Silver follows gold because both metals are considered “precious”, i.e. different from other “industrial” commodities. It means, in investment terms, that PM prices are set by financial transactions, i.e. entirely within financial universe (mostly derivatives market), while industrial metals have their prices set by physical supply (mining and recycling) and demand (consumption).
The main reason why gold and silver are precious is that they are not consumed enough (people hoard them instead), i.e. gold is not consumed at all, while silver industrial consumption is lower than physical supply. In result both metal prices depend on investment supply (it is true mostly for gold) and demand (true for both). Investment supply/demand means financial (derivatives) markets.
Agiraffe, first of all, good luck with your RBY venture. Personally, I don’t think that this company has too many “cards to play” regarding financing. Yes, they are lucky to have cash on hands, but they are also unlucky to get caught in the midst of construction without enough cash to finish it.
Also, I am unaware about “overseas companies” willing to provide money. Do you mean “Chinese”?
In general, gold price is too low. It makes every gold company and every gold mine suspiciously close to break-even point; it excludes obviously those already well below the point. It makes situation challenging for both lenders and borrowers.
Anyway, good luck with your new investment. Just a small note, I know you like mining stocks, including juniors, and it seems to me that industrial metals are in better position now in terms of macro fundamentals.
My dear pio-puke, aka fatboy, the best thing to avoid name-calling is not starting it in first place. No one gave you license to attack and insult other people, something that you and your ilk did here for many years.
Certainly, you can try your hypocrisy when you get a response. No one believes you and your aliases anymore.
PS: I warned pio-puke to avoid insulting me for too many times. He didn’t care. Ok, pio-puke. Don’t complain now.
I see you are not just a loser, ultraific; you are also a liar. You know very well that I have nothing to pray about Claude. Actually, I predicted its demise when you still hoped on turnaround there.
By the way, do you remember our exchange about TC on Claude (CLGRF) board? TC was about twice higher at that point and you tried to pump it then the same way as you do now.
Finally, my remark about “working in mining” is just a small payback to you for your silly attempt to attack me on RBY board. Hopefully, it will serve you a lesson.
Try to make few bucks on stocks, ultraific, before trying to play an expert on these boards.
PS: I apologize for interruption to this message board; just had to return favor to this guy, ultraific. No bad wishes for your stock. Hopefully, it recovers soon.
Also, my best regards to oldtimers here. Some of you could remember me. Good luck with your investments.
Nope. IAG cuts dividend to save cash. It has negative cash flow, as any other gold company at the moment and cancellation of the dividend reduces cash bleeding.
It can be noted, as diversification point, that IAG generates positive cash flow from secondary source: niobium mining. It is a valuable feature giving this stock some positive difference from other gold equities.
Hello, agiraffe. I want to add few comments to your message.
Firstly, regarding “unfavorable ground conditions”, I brought it in as a possible explanation for known change in mining method and downsize in economic numbers (from initial to updated PEA). In other words, if someone lives in real world and accepts numbers as they are presented in the updated PEA then those possibly unfavorable conditions are thing of past. On the contrary, if someone lives in la-la land still believing in enormous amount of gold with extremely high grades (all numbers much higher than they are specified in PEA) then those “unfavorable conditions” are still waiting to drop on this person head.
Secondly, regarding borrowing, I don’t think that traditional loan could be available for RBY. The only way to “borrow” would be through streaming or gold loan. Traditional banks won’t lend to a company without cash-flow producing assets. In good times of bull market banks could accept feasibility study as a semblance of proof that cash flow is right around the corner. This part is hardly available now, when it is hard to find a gold-producing company with positive cash flow. Anyway, RBY doesn’t have feasibility study and so it would not be able to get conventional loan even in bull market.
It is the easiest thing to show pio-puke as a fool, because he is a fool. The latter becomes clear any time he open his stupid mouth. It can be noted that additionally to being a fool pio-puke is also a greedy and lying creature. It makes him more visible than an ordinary fool.
If world economy holds, i.e. growth continues then copper market enters bullish stage in near term and SCCO should go much higher than 30. As of now, positive signs prevail, imho.
No, you are not liable for capital gain taxes in foreign jurisdiction even if stock you own is not American. All taxes will have to be paid in U.S., assuming that you buy and hold stock through account with U.S. brokerage firm. Anyway, it is always a good idea to ask your broker. The latter has duty to explain you all tax-related issues.
The only exception when you have to pay taxes to Canada or any other country is dividend tax. If you own foreign stock that pays dividend then you are charged 15% levy at payment point. However, even this amount can be claimed back later as U.S. tax credit when you file your U.S. taxes.
Hey, pole. Can you tell in your own words (just an identity check) whether GDP rises up or falls “like wounded pigeon”? It would be the best if you limit your reply to one word only: “rises” or “falls”. Thanks.
The most basic, just in case you decide to use macro-economics in your investment decisions, thing about GDP is that it is calculated/reported once a quarter. Don’t jump high; this is RBY message board where even the most trivial facts can be “disputed”.
Last report, made about a week ago, showed Q3 GDP at +3.6%. It is a very strong number, clearly exceeding anything achievable in comparable developed economies, e.g. in Europe.
Certainly, one may always say: I don’t care about official statistics; it is all lies; I know a good website (shadowy blog) with better looking (for me) numbers. It is all doable (i.e. saying whatever you like). However, again, if you plan to use numbers for your investment decisions and you really care about investment return then it makes sense to pay attention to official numbers, no matter what you think about them. By the way, it is a good idea (paying attention) on all levels (macro and micro).
Now I would like to add something a bit more complicated. It is related to another debate: re: stronger dollar. As you likely remember, other countries support stronger dollar, even if they dislike U.S. money printing. They understand that U.S. printing press steals part of their “fair share”, or better say, part of their GDP; but they have to take it as part of life; imperialism works.
The situation described above means essentially that U.S. collects own GDP plus part of other guys GDP. For example, part of super strong Chinese GDP gets stealthily transferred to U.S. because ole Ben works. It is not the worst thing for us, mere mortals, living in this country. When U.S. report 3.6% and China reports 8%; the final score could be even tilted to U.S. side. Again, Chinese accept it, because it is paid by lowly workers; elite makes it up nicely.
Firstly, there is no difference between gold “paper” and “physical” demand in investment terms, because at the end in both cases it is gold changing hands for certain price, i.e. it is the same price-setting act. Moreover, paper market is much larger and so it writes rules (price). It doesn’t matter, for investment purposes, whether someone got hold on bullion or just keeps certificate of ownership. In other words, physical demand stands no chance to overwhelm paper world, not now and not in future.
Regarding my position on silver, you are mistaken, I am not more bullish on it than on gold, and I am not too bullish on gold. To be precise, I think that PM market is in mildly oversold situation, but it is for short-term purposes only.
Silver is a little sibling to gold; its price follows gold. It is stronger factor than silver industrial demand, because the latter is still significantly smaller than mining supply. It may change in future if industrial demand exceeds mining supply; it is different from gold in this respect (silver is not hoarded in the same extent as gold). However, it didn’t happen yet and it is not a short-term issue.
First of all, I would like apologize; this message will tell very trivial things. Most people already know them. However, this world is not perfect; some guys don’t know simple things… and then what?
Anyway, below is a very simplified and short list where to look to decide whether economy is good or bad.
1. GDP (goes up when it’s good)
2. Inflation (stays low, when it’s good)
3. Unemployment (goes down, when it’s good)
4. Political situation (stable gridlock, when it’s good)
Now guys, I have to apologize again. It is all nothing (list above); or at least it is not the most important.
The most important source is your wallet. Check your financial situation and it will give you a good idea about the sate of Union (err… sorry, economy).
Well, I thought that this issue is too clear, but for some reason it is not… Ok, I can provide very brief and simple answer. Oil fracking is good because it increases GDP, creates lot of good paying jobs, decreases energy costs for many other industries and reduces oil import costs. It is all positives for U.S. economy.
Barsolid, you try to use numbers for something not measurable by numbers. Both gold supply and demand are not measurable. You can measure mining output or recycling or amount of gold used by jewelers, but it doesn’t measure gold supply and demand.
Firstly, all gold ever mined by humans through millenniums still exists. It is not consumed; it can be delivered to market if price is right. In other words, this gold “supply”, or better say “offering” exceeds present mining output by many times.
Regarding gold demand, it is totally unknown, because the main area of gold “usage” is financial world of derivatives. When financial entities enter to derivative contracts they use gold for collateral and hedging purposes. Don’t even try to get anything better defined than this, e.g. something in numbers. It is futile, no one knows derivative market in entirety; this is a well-known fact.
It means that gold supply-demand is not measurable and accordingly any attempt to predict gold price based on “numbers” cannot succeed.
This is a big topic, much bigger than one message can contain; therefore, it will be brief so far.
Firstly, what means the word “country”? It is not one man deciding all issues. It is a ruling group, party or elite. Please note elite exist even in U.S.; in most other countries with less democratic institutions, elite is even better defined and more influential. Who makes this “country”, or better say “elite”. It is people with influence, those controlling country economics.
Now look at some guy(s) controlling good chunk of Chinese manufacturing. They sell goods to ole U.S. receiving good U.S. dollars. At the same time, they pay salaries in local yuans. What do these guys want: strong dollar or strong yuan? You can pose the same question to an oil-controlling Russian tycoon or any other elite guy in any other export-driven country. The answer is just too simple: they all want strong dollar (their profits) and weak local money (their expenses).
Does it mean these elite guys love ole Bernanke printing money in U.S.? Not at all. They dislike it; after all, they are ‘good school’ businessmen. They feel that ole Ben steals some part of their profits. However, if they have to choose between continuing business as usual (i.e. making good U.S. money on cheap local labor) and rocking the boat, killing U.S. good goose and swimming to unknown, then they vote for more like the same. Let them print their cursed money; our profits are all right with this; that’s the main thing.
First of all, exposingitrofraud, I didn’t attack anyone yet. It seems to me that you try to attack and it could easily cause me to disregard you.
However, I feel good today and I don’t mind explaining to you why other countries want to see stronger dollar. Please, change your attitude, drop your silly attempts to make it personal and come back with serious and polite request for the explanations. You can even start new thread for this.
Let see if you are mature enough to talk seriously about serious matters.
You see, your economic situation is fine. That's the main thing. Concentrate on positives and, again, invest based on your personal situation. Good luck.