Gold: 1187.40 -15.30▼
| Silver: 14.34 -0.29▼
| Platinum: 818.00 -3.00▼
| Palladium: 1074.00 +5.00▲
Close Mon 8
Short Sellers Beware: Gold “Must Go Higher” – Edelson Institute
David Lin
Monday October 08, 2018 15:49
(Kitco News) – The cost of acquisitions has now fallen below the cost of exploration for major miners, and gold prices could benefit from a dwindling resource supply, this according to a recent report from the Edelson Institute.
Sean Brodrick of the Edelson Institute said that if gold prices don’t advance higher from here, many miners are likely to go out of business.
“If companies go out of business, and the only ‘new’ gold ounces come through acquisitions, that means gold supply will go down. And as surely as dawn follows night, prices will go up,” Brodrick said.
His comments come as Barrick Gold recently announced a merger with Randgold, forming the world’s undisputed largest gold miner.
According to the report, the cost of finding gold through exploration has climbed eight-fold since 2007, and gold miners are using up the resources in the ground.
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“I mean, gold isn’t a renewable resource. That’s why Barrick bought Randgold. Barrick’s gold reserves fell by 25% in the last year alone!” the report.
Brodrick added that the Gold Bugs Index, a basket of leading miners, is at the most discounted level since 2015.
“There’s only one time that miners have been this discounted, price-wise, since 2002. And that was in the depths of the bear market in late 2015,” he said.
The VanEck Vectors Gold Miners ETF (GDX) has fallen by 21% since January, while gold has declined 7% in the same period.
“Surviving gold miners are becoming lean, mean, digging machines. They’ve cut all the fat. The good ones are making money, even at today’s prices. And when prices go higher, well — select miners will see their profit margins widen like the Grand Canyon,” the report said.
Brodrick added that on a price-to-earnings (P/E) basis, miners are very attractive as investments.
“Again, the only time gold miners were cheaper on this basis was in the depths of the bear market in 2015,” he said.
By David Lin
For Kitco News
dlin@kitco.com
www.kitco.com
#1 Stock to Own in 2018 – Niche Expected to Surge 8,000%
Sponsored By Banyan Hill Publishing
Tech expert Paul Mampilly just unveiled his No. 1 Investment for 2018.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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Monday Charts for Gold, Silver and Platinum and Palladium, October 8
OliveRadio
1h
ouch, thats gonna leave a mark
Gold, Silver Prices Pop On Safe-Haven Demand
RedBlowdryer
6d
Boom the rally started today
Ignore Gold’s Noise; Coming Recession, Weakening U.S. Dollar To Support – Tocqueville
NewYorkNewYork Ny
5h
If % Stock Market Loss larger than USDX % gain by end of day, Stock Market could continue slide.Friday – Bloombert said: a stronger, more flexible yuan should be the victory condition in Trump’s trade war with China.China Fooled US (FU). They triggered a paper metal decline early morning, the NYMEX paniced and supported it.China printed new money out of thin air, and will use it to buy cheap industrial physical metals (especially silver). China showed they do not need to be Pegged to the USD.
More Evidence Of Manipulation In The Gold Market
SineWave
3d
Avi, your assertion that markets are driven by sentiment and not fundamentals is correct. I have lived long enough to see this firsthand and it is historically well documented. This is why I don’t understand your obsession with discrediting claims of manipulation. If there is no manipulation, but people believe there is, that is simply another input of many that form sentiment. If there is manipulation, the same applies, so there is no contradiction between your sentiment based approach and manipulation, be it true or untrue. It is, however, hard to believe that a central bank running a completely fiat currency system has no interest in keeping a lid on the price of gold in that fiat currency. After all, confidence in that currency is all that gives it value.
Money Managers Trim Bearish Position In Gold Slightly
NewYorkNewYork Ny
6h
Total Denial of foreign Central Banks accumulation of physical gold? Paper Gold, Silver, Aluminum, Lead… must stay below the 50 day moving average until the November election. Any discussion about infation, employment, debt or markets is not in the interest of an election. Last Friday on Boloomberg TV, a News Alert – the President of the NY FED made a personal appearance.He stated inflation will only rise 0.1% over the next couple of years. Metals required in manufacturing are based on paper traded futures (CFTC). The FED’s announcement might be taken as a whatever it takes. Mines need loans, they must sell at the bank’s set prices. It is the new version of working for the company store song. You younger people can Wiki Sixteen Tons a song written by Merle Travis about a miner aroundhte 1920’s. At that time, banks controlled the mines, the mines controlled the workers with NY Prices set and extended credit.Well I went to the office to draw some script The man, he told me was a wreck in the dip. To clear the tracks would be a week or more But your credit’s still good at our company store.
Gold, Silver Prices Down Despite Some Risk Aversion
silvercoin
8h
Thought Friday that $1200 was solid. Guess that meant at least for 48 hours while the markets were closed. It will be interesting to see how far down gold can be beat now. Show me a point they can’t push it down any further. It’s hard to believe silver could go much lower BUT, these day’s are hard to believe anyway.
U.S. Treasury still concerned about yuan depreciation: official
NewYorkNewYork Ny
4h
Concerned? China Won this round. Friday Bloomberg said: a stronger, more flexible yuan should be the victory condition in Trump’s trade war with China. China pulled two things. Printed more money and then dropped the price of silver and othe rmetals on the world market. As expected NYMEX supported the drop with more paper contract selling.China has freshly printed cash to take those metals at a discount.NASDAQ sold off 5 times the rise in the USDX. Did Kudlow still want a stronger USDX? China wont even schedule a meeting? Better send Kudlow over to China… as a student to learn from the masters .
Emerging markets ‘as prepared as they can be’ for U.S. rate moves: Fed’s Bullard
GoldPlane
7h
EU next then the sheet will hit the fan as sure as night follows day. All the Russian deflection crap will stop soon enough when there are real stories doing the rounds.
Where are the Stops? Monday, October 8, Gold and Silver
CyanSushi
1h
I think you need a little wider band. Some of the $1180’s are gonna get through there today
Gold, Silver Prices Pounded By Strong Dollar, China Worries
CyanBandAid
3h
Wyckoff can’t tell the truth it’s not in his script.your right though funny how when the dollar is down the metals don’t react but when it’s up it’s all about the dollarJim your as bad as Jon Nadler. These guys keep putting out garbage while the east is taking all the physical metals.the west is being sold out as I type
Tuesday’s Predicted Daily Price Trends for Gold and Silver
OrangePizza
1h
I predict $1180 tomorrw
Gold Is Not Budging In Front Of Strong U.S. Economy, Rising Bond Yields – Analysts
PurpleBattery
3d
just another set up for a smash next week. metals barely up but the XAU and HUI down ……….Can you spell paper smash coming next week.
Bloomberg Intelligence: Gold Resilient During Five-Year Dollar Rally
NewYorkNewYork Ny
5h
USDX gain due to China Sepping Back. The USD purchasing power continues to drop.China created more currency and will buy discounted commodities Bloomberg also reported Friday a stronger, more flexible yuan should be the victory condition in Trump’s trade war with China. Surprise! China Fooled US (FU). China pulled an End-Run around the US financial system. The yuan is now no longer pegged to the USD.Watching: IF NASDAQ, S&P, and DJIA all drop by close of session more than the USDX gained: China’s currency action wins! Those who sold stocks this morning – then buy discounted metals later today….
Gold Remains Solidly Above $1,200 Following Today’s Job Report
CyanLeaf
2d
Today: Interest rates up, stawks down, gold upYesterday: Interest rates up, stawks down, gold upSee a pattern?The short nutz have been fooled into believing higher interest rate equals lower gold. History shows that is wrong.If interest rate was solely responsible, then the Argentina currency with 60% interest rate would be shooting up to the moon and gold would be plunging in Argentina. It is not.
