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Thread: "I Hate This Question On Gold," Says Alain Corbani

  1. #1

    Default "I Hate This Question On Gold," Says Alain Corbani

    Alain Corbani, head of commodities at Finance SA, said that these two clues may hint at the next peak on gold.
    “At $1,200, gold mines are breaking even, so $1,200 is the bottom. That’s the first answer I can give you. The second one is that usually the cycle peaks when the net margins of the industry exceed 25%,” Corbani told Kitco News on the sidelines of the Mines and Money conference in Toronto.
    Additionally, Corbani said that real interest rates will remain low and the U.S. dollar will weaken, and these two indicators have the highest negative correlations with gold.




  2. #2

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    I have been posting for years here the TRUE all in costs of around $1200 when other posters were trying to parrot the miners BS promo numbers as low as 700. Nice to see one of them finally admit the truth.

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    If $1200 is indeed the "break even" point for most miners -- I don't see why they bother to stay open. Why all this work just to "break even"? Are these miners government run or something? In their own best interest, you would think most miners run by rational business minded folks would close, and keep their yellow rock in the ground -- are they getting welfare to stay open? I find it very easy to get gold these days - -just trading in cheap common paper -- no need for all this mess digging more holes -- and in any case, the gold is rather safe kept in the ground, maybe more safe then in a bank vault. One can go dig it up whenever it become worthwhile (i.e. - -not anywhere near "break even"). I can go dig up my own physical gold almost for free --- yet it's still not worth the bother. Don't understand these "break even" miners at all, they must be involved in something big and corrupt.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  4. #4

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    Quote Originally Posted by motocat View Post
    If $1200 is indeed the "break even" point for most miners -- I don't see why they bother to stay open. Why all this work just to "break even"? Are these miners government run or something? In their own best interest, you would think most miners run by rational business minded folks would close, and keep their yellow rock in the ground -- are they getting welfare to stay open? I find it very easy to get gold these days - -just trading in cheap common paper -- no need for all this mess digging more holes -- and in any case, the gold is rather safe kept in the ground, maybe more safe then in a bank vault. One can go dig it up whenever it become worthwhile (i.e. - -not anywhere near "break even"). I can go dig up my own physical gold almost for free --- yet it's still not worth the bother. Don't understand these "break even" miners at all, they must be involved in something big and corrupt.
    No, the operators amd managers of these mines only get their salaries if the mines are operating on a break even budget. So they are constantly trying to come up with a way to get investor(sucker) cash flow to keep being able to put food on their tables.

    If they shutter ops, they are all out of a job, so they have to go out and get other employment. Then, when gold price makes it profitable again, they cannot find any skilled personnel to run the mine again, not to mention they are so cash strapped that to shut down means defaulting on all their equip leases, so the repo man comes by, and voila no way to reopen even if they wanted to.

    Ask yourself, over the last 5 years, how may miners gave you back even dividends that kept up with govt inflation numbers.
    Last edited by shades; 10-18-2018 at 11:26 AM.

  5. #5

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    Quote Originally Posted by shades View Post
    No, the operators amd managers of these mines only get their salaries if the mines are operating on a break even budget. So they are constantly trying to come up with a way to get investor(sucker) cash flow to keep being able to put food on their tables.

    If they shutter ops, they are all out of a job, so they have to go out and get other employment. Then, when gold price makes it profitable again, they cannot find any skilled personnel to run the mine again, not to mention they are so cash strapped that to shut down means defaulting on all their equip leases, so the repo man comes by, and voila no way to reopen even if they wanted to.

    Ask yourself, over the last 5 years, how may miners gave you back even dividends that kept up with govt inflation numbers.

    OK - so I guess my hunch was close to target? If they are getting good salaries to only "break even", then it's like they are getting welfare, and are corrupt.

    I made the mistake of going into miners back in 07-08 -- so I'm quite aware how little dividends they pay, no matter price of gold is going up or not, no matter they make profits or not. I'm very anti-miner -- they are (with a few exceptions) BAD businessmen who lie. And those in finance who told me getting into miners is like "doubling down" on the value of gold going up are blind as bats -- only wanting to push more paper to make themselves relevant -- not helping anyone, pushing a lie. The truth in money is gold. Almost all else is a lie -- having some association with gold - -be it paper calling itself gold, or even a business that digs up gold - is not comparable to the honesty found in real physical gold - -gold being a basic element found in nature -- that is just what it is -- simple and pure -- what hurts the business of so many who profit from trickery, cheating and lying (which includes most in the financial industry).

    I don't understand why certain bullion dealers have such great interest in miners. Does it help marketing of physical bullion? I think not, and time and energy spent listening to these miners can be spent in areas that would be far more lucrative in selling bullion. A hint to anyone of significance reading this: if you want to think about the Cannabis industry -- you should know right now, many in the Cannabis industry are looking for a better alternative to physical cash -- there are many hundreds of millions you can make if you can tap into this industry, and they adopt gold for storage of wealth (and even trade of such) rather then the cash they now mostly use. Miners will do you no good -- selling bullion to new markets will! Lot's of room to expand, ways to improve, giving miners attention is not a way!
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

  6. #6

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    Quote Originally Posted by motocat View Post
    OK - so I guess my hunch was close to target? If they are getting good salaries to only "break even", then it's like they are getting welfare, and are corrupt.

    I made the mistake of going into miners back in 07-08 -- so I'm quite aware how little dividends they pay, no matter price of gold is going up or not, no matter they make profits or not. I'm very anti-miner -- they are (with a few exceptions) BAD businessmen who lie. And those in finance who told me getting into miners is like "doubling down" on the value of gold going up are blind as bats -- only wanting to push more paper to make themselves relevant -- not helping anyone, pushing a lie. The truth in money is gold. Almost all else is a lie -- having some association with gold - -be it paper calling itself gold, or even a business that digs up gold - is not comparable to the honesty found in real physical gold - -gold being a basic element found in nature -- that is just what it is -- simple and pure -- what hurts the business of so many who profit from trickery, cheating and lying (which includes most in the financial industry).

    I don't understand why certain bullion dealers have such great interest in miners. Does it help marketing of physical bullion? I think not, and time and energy spent listening to these miners can be spent in areas that would be far more lucrative in selling bullion. A hint to anyone of significance reading this: if you want to think about the Cannabis industry -- you should know right now, many in the Cannabis industry are looking for a better alternative to physical cash -- there are many hundreds of millions you can make if you can tap into this industry, and they adopt gold for storage of wealth (and even trade of such) rather then the cash they now mostly use. Miners will do you no good -- selling bullion to new markets will! Lot's of room to expand, ways to improve, giving miners attention is not a way!
    What is not fair is these companies, working with expenditures, having to meet weekly payroll and debit costs , whilst "a market" tells them what there hard labor was valued at .
    Last edited by Mytal; 10-19-2018 at 05:05 PM. Reason: spelling?

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    You have to understand that in today's tax environment that making money is a no-no and so very good accountants come up with all kinds of expenses that reduce profits on paper. Real profit and paper profit are too different things. Just like fake news there's fake losses and fake expenses that are legal loopholes used to hide profits. Underlying costs to produce vs. paper costs require really digging deep into a 10-K report and even then it soon gets muddy regarding true profits.
    American Legion Preamble: https://www.legion.org/preamble

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    I've read that GE never makes a profit. Every year they brake even. Ha,ha... seems they also have the largest CPAs pool on the full-time payrolls.
    Small business is the incubator of employment. As it declines, so too do opportunities for first jobs, second chances and economic independence.

  9. #9

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    Quote Originally Posted by LongDonSilver View Post
    You have to understand that in today's tax environment that making money is a no-no and so very good accountants come up with all kinds of expenses that reduce profits on paper. Real profit and paper profit are too different things. Just like fake news there's fake losses and fake expenses that are legal loopholes used to hide profits. Underlying costs to produce vs. paper costs require really digging deep into a 10-K report and even then it soon gets muddy regarding true profits.
    That may be the case -- and since my paper has not made a profit with them, rather only losses (while gold fiat price has gained) --- I'll stay away as should everyone else. If you want to be exposed to gold -- buy real physical gold -- "investing" in gold miners (unless you have particular inside knowledge), is for fools. I was fooled once by them, will not happen again.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

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