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A share of Newmont Mining of an Ounce of Silver.

MGLICKERMGLICKER Posts: 7,995 ✭✭✭
in Precious Metals
....which will be higher on 12-31-14?

Silver is $19 and change, NEM is $23 and a smidgen. To make it fair, we will set the Newmont line at -$4.*

I am surprised at the weakness in Newmont. I was trading that stock actively in 2001-2003 and the price was in the high teens to mid 20's then. Consider that Gold was only $300-400 at the time.

Unless I missed a split in the last ten years, the long term Newmont fans must be reeling.

*no wagering folks, this if for scholarly and entertainment uses only.

Comments

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    GDXJ is my weapon of choice when the bull breaks out.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • vprvpr Posts: 606 ✭✭✭


    << <i>....which will be higher on 12-31-14?

    Silver is $19 and change, NEM is $23 and a smidgen. To make it fair, we will set the Newmont line at -$4.*

    I am surprised at the weakness in Newmont. I was trading that stock actively in 2001-2003 and the price was in the high teens to mid 20's then. Consider that Gold was only $300-400 at the time.

    Unless I missed a split in the last ten years, the long term Newmont fans must be reeling.

    *no wagering folks, this if for scholarly and entertainment uses only. >>



    Many gold companies are trading where they were over 10 years ago. Gold went up since then and so have production costs. Those companies really raised wages and spent a ton of money on new mines. Now, gold prices have dropped but their costs have not gone down as much. Hence, the lower stock prices. There is definitely no free money there.

    I'm looking to buy some miners next year in my IRA.
    References: Too many to list. PM for details. 100% satisfaction both as buyer and seller. As a seller, I ship promptly and keep buyers updated.
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭
    Thank you VPR. The lure of the miners was the leverage, purported to be as much as 5 to 1 on a bullion move.

    By that logic, Newmont should be a $400 stock today.

    Glad I got out when I did.
  • cohodkcohodk Posts: 19,137 ✭✭✭✭✭
    The lure of the miners was the leverage, purported to be as much as 5 to 1 on a bullion move

    I think the miners performed as advertised. Most have vastly outperformed (to the downside) metals over the last few years. The miners also acted as a great canary--failing to push to new highs with the PMs. Listen for tweeting as the pendulum swings the other way.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>The miners also acted as a great canary--failing to push to new highs with the PMs. Listen for tweeting as the pendulum swings the other way. >>



    Good point.
  • dbcoindbcoin Posts: 2,200 ✭✭
    I'd go with a share of our host, CLCT. Less than silver at about $16.20/sh and pays $1.30/yr in dividends
    If silver/gold go up, more coins are sent in for grading.
  • MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>I'd go with a share of our host, CLCT. Less than silver at about $16.20/sh and pays $1.30/yr in dividends
    If silver/gold go up, more coins are sent in for grading. >>



    Seems like solid logic.
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