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Coeur d'Alene CEO Sees Gold At $1,500, Silver In Mid-$40s "This Year" As Pan American Silver Reduces Production Forecast
That a CEO of a silver miner sees precious metals prices rising, especially on a day like today when silver hit a new 31 year high (and gold is at a record) is not surprising. Especially since that is precisely what happened: "The head of U.S. silver miner Coeur d'Alene Mines
Corp said on Thursday that he "would not be
surprised" if silver prices reached the mid-$40s per ounce and gold
prices rose to $1,500 to $1,600 an ounce this year." What is, however, surprising is that another prominent silver miner, Pan American silver, announced during its earning call that "it plans to produce between 23-24 million ounces of silver in 2011, down from 24.3 million ounces in 2010. The company said it expects to produce between 76,000-78,000 ounces of gold in 2011, down from the 89,555 ounces it produced last year." So despite a record price in silver, the company is unable or unwilling to mine more to keep up with demand? Perhaps the peak [blank] crowd should take a long hard look at silver.
From Reuters:
In an exclusive interview at the Reuters Mining and Steel Summit, Coeur Chief Executive Dennis Wheeler said heightened uncertainty in the world due to geopolitical turmoil and natural disasters, has increased demand for gold and silver as investment vehicles, and will continue to push prices higher.
And also from Reuters:
Pan American Silver said its fourth-quarter profit rose 67 percent on higher prices for all metals that it produces, but forecast lower gold and silver production levels next year.
Pan American said it plans to produce between 23-24 million ounces of silver in 2011, down from 24.3 million ounces in 2010. The company said it expects to produce between 76,000-78,000 ounces of gold in 2011, down from the 89,555 ounces it produced last year.
The Vancouver-based silver miner, which operates in Mexico, Peru, Bolivia and Argentina, posted net income of $46.4 million, or 43 cents per share, in the quarter ended Dec. 31.
This compared with $27.8 million, or 31 cents per share, in the fourth quarter of 2009.
Spot silver prices nearly doubled over 2010, rising from $16.86 to $30.86, as investors turned to precious metals as a safe haven from currencies.
h/t Tim
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BE CAREFUL HERE.
The Cartel is going to try to hammer on the Globex.
http://tfmetalsreport.blogspot.com/2011/03/trying.html
Roger that, in a holding pattern waiting to BTFD.
ah, do we need to ask ourselves if this could have anything to do with the options expiry next week, and the bind that JPM finds itself in?
could PAAS be trying to "do a favor for the gods"....
while CDE's management figures they've been fucked with so many times over the years by JPM that they want a little revenge?
do not underestimate personal motives in this stuff....
and it would be very, very, very interesting to see how many shares of PAAS that JPM owns. .....
very interesting. let's all look that up.....
well slap me upside the head and paint me blue...do my eyes deceive me or does JPM own 1.6Million shares of PAAS......
oooooooo busted!!!!!!!
this is getting beyond ridiculous as these guys manipulate markets, data, and everything else.....
and there is NO accountability. sickening. sickening.
And JPM is probably skimming some of that AG fresh from the mines, meaning that in all likelyhood, PAAS is producing far above their stated target.
Bear in mind that Pan American Silver has switched from trading in the US dollar to trading in the Canadian dollar. Joining an ever growing list of global companies that are abandoning the USD, in favour of less "volatile" currencies.
Turd -
the shit is fucking obvious...right a 12:30 close n london the metals fall off a cliff....
for what??? because of what??? aint a damn thing change relative to global and domestic macro-economic dept spiral but somehow the Fraud Market stays green and the only 2 forms of real money suddenly halt n a clear march to the sky...
fuck all bankers.......
Thing is the price dumps and dumps.. never know when it'll correct
THIS is all you need to know:
http://traderdannorcini.blogspot.com/2011/03/silver-deliveries-informati...
BTFD if it gets to 37.20
already at $37.20!! haha SHEEEEEESS BAAAACCKKKKK!!!
But she is a lot hotter than Jon Nadler.
Yeah, new all time high London PM fix at $1447 and then, WHAM!
This kind of price action shows the desperation the cartel is having these days. All they can manage is a beatdown/retreat. Too many people now know their game plan.
BTFD if you can time the 2-3 minute low. Lol...
YIIII HAAAWWWW
YIIII HAAAWWWW
Shows this cartel, still has a sizable battle hammer to come down in a heart beat, too.
Lehman and Bear stearns gone.
"too many cooks, spoil the broth, bitchez!"
What is shows is what you can do with regulatory capture and bribes. Madoff looked invincible too at one time. This Ponzi will collapse as well.
Dude, HOW the fuck are you ALWAYS first, second, third comment? WTF?! [not hostility--amazement, curiosity & alarm]
Dude, HOW the fuck are you ALWAYS first, second, third comment? WTF?! [not hostility--amazement, curiosity & alarm]
Well, I just got an email from WELL KNOW PM BEAR technical analyst firm to short Gold and Silver around the highs of today - email was time stamped 14:15 EST....Nobody believes in these poor PMs, therefore, we're still good to go for awhile! Yippee
Look at that slamdown right before metals closes
No one seen it comming ;)
You would think someone was trying to paint a chart. ?
Yeah, who knew. Totally news-free scalpling. Beautiful in it absolute viciousness.
Can they paint an outside reversal for the "Metals have peaked" media fodder.
Faux News Headline @ 1:00PM = "Have Metals Peaked" ?
It's not the headline that's humorous it's your viewing choice.
Silly article, this is old news
How dare you challenge the hegemony of PMs on this website! Try 321gold.com instead. It may be friendlier.
It would seem Bob Moriarty was/is short Silver.
http://www.321gold.com/editorials/moriarty/moriarty030811.html
Bob Moriarty is an absolute douche when it comes to silver. He is either living in lala land or has an agenda to keep people out of silver. He is a bombastic arrogant cranky old man. That said, he does think Israel sucks and the War of (t)Error is a bogus scam based on a pack of lies so he's an ok guy with me.
perhaps demand isn't there?
Unlikely based upon other indicators.
However, maybe they don't want to pull it out of the ground now and sell at these prices when they know in 2 or 3 years they can get a whole hell of a lot more fiats for the same metal. With the price going up, they can mine less and still increase income and profits.
Is the bird worth more in the hand, from which it is promptly sold, or more in the bush, where it can be sold tomorrow at a much higher price?
Cog, this seems to explain the contango.
Judging from the Gold and Silver charts, the bird in the hand just shit all over me. :>)
I think todays pullback was just traders securing gains. No big deal the trend moves on.
I agree it could be as simple as that. It's a fixed market but still a market and many sell right before close on the Dow and S&P as well. We can't know for sure.
Peak silver? I think we hit that years ago. The fact that production rose in 2006 is meaningless becuase we don't know what accurate prices were. Peak (blank) is rising cost as supply dwindles. We know supply is dwindling and the cost was suppressed. The realization of the true supplies of silver will shock the world.
Gee. copuld we have ever of thunk that goldbeast had a down day last week, and they needed to do a quick pump and dump?
Like taking candy from a baby, while the baby mama was going for a smoke.
Oh, and you can rig fut option volitility for more premium with their behavior. The mena issues might have cost them a few bucks to contain, even if the whole thing was planned. But, the little tremor in japan may have changed the mix.
If you are not thinking out of the box, then realize these credos are acting out of it.
If you like the upswing, you should love the down-turn. Only then can you survive the coming swing-o-rama with a heart and head intact.
These guys making statement could be talking a play, sending a message, whatever.
The reality is quite simple. What did Gold and Silver do just before and during the great wars.
ORI
http://aadivaahan.wordpress.com/2011/03/24/lets-start-from-the-very-beginning-a-very-good/
In a well managed mining operation lower grade ore is used during periods when the price for the metal produced is high. This extends and actually results in an increase in the mines reserves. This is a pretty basic mining practice for any well run operation.
I would expect all the silver and gold miners to be using as much low grade ore as possible right now. Obviously, when you run lower grade ore through your mill you end up with a lower amount of the metal....for example, if your mill can handle 200 tons per day of ore and you feed it ore with a lower net yield of the metal you are producing, you get less of that metal on an annual basis.
Correct....problem with a lot of Ag miners is that they were breaking even or loosing money at $18....
....with the very notable exception of Hecla which actually has a negative cost per oz of silver due to the bi-metals produced....
Another miner I own has costs running about $3 / oz for silver, after allowing for their lead, zinc, and copper sales. Since the company has good management, I expect they will be mining more low grade ore this year, thus increasing their reserves, but also increasing their production cost per oz. and decreasing the number of oz produced due to the mill capacity.
Hecla was not in great shape for a while. One of the very few miners that were making money when Ag was ~$14 was Impact Silver, a company that I have touted here on a number of occasions. I am currently looking at a 16-bagger on the shares I still own.
BTW, I prefer the Hecla preferreds, HL.PRB, not very often you get convertable cumulative preferreds in a PM company. There is plenty of pure equity exposure elsewhere to be had
And yes, the smart miners manage their ore in such a fashion. By smart I imply the ones that I want to own!
Eh, what do you do? I ordered at $37.96 today for my regular monthly order. Need to learn to take my own advice and buy at the end of options/futures expiry. These rises just have me scared, I guess.
The truth is, I want lower prices. The lower the spot price, the more impossible it is for these jokers to cover their shorts with physical, and the sooner this charade is over. If physical silver is not delivered, then it is a default, and the exchange will no longer be used to influence the price of physical.
T,
Next Tuesday is "Roll" day for the March 11th contracts
That is what has me scared.
Who knows what will happen in the short run?
Your scared of gold bears that's for sure! Drink the rootin tootin raspberry and watch the metronome tick HAhahahahahehehe
Way to be incoherent, Willy the Loser.
What a douche, moron "the bastard" had to change his name.
William you Fucktarded Bastard/You Wish You Had A Long Juan:
It is way too early in the day to be drunk dude. We all know your trolling job isn't going well, but either sober it up or get into another line of work.
....That is what has me scared.....
tmosley
In all seriousness, you've repeatedly said that price doesn't matter. So why does price matter today, and why are you scared?
By the way, I know you'll think this is antagonistic, but it's not. For months, I've been trying to learn why price doesn't matter, so I'm just curious when I see a contradiction of sorts. I'm hoping you may be able to provide some good advice why today is different - that's all.
In virtually everything I buy, price matters quite a bit. Am I wrong?
Nowhere near peak silver yet... but, the number of mines currently operating is peaked for now and new ones take time. This rise in price will bring some formerly marginal properties into play.
Ratio of Au to Ag production is 1:9
Crustal ratio is 1:16
IIRC ~25% of Ag production is basically investment, whereas ~100% of Au is. This implies 1:36 ratio of production going into investment.
Draw your own conclusions....
Silver has been mined for 6,000+ years. The USGS tells us that at CURRENT rates of production and use (not including new technological demand) silver will no longer be able to be economically mined in 20 years. If the world uses silver at HALF the rate as the US does it will not be available after 9 years. How in the world can you claim we are nowhere near peak?
Perhaps in the life of a nat!!!
I don't buy the USGS on Ag... Au is another story. And by nowhere near peak, if industrial demand requires it, we can produce lowish grade ores that are not viable at current prices and increase production for a few more years. As a rule of thumb, your ore grade has to be worth $150 per tonne to be viable, that is currently ~5 oz or 150 g/t. Profitable Ag mines are currently twice that along with Pb, Zn, Cu credits to boot.
Compared to peaks in oil and gold which are now, Ag does have a few more years.
If you don't buy the USGS numbers what numbers do you pull reserves from?
I evaluate junior minining companies as a vocation and advocation. There is a lot of low grade ore out there. Double the cost of extraction to $300/tn and at $80 Ag you need 100 g/t to make a go of it...
Remember what USGS said, "economical", this is not same case as oil or Au where the bottom of the ore grade barrel is being scraped.
"I don't buy the USGS on Ag"
But you do buy the government figures for oil?
Nope, the USGS is full of shit on "oil" at least their magnum opus report in 2000 was....
a peak is when production peaks. That's it.
if silver production peaks then starts to decline, we have "hit peak."
The production ratios versus crust ratios suggest that gold is in production decline, although the 2009 production figures seemed quite robust.
think that this latest lift in the market is def. a shorting oppty!: http://www.hedgefundlive.com/blog/recent-march-rally-a-shorting-opportunity
Still think we're going to see " a surprise " "crash", involving all/most asset classes!
Not mining more PMs is clever, either I keep the price up(low supply) or expect demand
to go down, even if temporary, thus protecting "gains", this makes sense, for the miners! That is!! :))!
Major reversal day in Silver signals price peak and a fresh downtrend. LMFAO!!! Buy more Silver dummies.
yeah, u can always tell a debt coupon dollar (read: broke mother fucker) matrix pugged n sheep by their ignorance of what is "real" money...
now, off to the dealer for some more rounds......
He's a troll and is jealous. Can't get it up, let alone get out of his wheelchair.................
Why? Do they have an Unclebigs silver round now?
Got most of mine under $16....how 'bout you dummie?
I still have smoke coming from ears due to the fucking crimex gold close slam. The metals are the most manipulated market traded today --- and that says a lot! All the markets are a fucking scam, but metals take the cake. That being said, what an obvious sign of desperation in the metals. Absolute fucking panic about new highs. The wheels are starting to come off.... the manipulation used to be clever. Now its life or death with no disguise.
F*** them all, keep buy bitchez!
THey're freaked out about the demand.
If it gets any worse, they may make it illegal to own it.
But, so far they think they can handle it in the paper venue, while they are loading up the physical, out the back door.
"JPMorgan Chase & Co., which accepts physical gold as collateral for trading securities, has become a custodian of Comex silver inventories, according to the owner of the New York exchange.
JPMorgan has 30,844 ounces of silver eligible for delivery as of March 22, according to Comex, a unit of CME Group Inc., the world’s largest futures marketplace. Total holdings in exchange-monitored warehouses were 104.27 million ounces, the data show."
"“This is further indication that gold and silver are being treated more like a currency,” said Matt Zeman, a market strategist at Kingsview Financial in Chicago."
http://www.bloomberg.com/news/2011-03-24/jpmorgan-holding-30-844-ounces-...
I don't get it. That is NOTHING. A couple of middle class nesteggs, at best.
Are we supposed to take this report seriously?
LMAO.
You're absolutely right, but what dumb ass muthafucka would trust JP Morgan with their silver?
Holy bleep! That's like 101.7 MILLION pennies!
Great article from Dan Norcini on WHY BANKSTERS HATE GOLD:
http://traderdannorcini.blogspot.com/2011/03/why-central-banks-of-west-h...
As they are playing games hard today with PM prices.
Headline just out !!!!!!!!!!!!!!!!!!
"Coalition forces secure Kadaffy's 145 Tons of Gold "for" the Lybian people"
?
To fuckin bad he didnt have any silver bitches because thats whats going to spoil there party, not so much the gold....Ive got a hot tip for them though, the silver that they are looking for is in all the lanfills around the country since they thought the thing to do was keep it depressed so long to save face on the dollar,they did such a great job that it wasnt cost effective to recycle...
Trying to spook a secular bull with techno weeny goblin manipulations.
He meant silver at $1500
PMs are tracking oil closely. If Ghaddafi capitulates (as the US gov is determined he does, in a "matter of days"), then you can expect a fairly large pull-back in both oil and PMs. THAT, along with the recent highs, and the expiry dates approaching, is a reason to sell.
If there is peace in the mena the spx will get hammered
Guessing where the price could be in dollar terms is tricky isn't it? After all no one knows how many Fun Bux Zimbabwe Ben will summon into existence between now and the dreaded 2012, probably not even Zimbabwe Ben. Or if there is delivery problems what that could do, a lot of spinning plates right now.
Personally I'll just keep buying until I see fiscal prudence from the US Gov and a legitimate strong dollar policy from the Fed, or a fiat inferno. Whichever happens first.
Anyone got the nerve to short silver here?
I did... and still do. Trade silver, do not buy and hold.
Hah...please share how you could possibly trade the above chart. You're no fortune teller. Buy and hold is what this chart proclaims.
Short? Hell No. BTFD? Hell yes.
I do have the nerve and I did go into ZSL yesterday. I truly did not think TPTB/ the EE would allow 38 silver calls to be exercised, especially on a Thursday or Friday before expiry. I was wrong about that, and before anybody thinks I'm bragging - I'm not - because I'm not "right" yet in my trade as I'm not yet in profitable territory as of this moment. PS I nearly shat my pants and had a heart attack when silver broke so strongly through 38 this morning.
I do think we are going to see more manipulation and downside going into Monday. I'm looking to unload ZSL tomorrow and I have no idea what I'm going to do at Friday close - right now I'm thinking cash and wait to BTFD in the 35 and change range (35.50?). But since now 36 is the new 34, I may just not get that chance at 35 and change.
Well what do you know - no sooner did I get done typing that "I do think we are going to see more manipulation and downside going into Monday" than I found this on Turd's blog:
http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-103.pdf
See page 12 for info about the brand new silver margin requirements hike. What a bunch of fucking criminals.
What are we now 3 for 3 in 2011 (one hike per month)?
Those squiggly lines be not the trails of the precious, but some paper pontificating portraits of ponzi. p's are wild.
I am sure JPM will send an enforcer to find out if they are "holding out" on the tribute and selling some on the side for real profits.
Robo, how about some videos of young women dressed in silver? Is that doable based on your clip library?
an oz of hundred dollar bills
for an oz of silver
1-100 bill..
weighs
1 gram
Predicting mid-40s silver? Does it get any fucking more obvious?
Honestly, I don't know how you guys do it...
4/5 times I have a cocktail with my roommate while we do "homework" (I mostly reading ZeroHedge).
All this doom, it is really hard to deal with!
Yet, once again. Markets UP! you cannot make this up.
When is the collapse coming?
When the word spreads like wildfire.
thanks
IMO-
Try to divide your time, give yourself some space to live.
The world has been on the edge of collapse for my entire life.
From 'duck & cover" nuclear attack drills in grade school, to the Cuban Missile chrisis, on to the killing of JFK and MLK, to Three Mile Island. We had the wrenching Vietnam era, the ravages of the inflation in the late 70's. Oh, it went on and on. Such a jumble of cliffs to fall over, I can't keep them all straight. Nixon, Chernobyl, Kuwait. One endless stream of destruction of 'life as we knew it'.
But, in spite of it all, time continued on it's unalterable course.
And for most, there was a time to live.
People fell in love, had children, buried their parents.
Don't let the end of the world overwhelm your life - live your life and overwhelm 'the world'.
Prep best you can and hope the collapse never comes. Tom Petty was wrong, the waiting is not the hardest part. Collapse could take years in coming. Gut tells me it's 2013 with a big wind up in 2012, but who knows. The guys running the scam are not dumb and know how to manipulate the mass man. So the final will not come till all the assets are stripped from the US/West. IE my "Oh shit!" sign is a seizing of the 401k and IRA accounts by Uncle Sugar. We are still early in the bankruptcy book, so relax and realize while things may get worse the bad times are still a ways out.
These are the good old days, enjoy them.
I am looking for a top soon in the "markets". Either that or the dollar will slip into oblivion.
the collapse is not coming.
You read about Rome, right? It collapsed. How long did it take to happen versus how long to read about?
I think you are probably correct. Rome is probably the best comparison. People keep attempting to compare this mess to the 30s, then when
The inflation trade comes back it is the 1970s or Zimbabwe.
.
you drink while you are doing homework? better man than me........
The markets up is a sign of the collapse. It's not the metals or equities that are going to collapse. It's the dollar. The markets screaming up with this bullshit backdrop is telling everyone that printing can't stop. I agree, its a mind fuck to watch.
Well this is entertaining and worth a chuckle:
CNBC headline reads "Meredith Whitney Cuts Forecast for Morgan Stanley; Shares Lower"
She cut earnings per share from 59 to 35. However, here is the fun part - according to CNBC "Reasons for the cut remained unclear; a copy of the note obtained by CNBC offered little supporting evidence for Whitney's revised conviction on the mega-bank"
This is just great, fun news. Looks like JPM is getting fucked hard by PMs, but heaven forbid anybody at CNBC report something so blasphemous as that. We can all hope that Blythe is out of a job soon.
No word yet on when Meridith will be called before congress for this her latest treasonous, national security threatening, terrorist statement. I bet they have a special place at a FEMA camp picked out just for her.
http://www.cnbc.com/id/42251634
Former WWE champ, John Bradshaw Layfield, better watch her back..
Pan American has supply issues, they have not been able to meet the demand.
Stated so publically several weeks back.
Liek i"ve said many times, the long emergency is fucking long so if you aren't short some - you should be.
At least a little to proetct yourselves.
The MAN is scared and if Turd's 36 buck thing is true then all teh reason to wear some protection. Remember 2008, that was fuggin dugly for silver.