The GORO short sellers have gotten some great press for themselves this summer, but the true longs clearly aren't believing the "short story". The shorts got their "case" in Barron's in early July, with gems such as that GORO's HQ is in a house near a resort. "Ooooh, scarrrry" as Count Floyd used to say.
And a week ago some shorts used their favorite mouthpiece, Seeking Alpha, to try to spread their venom. Their recent work is about as laughable as the Barron's hit piece, IMO. One of my favorite lines is where one of the shorts quotes another saying "It's a silver miner pretending to be a gold miner, end of story" (see link below). Well yes GORO does have a lot of silver as well as gold, but what's wrong with that?
The silver component is currently looking even better now than it would be if gold were the only precious metal at GORO's mines. That's because the old GOE (gold ounce equivalent) figures for GORO used a 60:1 gold:silver price ratio. However, the current gold:silver ratio is 44.4, which means that GORO's silver value in gold price equivalent is now 35% higher than it would be at the 60:1 ratio. An extra 35% boost for the silver (relative to gold), and the GORO shorts want to call that "end of story"? Seems to me the real story that's at an "end" now is the short story. And it couldn't happen to nicer folks, IMO.
Well yes GORO does have a lot of silver as well as gold, but what's wrong with that?
ask yourself why GORO chose to call itself GOLD RESOURCE CORP instead of SILVER RESOURCE CORP. there is a reason why the Reid's did this. gold stocks command a higher premium in the market than silver stocks. gold is perceived to be safer than silver too. just more SPIN, MARKETING, CONFUSION, and HYPE from the Reids. like I keep saying: the Reid's are marketers, not miners.
I really like that we have a lot of both gold and silver.
Anyone who thinks silver isn't valuable is an idiot. If you comp'd us to SLW *ON SILVER PRODUCTION ALONE* we'd still be at a $1b market cap. And we're growing faster. And we have gold. And we get a higher dividend.
Hey Shorty, you should have a chat with our local Brighton Beach babe basher. She thinks it is just fine for the Reds to be promoting their company, and so do I.
Dn't understand why you get so in tizzy about them this way. You really should see someone about all that stress.
which means that GORO's silver value in gold price equivalent is now 35% higher than it would be at the 60:1 ratio.
and that is why GORO should change its name to Silver Resource Corp. the gold equivalent count fluctuates so much because they are heavy on silver and light on gold. they should use silver equivalents for their resource estimates, not gold equivalents! Just more marketing HYPE!
Shorty, I am really embarrassed for you. GORO longs, you have to forgive Shorty. He just doesn't seem to get it.
It's OK Shorty. The sooner you cover, the sooner you will get rid of all that stress.
I thought we resolved this a week ago. Why are you rehashing? We discussed that they are mining 6.5 grams of gold/tonne in La Arista. This is significantly higher than most gold miners/mines. Should they change their names? Maybe they should become U.S. "Low Grade" Gold...instead of U.S. Gold; or Barrick "Low Grade" Gold or Silvercorp (Goldcorp) because several of their polymetallic deposits, especially in Mexico, have more income from base metals and silver than in gold. In fact, the grade for the ore in Mexico is .81 gramms/tonne gold.
You are really arguing semantics and it makes you look petty. We had some pretty good discussions a week ago. Although they were heated, we moved forward and didn't rehash ground already covered.