Because mining companies are managed by idiots expert at wasting shareholders capital,
1- When gold was low they sold their future production at a set low price.
2- When prices went up they stopped selling their future production at a high price.
3- They build mines and infrastructure when everyone was predicting that gold would go up forever and later had to take billions in write-offs.
4- They did not control their cost and their cost of production shot up to exceed the current price of gold.
Every single gold selloff invites a whole new crowd of smart money looking for a "pop".
Sentiment: Strong Buy
myfido what a crass comment!. loeupinski I share your bemused emotion - why indeed? If there any of you that have an intelligent response to a genuine question I would sure like to hear it.
Loeupinski, your critique comes from someone who has not the knowledge to use capitals. Even their first sentence is rudimentary and nonsensical.
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LORD PANTYMAN TO BE KNIGHTED BY THE QUEEN THIS WEEK
For those of you who know me, I am being knighted by the queen this week, I would like to thank everyone who never lost faith in my abilities for the past few years, I have managed to generate a annualized return of over 50% over the last 7 years, I have now garnered the attention of the royals who were very impressed when I told them to sell their gold the beginning of this year and are rewarding me fo my foresight. Less
You’re not missing a thing…Gold has reached its bottom but the bashing will continue for some time…Taper on, taper off, what a joke….
This is a good thing if you’re trying to accumulate a large position…A year from now you will look back and say what a buying opportunity…So buy as much as you can here at the bottom…IT’S HERE!
Sentiment: Strong Buy
the ever present explanation for the drop in gold price before almost
every FOMC meeting, that "the stimulus has aided gold prices...and
taking it away will cause gold prices to drop" (see todays Reuters report
in the Kitco website) ?
seems to me the only things the "stimulus" has done is created an artificial
equities market to the DETRIMENT of gold price.
what am I missing???
if you don't think anything has changed since 2006...duh!
you really didn't mean to ask such a stupid question, did you?
or do you have some MOTIVE...hmmm?
true, a good point. I think Japan has a much higher percentage of their debt in Japan while we have much more with investment institutions and sovereign banks. I fear that one day somebody big will bail on treasuries and starts the ugly ball rolling. Im amazed central banks still keep piling US paper, youd think theyd want other currencies and investments to balance it out a bit.