Gold over $2000

[Rail Dawg]

Am probably very biased about gold like the rest of us lol.

But gold over $2000 is an important psychological number. More and more my thoughts are towards the gold fields. It is only a matter of time before I give a full-time effort on providing others with a way to dig enough gold in Northern Nevada to support themselves and their families.

Am not in this to make money off people in dire straits. If we enter a Great Depression II I expect there to be a LOT of people who know nothing about digging for gold to be willing to do it if provided the means.

Instead of rock huts it will be RV's. We have access to water rights and some very good wells in the middle of the fields. Still just watching but when gold hits $3000 and more it will be a whole new ballgame.

Do you agree?

 

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[firebird]

I'm not happy at all, gold getting this high just shows how utterly screwed this country is.

 

[jeff of pa]

TreasureNet - Metal Prices

 

[TMLonggun]

The US price is very psychologically important but the gold price in other currencies has been telling the same tale for a while. There is a lot of debt and money printing in the future of Western Civilization. $2000 / us $2700 cad coupled with very low oil/ fuel costs make this a period where miners should experience excellent growing margins which make their stocks excellent investments and speculations (depending on what kind of metal companies you pick- royalty to junior). This creates a growth period for the entire industry (increased earnings>increased market cap, capex, and dividend payments). This also applies for small time hobbyist and prospectors. The premiums on land, equipment, and technical services will begin to rise so it is better to move sooner rather than later.

I chose Infinity Prospecting as my company name in part because the infinity symbol represents the cyclical nature of mining better than any other. Gold rises as a consequence of many factors like economic confidence, inflation and interest rates while the supply side is effected by high costs, low grades, and long development times due to lengthy permitting and lower quality minerals. If we go back to the last bull market and blow off in 2011 it was a period of what I call "production at all cost." The miners had placed so much additional production online and invested in so much drilling that they sow the seeds of their own decline. In the 90s and early 2000s miners were lean and mean (although they benefited from rising prices post 99), so that the industry as a whole was mining high grades at a medium to high margin in the early days but that changes by the time gold prices peaked in 11. When those trends carried into 2012 the industry had become very bloated and the ounces became very very high cost as loads of low grade leach projects were brought online to feed the market. Drilling and development went bananas even though a bear market had begun. Bear markets lead to irrational behavior and most miners pull back spending instead of taking advantage of the low prices while available. This over investment during boom times and under investment during bear times (coupled with the absurdly long lead times) exacerbates the cyclicality of the industry. They create the future conditions of oversupply and this physical oversupply combined with a cartel style paper gold pricing system allows significant control by the banks and governments that have a vested interest in keeping gold low so that the illusion of a strong fiat currency can be perpetuated even though it is constantly devalued and controlled by political whim.

I timed the 08 financial crisis bottom in resource stocks almost perfectly and got ranked in the top 15 stock pickers on Motley Fool. I have to say the environment lately is the most similar since. Major miners like Freeport and Teck are priced as if a large percentage of the world's coal and copper is worth zero and humanity will never use any of this stuff again. Of course that makes no sense and served as the catalyst for major speculations previously. Our economy sucks now due to the virus shutdown so it is a perfect opportunity to go long term bargain shopping before the US government spends the $2 trillion in the treasury till before the election.

I have made and lost several small fortunes in this sector but discovered it's far more fun to develop your own properties and keep most of the spoils. I do still own a healthy portfolio of junior miners because I am confident they will hugely outperform once the majors and higher tier companies get a boost and it trickles down to additional demand for juniors / exploration (and the deposits and future production for larger miners they represent).

A few years ago my Mexus stock went up 20,000% in about 9 months (every $5k to a million) and this is the type of environment where similar moves will occur within the small cap junior mining world - especially for those projects with high grade resources and production that is just coming online. If you can do that yourself - all the better.

My goal with Infinity is to teach people more about the industry and how to develop your own junior miner on a small scale. For example by buying a $100 gold claim and turning it into a $50,000 + project in development.

Gold is rising. A new gold rush is starting. Get out there and find some!