Barrick has a 200 million ounce silver problem, and its serious

[Large Sarge]

http://www.silverdoctors.com/barricks-200-million-ounce-silver-problem/

[Awoke]

If Pascua Lama is unable to mine gold and silver without threatening the glaciers in both Argentina and Chile, Barrick will have to go into the futures markets and purchase silver to deliver to Silver Wheaton at its contractual price of $3.90 an ounce.


Not really. Barrick will just claim bankruptcy and close their doors, no?

[osoab]

Interesting post about Barrick (http://gold-silver.us/forum/showthread.php?61566-Interesting-post-about-Barrick)

[osoab]

Not really. Barrick will just claim bankruptcy and close their doors, no?

Who knows, nothing was said what the Barrick/SLW contract entails for lack of delivery.

[mamboni]

One has to get a very bullish feeling about the metals when he reads a story like this. These miners are literally going to the ends of the earth to find silver and gold resources. They are going to the top of mountains tens of thousands of feet up and planning to literally move glaciers to get to the deposits. Not only must this be incredibly expensive; but, at what point will the environmentalists say enough is enough: "you are putting the purist fresh water on planet earth at risk and it just isn't worth the risk!"

[osoab]

One has to get a very bullish feeling about the metals when he reads a story like this. These miners are literally going to the ends of the earth to find silver and gold resources. They are going to the top of mountains tens of thousands of feet up and planning to literally move glaciers to get to the deposits. Not only must this be incredibly expensive; but, at what point will the environmentalists say enough is enough: "you are putting the purist fresh water on planet earth at risk and it just isn't worth the risk!"

We are talking about Barrick (known to have sold forward at the behest of the US gov to suppress Au prices) and South American countries that can easily be bought off.
I'm surprised, they are really having any issues with their mining plans.

[mamboni]

We are talking about Barrick (known to have sold forward at the behest of the US gov to suppress Au prices) and South American countries that can easily be bought off.
I'm surprised, they are really having any issues with their mining plans.

True. But even the mighty US Government cannot revoke the basic law of supply and demand. The fiat masters have dug a massive hole for themselves by hedging years of metal production to suppress silver and gold prices. Sooner or later, they will have to pay the piper.

[beefsteak]

Who knows, nothing was said what the Barrick/SLW contract entails for lack of delivery.

Nice post, Osoab, b/c you drilled down and then NAILED that to the cross.

Nothing forces anyone into the futures market for any reason. If one could see the ABX/SLW contract, the fine print would reveal a cash settlement and penalties "section" most likely with mandatory arbitration.

BTW, the last time there was a big whooha in an ACTUAL tight silver market squeeze play, Peru's Govt owned silver refinery itself came through with the silver goods, and did so in under 30 days. Now, we have both Peru and China in the stop-gap catbirds' seat.

My point? Silver Price dropped back out of sight, and this was way before SLW was ever even a gleam in the eye of a prospector.

Silver Doctors did not get this one "right."

Kudos, osoab.


beefsteak

[Serpo]

This may have to be put on ICE.............................

[gunDriller]

so it's not just a matter of paying SLW (Silver Wheaton) the difference between the spot price and the contract price, $25 an ounce for 200 million ounces - $5 Billion.

they have to deliver the physical. 170 to 200 million ounces.

Barrick has a problem.


it doesn't say what time-frame, for the deliveries. what would be a realistic SWAG ? 37 million ounces per year for 5 years, 185 million total ?