loses value because the supply always increases in excess of population growth and sustainable economic activity.
13. Under a gold standard,economies can enjoy stability and sustainable growth. Of course they are not automatically immune to economic disruptions,e.g.,due to exogenous shocks. Money based on debt causes a never ending boom and bust cycle of credit expansion and contraction. Economic disruptions are directly caused by the monetary system itself.
14. Central banks,sovereign nations and investors of all sizes buy gold because its value is more stable than that of fiat money. The value of fiat money inevitably degrades over time,thus the wealth of fiat money holders is eroded (by inflation).
15. Gold has been regarded by virtually all peoples as the highest form of money throughout history (for at least the past 5000 years). Fiat money became the de facto international standard after 1971,only four decades ago.
16. As a currency,gold cannot fail because it is a real,physical commodity. Fiat money systems always, eventually fail. All fiat currency schemes throughout history failed.
17. Over thousands of years, gold has remained a de facto global standard largely outside the control of central banks or governments. Fiat money was created because it can be centrally controlled and manipulated by banks and governments to suit their own particular needs.
18. Gold enables people to shield their wealth from the collapse of governments and financial institutions. If a government collapses, its currency becomes worthless. Governments cannot truly guarantee the wealth of citizens against a banking system collapse.
19. Gold enables people to protect the fruits of their labor from confiscation by governments or banks through inflation and,therefore,to pass their wealth down through generations. Inflation is like a breach of contract where holders of fiat money are robbed of its value over time through inflation. If cash is passed down through generations it becomes less and less valuable over time.
20. Gold safeguards economic freedom and allows people to hold their wealth outside the reach of governments and banks. Fiat money allows governments or banks to arbitrarily decide the value of money and the financial fate of every person dependent on the currency.
21. Gold distributes wealth and financial power to the people. Fiat money concentrates wealth and financial power in banks and in the government,opening the door to limitless abuses.
22. Under a gold standard, governments cannot expand disproportionately relative to the underlying economy. The optimal size of government is perhaps 20% of GDP. Central banking was conceived in part to allow governments to expand,e.g.,to fund foreign wars through debt. Fiat money allows governments to grow to unsustainable levels. In the United States,combined government at all levels is equal to roughly 45% of GDP.
23. Gold prevents the banking industry from expanding disproportionately relative to the underlying economy. Fiat money allows the banking industry to expand to a point where it dominates the economy and government, and is a crushing,economic rent seeking burden on the economy.
24. Gold makes it relatively difficult for countries to pursue military adventures or to fund a large military-industrial complex. Fiat money allows governments to engage in wars and to build military empires as long as their currencies and debts are accepted.
25. Gold is a real commodity and naturally supports the free market. Fiat money entails central planning of the economy,i.e.,“monetary policy,” which opposes free markets.
Read more: http://www.businessinsider.com/25-reasons-to-buy-gold-and-dump-dollars-2011-7#ixzz3DgBoM3v1
GOLD preparing for an upward move...?
Goalmansux says gold going to $1,050 and they control price. Why do you think it's going up from here? Surely you're not relying on KWN, J Sinclair, et al...?
Just picked up 106,000 @ $0.2001. Added to my existing 4,000 = 110,000. Not much, but could turn into $1/2 million fairly easily!
#9357 - the support @ .25 may just break yes
Why was this deleted?
No gold has been sold today. Lots of paper has been sold today. You must remember that these contracts are cash settled. No other market, to my knowledge, allows cash settlement. For this ONE reason alone, I don't know why anyone would buy a gold futures contract. I guess that's why the COMEX continually puts them on sale, i.e., no buyers.
Endeavour Silver Acquires La Bufa Property Adjacent to Existing Endeavour Properties in the Guadalupe y Calvo Gold-Silver District, Chihuahua, Mexico
August 21, 2014
________________________________________
Vancouver, Canada – August 21, 2014 - Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) announces it has entered into an agreement with Lincoln Mining Corporation to purchase a 100% interest in the La Bufa exploration property located adjacent to Endeavour’s existing exploration properties in the Guadalupe y Calvo gold-silver district, Chihuahua, Mexico.
Endeavour will issue 90,000 common shares in consideration for the purchase on or before September 19, 2014, less that number of shares equal to an amount of US$19,000 plus 5% interest advanced by Endeavour to Lincoln on July 29, 2014. The agreement is subject to a due diligence period ending September 12, 2014 and the common shares of Endeavour will be subject to a four-month hold period from date of issue. The property is subject to a 2% net smelter return royalty on mineral production payable to a subsidiary of Almaden Minerals Ltd.
The La Bufa property covers 2,311 hectares over a nine kilometre length along the northwest trending El Rosario vein system which produced approximately 2 million ounces (oz) gold and 28 million oz silver according to Mexican government records. La Bufa surrounds the El Rosario historic mine owned by Endeavour and is in turn surrounded by additional Endeavour properties totalling 54,872 hectares.
Terry Chandler, Endeavour’s Vice President of Corporate Development, commented, “The acquisition of the La Bufa property completes Endeavour’s consolidation of historic mining properties within the prospective Guadalupe y Calvo gold-silver district. We can now turn our focus in 2015 to more advanced exploration of this prospective, high grade, gold-silver vein district in order to expand the resources.”
Lincoln has invested over US$5.3 million since 2008 acquiring and exploring the property. Previous exploration work over the past ten years by Lincoln and others at La Bufa includes 37 drill holes totalling 10,569 metres (m) of core. Drilling highlights included 4.1 grams per tonne (gpt) gold and 281 gpt silver over a 2.5 m core length (15.4 oz per ton silver equivalent (Ag Eq) over and 8.2 feet (ft)); and 10.7 gpt gold and 516 gpt silver over a 1.5 m core length (33.8 oz per ton Ag Eq over 4.9 ft). Endeavour cautions that these drill results are historic and have not yet been independently verified by Endeavour.
These drill intersections are located within 400 m of Endeavour’s El Rosario property where Endeavour currently reports indicated resources of 1,861,000 tonnes grading 119 gpt silver and 2.38 gpt gold for 7,147,300 oz of silver and 142,500 oz of gold (15.7 million oz Ag Eq); and inferred resources of 154,000 tonnes grading 94 gpt silver and 2.14 gpt gold for 464,600 oz silver and 10,600 oz gold (1.1 million oz Ag Eq), pursuant to Endeavour’s most recent NI 43-101 report.
Godfrey Walton, M.Sc., P.Geo., and President and COO, is the Qualified Person who reviewed the technical data disclosed herein and approved this news release.
About Endeavour – Endeavour is a mid-tier silver mining company focused on growing production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has posted nine consecutive years of accretive growth of its silver mining operations. Endeavour’s three silver-gold mines in Mexico combined with its strategic acquisition and exploration programs should facilitate Endeavour’s goal to become a premier senior silver producer.
Contact Information - For more information, please contact:
Meghan Brown, Director Investor Relations
Toll free: 1-877-685-9775
Tel: 604-640-4804
Fax: 604-685-9744
Email: mbrown@edrsilver.com
Website: www.edrsilver.com
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States private securities litigation reform act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information herein include but are not limited to statements regarding Endeavour's anticipated performance in 2014 and the timing and results of exploration drill programs. The Company does not intend to, and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development, risks in obtaining necessary licenses and permits, and challenges to the Company's title to properties; fluctuations in the prices of commodities and their impact on reserves and resources as well as those factors described in the section "risk factors" contained in the Company's most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the Company's mining operations, no material adverse change in the market price of commodities, mining operations will operate and the mining products will be completed in accordance with management's expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
I initially picked up 2500 at $18.75. I've since doubled down at $17.24 so carrying 5000 @ $17.995. I truly thought the market overshot this one to the downside and that it would quickly bounce back to $22. I still think it will.
Sure, their traffic has been hurt, but they will find a way around it. 2nd quarter financials were not that bad.
Very nice PowerPoint presentation...
http://www.levon.com/i/pdf/LVN-Presentation-July-2014.pdf
Listening to the interview with Ron Tremblay, it appears their goal is to sell the property to a major mining company when they determine exactly what they have. I wouldn't be surprised to see this go for $1Bln+, or $5+ per share.
Well, I took the plunge and bought this company x 30,000 shares. Let's see what happens!
Nice article here from Ben Kramer-Miller on Seeking Alpha...
"There Is More To Iamgold's Dividend Elimination Than Meets The Eye"
http://seekingalpha.com/article/1898891-there-is-more-to-iamgolds-dividend-elimination-than-meets-the-eye
You can attribute a substantial portion of the cost increase to lower grades, particularly in the case of IAG.
Yes, the Hunt Brothers did nothing wrong and they were painted as the bad guys. The cartel is very powerful and no one dares to cross them. In fact, maybe the billionaire rich are one-and-the-same as the cartel...?
This is one of the ways the cartel maintains the metals price. Ag is up today, so they smash the miners hard in order to keep silver from climbing. Silver is such a small market for the cartel to control. That's why none of the big boys take a large position. They'll get smashed just like the Hunt brothers.
Nice day today for the AG! I really like this company. Picked up 2,500 more at $12.12 at 10:01 EDT this morning. Mining CEOs don't come any better than Mr. Neumeyer. I like being on his team!
Caledonia Mining - Cheap Is Its Own Reward
Nice SA article here...
http://seekingalpha.com/article/1720432-caledonia-mining-cheap-is-its-own-reward?source=email_rt_article_readmore
The only available gold will be what the cartel already has if the price goes down to $900. Nobody will mine at that price.
http://stockcharts.com/def/servlet/SC.pnf?chart=IAG,PLTADANRBR[PA][D][F1!3!!!2!20]&pref=G
Still holding 5000 AUNFF; lost all on DONFF; bought 250,000 @ $0.045 and sold at $0.005. Still holding 50,000.
I'm holding 11,500 IAG; bought 5000 at $3.86 and sold at $5.20. I bought back in again, all 11,500 at $6.10. I left $4,500 on the table and am down about $8k on most recent purchase. This time I'm going to hold until we get back in the teens. I'm pretty confident that we will see it again.
Did we finally hit bottom today?
VanW,
I own a number of them and also AG, AUNFF & AG. They all look good.
-USSilverBug
Took a position over the last couple days, 250,000 @ $0.045.
Donner Metals Ltd.
TSX VENTURE : DON
FRANKFURT : D4M
Donner Metals Ltd.
July 12, 2013 09:00 ET
Donner Metals Ltd.: Update on Bracemac-McLeod Production
MONTREAL, QUÉBEC--(Marketwired - July 12, 2013) - Mr. Harvey Keats, Chief Executive Officer of Donner Metals Ltd. ("Donner" or the "Company") (TSX VENTURE:DON)(FRANKFURT:D4M), reports on both the recent operation and anticipated operation at the Bracemac-McLeod Mine.
The Bracemac-McLeod Mine has reached commercial production and is processing ore at a rate of approximately 3,000 tonnes per day as expected under the revised mine plan (see press release dated July 5, 2012) since commencement of operations in mid-May of this year. Ore grades to date are below the average grades defined in the feasibility study prepared for the Bracemac-McLeod Mine in 2010 (the "Feasibility Study") due to lower stope grades as a result of preliminary resource modelling from underground drilling and processing of lower-grade development ore from the Bracemac-McLeod stockpile. The Matagami mill is performing above expectations as defined in the Feasibility Study with higher than anticipated recoveries and concentrate grades for both zinc and copper. Preliminary underground resource drilling has provided a new production and grade forecast for 2013 that anticipates lower grades for the remainder of the year.
Bracemac-McLeod Mine and Matagami Mill snapshot: (Go here to see snapshot ==>) http://www.marketwire.com/press-release/donner-metals-ltd-update-on-bracemac-mcleod-production-tsx-venture-don-1810615.htm
Above Expectations Within Expectations Below Expectations
Mill and metallurgical performance: recoveries and concentrate grade
New grind circuit and mill capacity Mine production rate has met Feasibility Study target and is ramping up to the 3,000 tonnes per day mine plan Ramp-up ore grades
2013 grade forecast
Performance to date is as follows (Table 1):
Bracemac-McLeod Mine: Production is within the Feasibility Study plan and is ramping up to an average of approximately 3,000 tonnes per day. Ore grades for both copper and zinc have been below those forecast in the Feasibility Study during the first two months of production as noted in Table 1. This is due in part to the sequencing of stopes and processing of the stockpiled lower grade development ore. Based on preliminary results from the underground resource drilling the grade forecast for 2013 reduces the anticipated ore grade for 2013 to an average of 6.79% zinc, 1.11% copper 32.98g/t silver and 0.3g/t gold.
Current inventories for Bracemac-McLeod are:
Tonnes ready to drill 110,565
Tonnes drilled 149,777
Tonnes ready to blast 10,402
Stockpile 5,000
Matagami Mill: The Matagami mill performance related to Bracemac-McLeod ores is above expectations as described in the Feasibility Study in relation to recoveries and concentrate grades for both zinc and copper (see Table 1). It remains too early to understand for what period of time these improved results can be expected. The new ball mill is performing well and was successfully commissioned in early June. The addition of this grind capacity has added flexibility to the grinding process and added mill capacity in excess of that needed for the 3,000 tonnes per day production rate planned from Bracemac-McLeod.
Production from Bracemac-McLeod will be reduced in the months of July and August while the remaining Persévérance ore (100%-owned solely by Glencore Xstrata) is processed.
Additional information is available at www.donnermetals.com.
Glencore Xstrata is the project operator for the Matagami Project and all of Donner's joint ventures. As project operator, Glencore Xstrata is responsible for the execution of all development, production, smelting and refining activities related to the Bracemac-McLeod Mine and exploration programs conducted on the Matagami Project, including resource evaluation, sampling, submittal of samples for assay, assay verification, metallurgical evaluation and QA/QC. Sample preparation and assaying are conducted by ALS Chemex-Chimitec, of Val-d'Or, Québec (zinc, copper and silver by atomic absorption, and gold by standard fire assay procedures).
Robin Adair (VP of Exploration) is a Qualified Person for Donner Metals Ltd. and is responsible for the technical information reported in this news release.
ON BEHALF OF THE BOARD OF
DONNER METALS LTD
Harvey Keats, Chief Executive Officer
Certain phrases in this news release are "forward-looking statements". Forward-looking statements are identified by wording such as "anticipated", "forecast" and "expected". Such statements are applicable specifically to the future anticipated results and performance related to the Bracemac-McLeod Mine. "Forward-looking statements" involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Further discussion of "forward looking statements" and the risks inherent to mineral exploration and development, in relation to Donner's activities, can be found on the Company's website at www.donnermetals.com. The reader is cautioned not to place any undue reliance on any forward-looking statement.
To view Table 1, please visit the following link: http://media3.marketwire.com/docs/712don_table1.pdf
Contact Information
Donner Metals Ltd.
Andrea Magee
604.683.0564
Toll Free: 1-800-909-8311
donner@bed-rock.com
www.donnermetals.com
The shorts have this one by the balls. Over 40% of outstanding shares have been shorted. They are doing all in their power to keep the price down. They will lose control soon.
My favorite is still IAG, paying me 6.2% yield to hold a company that has virtually nowhere to go but up. I bought the bulk of my shares at $3.86, though I also hold 5,000 at $5.03. Not likely much more downside, though some are calling for sub $1,100 gold. If it does go that low, it won't stay there long. And when gold starts moving back up, the miners will advance rapidly, especially IAG!
On 9/25/2012 AUNFF was trading at $1.30, pre-Reverse Split. $1.30 x 8 = $10.40.
I, like a lot of people, lost some money on IAG, but I believe they are a solid company. With the heavy demand for gold, the paper price for gold will soon give way, and the real stuff will take off.
The cartel is taking it to the miners now because they wouldn't hedge with the rising price. IAG may drop a little tomorrow since it goes ex-div, but it is solid for quite some time. I think we're back above $8 buy year's end, depending of course on the COMEX price of paper gold.
I do like silver miners as well, AG & AUNFF are two of my prized holdings right now. AUNFF is trading at $1.30, down from $10.40.
Right on dig! IAG is solid and can weather the manufactured gold storm. I loaded an additional 5500 shares on Wednesday at $3.86.
All good points. Essentially the market has given NO value to the gold in the ground and only partial value to the infrastructure to get it out. This kind of insider buying, i.e., true insiders as opposed to large institutional investors, shows whether or not the time is right to buy. May it go down more? Probably yes, but gold (and silver) are now selling below the full cost to get them out of the ground so there will likely be less in the market which will drive the prices back up, pulling the solid miners like IAG, with it. Hold on...
The dividend is only $0.125. Do you really think it's the driving force behind the price?
IAMGOLD (IAG +0.3%) is initiated with a Buy rating and a $7.50 price target at Global Hunter Securities, which cites its track record of working in emerging market locations with larger gold mines. The Rosebel gold mine in Suriname can produce ~400K oz./year of gold over at least a 20-year mine life; IAG is targeting cash costs in the low $700/oz. area, which the firm believes is sustainable going forward.
From S/A
http://seekingalpha.com/currents/post/1085912
What a massive buying opportunity today! Got in at sub $30.00.
Silver is up 2% today and AG stays flat. This is out and out manipulation. Hedge funds are trying to protect their short positions.
I'm no smarter, just that I've suffered the consequences of reverse splits before. They almost always result in a drop in market cap of 50% or more.
Anybody invested in miners has lost their azzes.
I hold no AUNFD shares now. I took my 57% loss and got out before it goes to $2.50. Doesn't matter how good the company is. Reverse split means 50% lower share price. It happens in almost every case. I like Aurcana and will buy back, but not at more than $2.50. In fact I may wait until $2.20.
I'm still holding. I believe a lot of it has to do with the Obambi Administration's position on drilling in the Gulf of Mexico. DVR has learned to survive, but it may be a couple more years before we see the stock price return to where it should be.
I dumped them all today at $3.55, but not until I lost another $10,000 waiting for the shares to appear in my account. I would short, but Scottrade won't let you short anything under $5.00. I don't think we'll see $1.50, but $2.25 is not out of the question. I'll buy back at $2.25.
I had the new ticker showing in my Scottrade accounts, but my shares still showed as AUNFF#. I could have purchased AUNFD, but couldn't sell the pre-split shares.
BTW, Scottrade charged me $20 in three different accounts for the "Reorganization." I never had that happen with a split before. They'll get a phone call from me this morning.
I got my new shares today at close of business.
Has anybody received their new AUNFD shares yet? My Scottrade account is still showing AUNFF#.
I like Scottrade, but they seem to be the slowest in getting replacement shares in and will not let you trade with the old symbol.
Traydr, a $9 share price would give HL a market cap of $2,566,800,000.00. AG's market cap is only $1.4B. $4 would give HL an equivalent market cap based on earnings alone.
I'm still here, but sold all my IAG around $6.55. I lost $37,000 on it and will wait until I see a bottom forming before buying back in. I may buy again when when I see sub $4.00.
It certainly appears the COMEX is headed for a default as there doesn't seem to be any physical metal left to be found. The gold IAG is holding may be sold for $3,500 in the not too distant future.
I like AG and AUNFF at their current prices.