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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (95540)	10/15/2012 11:30:51 AM
From: Maurice Winn	2 Recommendations Read Replies (3) \| Respond to of 218577

TJ, I used to be in the oil business too. You have no doubt now figured that there is quite a lot of oil which goes into turning rocks in the ground in Australia into gold in the vault in Hong Kong. It's certainly a fun business, with lots of noise and outdoorsy 3D activities. QCOM as you suggest is far more arcane, esoteric and abstract; <<i like the math :0) and the biz is certainly easier than ... qcom ;0) >> Hmmm, now that I think of it, I have now been longer in the mobile Cyberspace business than I was in the oil realm. Superficially paradoxically, in the gold world, when your cost of production goes down, as the price of oil falls, your gold product does not go up in price. When oil becomes more expensive, the value of gold goes up too. Essentially, you are turning oil into gold, thereby concentrating and storing the value. Easter Islanders did a similar thing with moai culture - turning spare energy of lots of young men into valuable stored moais to array around the island. The oil chasing gold equation is somehow like a dog chasing its own tail. "We want oil because gold's getting more valuable because oil's going up in price because we are using it to dig for gold to pay for oil which makes gold ... " As ElM says, the place has gone to the dogs. But in a dog eat dog and human eat dog world, turning oil into dogs is probably no bad thing. In Dog We Trust. In God We Trust. In Gold We Trust. The Holy Trinity God, Dog and Gold. When Armageddon and the rapture come, those with dogs, gold and -od will do well. Goedelian self-referential gold maths? It looks like a Gordian Knot. QCOM will untie the knot. You should be good for a couple of years to a flip, quantum tunneling the mineralized value from a rocky hole in Australia to a vault in Hong Kong even while the gold remains in the rocks buried in Oz. Designing and establishing the moai quarry,selling it to moai enthusiasts, then catching an A380 outa there seems a better idea than actually producing a million moais. Mqurice

To: TobagoJack who wrote (95540)	10/15/2012 11:52:41 AM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 218577

Aside from getting the idea, I am clueless about mining and cost of operations. More interested in what you mine than mining itself.

To: TobagoJack who wrote (95540)	10/16/2012 2:00:52 AM
From: energyplay	1 Recommendation Read Replies (1) \| Respond to of 218577

Re: Gold refining economics. You have a really great set up there, without that ice cold frosting our Canadian friends have to deal with. Remember that in this business you are always Price Takers. You can't improve the product to get a better price. You also get whatever price electricity, diesel, cyanide, etc. goes for. There is a little flexibility in wages, but not much. Every so many years the prices will move against you. So once enough drilling has occurred to prove up more ore, you may want to sell a little bit forward (10 - 25%) for number of months or even a year to lock in a large part of the price and profit. It is very possible that some politicians (most likely European this cycle) will do something stupid and knock 40% or more off the price gold. The other way to hedge is just to keep cash in various currencies around. Since you are thinking about flipping, and the buyer may need financing, at that point you might want to talk to the buyers bank to see what degree of hedging they would like to see. * * * Besides gold and silver, what is in the rocks ? There is lots of good stuff in your part of the world. Also, after you get this flipped, you might want to do some other mining / prospecting project in Australia...