Tuesday, April 28, 2015
During this 50+ minute interview, Jason asks Steve about the costs to operate a modern primary gold and primary silver miner. Jason and Steve discuss how since ore grades have fallen so much over the decades how they have made it difficult for miners for have high margins.
Jason asks Steve how miners have survived in the past when gold and silver were below their all in production costs in the mid 90s. Steve cites one miner, Coeur D'Alene Mining, who sold hundreds of millions more shares diluting shareholders to survive.
Jason and Steve discuss whether miners can sell many more shares in this environment. Jason doesn't think that's likely considering what he hears from his contacts in Toronto and Vancouver where miners normally get financed how there's basically no debt or equity available anymore, except in small amounts at penalty/punitive rates.
Jason asks Steve about primary copper miners and what will happen to the gold and silver by-product when the hedges of copper miners come off line and copper miners go bankrupt or shut down mines.
Steve thinks this could cause a supply squeeze in the near future unless gold and silver prices rise.
Jason and Steve talk about the fundamentals of the market how demand for physical is rising, while the paper price is controlled and how miners are struggling mightily financially just to not go bankrupt soon.
To wrap up the interview, Jason and Steve discuss the oil and energy markets, peak oil and how the fracking boom is about to turn into a fracking bust because US shale oil companies are not making a profit without their hedges, they have too much debt and the energy returned on energy invested (EROEI) in shale oil is poor compared to other oil production.
Steve and Jason also talk about solar power and how it's probably not a panacea to replace oil and natural gas, at least not until the battery problem is solved. Most rare earths mining is done in China to produce solar panels, making them not as environmentally friendly as people think and silver industrial demand should grow the more solar panels are used.
Monday, April 27, 2015
Hundreds of indicators have been piling up proving the U.S. is already in a recession or DEPRESSION, depending on which figures you include. The "strong" U.S. Dollar has created an issue for the wider world as exports have become more expensive.
Hundreds of fingers are now pointing at a global economic COLLAPSE.
Saturday, April 25, 2015
With gold & silver hammered yet again Friday, Fund Manager Dave Kranzler joins the show, discussing:
1. Cartel algos send gold & silver down the elevator shaft on NO NEWS- whats amazing is they don't even try to hide it anymore
2. Are we setting up for a short squeeze on next week's FOMC, or is The Fed setting up the metals to be smashed through their lows for an Epic Waterfall- washout bottom on the FOMC?
3.. Reverse Repos Go Parabolic: Has a ‘Liquidity Shock’ Derivatives Melt-Down Begun? Kranzler provides SMOKING GUN evidence why the answer is YES.