tag:blogger.com,1999:blog-3458662032196157528.post7665504954871541811..comments2023-10-18T11:39:17.777-04:00Comments on silvergoldsilver: Guest post: THE COMPLETE COST OF MINING SILVERsilvergoldsilverhttp://www.blogger.com/profile/10732783832338768734noreply@blogger.comBlogger27125tag:blogger.com,1999:blog-3458662032196157528.post-53093989741269415732011-08-01T21:15:46.099-04:002011-08-01T21:15:46.099-04:00@SRSrocco
Thank you for taking the effort to put ...@SRSrocco<br /><br />Thank you for taking the effort to put forward a straightforward and honest look at an oft debated question.<br /><br />It makes one wonder why the mainstream does not do this, which of course leads us to question their motivation and their role as purveyors of information.et2ceterahttps://www.blogger.com/profile/01078023375719588480noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-58206893933481347772011-08-01T01:14:52.203-04:002011-08-01T01:14:52.203-04:00@SRSrocco - congrats! You have been published!
Gr...@SRSrocco - congrats! You have been published!<br /><br />Great write-up!felixhttps://www.blogger.com/profile/09143374671390607872noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-84004202397268367622011-07-31T21:09:11.983-04:002011-07-31T21:09:11.983-04:00Good let them sell it, I will be silently accumula...Good let them sell it, I will be silently accumulating a small army of Jan 2012 calls.silvergoldsilverhttps://www.blogger.com/profile/10732783832338768734noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-86304640031623255132011-07-31T18:12:32.170-04:002011-07-31T18:12:32.170-04:00take cover, the machetes are out from starting gat...take cover, the machetes are out from starting gate, wow! down 16 in gold and 75 in silver in minutes.Colinhttps://www.blogger.com/profile/17908213880813735265noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-4545494820973488422011-07-31T17:04:50.312-04:002011-07-31T17:04:50.312-04:00WORD IS FINALLY GETTING OUT
One of the important ...<b>WORD IS FINALLY GETTING OUT</b><br /><br />One of the important reasons for writing this post was to put a PHAT HOLE in what other analysts call SILVER FAIR VALUE at $15.60 an ounce. What is so Ironic is the fact that Ned Schmidt who I specifically wrote about at the end of my post just did an update on his FAIR VALUE of silver which is still a STRONG SELL.<br /><br />He did this in his new article "GOLD WORSHIP & DONUTS". Ned states that according to him, Donuts are a better value than gold...LOL<br /><br />I submitted it to Nadeem over at Market Oracle, but thought he would never link my post here on his website due to the negative nature on Ned Schmidt. Well guess what?? He just posted the article on Market Oracle.<br /><br />First here is NED SCHMIDT...you have to take a look at this CLOWNs article:<br /><br />GOLD WORSHIP and DONUTS<br />http://www.marketoracle.co.uk/Article29580.html<br /><br />THE COMPLETE COSTS OF MINING SILVER<br />http://www.marketoracle.co.uk/Article29591.html<br /><br />SGS was kind enough to allow this post to get as much coverage before new posts were put in. I am glad that many investors as possible will understand that silver's FAIR VALUE is no where near $15SRSroccohttps://www.blogger.com/profile/11572526457942721472noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-10782095655750043562011-07-31T15:49:06.988-04:002011-07-31T15:49:06.988-04:00Add in the cost of purchasing silver-bearing land?...Add in the cost of purchasing silver-bearing land? no matter how high the price of silver goes I won't be able to dig up any silver on my property, because there isn't any here. The cost of digging up silver can only go up, as the easy-to-get silver has already been found. As companies go deeper and run out of silver the price to mine will keep going up, and as demand rises the people will be bidding up the actual price of silver. Silver Eagle rolls were going for $400 a year ago, now they are pushing $900+.guesthttps://www.blogger.com/profile/08059824220199139227noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-90443043162428024052011-07-31T15:21:56.282-04:002011-07-31T15:21:56.282-04:00@paidingold
You are not even worth ignoring.@paidingold<br /><br />You are not even worth ignoring.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-37078446481331072782011-07-31T12:31:05.942-04:002011-07-31T12:31:05.942-04:00Folks...I appreciate the comments. Trying to get ...<b>Folks</b>...I appreciate the comments. Trying to get to the bottom of a vague system of pricing silver has been a long term goal of mine. It took some time to figure out what would be a more appropriate system.<br /><br /><b>Ledbedder</b>....what you stated about the precious metal stocks does seem correct at first glance. The so called "CONTINUED BREAKDOWN" of the mining stock technicals may have occured due to factors beyond their control. How?<br /><br />Gata -Gold Anti Trust Action Committee proved that back in late 1990's and early 2000 the US GOVT put forth laws and regulations to siphon money into Derivatives rather than physical assets. The past 11 years has been DEATH on the producers of the country due to this reason.<br /><br />Precious Metal Mining Companies are producing "REAL FRICKEN MONEY" fer pete sakes. They are the Banks of the world. They are the ones that are creating money...not the stupid FED or memember banks. They are creating debt and an increasing unstable financial system.<br /><br />The only BEEF I have with the majority of CEO'S of mining companies is how they treat their mines. They produce their mines like they were BASE METAL MINES instead of PRECIOUS METAL MINES. As Jim Sinciar states, a proper CEO would mine their low grade ore when the price of the metal goes higher, and their high grade ore when the price drops.<br /><br />Today, these CEO's are trying to extract the metals at the lowest cost and as quick as possible. This is the way of mining copper, not silver or gold.<br /><br />Furthermore...the price of the metals has been kept artifically low as well as the price of mining stocks. So much money has been siphoned into the biggest PONZI SCHEME in history that when it finally IMPLODES, it will destroy the system itself.<br /><br />We can't blame the mining stocks performance that take place in such a manipulated market. Its funny that David Morgan has finally come around and admitted that the SLV may be manipulated. Good Grief.<br /><br />I plan on doing a follow up GUEST POST on this subject soon as there are many more facets that need to be discussed.<br /><br />Again...the comments, questions and replies are appreciated.SRSroccohttps://www.blogger.com/profile/11572526457942721472noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-36609202326827234082011-07-31T11:41:49.309-04:002011-07-31T11:41:49.309-04:00How do you know that the "whiny tone" is...How do you know that the "whiny tone" isn't just a figment of your own imagination? After all, this is written word and there's no voice inflection to determine what george's tone was. Not picking a fight...just sayin'...Markhttps://www.blogger.com/profile/11161747897741398392noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-57279020794164393332011-07-31T08:16:41.922-04:002011-07-31T08:16:41.922-04:00This is great info SRSrocco. Thanks for your time....This is great info SRSrocco. Thanks for your time.<br /><br />From this I would say the likelihood of a hit below or near $20 oz is low. Although TPTB are obviously fuckwits anyway, so there's no telling. It would be a helluva buying opp.<br /><br />Just shows even further how good value silver still is at $40. Anything between $20 and $40 is effectively a steal.Julianhttps://www.blogger.com/profile/00606356277112297760noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-70929327912533209192011-07-31T03:14:02.281-04:002011-07-31T03:14:02.281-04:00@SRS: If you looked at the charts of the above men...@SRS: If you looked at the charts of the above mentioned companies, they were telling that all was not right. I looked at them after the fact (I'm not a stock guy), but they kept breaking technicals over & over again. I will admit, I wouldn't have traded them down as far as they went, but if I did catch their breakdown, I would have been buying alot of puts. As far as having the actual stuff in hand, I agree completely.Ledbedderhttps://www.blogger.com/profile/09570925439012096094noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-4247152504605334382011-07-30T22:36:19.062-04:002011-07-30T22:36:19.062-04:00Thank you, SGS, for posting this article.
SRSrocc...Thank you, SGS, for posting this article.<br /><br />SRSrocco--First and foremost, thank you for your efforts in helping to keep us better informed. I am not a trader but I am invested in mining stocks and it is very helpful to have an understanding how the production cost work. I never realized how much more was behind the "Cash cost" until now. Thank you for, what appears to be, an unbiased analysis of these companies. Looking forward to your bit of truth.MonkeySmokehttps://www.blogger.com/profile/00419203608413181061noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-34073699727583624772011-07-30T21:58:45.920-04:002011-07-30T21:58:45.920-04:00Ledbedder...you bring up a valid point worth discu...Ledbedder...you bring up a valid point worth discussing. Traders can and will trade a price up as well as down. Management of mining companies are bound by their shareholders to go by the fundamentals of producing profits. <br /><br />Furthermore, the notion that fundamental bets are priced in the trading candlesticks is a nice one in a free market...which we don't have. <br /><br />Lastly, those fundamental bets in Enron and Bear Stearns became totally worthless within a very short period of time when their stock plummeted to basically zero. The whole market has been mispriced like Enron. <br /><br />I do not put a whole lot of faith in any of it except physical.SRSroccohttps://www.blogger.com/profile/11572526457942721472noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-82419110186729339682011-07-30T20:49:58.089-04:002011-07-30T20:49:58.089-04:00honest info is ALWAYS appreciated...it is rare to ...honest info is ALWAYS appreciated...it is rare to come by...which means you do not have an agenda...other then to help others..again a raritydanhttps://www.blogger.com/profile/08254032575859127135noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-49444854538958945572011-07-30T19:36:42.982-04:002011-07-30T19:36:42.982-04:00@SRSrocco, Thanks a lot for this. Puts a lot into...@SRSrocco, Thanks a lot for this. Puts a lot into perspective and could eliminate a lot of debate. Maybe you could forward this to Robo Trader.Spencerhttps://www.blogger.com/profile/06705046712458313237noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-64593972450436949222011-07-30T19:32:06.202-04:002011-07-30T19:32:06.202-04:00when silver is in high enough dealer demand and it...when silver is in high enough dealer demand and it is an investment asset desired by all Chinese, Europeans and americans, every day, then it can rise to the multiple above mining cost that oil has, because the mines are as rare and no environmentalists are going to let you open a galena/lead mine in their backyard. so oil can go to 120 per barrel spot with 20/barrel mining cost, then silver will go to $120 an ounce also! In terms of populace demand every day in every city China is halfway there, Europeans are one tenth of the way, and Americans are just beginning to awaken. THERE IS NO BULLION DEALER at all in my city of 1 million people. NONE AT ALL. Anyone want to go into business with me, I have the customers, but I just need 60 days working capital...Anonymoushttps://www.blogger.com/profile/15436983262324944735noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-1955911960601049672011-07-30T19:21:14.645-04:002011-07-30T19:21:14.645-04:00I feel like say thank you even before reading it (...I feel like say thank you even before reading it (i first give a global look to the post & read the final)<br />Grazie anche dall'Italia!Erhttps://www.blogger.com/profile/14479495803993867374noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-51300017506391593302011-07-30T18:41:38.088-04:002011-07-30T18:41:38.088-04:00http://etfdailynews.com/2011/07/25/investors-the-1...http://etfdailynews.com/2011/07/25/investors-the-1-billion-armageddon-trade-placed-against-the-united-states/Dr Maneki Nekohttps://www.blogger.com/profile/06049850227693008438noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-15017066073065147572011-07-30T17:48:47.619-04:002011-07-30T17:48:47.619-04:00I must say, I enjoy life too much for this fundame...I must say, I enjoy life too much for this fundamental news. The people that follow it put money down, no? They are showing their positions, no? It shows up in the bars/candles,no? All you fundamentalists read all these reports...your boys will show it in the charts that I will trade from.<br />Keep looking at the "fund"-u-mentals. I read them & let the bars take them in stride.Ledbedderhttps://www.blogger.com/profile/09570925439012096094noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-75984061524804293392011-07-30T17:21:34.442-04:002011-07-30T17:21:34.442-04:00Jasper...hecla lost $20.76 million on its derviati...<b>Jasper</b>...hecla lost $20.76 million on its derviatives according to their 10-k. If we did add this to their true earnings of 35 million. we would get about $56 million. Don't forget...I took their NET INCOME and not their INCOME THAT CORRESPONDS TO SHAREHOLDERS. Hecla paid their shareholders $13.6 million in 2010. That is a cost that I did not include...but be that as it may if we take that $20.76 million derivative loss and add it we get the $56 million.<br /><br />$56 million / $418 million = 13.4%<br />100%-13.4% = 86.6%<br /><b>86.6% X $20.16 = $18.24 COMPLETE CASH COST</b><br /><br />So their big derivative HIT did not change the bottom line all that much did it Japer? Furthermore, if Hecla's Management staff is going to be that reckless in betting on Derivaties, then by all means it should affect their price of silver profitability.<br /><br />If a native tribe sues a mining company and wins $25 million....hell it comes out of PROFITS doesn't it?? Whatever the losses goes against the cost to produce silverSRSroccohttps://www.blogger.com/profile/11572526457942721472noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-84768409895362543382011-07-30T16:47:20.926-04:002011-07-30T16:47:20.926-04:00Hecla lost it's ass of derivatives so not a go...Hecla lost it's ass of derivatives so not a good base case but the point is valid and well presented. GW SGSJasperhttps://www.blogger.com/profile/06990430177920720190noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-68712877345802418012011-07-30T16:35:58.454-04:002011-07-30T16:35:58.454-04:00This comment has been removed by the author.Ledbedderhttps://www.blogger.com/profile/09570925439012096094noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-31019636652888473152011-07-30T16:34:00.207-04:002011-07-30T16:34:00.207-04:00This comment has been removed by the author.Ledbedderhttps://www.blogger.com/profile/09570925439012096094noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-61821052451809687242011-07-30T16:26:48.883-04:002011-07-30T16:26:48.883-04:00Great post! Articles dwelling into the fundamental...Great post! Articles dwelling into the fundamentals are the best (only?) way in keeping perspective on lt investments. What are the average costs of mining Gold, how what is the minig vs price_per_ounce ratio comparision between gold and silver?<br /><br />Alot of silver bears like to claim that silver only costs 5$ an ounce to mine so it should never be selling for 50$ an ounce. If such logic were valid then crude prices should be selling for less than half the current price just because it only costs 20$ to extract it from Middle East and Russia, and totally ignore the the proven reserves, production capacity and supply vs demand scenarios.AGhttps://www.blogger.com/profile/02094544618090446119noreply@blogger.comtag:blogger.com,1999:blog-3458662032196157528.post-28846545032393387932011-07-30T16:25:43.212-04:002011-07-30T16:25:43.212-04:00Thanks SGS! This is helpful.Thanks SGS! This is helpful.blacksoldierflyhttps://www.blogger.com/profile/17693664929264615213noreply@blogger.com