Gold! Gold! Gold! Gold!

ASX Code CDU - Cudeco is about to bring out a JORC following extreme pressure form their retail shareholders. To my mind this is causing them to release a JORC that is premature. They have so much more to drill and what they have drilled is very rich in Copper, Gold and Cobalt. It is said that CDU could commercially mine anyone of the credits, gold, copper or cobalt such is the richness of the deposit.

So here is a way to put the coming JORC in context of what is to come…..

CDU JORC a gross undervaluation

In addition to being a gold producer, Couer d’Alene is one of the world’s largest silver companies. CDE currently has mines in Bolivia, Mexico, Chile, Argentina and a surface mine in Nevada. In addition to owning mining operations, CDE also has non-operating interests in several mines.

New silver mines Bolivia and Mexico are expected to increase cash flow in the upcoming months. According to a recent research report from Knight Capital Group, CDE’s production of silver is expected to increase to 18 million ounces in 2009, up 50% from 2008. The opening of Kensington Gold Mine in 2010 is also expected to increase gold production.

For those that have been in CXC over the last 5 years it has been an unpleasant and costly experience. It now seems likely that CXC is starting to make gains.

www.goldcoast-city.com/

We might be seeing the start of the rare Earth Elements’ surge…

Why Silver will be a Better Investment than Gold
(And Both are Better than Dollars)
Silver Stock Report
by Jason Hommel, November 17th, 2009

Recently many of my readers have been asking, “Why is silver lagging gold?”

After all, in March, 2008, gold hit $1020, and silver exceeded $20, yet here we are now, with gold now above $1145, and silver at $18.33, not even at $19!

The really funny thing is the way the popular media spin the price relations.

When silver underperforms gold, they say, “Silver is not confirming gold’s rise, therefore, gold prices are due for a fall.”

And when silver outperforms gold, they say, “Silver is exceeding gold’s rise, therefore, this bull run is overdone, and thus, gold prices are due for a fall.”

In other words, we have a manipulated market. Not only is the price manipulated, but so is the news coverage!

Of course, the media could give opinions the other way, and say, “With silver lagging gold, it shows that gold has much further to run, and also silver is due to catch up and exceed gold’s pace, thus making silver the much better buy now.” Or, after silver outperforms, they could say, “Silver’s outperformance has confirmed everything the silver bulls have been saying for the last ten years.” But they never do that, do they?!

As it is, the price ratio changed from 64 on Friday to 62 on Monday, so silver far outperformed gold on Nov. 16th.

Gold moved from $1118.50 on Friday to $1139.80, a rise of $21.3/oz., or a 1.9% increase.
Silver moved from $17.42 on Friday to $18.40, a rise of $.98/oz., or 5.6% increase.

Silver sure didn’t lag behind gold on that day!

So, is all news that is bearish on silver evidence of “manipulation?” Of course not. Some commentators are not colluding on purpose, they are simply willfully ignorant.

For example, here is an independent Christian newsletter writer named Gary North who writes:
Why Silver Is a Poorer Investment Than Gold (Nov. 14th)
http://www.garynorth.com/public/5700print.cfm

You’d think he could have timed his article better. He published on Nov. 14th, and was proven wrong in less than 48 hours!

Nearly everything Gary writes in that article is not really the whole truth. I’m shocked to read his take on silver. After all, he has written perhaps the most thorough economic commentary on the Bible that exists (very long, quite good, but could use a bit of improvement).
http://www.garynorth.com/public/department57.cfm

So I don’t think he’s an agent of the banks, so I think it must be ignorance that is distorting his judgment, or perhaps his age. I’ve tried to answer his questions on silver over the years, but he has not replied with reason, but rather with emotion, so there must be something more at work here, but I don’t know what it could be. He wrote last year:

Jason Hommel Tells Me Off: I Do Not Understand Commodities, Silver, and Especially the Bible. He Demands That I Answer Him.
http://www.garynorth.com/public/4002.cfm

So, this and his other essays go to show he is not unfamiliar with my work, but rather, he has some sort of emotional rage against it. This is why I cannot excuse Gary as simply being ignorant of the statistics that he mocks, but rather, he is willingly ignorant.

But that’s in the past. I want to refute his recent article, and get to the recent ten year relative performance of silver vs. gold. All we need is a gold/silver ratio price chart.

A quick search on google reveals a source. I trust gold-eagle.com: Here it is:
http://www.gold-eagle.com/charts/gegsr.html

Read full article

Lots of chat about Gold in the press.

But according to this image Gold is actually under-performing silver.

Coeur Reports Approximately 40% Increase in Both Silver and Gold Reserves in Expanding Palmarejo District

COEUR D’ALENE, Idaho–(BUSINESS WIRE)–Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC) today announced an approximately 40% increase in silver and gold reserves at its Palmarejo silver and gold mine in Chihuahua, Mexico, to a total of 88.6 million ounces of silver and 1.1 million ounces of gold, based on its ongoing drilling at the nearby Guadalupe deposit.

The 25.8 million ounces of new silver reserves and 315,000 ounces of new gold reserves represent the initial underground ore reserves at Guadalupe, located approximately 6 kilometers southeast of the current Palmarejo mine and processing facilities. The Company plans to continue drilling at Guadalupe and anticipates commencement of underground development of Guadalupe’s reserves in 2010. Ore from Guadalupe would then be expected to begin contributing to Palmarejo’s silver and gold production in 2011. At the Palmarejo project there were 63.6 million ounces of silver reserves and 756,000 ounces of gold reserves reported at the beginning of this year.

“We are very pleased with the reserve development at the Guadalupe deposit, which demonstrates our commitment to growing the overall mineral reserves in the expanding Palmarejo District,” said Don Birak, Coeur’s Senior Vice President of Exploration. “The Guadalupe vein system is now over 2.1 kilometers long and remains open along strike to the north and at depth. We are currently drilling on the Guadalupe structure between the Las Animas and Guadalupe Sur zones or clavos, where there is excellent potential to expand resources and reserves. This area, along with other targets near Guadalupe, will continue to be the focus of our aggressive drilling program into 2010.”

The entire Palmarejo District is held in 46.9 square miles, with multiple trends and targets. Guadalupe and Chapotillo – one of five zones within the immediate Palmarejo mine – have been the main areas of focus for drilling in 2009, with over 18,000 meters of core drilling through September of this year.