Sold what was left of my $80 and the 105.79 entry points. I didn't want to take a loss on the 105s but I think its time to take a month break. Today's job report, the BS going on in Spain, the latest earnings announcement, and we are entering the summer months.....Thats my logic any how. I hope to get back in around the $85-90 range towards the end of May / middle of June
Best of luck to all (I'm sure I'll be poking my head in and out to hear the arguments for/against by some of the better members of the MB)
they wouldnt. however their broken stock prices indicate what I read in general about the mining business......you either need gold increasing a lot, you need to buy up your competition (as you said) or your need to mine a lot more gold.
Their stock prices i think reflect that its profitable, but its flatlining...hence the bad action.
Whereas the GLD will just track the price of gold without the headaches of mining it.
Good luck man. always good talking.
I'm no expert and my analysis is rudimentary at best but as far as I understand you are right in the regard that it becomes exceedingly more difficult / expensive to continue to mine with age. However, if the price of gold was not high enough to support the cost of production, the mine would go offline. Companies also have the ability to set a predetermined price on their product for a period of time in the future. This happens independent of what market price of that metal will be when it is actually mined (look at what TGB did with copper last year). Some of the larger companies are making boat loads of money right now but yes their mines are getting older....In order to maintain production levels / level of profit you often see the bigs acquiring smaller mines (ala KGC, PAAS, and so on this past year alone). Again if this wasn't a profitable move why would they go about doing it in the first place?
I'm going to be truthful and point out when you're not, whether you think it's positive or not! You untruthfulness and wishy washy flipping and promoting spam is not positive for the board. Get used flippy!
I've actually repositioned myself as of late into beat up gold mining stocks...Although not doing well today AEM has been killing it recently and I think GG will be next on the list to spike up. Should anything horrible happen (again) with EU I foresee people flocking towards gold and raising it back up to the 1800+ level.
Ben, I know you've said that a number of times since the earning report but I don't see it. Monthly sales to user increases are still in the 20% range and guidance is still for 10-20% YOY gain to $68-72B. If Q1 is the top, 2012 revenues will be well short of that at $64B.
With seasonality working in our favor I just don't see Q1 as the peak for the year. We'll see.