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Old 08-22-2012, 07:41 AM   #41
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Not only do mining companies need PM prices to be high enough to make a profit, they are really seem to be having labor issues globally. Aside from the horrible South African mess, now Peru is having issues around it's copper and gold mines.

http://www.nasdaq.com/article/peru-d...20120704-00167
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Old 08-22-2012, 08:09 AM   #42
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Sentiment is still extremely negative. Be careful with your trading here. Don't let short term pain keep you from a long term gain. There is a wall of worry.
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Old 08-22-2012, 08:10 AM   #43
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I wonder if the "unrests" have anything to do with Fed exporting the inflation (by doing QEs etc.), also exploding commodity and food prices, and the likes? For westerners, money that is losing purchasing power, is grab on our wealth, or a hidden tax on our savings/earnings, and/or readjusting your life to lower standards/expectations. Whereas, for hundreds of millions (if not billions) of people around the globe, increased prices of food, for example, make a difference between having a meal that day, and not having one at all. Or simply a difference between surviving, and starving.

Thus a lot of people at the end of the food chain, might have strong incentive to protest/demand increased pay, to keep up with the rising costs of SURVIVING (costs of living, but literally), and they simply have no other option left.
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Old 08-28-2012, 08:00 AM   #44
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SRSrocco posted some commentary on a presentation recently addressing the subject of mining costs/profitability:
Quote :
... Nick Holland is the CEO of Goldfields, a gold mining company based in South Africa — the fourth largest primary gold producer in 2011. Holland is a bit of a maverick in the gold industry.

Holland spoke at the Melbourne Mining Club on July 31, 2012 from his presentation “What do Investors want from their Gold Mining Stock?“ Holland basically calls a spade a spade as he shows how lousy the top gold miners have performed and why their stock prices have suffered.
...
According to Holland:

What I thought was scary is that they were predicting — and this is just on a cost per tonne basis — that cost inflation was probably going to be 15% per annum going forward. This means you’re going to see a doubling of costs over five years.
...
More: http://www.silverdoctors.com/gold-mi...be-profitable/
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Old 09-02-2012, 07:49 PM   #45
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A potential jolt in the gold supply? 12,000 miners on strike at Gold Fields mine in South Africa.

August 31, 2012 5:25 pm
S Africa gold miners strike as strife spreads
By Andrew England in Johannesburg
http://www.ft.com/intl/cms/s/0/1b0f6...#axzz25MY4IMxY
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Old 09-03-2012, 08:01 AM   #46
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Originally Posted by Unobtanium View Post:
A potential jolt in the gold supply? 12,000 miners on strike at Gold Fields mine in South Africa.

nah, its only when all the trees are gone and they cant create any more paper gold
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Old 09-03-2012, 08:28 AM   #47
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Originally Posted by rblong2us View Post:
nah, its only when all the trees are gone and they cant create any more paper gold
Reminds me of: "What do you mean my checking account is empty? I still have some blank checks!"
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Old 09-03-2012, 09:25 AM   #48
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or the Keynesian Plan (-:

-

My Doctor’s an idiot. A few years ago, he started expressing concerns about my weight, pointing at this chart supposedly showing how much a man of my height should weigh. One glance at his stupid chart and it was clear to me that he had completely misdiagnosed my condition. There was nothing wrong with my weight, I just wasn’t tall enough. Clearly I needed to grow my way out of this. So I went home and googled “how to stimulate growth.” Once I got past the all the baldness cures and penis pumps (it’s not my bag, baby), I found hundreds of papers so incredibly boring I knew they had to be true. In no time, I was able to design and implement my own stimulus plan based on the irrefutable scientificky principles of Nobel prize winners and other people so smart they never had to do an honest day’s work in their lives. Despite the difficulty climbing stairs, I was feeling pretty good about things until my last check-up….
“Hi, Doc.”
“Hi,” he said, examining my file. He looked up, “You’ve put on twenty pounds since the last time I saw you”
“Thanks for noticing,” I beamed.
He frowned. “I remember now. You’re the guy on the diet designed to make you grow. What’s that called again?”
“The Keynesian Plan.”
“Is that the one where you eat bacon and cheese, but not vegetables?”
“No,” I replied, “But I have incorporated some elements of that plan” (I don’t like vegetables).
“And how’s this whole Keynesian thing working out?” he asked.
“I’ll admit I’m a little disappointed. I’ve only grown and inch and a half so far, but..”
“No you haven’t,” he interrupted, pointing, “You’ve just got those stupid elevator wedges in your shoes to make you look taller.”
“They’re to get me acclimated to being taller.”
“Which you’re not,” he declared. “I told you, you’re fully grown. The only thing you’ve succeeded in doing is collapsing you arches and giving yourself Type 2 Diabetes.”
“We Keynesians call things like that “unintended consequences” (I used finger-quotes to let him know it was a technical term). And trust me, Doc, I’m no happier about them than you. Can I see that height-weight chart of yours again?”
He handed me the chart. After a moment, I sighed, “Looks like I’ll have to do more QE.”
“What?”
“Quantitative eating. It’s how you stimulate growth, Doc. It’s technical.”
“Oh,” he said. “Because it sounds an awful lot like what we in the medical profession call “stuffing your fat face” (giving me finger-quotes, but in a condescending, not-at-all-helpful kind of way).”
I tried to stay calm and empathize. “Doc, it’s not your fault you haven’t been educated about Keynesian principles. They only teach it at top-notch schools like M.I.T. and Harvard. I don’t know about you, Doc, but I feel better knowing that no matter what happens on election day, the White House will be occupied by someone who attended Harvard.”
“As did the Unabomber,” he added.
“Still better than the bumblefuck medical school you went to!” I snapped.
“Johns Hopkins?” he queried, thrusting his eyebrows up.
“John Hopkins.” I corrected (Friggin’ Idiot!)
“Tell me, how are you paying for all this stimulus?”
“Food Stamps…and my ex-wife’s credit card.” (I just knew he wasn’t going to understand this part…)
He looked at me with a curious mixture of confusion and utter disgust. “What….Does she even know?”
“I’m no Dr. Bernanke, but I know one of the most important aspects of Keynesian stimulus is sticking someone else with the bill. It works out better for everyone if the victim, er , stimulus provider is unaware. She’ll be OK. I’m going to make it all up to her.”
“Really? How?”
“Look at your damn chart, Doc!” I bellowed. “I’m going to be taller than Shaq when all this stimulus kicks in! Can you say NBA contract?“
“No,” he said, unimpressed, “just over-sized casket.”
(I could tell he was about to launch into another one of his “austerity” sermons. You know, “Consume less, do more, stop spending other people’s money, blah-blah-blah.” Pinhead. Obviously Dr. Quackenstein was beyond all hope.)
“No offense Doc, but I need help from people with a better understanding of these things. Any chance you can refer me to the Mayo clinic?”
“Is that where the treat illness with mayonnaise?”
“Yes,” I said.
“No,” he said, and walked out.
As I sat down to rest in the lobby on the way back to my car, I remembered that the key ingredient to the Keynesian system is confidence and realized that what I was feeling, beside the tingling sensation in my left arm, was nothing more than the sting of rejection felt by true visionaries like Jon Corzine and the Octomom.
So if anyone asks, I’m at the grocery store
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Last edited by rblong2us; 09-03-2012 at 09:29 AM.
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Old 09-06-2012, 06:47 AM   #49
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Gold mine costs jumped 19% in the first half of 2012:

http://www.silverdoctors.com/numbers...19-in-h1-2012/
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Old 09-26-2012, 05:28 AM   #50
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China, Venezuela Agree to Develop One of World’s Largest Gold Mines

http://silvervigilante.com/china-ven...st-gold-mines/
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Old 09-26-2012, 05:50 AM   #51
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Originally Posted by Unobtanium View Post:
China, Venezuela Agree to Develop One of World’s Largest Gold Mines

http://silvervigilante.com/china-ven...st-gold-mines/
It seems China is winning the resource war that the U.S. seems blissfully unaware of as of yet.
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Old 09-26-2012, 09:35 AM   #52
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Originally Posted by Unobtanium View Post:
China, Venezuela Agree to Develop One of World’s Largest Gold Mines

http://silvervigilante.com/china-ven...st-gold-mines/
...wonder how big a portion of the production will be going straight into PBoC vaults, without even making a sound how big a stream it is?
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Old 09-26-2012, 09:45 AM   #53
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Originally Posted by Unobtanium View Post:
A potential jolt in the gold supply? 12,000 miners on strike at Gold Fields mine in South Africa.

August 31, 2012 5:25 pm
...
Quote :
... "Strikes at South African gold mines have shut about 39 percent of capacity, including at AngloGold (AGG) Ashanti Ltd. and Gold Fields Ltd. (GFI), as unofficial walkouts spread across the country in demand of above-inflation pay increases." And boom: "AngloGold, the world’s third-largest gold producer, today said all of its South African mines have been halted. Gold Fields Ltd. also lost a metric ton, or about 32,000 ounces, of production after strikes at its KDC and Beatrix operations." ...
http://www.zerohedge.com/news/2012-0...on-now-offline
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Old 09-26-2012, 09:58 AM   #54
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Perhaps they saw the platinum miners strike result in 30% pay increases and see an opportunity...

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Old 10-05-2012, 07:09 AM   #55
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http://www.zerohedge.com/news/2012-1...-truck-drivers

....and now the truck drivers in South Africa are catching the striking sprit! This could be bullish for PMs if this causes shortages to materials to and from the mining operations.
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Old 10-23-2012, 05:56 PM   #56
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Does anyone have a similar chart for silver????? These charts are good to see. it reinforces my belief that i should be investing all of my meager amounts of money into PMs. as a 23 year old fresh out of college( and planning on going back in) I have a small amount of money to invest at the moment.
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Old 11-06-2012, 09:12 AM   #57
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Gold mine costs jumped up 19% in H1 2012:

http://www.silverdoctors.com/numbers...19-in-h1-2012/

Quote :
Gold miners are facing several challenges. Not only are costs increasing, but the Investment or CAPEX spending is increasing higher than most had forecasted. The problem with the gold mining industry is the same with the oil industry — that is — they have to increase production every year to offset depletion rates.
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Old 12-02-2012, 07:56 PM   #58
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Golden Bullshine
Richard (Rick) Mills
Ahead of the Herd
http://aheadoftheherd.com/Newsletter...-Bullshine.htm


Here are a couple graphs from the article:

The first graph shows the price of gold rising in lock-step with mining costs:




The second graph show the replacement cost for an ounce of gold today, when you consider mining costs (cash operating costs) along with some additional overhead costs:
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Old 12-05-2012, 09:03 PM   #59
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The China-Adjusted Yearly Gold Supply

We have all heard and seen that the global gold mining supply has been on an increase since 2008. But what about the effect that China has on this supply? We see that global gold supply has been decreasing for the rest of the world, if you consider China's effect on the supply.

Here some charts from the article, Gold Supply Crunch Coming?:
http://www.caseyresearch.com/cdd/gol...-crunch-coming


The first chart shows yearly global gold mining production, including and excluding China's mining supply.




The second chart, The China-Adjusted Global Supply (mining + scrap), shows the yearly global gold supply (excluding China's supply), subtracting out what China buys off the global market. This chart shows the global gold supply that is left for the rest of the world after China has purchased; it has been decreasing since 2008.

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Old 12-06-2012, 08:15 AM   #60
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Exactly the same effect, as emerging markets will/are having on oil supply/ prices. Less &less of it will be available for developed nations.

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