Gold

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[quote author="awgee" date=1235564956][quote author="biscuitninja" date=1235564778]Gold BUG! You've been bitten by it. I'm thinking of getting a little bit again. But we will see.

-bix</blockquote>


Bix - I am so far from a gold bug. As asset classes go, precious metals are some of my least favortie to be long. And as an investor whose only priority is to accumulate wealth, I care not one iota what I like or do not like.</blockquote>


being facetious here.... gold is not really a long asset as you mentioned (unless you are a nation - The National Repulic of Awgee!).

good luck

-bix
 
Awgee-



Do you know anything about UGY.L? Uruguayan mining company of some sort - a colleague of mine started buying monday and the stock is surging. it clearly is tied to price of gold. while the 52-week range is substantially higher than its close today. i'm skeptical of gold plays though, it seems like gold is peaking again. what are your thoughts?
 
[quote author="TR_Esq" date=1235742046]Awgee-



Do you know anything about UGY.L? Uruguayan mining company of some sort - a colleague of mine started buying monday and the stock is surging. it clearly is tied to price of gold. while the 52-week range is substantially higher than its close today. i'm skeptical of gold plays though, it seems like gold is peaking again. what are your thoughts?</blockquote>


Wow, looking at their <a href="http://biz.yahoo.com/bw/090114/20090113006363.html?.v=1">results last quarter</a>, they have an average cost to produce gold of $811 an ounce. I don't believe I have ever seen a miner with a cost of production that high before.
 
[quote author="TR_Esq" date=1235742046]Awgee-



Do you know anything about UGY.L?

</blockquote>
No.



[quote author="TR_Esq" date=1235742046]

what are your thoughts?</blockquote>


Most mining companies are a hole in the ground with a liar standing at the top. At a cost per ounce of $811, the only people who will make money on this will be those lucky enough to get in and out on the pump and dump before it goes to zero.



I would rather put my money on RED.
 
[quote author="upperlowerclass" date=1235777237]No more down, I've had enough pain for the week.</blockquote>


I would like more down. It just coils the spring more.
 
[quote author="upperlowerclass" date=1235777237]





No more down, I've had enough pain for the week.</blockquote>




trying to flirt with 900... but I will start purchasing at around 915 and slowly purchase as it goes lower.

-bix
 
Ahh inflation, I remember it well.



<a href="http://mortgage.freedomblogging.com/2009/02/27/are-government-bonds-the-next-bubble/7101/">Gov bonds, the next bubble</a>
 
[quote author="biscuitninja" date=1236134342]What are your guys thoughts on silver?</blockquote>






Of course, was just wondering on your thoughts as an investor. I have invested in the past and it paid out well, but I had to hold for a 2-3 years and then liquidate on a spike. As anybody ever played with it? From what I can gather, there is FAR less silver than there is gold... but still silver is far cheaper than any gold.



-bix
 
[quote author="Astute Observer" date=1236141145][quote author="biscuitninja" date=1236136283]From what I can gather, there is FAR less silver than there is gold... but still silver is far cheaper than any gold.



-bix</blockquote>


There are certainly a lot more silver than gold... where do you hear about that silver is far less than gold?



The "price" of gold and other metal is related to three main components. The abundance of the metal, the accessibility, and the utility. Gold has a higher utility due to its chemical and physical property. Silver is heavily used in photography, and the digitalization of film did not seem to affect it much in past few years. Gold is also less abundance than silver (~1ppb cf. 75ppb for silver in earth crust, ~10ppt vs 250ppt in seawater ). Gold and silver have about the same accessibility due to their co-occurrence, but there are some mines that are specialized in one of the metals.</blockquote>


Observer,

in looking at some of these mines and the total amount of silver in market, it seems there is only about 1B ounces of silver available at any one time. While gold has about 4.5-5B ounces at any one time. It just made me realize why the big difference? For monitary usage, industrial usage, other purposes?



Oh well,

-bix
 
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