Comment: There are a few factors at play that I am aware of

(See in situ)


There are a few factors at play that I am aware of

First off, many of these companies over stated their cash cost situations in order to add value to their stock previously.
http://www.silverdoctors.com/cash-costs-are-completely-bogus...

Secondly, the quality of ore is lessening year by year. So what this means is that it costs more to refine the gold from the earth and this moves into my final point.
http://www.silverdoctors.com/declining-gold-silver-ore-grade...

Third, it's costs again. Fuel and energy costs costs have skyrocketed since the balance sheet doctoring from point one. This figures in to all aspects of mining from transporting the dirt, operating the refinery machines, etc etc. Costs of placating the EPA and other Government oversights. Obamacare has increased insurance premiums. Costs of everything have gone up up up.

Ultimately the price of the metals has to go up to in order to keep getting any gold at all. When this happens, many gold stocks will rise for obvious reasons. Some mines like to run like banks though and ultimately that will be their demise since they're already overdrawn on their potential future incomes and the officers already ran off with big paychecks before profit.

Here is a link relating to costs of mining silver. Same same.
http://www.mineweb.com/mineweb/content/en/mineweb-silver-new...