Replies to post #6468 on Pacific Gold Corp fka PCFG

[whatisthecolorofmone]

PLACE your bets...

will we see PCFG in peenyland during this week (Oct 4-8)? I vote yes. Probably a spike to $.05. Feel free to argue...GO PCFG LONGS!

[whatisthecolorofmone]

Even better — gold and silver miners leveraged to the underlying metal. If it costs a miner $500 to pull an ounce of gold out of the ground, and gold costs $950, the miner has a profit margin of $450 per ounce. If the costs go up to $550, and the cost of gold goes up to $1,300, the miner’s profit margin per ounce increases to $750. That means its profit margin increases 66% even though the price of gold increases “only” 36%.

We’ve seen this across the mining sector in the past year. Costs have gone up, but the price of gold has gone up even faster

[whatisthecolorofmone]

The gold market is not saturated. 50 million new consumers a year are joining the middle class in China, a country which has a strong cultural attachment to gold. And China is just now starting to ease restrictions on gold imports. The shortfall between mine supply and demand in China last year was 144 metric tonnes — a gap that will likely be filled by imports, sucking more supply off the global market.