Saturday, June 29, 2013

CNBC - "Should gold have ever been $19/oz in the first place?"

OMG where to start with the baboons attacking Peter Schiff and gold. Watch out for the first clanger when the host says "should gold have ever been $19/oz in the first place?" - um well gold hasn't been $19/oz since WWI. Then he finally admits "how about the fact that it’s darn easy to sell these days because it’s just a piece of paper and a computer transaction.” - Yes exactly people are selling paper gold and more importantly they are shorting paper gold.

On Peter's comments about inflation and gold mining, I think it is very valid point, when prices for gold were lower 10 years ago so was oil and more importantly gold ore grades were higher. I think $1200 is a good estimate for cash costs. If it wasn't why is Newmont shutting down gold mines in Papua New Guinea and laying off staff in Australia?

Quote of the Week

Brother JohnF - Undervalued Silver

From BrotherJohnF