Silver massive undervaluation based on Mint ratio

March 3, 2015 at 12:25


Gold's relationship with silver and the stock market seems to have changed. The Mint ratio is the gold price divided by the silver price. Assuming supply stays reasonably stable, the Mint in recent times has tended to rise when equities fall. When the S&P 500 hit its post-dotcom bubble low in 2003, the Mint breached 80. Just before Wall Street's credit-crunch trough in early 2009 the Mint brushed 90. The inverse correlation is explained by investors lowering the price of silver relative to gold as the tougher economic times hurting stocks are seen reducing demand for the grey metal. Gold has hardly any industrial uses. But since mid 2011, the Mint and the...

Silver Wheaton $900m gold purchase

March 3, 2015 at 12:22


Silver Wheaton Corp., which resells precious metals bought from mining companies, agreed to buy $900 million worth of gold from a Vale SA mine in Brazil, expanding a supply agreement signed two years ago. It will buy an additional 25 percent of the production from Vale’s Salobo mine in northern Brazil, bringing the total to 50 percent, Vancouver-based Silver Wheaton said in a statement Monday. It will also make ongoing payments to Rio de Janeiro- based Vale of $400 an ounce or the prevailing gold price, whichever is lower. Silver Wheaton typically offers upfront payments to help mining companies fund their operations in exchange for a discount on future silver and g...

China helps gold bounce as India keeps duty

March 2, 2015 at 11:38


Gold rose to its highest level in nearly two weeks on Monday, backed by firm Chinese demand after a weekend interest rate cut in China aimed at shoring up the economy, which some analysts said could also benefit bullion. "The prospects of better growth and stronger income should boost gold-buying in China," said Howie Lee, an investment analyst at Phillip Futures in Singapore. Gold bounced back from a seven-week low last week following the return of Chinese buyers from the February 18-24 Lunar New Year break. The price has since found support above $1,200. Premiums for physical gold at the Shanghai Gold Exchange stayed firm at around $4-$5 an ounce over the globa...

Silver long term buy

March 2, 2015 at 10:57


Silver is expensive to dig out of the ground. While many pundits argue the "cash cost" to mine the metal is around $10.00 per ounce, that figure likely understates the true economic cost to silver miners by at least 50%. Silver miners want investors to believe that cash costs can be evaluated without looking at byproduct credits, which accounted for around 40% of Endeavor Silver's total revenues in 2013. The real cash costs of silver mining have to take into account the fact that silver mining is not profitable at a price under $20 per ounce for most, if not all, of the public market mining companies. The net loss to silver miners in 2013 was in the bilions, and that was ...

California man accused of selling counterfeit gold

February 26, 2015 at 12:38


A Grass Valley man was arrested this week on charges of selling counterfeit gold bars, police said. The victims bought $175,500 in gold bars before finding out they were fake, Nevada County District Attorney Clifford Newell said Wednesday. A store owner, Gregory Arnoldi, was arrested and arraigned on three felony counts of possessing and selling counterfeit gold. "The investigation revealed that the victims had purchased a total of $175,500 worth of gold bullion bars from Arnoldi in two separate transactions in April of 2014," Newell said in a news release. "In December 2014, (the) victims tried to redeem several of those bars at another gold dealer and learned t...

Apple Watch could use up third of world’s gold

February 26, 2015 at 12:35


If recent reports that Apple plans to sell one million gold Edition units a month are true, Apple Watch could wreak havoc on gold prices and do who knows what to the global economy. Some math on Apple Watch and estimates that if production rumors are correct, Apple will be bidding for a third of the world’s annual gold supply to make enough gold watches to meet demand. To put those numbers in perspective, Apple needs so much gold it could turn the all 7,000 metric tons of gold stored at the Federal Reserve Bank of New York — you know, the one from the plot of Die Hard 3 — into gold watches in less than a decade. Assuming the Apple Watch Edition contains 2 troy ou...

Goldcorp CEO says falling supply will support

February 24, 2015 at 14:29


Supply constraints will hold gold steady in the short term and support longer-term price rises, Goldcorp CEO Chuck Jeannes said. Yellow metal discoveries have been declining since a peak in 1995, despite higher exploration spending over the past decade, Jeannes told the BMO Capital Markets 24th Global Metals & Mining Conference in Hollywood, Florida. Mine development is also taking much longer due to issues such as government restrictions, disputes with indigenous communities, political instability and project economics, with those that do get built taking an average of 20 years to begin production, the CEO said. "When you combine that information and look at...