Why the Best Gold and Silver Mining Companies are Deferring Production

best reasons to own gold and silver

In this article, I discuss why the best gold and silver mining companies are deferring current production in mid-2016. the last article, I discussed why, despite the very strong recovery in gold and silver prices that have occurred ytd in 2016, that the uptrend has been just that – a recovery – and not anything close to one resembling a breakout as of yet. Despite very solid gains ytd, USD gold and silver prices have not even surpassed the highs of 2015 as of yet on a weekly close.

In the past I’ve repeatedly discussed how silver mining companies delayed bringing production of silver to the market for sale due to ridiculously low prices of silver in past years. I continue to call for more silver companies to suspend sales in 2016 at least until USD silver prices rise above $30 an ounce, as continuing to bring current silver production to market for sale at prices below $20 an ounce illustrates no understanding of banking cartel silver price suppression schemes that have totally disconnected prices from supply and demand fundamentals of the physical silver market. Unfortunately, the PM mining industry is full of management teams that are (1) neither interested in helping humanity by pushing a sound money agenda even though the very product they mine is equivalent to sound money, or (2) cater to the whims and unproductive interests of the banking industry rather than the best interests of the people and the people that invest in their stocks. All the best gold and silver mining companies have executives that understand points (1) and (2) above. We should all take the time to identify those special management teams in the PM industry that are part of the best gold and silver mining companies that look out for our interests and support these companies much more so than the others that still bow down to banking interests.

Last week, courtesy of the SGT Report, we discovered that MX Gold Corp’s CEO and CFO plan to withhold between 20% to 30% of their gold production from the market until gold prices rise to more reasonable levels. CEOs of gold and silver mining companies should understand whether gold and silver prices are “underpriced” more so than the common person, as it is their business to understand how to maximize the returns and margins from the sales of their inventories of precious metals. Consequently, when they withhold production from the market and delay sales, it’s not merely because they believe gold and silver to be underpriced, but it’s because they believe gold and silver to be severely underpriced.

Again, the picture we all need to clearly understand is that when gold drops in USD prices, gold is NOT devaluing and losing value as is often reported by the banker-funded and banker-directed mainstream financial media. Physical gold that may be suffering from a falling domestic fiat currency price is still exponentially more valuable than devaluing paper fiat currencies, as anyone living in the Ukraine, Russia, Mexico, Brazil, Venezuela, and in any number of dozens of other emerging markets have unfortunately rapidly learned in the past few years. Though most financial journalists present significant gold drops in USD price falsely as a drop in gold value, the correct way to view such an event is as a temporary discounted fiat price and as a small window of opportunity to purchase more gold for the same amount of fiat currency. The same interpretation applies to significant drops in the USD price of silver as well. One has to always be cognizant of the source of deceptive memes that gold is “losing value” when its fiat currency price is actively being suppressed. Is the source of this “information” Reuters, Bloomberg, the UK Financial Times, the Wall Street Journal or some other banker-funded publication, or is it an independent source more apt to be telling the truth?

As we stated in our last article, for reasons we presented in our charts, we are quite confident that the real major move in gold and silver prices in this current bull are ahead of us, not behind us, and  that this current price drop in gold and silver assets will eventually provide a solid point to get on board for the second rise of gold and silver in US dollar denominated assets. If you by chance, missed our previous article, titled “Three Charts That Show Much Higher Gold and Silver Prices Are Still Ahead”, merely click here to read it.

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J. Kim

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