Jim’s Mailbox

Posted July 5th, 2015 at 4:50 PM (CST) by Jim Sinclair & filed under Jim's Mailbox.

Jim,

A curious development over the past few years.

Gold producers were profitable and had significantly higher share prices when gold was trading at $300 and silver at $4.00.

What happened that made their operations unprofitable at 4x the commodity price?

CIGA Wolfgang R

Dear Wolfgang,

Lousy financial management as it is mainly technically able but financially weak.

Too much money spent on high tech extraction of gold and silver forcing cost of mining much higher.

Most metal advisers who are also in the bullion selling business like to buy gold but not shares. It has to be a popular mantra by those that plagiarize.

Big money personalities in hedge fund manager’s control were babies in diapers in the gold bull market 1970 – 1980.

There simply is no public retail in anything anymore, only momentum traders, systems and algos.

Machines trade markets but by definition must reflect the proclivity of the builders. The bullion market is presently in the hands of government’s policies, not driven by investment decision such as China and Russia versus the Fed.

Jim

1. 1
2. 2
3. 3
4. 4
5. 5
6. 6
7. 7
8. >>
9. Last