Viable Alternative To Metro Toronto For Precious Metals

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If you live in the Greater Toronto Area, and you’re looking for a viable alternative for buying/selling precious metals to Metro Toronto, consider Durham Precious Metals. Our company brings a deep inventory to the world of buying and selling precious metals. We also pride ourselves on giving our customers a wide range of options for buying gold and silver, selling gold and silver, making payments for either of those things, and much more.

Whether you are a newcomer to this exciting investment opportunity, or if you are looking for a new company that you can trust to handle your buying/selling needs, we can help. The more you learn about Durham Precious Metals, the easier it will be to appreciate the myriad of ways in which we can act as a powerful alternative to anything else that’s available to you.See their website here.

We work with those who are serious about making investments in gold bullion or silver bullion. In this day and age, there is no question that if you have been thinking about these possibilities for a while, there is no better time than the present to take advantage of the prices and larger economics. Simply put, if you want to buy precious metals in the Greater Toronto Area, and you don’t want to deal with the traffic and other hassles that are inherent in your other options, DPM can help. While we offer a plethora of buying and selling options for a range of precious metals online, you will want to keep in mind that we have a physical store location, as well. Mint direct silver bars, silver coins, gold bars, and gold coins are just a few of the specific possibilities that you can explore through our site. At the same time, you will find that Durham Precious Metals can also offer a variety of informational resources. These resources can prove to be particularly useful to those who are new to the worlds of buying and/or selling. If you are just starting to explore these possibilities, it stands to reason that you want to make intelligent moves, and get the most out of the experience. To that end, our Greater Toronto Area precious metals company can help.

Learn more about our services on social media. Check out our current array of special offers. When it comes to potential, you will find that DPM can assist you with just about anything that you might have in mind. Visit our store location today. 219 King St East Bowmanville On.

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Investing in Silver with Mining Stocks

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The whole process of investing in silver has been made confusing by the changes in the industry and the hype surrounding prices.  Changes in politics and the economy has led to precious metals becoming a hot commodity for plenty of investors.  Once you have figured out that precious metals are where your going to put your investment dollars the next logical step is to figure out where.  You have to choices when it comes to investing in precious metals you can buy the metals themselves or you have the option of investing in mining industry.

Buying Silver Stocks

Stocks in silver mining companies can be bought with a simple phone call to your broker, or online depending on how you buy your stock.  However you should focus on stocks from companies that are prospecting and mining silver themselves.  There are many companies out there that don’t produce silver and they may never produce silver making it a very high risk stock.  Buying silver doesn’t have to be risky though.  Here is a video on why you should by silver stocks.

Why Silver

Despite being viewed as gold’s poor cousin silver, it is still a fairly safe investment.  Silver has more practical applications than gold.  Silver is used in jewelry, solar energy, dentistry, photography, batteries and LEDs, whereas gold isn’t used in that many industries.  This does make silver prices more dependent on what is happening in the industrial world.  This does give silver more volatility in terms of price but that can be lucrative if you read the market right.  You can capitalize on buying either silver bullion or silver mining companies.

The stock market got off to a slow start in the beginning of this year, but the prices of gold and silver have risen despite the performance of the stock market.  By the middle of February both gold and silver had made 15% gains in price.  Silver can outperform gold under the right conditions and it is much cheaper to get  than gold.  However silver prices are affected by far more outside than gold.

Buying mining stocks are no different than  investing in any other company.  You need to do your due diligence and look at more than the stock prices.  Look into as much financial information on the company as you can and don’t forget the market conditions either.  Silver prices will also rise when demand from the manufacturing industry rises.

Costs in Gold Mining

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If gold bullion or gold stocks are part of your investment strategy you should have an understanding of how mining costs go into mining gold.  When a mining company reports their costs they report two different costs, total costs and cash costs.  The money they spend at the mine site makes up the cash costs, this is what they spend to get gold from the ground and how many ounces they get.

Cost to Mine

Some of the costs of pulling gold from the earth include machinery, electricity and fuel.  Back in 2007-08 when energy prices were at their highest cost to mine went through the roof.  The price for gold on the open market was also skyrocketing at an even faster pace.  Gold and silver prices were both climbing alone with some other metals like nickel.

Open pit mining

One of the biggest expenses you incur mining for gold comes from the fact that you have to move massive amounts of rock, each ton of or may only less than half an ounce of gold.  Right now the price of gold is trading and just over $1100 per ounce that makes a ton of ore worth.  However in mining things are a little different, a $2 million haulage truck is used that moves 300 tons or more at a time.  Costs and investments are much higher onsite.

Underground mining

Underground mines that you find in Africa, have to move rocks from almost 2 miles underground up to the surface.  This consumes tons of electricity, however the ore here is much richer than what you find in open pit mines.  They don’t require as much ore to find gold and there is less waste that needs to be removed from the site.

Labor is another huge cost, more so in underground mining operations rather than open pits.  Open pit mining can take advantage of machinery rather than human labor to get the job done.  When there is a rise in the prices of commodities, the cost of labor also goes up.  The mining industry in the US, Canada and Australia all pay very well compared to other countries, however they are more prone to strikes which affects mining operations.

Total costs

The other cost that mining companies use is total costs.  Unlike cash costs, total costs will include corporate overhead and the costs it takes to develop the mine.  A gold mine today costs nearly a million dollars to develop and most companies will borrow to pay upfront expenses and pay back over time.  One portion of the feasibility studies include the time it will take to pay back the loans and the selling prices during the time the mine is active.

Gold has been a traded commodity for more than 2,000 years and in every corner of the world it forms part of an investment portfolio.  Mining has changed over the past three decades, no matter the changes the cost of mining will always be part of the trading scheme.  Whether you invest in bullion or mining company stocks understanding how mining works can help you make the most of your investments.

Bust & Boom, Part I (The Auto Industry)

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The U.S. auto industry is heading for a banner year…so much so that there’s a question whether manufacturers will be able to keep up with demand, especially for trucks. Tens of thousands of people are being put back to work at auto plants and parts suppliers, not to mention the additional work available from everyone involved in the activities (from transportation to coffee shops along the way).download-1

This is inarguably great news for America, but it’s also a movie we’ve seen before, isn’t it?

Fast forward a few years and the likely story will be about bust again, not boom. The car makers will get greedy, seeing all the consumer demand as opportunities to add extras to vehicles so they can charge more for them. Fuel efficiency will fade as a purchase motivator just as the efficiency averages for the most popular vehicles will decline. Then OPEC will get greedy, or there’ll be war in the Middle East, so gas prices will skyrocket. All those auto loans will start looking onerous as the resale value of vehicles plummets again, forcing many people to sell anyway to minimize losses (and flooding the market with more vehicles, thereby reducing prices further). Plants will slow or shut down entirely.

And all those workers will be required to take pay cuts, put on furlough, or fired outright.

Whether events play out exactly as I’ve described doesn’t matter; you have to be a fool not to acknowledge that there’s a cyclical ebb-and-flow to the auto industry, and that it tends to gyrate rather wildly between boom and bust times.

So isn’t it a little weird that nobody is talking about what to do about better managing it?images-1

It’s as if busts and booms were a fact of life or nature, which they’re not. Capitalism tolerates them as imperfections of time and the transparency of information, and the mechanism of the marketplace is intended to correct them. No brand benefits from the boom times enough to happily endure the busts…actually, far from it. Car brands seem to exist at the whim of external forces beyond their understanding or control. What we consumers think about the auto industry is dependent on how we feel about the country and our economy, not what the brands tell us.

This situation is a bit weird considering the automakers spend billions of dollars marketing to us each year. They’re just telling us very little that’s relevant to the Bigger Picture.

While I believe in the awe-inspiring power of marketers, I know that we can’t change the basic rules that drive the global economy. But I do think automakers could fiddle with the way they communicate to the marketplace to help lessen the crazy ups and downs in the business of selling cars. Here are a few thought-starter ideas:

  • Stop catering to purchase driving weaknesses, and have the guts to promote strengths. Playing to fantasies of power and sex is the tried-and-true approach of car marketing, only it has no bearing on customer loyalty or sales consistency. It’s glorified impulse buying if you think about it….all those huge SUV purchasers felt like mini-Arnolds when they bought their land yachts, but then were left with those heavy hunks of metal hanging around their necks once the tone of the marketplace changed. What if car marketing helped people identify and hold onto better reasons for buying vehicles? I don’t know what they are (though fuel efficiency is probably a good bet for one), but helping them avoid feeling stupid once the boom turns to a bust might be a good goal?
  • Change how people finance & own vehicles. I think this is a biggie. The entire cosmos has shifted on its axis yet people still buy cars the same way they did in the 1950s: You borrow money and pay down the debt until you’re left with ownership of a depreciated asset. Your relationship with the car brand is channeled through that device you’ve bought, and when it comes time to buy another vehicle you have to not only go through the same financial process again but figure out how to unload what you’ve got. There’s got to be a better way, and leasing isn’t it. What if car brands operated like mutual funds and people could buy “shares” in them? Different amounts would qualify for different vehicles and trade-in deals (as well as service support). Maybe there’s even be a secondary market in car brand ownership. The public stock model is 200+ years old (at least in its present form).
  • Broaden the definition of brand to include more products & services, so there’s a Cadillac Way of ownership that involves anything and everything, from ISPs to shoe brands. Construct integrated offerings so that consumers can buy into a true lifestyle, not just a car that suggests one. So if I am a Ford hybrid guy why don’t I get a green products discount card at Wal-Mart, a hemp clothing coupon every three months for ResponsibleProducts.com, and special offers for environmental vacations (for instance)? Why couldn’t people buy into loyalty programs for broader themes (women’s empowerment, entrepreneurship) that allowed them to accrue points against a variety of products and services offered to like-minded people? The car would be the focal point of the relationship but the day-to-day involvement would be far more robust.

Even if my ideas aren’t the right ones, you’d think we’d be seeing something different coming from the car marketers these days (other than nonsense social media campaigns). If they don’t embrace a rethink of their approach, I suspect they’re doomed to ride the boom until it crashes into the bust. Again.

And again, and again.

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