GREY:TWNNF - Post by User
Comment by
gamblor77on Jul 18, 2011 8:34pm
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Post# 18844787
RE: RE: RE: Re: Gold in the Ground
RE: RE: RE: Re: Gold in the GroundIf ONE MILLION PERCENT was a real number that's the amount I agree with you BARN. I am not one to believe in conspiracies but it seems absolutely f*cking RIDICULOUS that the price in the ground would still be $45-100. This is NOT coming from the perspective of a poor, lowly junior investor wondering "WHY is my moose pasture, turd stock not worth more?" like I've heard from many others on the bullboards. It is PURE REALITY and the junior explorers are getting absolutely raped and exploited pure and simple.
These big players like GoldCorp and Newmont and Barrick and Nova and others NEED gold to keep up their inventory and reserves, that's a fact. Somehow, some way the price of gold in the ground is still being kept down because of some overseeing body (or bodies) keeping the price down. YES I am outright saying there is a complete conspiracy going on and it comes right down to price fixing and the major players screwing the little guys and junior explorers and miners.
When they talk about "price of gold in the ground" they are actually referring to their risk/reward. How much are they willing to pay for the gold that "might" be in the ground and also how much risk are they taking with their mining costs if gold takes a downturn over the next 5-10 years and they still need to produce. Which is understandable and good business sense generally.
However what is NOT understandable is the fact that the more that gold increases in value the less downside risk there actually is for the Goldcorps of the world. If they keep their price of gold in ground constant their risk is decreasing as gold goes up and the Junior miner's risk is increasing because they now have to fight against the 500 other juniors and their dogs to produce outstanding results to get bought out or even get fair value. It's absolutely ludicrous and frustrates the living hell out of me some days. When is something major going to happen that breaks this price fixing crap and gets the ball rolling in the right direction of at least 1/2 of the fair value in the ground?
If the estimated cost to produce is $500 per ounce the potential suitors have now padded their risk by 70% before they "might" not make money. With the world economy in such turmoil and all the paper money being next to worthless now, gold is the one tangible currency left.
For us to get back to $500 gold there would have to be the equivalent of the 2008 market crash but in reverse, like a market explosion of epic proportions created by some new form of wealth creation and re-balancing of the financial sh*t storm that is now our reality. GOOD LUCK!!!! That's all I have to say.
All we can do is keep hoping that the big producers eventually feel some pressure to buy and begin to pay proper risk/reward ratios for the gold in the ground and only then will the junior metal stocks see the 200-500% across-the-board increases that we've all been hoping and waiting for.
GLTA.
Gamblor.