Goldtent TA Paradise

Stopped Short of a Bull Market…Yet Again

1. Fullgoldcrown says:

   March 4, 2019 - 2:48 pm at 2:48 pm

   Again ?

   Booooo !

2. red label says:

   March 4, 2019 - 10:58 pm at 10:58 pm

   Jordan

   In your opinion at what price level of physical Au and Ag would the big major PM miners turn significantly profitable? I constantly here the jargon fundamentals don’t matter, well they matter to me….and fundamentals probably matter to other investors looking at this space. It puzzles me when a miner (any miner), if and when they do, pays a dividend equal to or exceeding quarterly earnings…..IMO share dilution is a Zero end game not to mention equity shrinks with every Ounce mined and needs to be replaced at some point? Then there is the Jurisdiction and Nationalization risks. The leverage to spot Au & AG of the PM’s where do you see this heading? Do you see any Jurisdictional or Nationalization risks?

   Thanks in advance.

   • TheDailyGold says:

     March 5, 2019 - 2:32 am at 2:32 am

     Fundamentals always matter. People (myself included) will not interpret them correctly from time to time.

     A $150-$200/oz rise in Gold with no cost inflation would be quite significant for producers. Cash flow is a more important metric than profits for mining. For most, I’d bet a $250-$350/oz rise in Gold could almost double cash flows.

     The leverage tends to be the best at major lows and then during significant breakouts.

     I don’t see jurisdictional or nationalization risks.

     Because of the difficulties of the business, its best to be a stock picker with a diversified portfolio. The major difficulty is its getting harder and harder to find low cost deposits…unlike in the 80s and 90s.