December 3, 2017
December 3, 2017


It seems that the AAG stock received a blow after the debt settlement agreement with Sinchao was announced. Do you feel that this is a big issue? AAG was just recovering from its year lows and touched 0.64 quite a few times. I am curious how you analyze situations like this and what it means for your valuation.

Any thoughts on the correction today in commodities and mining? You have mentioned quite a few times how difficult mining is. The stock prices did not reflect the high gold prices. When gold goes down, the mining stocks go down too, but when gold goes up the miners do not follow. Gold cannot go up for ever I guess. So do you expect a strong upwards ride of the miners before the gold rush comes to an end?

I sold my miners except the core position. These things are simply awful. As for AAG, they essentially stole SMZ. I’d see that as a positive. Everyone is waiting for community agreements… and still waiting….

Andean American has put off the due date of their feasibility study until January, and it seems that their community agreements will depend to some extent on what that study says. The company also says it won’t start further exploratory drilling until those agreements are signed.

So it would seem that the company – and the stock – will be dead in the water until at least January. Do you see it differently?

It will be dead in the water until they have community agreements. It’s really a shame as the asset is quite good.

Andean American recently announced an agreement with Sin Choa. I am assuming this was related to the documentation issue with Andean Americans stake in Sin Choa. If this sideshow has been resolved and they can now focus on resolution of the Invicta community agreements perhaps the stock will begin trading more in line with similiar jr gold mining companies. Do you know who bought the Trafigura stake and why Trafigura sold ? Thanks for your advice to your readers on “holding your fire”. It has saved many of us money as prices have declined like a falling knife.

Being patient almost always saves money. As for Sinchao, no one seems to know who bought the Trafigura stake.

What will it take for gold stocks to go higher?

An act of god…. Iol it will happen, but so far, that seems to still be a minority view.

How do central banks buy their gold and/or silver, do they push a button and print more fiat and turn around and buy hard assets with it or do they buy like anybody else? Im not sure how a central bank gets its assets and wondering how important the price of the metals is to them. If they print money and buy an asset its a homerun and as long as it stays above a dollar i guess its a homerun. Maybe its not important but if i were buying tons and tons of something Id certainly do what I could to keep the price moving in my direction

They can print money and buy gold if they wanted. That’s how the US got all the gold in Fort Knox. FDR revalued the price of gold from 20.67 to 35 and then printed dollars to buy up all the world’s gold. Everyone else decided that $35 was overvalued and they sold us their gold and then took the USD they received and spent it in their home countries. If Bernanke understood anything about economics, he would be smart to do the same. At least we’ll get some more gold to back our increasingly worthless dollars…