Gold is OMFG!

Discussion in 'The Club House' started by user4, Nov 9, 2009.

  1. user4

    user4 New Member

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  2. matt g

    matt g New Member Supporter

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    The ****ty thing is that when gold prices are up, but the economy is in the ****ter, mines fall back on their reserves. It sucks too, because I really want to go back to work, but there isn't a market for exploration.
     
  3. mrm14

    mrm14 Active Member

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    Inflation is here. Just a short while left before prices go up dramatically. Who didn't see this coming?!

    Infuse mass $$$$ into economy = Inflation

    Bought gold back when it was just a hair under $500.00 per oz. Wish I had bought more. However, gold traditionally over time hasn't proved to be the best investment. It does, however hedge inflation. I feel that when it exceedes $1200.00 per ounce we'll be in deep shat. May get there soon.
     
    Last edited: Nov 9, 2009
  4. orangello

    orangello New Member

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    Matt G, can you dumb that down for me a bit please? Why wouldn't the mines be going balls-to-the-wall to dig up all they could while there is a good price? The oil field peeps start drilling like crazy when the price is up enough, at least around here.

    Are you saying that the mines simply try to dig up everything they know about & don't go looking for new sources, i guess i could understand that (bird in the hand thing).
     
  5. bkt

    bkt New Member

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    Huh. That's odd.

    I read this and went into my safe to look at my stash of gold. It hasn't changed one bit. The gold I had years ago are exactly the same gold I have today.

    So if the gold hasn't changed, but it costs more to buy them, that must mean the dollar has changed. How 'bout that.

    I'm really glad our recession is nearing its end (or so we're told by the lying scum-sucking turds on the news).
     
  6. matt g

    matt g New Member Supporter

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    They are going balls to the wall, they're just doing it with ore that they have in reserve, I.E., ore that they know is there, but haven't dug up yet.

    Mines employ drilling companies to explore and track ore bodies. We,as drillers, can find ore quicker than they can dig. This gives them a backlog of ore that they need to mine out.

    The richest of veins are reserved for the times when gold prices go through the roof and/or the economy is in bad shape. Paired with the backlog of several years worth of mining, and they can cut expenses but still maximize ore production.
     
  7. orangello

    orangello New Member

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    Thanks Matt, that makes more sense.
     
  8. TXnorton

    TXnorton New Member

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    Matt/Gello:

    It is the same in the Oil & Gas Industry, when prices are high Operators (Producing Oil and Gas Companies) will produce all they can, as fast as they can. This production is from existing facilities and infrastructure. However, it can take 3-10 years to develop new reserves from exploration discovery to first production. When the overall economy is good, the Operators will INVEST in new (and high risk) exploration.

    With TeamObama in the White House, and with the general anti-business attitude on prominent display, no Operators are willing to invest huge amounts of money on high risk ventures. There is no certainty in the business or regulatory environment today, so Operators are holding on to their cash (or are unwilling, or unable, to borrow for project financing). They are making good money standing still, so why should they assume significant risks in this uncertain environment?

    Unfortunately, this uncertainty and lack of investment by the Operators is causing great pains in the service industry sector. Engineering, and oilfield service companies are getting hard hit for lack of business,and people are getting laid off, further depressing the economy. TeamObama seems to be totally oblivious to this cause and effect situation.
     
    Last edited: Nov 10, 2009
  9. orangello

    orangello New Member

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    Yup, from what i've heard, Denbury had a buttload of engineers sitting around waiting on projects last year; i hear they've let a lot of those guys go now. I was told it started to go downhill after fuel prices sank following that speculative surge summer '08.
     
  10. Gojubrian

    Gojubrian New Member

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    This administration reminds me of a guy who jumped from the 40th floor. As he whizzed past the 28th floor he shouted, "so far so good!"
     
  11. anm2_man

    anm2_man Member

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    Upper management change needed soon ! :(
     
  12. WDB

    WDB New Member

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    Not unexpected but I didn't think it would jump this high this soon.

    I wonder how high it will go? I have been thinking of selling what I have but if the dollar continues to weaken then any gain could be lost. Gold has always been a fair investment but I've never seen it go up like it has. I haven't bought any in the past year due to the prices, thought it was just a spike but it looks like that spike is still on the climb.
     
  13. mrm14

    mrm14 Active Member

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    They claim that gold may go as high as $1500.00 an ounce by mid next year. Of course these are the places like Monex that sell gold and other precious metals. Today gold is at $1116.00 an ounce and that is up $9.00 from yesterday. Silver is interesting as it is $17.54 today and that is up 0.16 cents from yesterday. These prices may have moved up or down a bit since I looked this morning. Earlier this week silver was close to $24.00 an ounce I believe and may exceede $21.00 an ounce by end of week.

    India bought just recently 200 metric tons of gold from the IRC to fortify their reserve. In dollar value at their time of purchase that is $6.7B.