This page has been archived and commenting is disabled.
Gold Drops Below Its Average Cash Cost
As shown two months ago, the marginal cost of production of gold (90% percentile) in 2013 was estimated at $1300 including capex. Which means that as of a few days ago, gold is now trading well below not only the cash cost, but is rapidly approaching the marginal cash cost of $1104...
Which means that of the following mines (as we showed here) which make up the gold cost curve, one by one, starting on the right and going left, production is going to go dark, even without the recent demand by South African gold miner labor unions to have their wages doubled. Until eventually virtually no gold will be produced.
It is at that point where one must apply the New Normal supply and demand curve, when one can predict a $0 per ounce price for gold, as physical demand continues unabated, while actual physical, not paper, production has now started going offline.
Joking aside, not even Bernanke and all the paper Gold ETFs in the world will be able to do much to suppress gold prices from reaching their fair value when gold production hits a standstill, and when demands, especially by China, is still in the hundreds of tons each year.
»
- 102496 reads
- Printer-friendly version
- Send to friend
- advertisements -
>> I go every spring for opening weekend to help.
If something were to happen to my significant other, which is always a possibility, I've seriously considered the work the Alaska season routine. I had an RV friend who went up every year to work in an RV and fishing camp and loved it.
Is not a lot of canned tuna not tuna, but some related fish that causes anal leakage amongst other maladies?
Essssscolarrrr
Escolar. It's billed as "white tuna", but my understanding is that it's more typically served at restaurants. I'd have thought canned fish would be too easy to trace.
If the dog is fat, it is time to eat the dog.
Feed the cat to the dog. The roll the cat food money into dog food. Everyone wins.
Except the cat. But who give a shit about the cats. Unless they are your wife's.
+100
We have three cats. One is OK, one is weird and useless as mule tits, and the third one shits a foot in front of the cat box. If TSHTF, they're food for my two dogs.
im actually long on mule tits.
You need another litter box.
Shoot the dog !
http://www.youtube.com/watch?v=irkQlR-b-nA
@0:18
Problem solved.
( Think of me as the Paula Deen of animal rights.)
Greatbeard......
The fucker has problem with the english language, can you trust that?
Yep, bought dog food today, $50.
On another note, looks like Weiner is going to win mayor of NYC. Can you believe that shit? Fuckin Pedophile!
I moved into a safer, larger, cleaner, cheaper location just across the river from NYC. Fuck you new york, the state and the city.
You will NOT get my money for taxes.
You will NOT get my money for eating out every night.
You will NOT get my money for fucking anything.
Fuck you Bloomberg, Cuomo and all you lefty fucks!
CUNTS!
Agree with all your sentiments, but...
RE:
"I moved into a safer, larger, cleaner, cheaper location just across the river from NYC. Fuck you new york, the state and the city."
Across which river from NYC do you find a lack of lefty fucks?
Just curious.
I would have guessed one would need to get well into Appalachia, at least, to get away from that.
I think by "river" he meant "the Indian Ocean".
Nah, he meant the River Styx.
There are plenty of libs over there, but they aren't in charge, and are well contained.
lets just say a more family friendly area with a certain qb living in the same building.
Maybe not completely void of the takers on the other side of the Hudson, but it's a better choice for us needing to stay close to the chaos.
Maybe when the city burns, I'll only stay warm.
What NJ people don't either realize or face is, without NYC, they are Pennsylvania without the coal.
Correction, New Jersey is Pennsylvania without the coal and tons of toxic waste.
Come on. NJ's got plenty.
Does The Garden State Parkway still stink?
I have tomatoes. You can't have any.
Edit for Mr Thomas; certified organic, and the soil has been tested. The dirt is good enough to eat.
However, it is true that NJ has been the recipient of NY's toxic waste for years. Just look at Snooki.
Hey now, I've got NJ cred, I swam in the Hudson river, I'm a river rat. As a young man I could remember sitting perched on an oily cube of styrofoam underneath the GWB thinking I was like some Huck Finn character. Unfortunately they didn't have flotsam and jetsam of tampon applicators and hypodermic needles in Huck finn. Like Carlin said, "We were tempered in RAW SHIT!"
moving in NOV. hipsters and fags took over....and look what they did to the place!
"hipsters and fags took over....and look what they did to the place!"
I lived on 16th in Chelsea........next to The Grey Dog.
Ironic
At least I have my memories.
"Took over" ... from who, the previous hipsters and fags?
NYC has been around for quite a bit longer than most know. I remember getting handed a flyer for a strip joint in midtown while walking on the street ... I was 8 years old at the time and with my mom ...
Lots of youngin's haven't been around long enough to see the cycles in things. They are defensive because gold is in a dive. They need to think on longer terms.
I thought you know NY. Actually they've taken over former minority neighborhoods, driven up the housing costs and as a result driven out the former residents. So you could say there's a racial element to the liberal takeovers :)
How about this? You're full of shit and don't know what the fuck you're talking about. Show me anyone elbowing out the Chinese south of Delancey or the Latinos from the towers on the LES.
One can easily say it's the tower people and the NYU dorm crowd displacing the low rent nabes in alphabet city and the bowery so forth. You show your magazine "knowledge" on the topic.
NYC is bigger than Manhattan genius. Get off the island and drive thru the other boroughs recently taken over by Hipsters. If you don't drive, walk to the east river and look across the other side. Jeez, I even have to educate libs to what's happening in their own home town.
Yeah I live in Queens, ya mental rental. The five b's are bigger that billyburg. Can you even spell Staten Island. [just gave you a hint]
Stop up arrowing yourself.
Ever hear of the hipster neighborhoods in St. George, Tompkinsville, or Stapleton on Staten Island? You really need to stop thinking you know so much. It's probably why you're still broke and stuck in Queens. BTW Queens is one of the worst places in NYC to be in during a crisis, but you already know that cause you know everything.
I can attest, Queens looks pretty awful. What could induce people to pack in like that?
South Brooklyn??
I hear Newark is beautiful this time of year.
There is both. Silver and gold are both saying deflation.
Deflation spells mayhem for the central banks of the world. They will fight deflation come hell and/or high water.
We haven't seen anything yet in terms of REflation.
I sold off much of my gold when it crashed through long-term support at $1,550. I've been sitting in cash ever since, but waiting to buy more.
If it goes under $1,100 then I'll be buying with both hands.
Got to bust your balls here. You (and countless others) are confusing inflation with MANIPULATION!
Ain't no inflation in any of the aforementioned points you reference, but the lack of price discovery sure makes them ripe for manipulation and that is precisely the cause.
Look around, prices only go up is pure horseshit -- prices go up until they don't.
And for those that think that prices have anything to do with supply and demand you are totally wrong. It's all manipulation and nothing but. Everything on fraud street to your pack of bubblegum is synthetically priced.
Money is dead.
The article fails to make the distinction between the marginal cost of mining physical, or the "minting" paper gold. The two are very different things.
"BUTFT" Love it.
Almost traded an AGE for a Rock River Arms complete package today at the local black market... hmmm, maybe next week?
Tyler's: PLEASE REPOST
Taken from Jesse's Cafe Amercain
"Listen to this incredible audio recording of a speech made by JFK before the American Newspaper Publishers Association where he warns the press about the secret societies that are the real power in global affairs."
https://www.youtube.com/watch?feature=player_embedded&v=xhZk8ronces
btw... Each time I post to Facebook, the post is then removed...fucking scary
The fuckup behind him oversaw his death, too. Look up a banned (as in cease and desist distribution) of a video series by Nigel Turner called The Men Who Killed Kennedy. He put out two separate series' and the latter was revoked due to pressure from the deceased Johnson estate.
The coup Kennedy spoke of has been in charge since taking him out -- first symptom (same as the last) is/was Vietnam. Rinse and repeat.
Interestingly, non other than George HW was present at the schoolbook depository that day, too.
No one knows why the secret service was abruptly called off the motorcade (watch the footage of dismayed officers).
The United States is not anything close to what you think.
And one is supposed to trust "their" markets??!
The Russians know and Vlad has Snowden. Pax Americana has ended. We're entering uncharted territory geopolitically speaking. Old fried chickens are finally coming home to roost. With them, a shitload of worthless US Dollars. Currency wars spelling reset all over the place.
most youtube videos you try to share don't show up by default on your facebook timeline.
you have to go to your activity log, then ensure "show on timeline" or "highlight" post.
Re: 'Secretive' Societies
Cue Chindit13 polemic featuring an epistemological ad hom' a la Sir Conrad Black, starring Alex Jones as 'The Strawman', and topped off with a thinly sauced red herring salad.
the lack inflation
Lack of inflation? I'm guessing you don't run a mining operation, nor a household. Go buy a bag of groceries and then tell me there's no inflation. Got a cat or a dog you buy food for? Eat canned fruit? Go to the doctor? No inflation? Seriously?
Wait for the soon rising interest rates, the Fed cannot stand even a 1% increase.
You can bet your rear that EVERY household in the East is scraping together every dime they can and are waiting for the bottom.
Prems are already 30-40% higher than just LAST week.
We are a long way from inflation. The central bankers have worked hard to get inflation. They have failed.
The only inflation I see are the many bubbles. No, deflation will be the game for many years ahead.
Who the fuck eats canned fruit? Yuck.
MIT's Billion Prices Project show inflation continues to creep up:
http://bpp.mit.edu/usa/
greatbeard "Lack of inflation? I'm guessing you don't run a mining operation, nor a household. Go buy a bag of groceries and then tell me there's no inflation. Got a cat or a dog you buy food for? Eat canned fruit? Go to the doctor? No inflation? Seriously?"
The fallacy of your argument is this. Even the poor (those below the poverty line but not on the street), have a greater standard of living then the wealthiest of over a hundred years ago.
In other words, someone today, that is below the poverty line, might have a microwave, a big screen TV, an Iphone, maybe a car and their standard of living is better then a multi-millionaire of 1913.
So once you understand that, you might understand we are in deflationary circumstances which perfectly fits in with PM's decline.
I do advocate holding some PM's and overall, I do think PMs will rise relative to other markets. But you have to understand that might mean all markets are falling, including PMs and that PMs are falling less then other markets. That is what happened after 1929. For a period, cash became king as people had to service debts and you can't deny we are in a high debt society. Since most debts can't be settled by PM's, but have to settled in dollars, then you only have to use logic to see everything would be under selling pressure to raise cash.
"In other words, someone today, that is below the poverty line, might have a microwave, a big screen TV, an Iphone, maybe a car and their standard of living is better then a multi-millionaire of 1913"
The fact that you could even make that statement proves that you are an utter and complete moron.
That's why i try to stick to governmentaly subsidised food stuffs(drugs) like beer. The price is always constant because as long as you're drunk, you wont do anything about anything.
(paragraphs deleted for lack of utility).
+ people seem to block out inflated asset prices from their 'perceived' level of inflation in the economy....unbelievable...like the equity / bonds rally are driven by significantly higher expected real returns...or improved economic conditions reducing credit risk.....unbelievable....so many trolls these days....
just gonna leave this here.
And I'll leave this
Yes Bernank has found a new reason to keep pumping....that being even a hint of easing off proved totaly disasterous.
Gold... "but it is still valuable as a disaster hedge."
When does what we have qualify as disaster?
ZH's incessant touting of gold has probably done massive damage. with the quarter ending and no one wanting to show any metals in their holdings the crash may be coming to at least a short term end. as for inflation, some areas of price inflation are apparent, others show a deflation (electronics, clothing, fast food) so it's not easy to generalize. like real estate specifics make a big difference (detroit/manhattan). since no one can predict anything-either diversify and hedge or don't get involved.
The gold rout continues. The PAPER/Derivative gold rout continues.....there...now it makes sense
You have to consider the reserve currency as dead and this as the hard herd riding to enforce dominion...and to hurt the weak so they cough up some physical. Fed simply can't stop QE. Japan tried and failed. No gov't historically once committed to the print can back off. Taper only leads to greater effusions of thin-air bux when the contraction is amplified.
Problem is anyone with any surplus didn't get it being a pure idiot...and they know an end game when they see one. Only debt and newly printed vouchers are sustaining the Ponzi. All the smart money that wasn't smoked is diversified in hard assets. Most of the middle class I know who get ahead at all don't drop Fedbucks in the safety deposit or hole in the ground, it's all PMs. The plane engine is sputtering and the captain and crew wan't you to trade in parachutes for drink coupons.
I worry about collapse of the reserve currency, war, and cross industry market crashes simultaneously. Or coordinated global currency revaluation.
When it comes you'll find no more room at the inn.
looking for 1210 and 1180
then 1550
then back down for October
then
the moon
No offense, but I highly doubt we see those numbers. Gold seems to tumble down 20-$100 a day, but when it gains it goes up a lot more slowly (at least lately). I think gold may remain lower at least until mid 2014. Now if the article is correct and the gold producers stop production, premiums on coins already minted (physical) could explode.
Gold producers don't seem to understand that, in order to stay in business over the long term they need to sell for more than the all-in cost of production. I think maybe the operate on the assumption that their cashflow comes from equity issues, so actual profits are optional.
There may be some "consolidating" in the gold mining industry then. Stupid businesses go broke..
And by 'stupid businesses' I assume you mean 'all of them'. Never have I seen an industry run by a more unsavvy (and/or crooked, take your pick) group. There must be a special test you have to take before you're allowed to run a mining company, or maybe they only hire out of the 'special education' classes - you know, the ones where you get a gold star for showing up and 'for just being you - because all of us here are ALL special in our own way!'.
I wonder if they are stupid or are just an extension of the banks and knew their role in this game all along.
Yeah, I agree, that's why I qualified it as 'stupid and/or crooked'. Barrick for sure has been a tool of the banks all along.
hint, hint
Check the seasonal charts. Some old rules still apply.
Can you say, fear of nationalization?
Read up on National Defense Resource Preparedness if you want to understand what kind of pressure is being brought to bear.
You don't really think that the Kennecott (Rio Tinto) subsidence less than two days before the long term take down of metal began was an accident, do you? First tip off that this is a planned and coordinated action and that excuses must be made to keep valuables in the ground which will deliver huge profits down the line. Smaller miners can twist in the wind, but the biggies didn't get there by not having sweeping access to global intel.
Its starting to look more and more like that.
Man, I would not want to be Fed chair or CTFC chairman when this shit blows, because can you say COMPLICIT?
Holding out for $1000 here (and a 666 S&P). I want to feel young again!
That's ok, I've been informed by reliable sources (commenters here) that the hoarders of the past (wealthy families, central banks, etc.) are supplying the demand now, so that silly retail buyers can have 'shiny coins to admire', while said wealthy families transition to other more modern stores of value that they overlooked in the past (productive companies, farmland, etc.) So, no need for any new production thanks, the world has all it needs.
Not exactly sure, though, how crushing the price like this is going to get JPM that extra 80k oz it needs by the end of the week to settle its Comex delivery commitments, but those guys are super-smart, so I'm sure they've got neat trick up their sleeve to amaze us all.
they are going to offer $200/oz over spot to forego delivery, hence the $200/oz beating in the last two weeks
What if the counterparties tell them to fuck off and deliver the gold (dreaming, I know). Actually, I think they'll just help themselves to some of GLD's declining, but still substantial inventory.
It's a "win-win." No physical delivery means it is easier to push prices down and whomever receives $200 over spot can buy physical at a profit (or even afford more).
I'm writing the Bloomberg headline right now - 'Gold plummets on strong US data and inventory concerns, as suppliers unable to deliver to meet physical demand'
Whoever wrote that headline should report immediately to the nearest "funny farm"... it makes absolutely NO sense whatsoever... but then again, what does make sense lately?
Al Huxley please report to the funny farm. Al Huxley.....
I would, but I'm late for my interview with Bloomberg.
Well, that would just be rude.
If they're smart, they will take the $200 over spot, and then turn around with that profit and buy back in at spot and start the cycle again. Rinse, repeat until JPM is out of money AND gold.
JP Morgan won't run out of money.
Where is the same chart for silver?
Marginal cost of production for silver?
Marginal cash cost for silver?
check out seeking alpha and srsroccoreport.com
break-even costs for most of the primary silver miners is in the high twenties
(note, that the cash cost the silver institute provides has a total different meaning as you can find buried in small print disclaimers)
How are these companies not refusing to mine right now!? What a bunch of bullshit.
because JPM threatened them with higher credit card rates
Solvency comes in second place to liquidity. Regardless of the inevitable future, they still have to make it through today.
Much harder to estimate, silver is usually a by-product of zinc or other base metal mines.
not sure cash costs matter for either. Silver is a by-product and the global inventory of gold dwarfs annual production. We could produce zero gold for some years and lots of gold could continue to move. And futures markets, of course, are not constrained in the least by gold production ...
I've heard from a reliable source it's $5.
Thanks for the down arrow methhead!
"And the shit is everywhere!"
People are throwing it from their rooftops in my neighborhood. Screaming too...
LOL... methman back?
http://srsroccoreport.com/silver-costs-much-higher-than-most-realize/silver-costs-much-higher-than-most-realize/
http://srsroccoreport.com/silver-costs-much-higher-than-most-realize/silver-costs-much-higher-than-most-realize/
Also, the industrial usage. (Photography biz is way down...)
BTW: I'm holding + looking for moar.
Need a comfortable bed for my Dragon. (In case I ever find one...)
Thing was, around 80% of that consumption was recycled. Today though, most industrial silver is consumed in end products in such small amounts that recycling isn't feasible. Like those anti-bacterial band-aids, and hellfire missles.
+1
MIC is going to have to pay me atleast a 300% premium if they want to use my silver in a hellfire!
BTFD, but this is getting crazy to say the least
great chart on the mines. i've been looking for those data for at least a month. thanks again TD for succintly summarizing the departure between supply vs. demand and reality vs. bullshit.
i've been able to add 500oz. Ag in the smackdown. looks like i can afford to add Au as well (while this lasts)!
Math Man and the Million Dollar Bonus both claimed that " It only takes five dollars to get it out of the ground ".
So, fuck 'em all, I say. Get a shovel, and cut out all the middlemen, I say.
Thar's GOLD in them thar hills, boys !
There.
Full blown Mexican retail SARC for the day.
i feel much better now.
P.S. - BUY THE FUCKING DIPS YOU CRAZY BITCHEZ !!!!!!
AND, FUCK YOU BERNANKE - LAP DOG TO THE KLINGONS FROM URANUS.
Nonsense. Most gold is mined at costs well below 800$.
Nope.
Lol. Overblown gold production costs as last hopium for broke gold bugs. You guys are so funny.
So what's your target for pms? Portfolio makeup?
Don't bother. They never answer that question. They just like to pop in, fling some poo, and then leave.
(citation needed)
Prove it.
Good to see you--I was worried you dropped out.
Hey there. I am here daily though I don't always comment. Came out of my hidey hole like many of the old timers around here to get a read on this being a big shift or another gyration. Good to see you too!
Thanks. I know there was some kind of a "issue" among many when some policies changed but I was out of town and missed the whole thing. It seems like a few just checked out.
It was all does raycicississts who were insulting Swiss sensibilities.
http://www.youtube.com/watch?v=19fcN3VaXs4
Just poppin' up to say "HEY!" to all of you.
Now back to the daily reading grind....
Link please..
http://www.gold-prospecting-equipment.net/wp-content/uploads/2009/05/gold-panning.jpg
(link opens in new window/tab)
Not working. Is it 2009's number? The cost is going up ~200/year.
It's a picture of a 49'er panning for Gold in his boots with a pipe in his mouth.
Just jokin' around people; I'd be sad about the 4 oz.'s I bought at $1,600 if I hadn't lost them in the lake.
Read This: PWC 2013 gold mining survey of mine executives
See page 4: Assumed gold price for capital investment is over $1300 all the way out to 2016
http://www.pwc.com/en_CA/ca/mining/publications/pwc-global-gold-price-su...
Read the first few pages also..
>> Most
Most? That's a bit vague. Define most.
You are thinking of tungsten filled "gold". We are talking about pure AU.
Also, note SRSRocco has prooved quite definitively that "cash costs" are total bullshit. Nothing but accounting games.
Commercials going long also shows that the miners are now losing money on every ounce mined. The only reason a miner would go long a metal they produce is as a last gasp effort to source capital before going bankrupt (ie betting it all on black).
Are you related to Johnny Bravo?
I still miss his comic relief sometimes.
Nothing comic about a pimply-faced college kid working out of his mom's basement. He admitted it!
Well, all but the pimples anyway.
I think the people that buy gold jewelry pay about that much, no shovels involved.
Define "Nonsense" - for as we have seen, some things that are nonsense are well accepted as "common/normal sense".
Define "Most"
Define "minded at cost"
Define "well below".
And interestingly (maybe), you will have to define $1, and that would be the biggest problem here, for you do not have anything to define it against in the physical world.
The only thing that is not questionable, although it may be in terms of it's purity, is Gold.
Try to be more precise the next time you post, for otherwise, only by words, we can go to the end of the universe( even if not well defined, this does not change the material result in our case ) in a second ( as defined here: http://en.wikipedia.org/wiki/Second ).
Please refer to my post below.
A contradiction is one type of nonsense. So the article does indeed contain an instance of nonsense, in its title of all places, although it is probably just an unintentional error.
More than 50% of all gold mined in a certain period of time. The Barclays paper defines "Average cash cost" as the 50th percentile (which is more precisely a median), measured in USD/oz. I assume, and it looks like, they mean "the 50th percentile of all costs of production weighed by quantity produced" (I don't have the full paper to confirm this).
If, according to the analysis in the paper, the cheapest 50% of all gold mined cost $673/oz or lower, then all gold mined at cost $673/oz or lower represents at least 50% of all gold mined. Barring the extremely unlikely possibility that all gold mined at cost $673/oz or lower represents exactly 50% of all gold mined and that at the same time there is absolutely no production at a cost in the open interval (673,800), there is a number in the left-closed interval [673,800) which represents a cost of production at which most gold is mined! In reality, of course, that number is very, very close to $673/oz.
This is tricky, because it is hard to precisely measure the cost, but if we take what the Barclays paper refers to as "cash cost" and "cost of production" and their data it makes perfect sense.
The Barclays data and analysis probably shouldn't be taken as very credible, reliable or accurate though.
$673 versus $800 seems to fit that description.
However, it should be pointed out that Wolferl's comment is indeed in agreement with the Barclays paper, for what it's worth, and it makes sense.
Hey fonzannoon, this was an actual butt-kicking.
It certainly is. I just wish it would close down $500 an ounce today and another $700 overnight so i can wake up tomorrow and get on with things one way or the other.
I still have a bid in at $0 for all of it. I'll take the silver too when it gets there.
it looks like you are going to get hit. The best gtc order ever put in.
I may put in a bid at .01 then. But I probably won't be able to afford all of it, so you should still get plenty.
Dude it's not worth $0.01.
I am your green arrow. That's where sarcasm gets you these days.
I give not one fuck about arrows.
Double nonsense Wolferl - see post above - you are off the mark by $795.00.
Take your spot in the great Zero Hedge pantheon of heroic trolls along side of Math Man, Million Dollar Boner, and my personal favorite, Robot Trader.
At least they made retarded statements into high entertainment.
You drag it down to DOL wicket critter bureaucrat dry and lifeless.
FAIL.
$500 houses in Detroit don't cost $500 to built, yet there they are.
Gold, like everything else, is worth only as much as the next guy is willing to pay for it.
If gold already dug out of the ground had all vanished, then the cost of mining would mean something. Instead all it affects is price of future gold - not the chunk in your pocket that is losing its purchasing power against the much hated USD you spent to acquire it.
Exactly like those houses you mentioned, it's all contextual.
(additional four paragraphs omitted (but saved) due to lack of cause for posting).
Actually you are right in that:
1. The title of this article says:
Which is a nonsense. It's probably just an unintentional error. Tyler must've meant to say the 2013 estimated cash cost (including CapEx), which is what he is talking about in the article itself.
2. The Barclays paper, quoted first in the first linked article and then used as a source again in this article, states:
So that contradicts the title. And this $673/oz figure is indeed well below $800, but it does not include CapEx and is probably not a very precise or reliable number anyway.
for silver, we've been under break-even costs of most of the primary miners for more than three months now.
One by one, they're either massively laying off personnel or just shutting down.
Barrick laid off a few hundred poeple last week
Also, that old tie between US money supply and USD gold price - you can forget about that, don't give it another thought - just a long coincidental correlation, no real relationship. OR, maybe the money supply's queued to drop by 1.2 trillion in short order. Either way, just remember, as long as you ignore all those annoying anomalies, your best source of information about the value of gold remains the plunging price of the paper version of it, and the sage comments of the always-on-it financial media, certainly not the 'pretty much all of human history' role of gold as a store of value.
http://research.stlouisfed.org/fred2/series/BASE
Looks like I picked the wrong week to quit sniffing glue.
I'll consider buying below $1000.
$700 seems fair price. Still wouldn't even then ...
Anyone have a link to a live steel/iron billet feed that's free?
My stupid ass can't find one..
I'm waiting for it to hit $0. Then I'll buy all the gold ever mined.
Can someone tell me how GDXJ pays a dividend (quoted at about 9% at it's curent price)?
Depending on what gold stocks they own, they could be getting it from there, as well as taking money from the fund itself to pay those dividends (not sure if this is legal, just a guess). Think of it this way, if they are paying more in dividends than they are receiving and pay dividends from new purchases, they can charge fees. Remember dividends are not a gain, they are subtracted from the price of the stock, it's what the stock does after the dividend gets paid that counts. IMHO, it is stupid to tax dividends when someone has not sold the stocks. Ajusting the cost basis would be better, but the government likes to steal and is too lazy to track that sort of stuff.
They're short the GLD?
I dare them to drop it to zero, double dare them, triple fucking dare them
When it drops to zero, I will replace my front door with a GOLD.