Fed can not stop easing. They will never allow the consequences that it would trigger. They fudge the unemployment numbers, the factory numbers, change the computation for entitlements so it doesn't reflect the inflation rate, but they will never stop easing.
Certainly ABX 's problems swept over to SLW, but as you say, they are totally insulated, and in fact may end up with a lot of ABX's assets if this drags on or the project is prevented. What infuriated me today the Goldman Sachs trying to torpedo any sort of pm rally. Their talk of starting a short fund and 1200 gold is nothing but blatant manipulation. If they do start a short fund, they will do so to enable them to short the fund with borrowed shares that will cost them nothing. There is no doubt with these guys running the show it is the most crooked game on the planet. There is more honesty in Chinese accounting than GS.
To acquire 25% of the life of mine silver production from Barrick's Pascua-Lama project, as well as 100% of the silver production from its Lagunas Norte, Pierina and Veladero mines until the end of 2013, Silver Wheaton will make total upfront cash payments of US$625 million over three years, of which US$212.5 million is payable on closing and three further payments of US$137.5 million are due on the first, second and third anniversaries. Silver Wheaton will also make ongoing payments of the lesser of US$3.90 (subject to a one percent annual adjustment starting in the fourth year after the achievement of specific operating targets) and the prevailing market price, for each ounce of silver delivered under the agreement. Silver Wheaton will not share in any ongoing capital or exploration expenditures at the various mines.
Barrick has provided Silver Wheaton with a completion guarantee, requiring them to complete Pascua-Lama to at least 75% of design capacity by December 31, 2015. During 2014 and 2015, Silver Wheaton will be entitled to the silver production from the currently producing mines to the extent of any production shortfall at Pascua-Lama, until Barrick satisfies the completion guarantee. If Barrick fails to satisfy the requirements of the completion guarantee, the agreement may be terminated by Silver Wheaton. In such an event, Silver Wheaton would be entitled to the return of the upfront cash consideration of US$625 million less a credit for silver delivered up to the date of that event.
I must admit that I've finally concluded that with the creation of precious metal etfs the major instos found a tool to control the price of pms so they can accumulate without driving the price up. Set the dogs of HF traders on the etfs and control the pm pricing. Of course, like all grand schemes to manipulate a market at some point the artificial dislocation becomes unmaintainable and everything collapses. In this case it will be firing a rocket under the base price of PMs and watching them go to the moon, Alice. No crystal ball on when this will happen, but happen it will. And it may be an event that seems rather insignificant at the time.
Sense being the order of the day during a period the market is ruled by HF traders? I can only hope that this current slaughter in miners allows SLW to harvest some great deals.....because we aren't too far from a massive gold and silver bull mania market. I've been reading about bitcoins and realized that they were the signposts I have been waiting to see that indicate a starter's gun has fired to start the Gold rush. And, it turned out not be a starter's pistol, but a starter's howitzer. Tighten your seat belt, we are going on one hell of a ride.
Not to worry. The components that make up the CPI are subject to change and fall into the general categories of things you don't need. Things you need are way to subject to inflation to be included.