1 ounce of silver minus management fee - which effectively means its around 10 cents lower than the actual silver price.
That premium is not bad - you gotta think that PAT has the rights to 200k+ ounces of gold through their operating agreement with RIC. 200,000 ozs / 18,000,000 = $90 per ounce - thats not too bad for a mine that Richmont produces and RIC ALREADY MANAGES.
BTW - PAT didnt sell itself because it couldnt find labor - I believe it was because they couldnt manage their debt - their balance sheet is a mess.
A great article
A pundit goes on Canadian TV talking about how physical demand was really not that great and all of this lack of gold was because there were no "blanks" to make the bullion from. He failed to mention his firm had a large PM short position...
Also, It is strange that the US Mint could keep up with demand in 1998 & 1999 that was greater than today's demand for bullion - but now they cant. Plenty of gold out there eh?? Something is fishy and I want my physical bullion!
Your friendly Neighborhood,
Thats the capitulation that gold bulls are looking for. not long ago people were saying the dollar was going under 70 ... it never did. Now people believe (for some reason) the dollar is very strong and is heading up. So the Fed inflates, inflates, inflates and people buy which makes the dollar ... STRONGER??? Or is this a temporary rise due to a complete panic and liquidation of all assets??
Gold is down around 5-6 % YTD while the dow is down MORE THAN 30% YTD!!! Does that mean gold is weak??? Looks to me like gold isnt doing too shabby given the major liquidations everywhere. You guys can sell your gold for US Debt - i'll be buying!
Your friendly neighborhood,
During these times of volatility I wanted to remind everyone about the long term picture in gold.
What I want everyone to look at is the price during the early 70's. It averaged around $160 for two years (1974 & 1975) then in 1976 it dropped to average $124 / oz for the year - a drop of around 20% (it fell all the way to $103). Then in 1977 it averaged $147 / oz, and one year later it averaged $193 and then everyone knows about the massive spike in 1980 to $850 / oz.
In terms of today's gold prices, 1974 would have been the equivalent of gold hitting $1000 ($195 in 1974) and then dropping all the $600 ($120ish) that year and the following year. If you had decided that was it and sold you would have missed the major run 5 years later when it hit $800+. The equivalent to today's terms would be if it went ALL THE WAY to $4000 (1974 = $195 * 4 = $880 in 1980; $1000 high in 2008 * 4 = $4000 in 20??)! BUT PEOPLE MUST BE PATIENT AND LOOK AT THE BIG PICTURE!!
The point of all this is that if you expected gold to go up every year/month/week you were wrong and you would have sold in 1976 on the 20% drop and you would have missed out on much higher prices. That's what happens to traders when they begin to follow the crowd.
But if you stuck on to your investments, knowing that inflation was high and gold is the best store of value during times of inflation, you would have made out handsomely.
The conditions now are much worse for the dollar and the US Economy than they were in the 70's. US Debt has grown, we have shipped our manufacturing jobs abroad and now have negative trade deficits for the forseeable future, the net worth of the average American is negative, and we do not have the advent of computers/internet to boost our economy (like it did in the 80's) but instead rely on stimulus packages which are essentially MORE DEBT OBLIGATIONS - enjoy today and pay tomorrow.
This dollar strength is not strength based on fundamentals, its based on people panicking and liquidating into treasuries. It wont last.
So ask yourself are you selling because you believe gold no longer is worth holding or are you selling because you are scared?
According to my calculations with production at 925,000 ozs, a gold price of $785, $500 in costs per ounce, and approximately $87 million dollars in other operating costs - this stock should be worth $4.84 - a 60% PREMIUM to the current price!
Well it seems the market is completely ignoring fundamentals here so we will have to wait until earnings. Personally I've calculated a $0.12 per share estimate for this quarter's earnings - which would give IAG a PE of 8!! UNBELIEVABLE!!!
Really good value here just have to be patient.
Sounds like the "Bah's" of sheep to me. People who have no idea why they are in Dollars but they know they are going up. I'd rather be in something with strong fundamentals rather than something that has no fundamentals but i'm in it just "because its going up".
Dont want to be in Dollars when the music stops...
All the idiots who've decided to put their money in US Dollars please raise your hands.
Do you guys know:
-This year's budget deficit with all the new Fed transactions will be $2 trillion or greater..
-Other countries are slowly selling dollar assets with the current strength to buy gold (hence the gold price stays high even with almost no jewelry demand)..
-Everybody knows you want to own gold in an INFLATIONARY environment but in a DEFLATIONARY environment the US will be forced to print dollars to pay off its debt when nobody else wants to buy more treasuries...
-New world gold production is only 2500 tons (and lowering) or approximately $70 billion dollars - less than 2 months of the US's trade deficit.
-China has one of the lowest % gold reserves - If they increase their gold reserves by 1% (1.7 trillion or so total) they eat up production of gold for the next 2 1/2 years???
Still want dollars???
What surprises me is that the gold price is holding up even though jewelry demand (a much greater portion of gold use than investment demand) is going lower and lower - isnt that strange? I couldnt figure it out until recently when I was reading an article that rumored that China (the largest gold producer in the world) was holding on to its gold production and NOT LETTING GOLD BE EXPORTED - supposedly buying everything they could out of their local markets. If that rumor is true then this could explain why gold has been holding up so well even though jewelry demand is dropping.
Now we all know that gold bullion supplies are almost impossible to come by under $900 / oz yet the PAPER gold price is below $850 - imagine what happens when more of these countries sell their toxic-waste to the US government and buy gold with it...
I wouldnt want to be holding US Dollars.
Cant help you with a good price because all the premiums are crazy. Personally I purchase from www.apmex.com but their premiums are approaching $100. I heard www.monex.com is good and reliable but i've never bought from them.
You can also try ebay but make sure you purchase from seller with an ebay $2000 Paypal Protection guarantee.
In the last month they bought and cancelled around 48,000 shares. Not bad and good news for investors because each of your shares is now worth more.
This is still a great buy here, but you have to be patient.
Your Friendly Neighborhood,
Let them try to keep it down - i'm going to buy more at this discount. Fundamentals can be delayed but in the end they will come through, and the fundamentals here are screaming buy real assets!
Holding my money in SLV until I can buy some more physical.
Bought 500 silver maple ozs last week and 250 more yesterday. I'll do my next trench God-willing next week if they dont run out.
I usually buy at www.apmex.com if anyone has any alternatives i'd love to hear them.
Excellent opportunity here! At a gold price of $880 & costs of about $500 / oz this thing is around 50% undervalued.
A producer (just under 1 million ozs / year) with no debt and lots of cash/bullion selling for only 1.3 billion. Get it while it is cheap!
Gold is becoming what it always has been - a safe, uninflatable, reliable store of wealth. They are about to inflate the market BIGTIME sometime this week. Look for at least a .5% cut soon - if they cant get banks to loan with current rates take away any incentive for them to keep thier money sitting.
On another note, if you dont have physical GOLD you better get some now before its too late. If you cant do that SILVER is just as good or better and is available.
www.apmex.com have some decent deals on silver maples.
Not only that - people need to be buying physical silver because if there is a bank crisis/bank holiday I want to have my money with me and in a form that cant be cheapened by government REFLATION. SLV is good but in a real crisis they will limit sales & redemptions of everything. Buy your silver NOW while you can.
www.apmex.com is the best site i've come across - they have decent deals on silver maples right now.
All I can say is that a general market panic is taking over with people unloading EVERYTHING, and that only intensifies with thinly traded stocks like MDW. I think soon enough we will see a major rise in PMs that will take the stocks up with them ... or this is a great buyout candidate at these prices.
Just takes patience.
The Euro is on the verge of collapse:
When countries disagree on joint policies and start bickering, any mutual currency will plummet. Rather than dollar strength we are seeing massive euro weakness - the dollar will soon be falling too as people understand the TRILLIONS of dollars the government is creating.
Gold & Silver wont be at these prices for much longer! its time to buy now while people panic and dont think clearly - when they do they will be rushing in!