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Gold $907.90
Silver $16.79
Gold/Silver Ratio 54.07
Gold/XAU Ratio 4.91Gold has finally elected to take a rest after laboring above the $930 level for some days now. Whether it was just normal profit taking or aggressive short selling by the bullion banks will probably be discussed by Dan Norcini at jsmineset.com in a few days or so.
Usually, large dollar drops in the golden metal are primarily engineered by the Fed or Treasury through their bullion bank lackies on the paper gold COMEX market in New York.
The anti-gold establishment is forever creating nagativity and forever searching for it to suppress the metal from seeking its natural level or value.
According to James Turk who is the founder and chairman of GoldMoney.com The value of gold is “viewed in nominal dollars, but nominal dollars provide a distorted picture.”
“After all, everyone knows that because of inflation a dollar today purchases much less than it did twenty-eight years ago, so clearly $850 today(currently $907.90) does not have the purchasing power it did back then. The question therefore arises, what price does gold have to reach in inflation adjusted dollars to equal the purchasing power of eight hundred fifty 1980-dollars?
The full content of James Turk’s recent thoughts can be read on kitco.com under the article heading, “The Real Gold Price.”
There is an extremely revealing chart that is contained in Mr. Turk’s presentation that clearly depicts that gold is way under valued compared to the inflationary growth pressures, especially, since the 1980 time period.
Mr. Turk sums up a Real Price of Gold(CPI Adjusted) chart using the original CPI(figures provided by ShadowStats.com) from 1980 and the currently changed CPI Index that has been evolving since that time by saying:
“There are a couple of important conclusions from the above chart. First, gold at its present price of $900 today(currently $907.90) is still very cheap. In other words, it is a long way from the purchasing power an ounce of gold achieved in January 1980.”
“Second, both measures on the above chart show that the dollar is losing purchasing power every month. So if gold in the future were to reach a $6,255 price, the inflation between now and then would require gold to reach an even higher price to equal the purchasing power it had in January 1980.
Albert Einstein’s philosophy of a disturbed mind is a person or group of people repeating the same thing over and over again and expecting different results. Selling gold to prop-up a currency based on promises and promises only, does not work and has never worked in all of the world’s history and will not work anytime in the future.
What works is that it buys the Fed and the banks more time to ream the general public out of their wealth.
The BIS reports that the world derivatives market has grown to be over $500 trillion in a time period when the derivative instruments are failing, fueling a financial meltdown.
The only way to prevent yourself from becoming a serf in the approaching new feudal system as a result of the continuing redistribution of wealth from the growing poor to the top 1% or so in this country is through gold ownership.
Above all, you do not want, as Jim Sinclair has been repeatedly stating lately, any financial intermediaries between you and your gold or any other important inflation protected assets.
The American people are basicaly sudsidizing immoral criminals that are methodically ruining their currency and basically burdening them with a heavy tax through inflation that no one wants to talk to you about including on the presdential debates.
Some good news for the mine is that the price of silver apparently has surmounted the important $16.50 level.
Although, some silver comes out of the ground with the 16-1 ore it’s not that much, but every little bit will help.
When will the Board reward its patient shareholders before inflation eats them alive? The mine has inflation problems of their own but the mine holds gold, the currency of the world.
Can the Board please make some decisions that will bring gold out of the mine?
Gold $923.00
Silver $16.69
Gold/Silver Ratio 55.30
Gold/XAU Ratio 4.93National Bank(Canada) Boosts Gold Target to $1,500 US
John Morrissy Tuesday, January 29th Canwest News Service
“National Bank Financial boosted its target on the price of gold to $1,500 US within the next 12 to 18 months as bullion reasserts its status as a safe haven in troubled times.”
“With bullion having broken through its previous record nominal price of $878 in January 1980, it’s time to revisit our outlook and reiterate our view that gold is poised for a comeback as an investment haven,” National Bank chief economist Clement Gignac said in a research note.
“Investor confidence has been shaken by writedowns of more than $100 billion(this is just the start) announced by large banks around the world.” Gignac said
“Unfortunately, the U.S. recession expected by many observers this year must be expected to swell that number in the months.”
As well, the U.S. Federal Reserve’s 75-basis point cut last week “tends to underline the seriousness of the situation” in global capital markets, with analysts predicting a further rate cut of up to 50 basis points on Wednesday.
With borrowing rates falling below the rate of inflation, gold should be well bid, Gignac said, as negative real interest rates have historically been a boon to its price.
THE VALUE OF GOLD
In an extremely well written and educational article that was presented at Kitco. com on January 21, 2008 Dr. Antal Fekete president of the Gold Standard University states the following in the entitled article, “Gold: How High Is High?”:
“Gold is the senior monetary metal(silver being the junior). This has nothing to do with denials, derclarations, and desires of devaluation-happy governments. It has to do with the fact that the value of gold, unlike the value of other earthy wares, depends far less on scarcity, and is threatened far less by increasing supply. One may even say that the value of gold is exempt from the effect of the law of supply and demand.”
“Often the rising of gold causes a contraction of supply. A blow-off may indeed cause a withdrawal of all offers to sell. After that happens, gold is not for sale at any price. But again, a blow-off may bring out an avalanche of supply. The essence of the value of gold, however, is stability. We conclude that the price of gold has nothing to do with the value of gold.”
Dr Fekete in conducting session three of Gold Standard University Live to be held in Dallas, Texas, from February 11 through 17. For further information contact him at GSUL@t-online.hu or details about the session can be found on the website: http://www.professorfekete.com/GSUL.asp
Dr. Fekete states, Be part of the uplifting undertaking to resurrect monetary science. Discover the truth about money as the giants of monetary science, Adam Smith, Carl Menger and others have handed it down to us, before bribe and blackmail have overtaken the search for and dissemination of knowledge in economics.
Dr. Fekete nearly concludes the main article with the following powerful paragraph:
The world’s finance capital is on its way to total annihilation. The essence of the subprime crisis was not the slack of lending standards. The essence is that the worm of doubt is eating confidence away. Banks no longer trust the promises of other banks. Under a gold standard trust could quickly be restored by paying out gold. That’s what gold is for, to restore trust whenever doubt arises. But gold has been removed from the banking system. Now irredeemable promises can only be redeemed by issuing more irredeemable promises. In such a system the erosion of confidence cannot be checked. Lack of confidence becomes cumulative. It is like kicking garbage upstairs. When the attic can take no more, the day of reckoning has dawned, and the garbage comes crashing down.”
Gold $904.00
Silver $16.38
Gold/Silver Index 55.19
Gold/XAU Ratio 4.57The country’s financial management is being run by a group of incompetents.
Keep listening and believing in them while the Fed takes you for a ride with your eroding purchasing power and in the end, you will be poor.
Gold is the international currency. Get out of dollars and dollar related items as fast as you can.
House prices are due to decrease 15% in the year 2009. At a 20% inflation rate that equates to a 35% drop in the purchasing value of the average person’s key asset.
If you don’t have, at least, a good portion of your assets devoted to ownership in gold and some silver coins you may end up being a statistic as the great majority of people’s wealth is being washed down the river as a result of financial mismanagement of our elected representatives and our so-called leaders plus an out of control central bank that worsens inflation daily by creating more dollars out of thin air.
This comment is posted on Jim Sinclair’s site
It conncerns S.African mines being shut down for safety reasons. We know the gold is there…where’s our financial angel?
These type of issues (see article below) are going to impact the supply side of the minerals industry for decades. There are very few new mines coming on stream and the ones that are producing are running full bore to capitalize on high metal prices.These mines are getting deeper, more dangerous to work in, and more expensive to operate, which is a scenario for production shortfalls in the future.
South African gold production has been declining steadily over the past few decades and if this trend continues it will soon lose its first place position – if it hasn’t already. In 1970, South Africa accounted for two thirds of global output; now it’s around 11%, the same as Australia. Since 1995, its gold production has dropped by half.
Anyone who feels that supply-demand fundamentals won’t affect the gold market has got his/her head in the sand. We hear so much these days about oil shortages but nobody seems to pay attention to mineral commodities which underpin all industrialized economies. When you look at the price of mineral commodities today in real terms they are still relatively cheap by historical standards. There’s still plenty of room for catchup and when that happens it will be a sight to behold.
Rockroby, I’m putting your below-this entry back on top.
Now if we could just get people interested in the positive aspects of the mine such as the people who run it know how to find gold & there is lots left to find and they are ready to get down in there and get it.The stock on the open market is at .75 cents & it’s worth more then that,the need is to get people to start investing,the more people go to Yahoo MSN AOL Google and all the other financial browsers & just look at the OSTO stock it registers a hit then go to the message board and give it a strong buy with your reason why you think that and that will register hit,if enough people do it more and more people will look at it.
I left one on Yahoo on the 2nd & am still waiting for someone to rate it and even that would help.
The positive needs to be played up & i am convinced that the 16 to One will put California back on the map as a gold producing State.
Thank You
CraigAt this moment, gold is at: $877.50. A new record. The Experts are saying that a triple threat is what’s driving the price of gold up. The subprime fiasco, a soft dollar and hundred dollar oil. I like the idea of turning some soft dollars into hard gold. I think that’s what the founding fathers had in mind when they wrote the constitution.
Gold $801.40
Silver $14.48
Gold/Silver Ratio 55.35
Gold/XAU Ratio 4.74Dow Jones Industrial Average(DOW) 12,799.04 off 211.10
The DOW confirmed today that it has entered an intermediate bear market. The market just can not handle anymore writedowns from financial institutions.
The 200 day moving average line has been decisively broken to the downside by the DOW. Monday and Tuesday it appeared that aggressive hedge funds were unloading freight car loads of stock just under the 13,200 level.
Some years ago in the Hall-
wood area adjacent to some
dredger tailings near Marys-
ville, a farmer drilled an
irrigation near his home and
the driller found Platinum
but not in paying amounts.
Tough luck!.Gold $803.40
Silver $14.71
Gold/Silver Ratio 54.62
Gold/XAU Ratio 4.67What a difference a day makes!
Gold is up over $30 from late night’s trading in the Monday Asian markets.
I don’t know about you, but I’m starting to take offense watching the little tricksters, the bullion banks, jump to the tune of selling paper gold each time their handlers push the sell button.
All shareholders of gold mining companies in the U.S. have been severly damaged by the unethical exploits of the Fed and the Treasury Department to suppress the metal’s price for some years now.
Gold should be selling for well over $2,000 an ounce and it’s not and the gold mining companies hardly have a chance to produce profits because we are forced to transact our business in their rapidly depreciating fiat currency. The bottom line for us is, our costs are spiraling higher with no end in sight.
Jim Sinclair calls the CPI Index a cartoon. Keep reading jsmineset.com for current honest reporting of our financial system in meltdown that the media chooses not to cover.
The government has been trying to put the gold miners out of business for some time now. You just have to look north to Canada to see what our miners don’t have. Quebec for example, totally supports their miners and actually pays a good portion of the company expenses for mineral exploration. Nothing like this in California, all we have is Darth Vader’s dark legion of organized attorneys(CDAA).
Our U.S. Constitution clearly states that we are only to use silver and gold coins but the pimp money changers control the system. They make their own rules and no one stands up to them with any success.
GATA is one that tries for the miners. They currently have a lawyer attempting to disprove that our gold supply does exist at Fort Knox, West Point and in the vaults of Federal Reserve bank in New York so we can bring the government paid evil doers to justice.
Guess what? It’s all gone to “deep storage.” What’s that? It’s a trick to make us have to look for it in a maze in a place that doesn’t exist.
The only way to save ourselves is to as quickly as possible convert our greenbacks into gold and silver coins. Gold and silver coins appreciate, unlike the greenbacks which are losing their value at a 20% clip this year.
Gold $789.50
Silver $14.50
Gold/Silver Ratio 54.38
Gold/XAU Ratio 4.57November 16, 2007
“One early-warning harbinger of inflation is the dilution of the dollar until it starts to lose exchange value against foreign currencies, and the dollar, with fits and starts, has been in a long-term bear market for several years.”
“A falling dollar is inflationary, as it takes more and more dollars to buy increasing amounts of foreign-produced goods we are now buyings. Wal-Mart’s soaring sales are a telling indicator, as they are China’s biggest customer for cheap goods produced by cheap labor.”
“Gold and oil are quoted in dollars, so up they go. And now the metals are rising, not just against the dollar, but against nearly all currencies as the metals grow in strength, with some dramatic retreats, WHICH ARE ONLY OPPORTUNITIES TO BUY MORE.”
“The falling dollar explains early strength in the metals, and there is a lot more to come, as we continue to flood the international money markets, and now we don’t even have to print them.”
“This is now the Age of Cyber-money, when less than 5% of the dollars are minted or printed, but are only computer entries at banks. We don’t even know how many dollars there are! The Fed has recently stopped publishing key money-supply numbers(M3) without explanation.”
Howard Ruff
The Ruff TimesThe day is slowly approaching where everyone’s realistic wealth will be commonly valued, not in dollars, but in ounces of gold.
Gold $785.40
Silver $14.43
Gold/Silver Ratio 54.43
Gold/XAU Ratio 4.55It’s confirmed, the bullion banks were responsible for last week’s weakness in gold. Dan Norcini of jsmineset.com has evaluated the CFTC data released today and has applied it to the Gold(COMEX) – Commitment of Traders 2004 – 2007 chart and has made the following comments:
“Notice something unusual about this chart(the chart can be seen at jsmineset.com) – look at the commercial short position – not their net short position but the outright short position being held by the bullion banks – it actually INCREASED in spite of the $42 plunge in price on Monday followed by the $16 drop in price on Tuesday. Both of these days are reported in the release of today’s CFTC data.”
“This occured in spite of very sizeable fund long liquidation(over 13,000 to be exact). This is a very clear indication that the gold price was FORCED down by the bullion banks-there are only two occasions that I can recall in the past few years in which a price plunge of this magnitude have seen an INCREASE in the commercial short position.”
“On both occasions, it was evident that these players were deliberately attempting to force the price down. Normally, they lift or reduce the number of shorts on price downdrafts.”
“It is interesting to note that that the ENTIRE decrease in the commercial net short position therefore came about because of very large end user buying by the other commercials.”
The Wall Street Journal inferred in its Monday morning edition that gold can’t even keep up with inflation? No wonder, with the henchmen bullion banks hammering it lower each time it starts a good run.
Why was the order given for Monday morning? Would it have anything to do with the stock market closing down hard for last week and especially on Friday?
Would it have anything to with the Financial Accounting Standards Board implementing rule #157 for the coming Thursday(November 15, 2007)?
This rule expands disclosing about the use of fair value to measure assets and liabilities.
This rule is basically the Board’s establishing a measurement framework to expand disclosures associated with fair value measurements.
Rule #157 will force all financial institutions and other companies to call a spade a spade concerning financial instruments and their real value. The real value is the price these assets can be sold for into a willing market.
Unfortunately, many instruments like OTC derivatives have no market. Will these institutions mark them to zero? Their accountants might not but the auditors certainly will if they treasure their licenses.
There is a coming shock that will be felt by everyone, sooner or later. When people get the message, they will flock to gold, bullion banks or no bullion banks.
Somewhere down the road, physical gold buyers will have to square up with the short sellers. The big question is, where are the bullion banks going to get it from then? You can’t be selling paper gold on the COMEX until the end of time.
Gold $816.80
Silver $15.10
Gold/Silver Ratio 54.09
Gold/XAU Ratio 4.35(Ahead of the shares opening in 9 1/2 hours)How ironic!
Just finished speaking of the difference in the current price of gold and its
anticipated advance ahead to its inflation adjusted real price and the following was just picked up as a preview of tomorrow’s Wall Street Journal’s article, “Gold Record Is A Distant Prospect.”Monday November 12. 2007
by Melanie Burton
“Gold made headlines last week by flirting with its 1980 peak price, but the precious metal remains far short of its inflation-adjusted record–and probably won’t see it soon.”
Ok, this is the start of evidently a massive concerted effort by the anti-gold establishment to beat back the price of gold. They have never before used this type of justification to support the idea to the public that gold is so bad off it cant’t even keep up with inflation like the stock market has over past years.
Expect all their forces, probably the bullion banks have started already selling tonight in the Asian markets with more coming tomorrow, to be directed fiercely against gold with a blast from their controlled media and their hired gun mouth pieces.
My wife just asked me the other day, “why haven’t we heard anything on the major news networks about all the strength in gold that I have been listening to from you lately?”
Guess what? They were instructed not to mention it. That tells me one thing, someone is really worried that gold is up so much.
It should be an interesting week for gold, probably lower.
I remember quoting the Boston Globe a few years back or so saying, gold is poised to sell off and is a bad investment. Since their brilliant comment gold has more than doubled.
DON”T LISTEN TO THE MEDIA FOR INVESTMENT ADVICE!!!!!
Gold $823.40
Silver $15.18
Gold/Silver Ratio 54.24
Gold/XAU Ratio 4.41Gold is taking a little break tonight selling off $8.70 to $823.40.
On the last advancing streak gold went into the general area of $838.00 or abouts. The current weakness is just the start of another buying opportunity.
Jim Sinclair buys gold during reactions each $10 lower and hasn’t been wrong since 2002 when gold bottomed at the $250 area. What does that tell you?
The only timing mistake you can make following the plan is not buying gold on the extreme low of this breathing period of weakness.
Today, I listened to an interview at Agoracom.com with Jean-Francois Tardif of Sprott Management in Toronto. He says that $200 oil is coming and higher later to $300 and $400 are possibilities.
It is, simply, just a matter of increasing demand and shrinking supply. Casey Research has an informative article at kitco.com concerning this matter.
With expected continuing higher prices for energy, it’s just another excuse for gold to continue to advance.
Combining higher oil prices with the simmering pot of toxic OTC derivatives and the case for making gold the currency of choice is well on its way.
It’s just a matter of time before the public figures out how to save their bacon by owning gold. During an anticipated public buying rush expect gold to close its gap between the real adjusted price for inflation, over $2,000, and the current Fed and Treasury suppressed price.
I’m with Bluejay, Jim Sinclair is a must read. If you are interested in purchasing gold or silver coins there are many sites to do so and and Kitco is one. I however, recommend http://www.golddealer.com. Check out the SELL and the BUY BACK offers. Kitco has a $50 difference while golddealer is $15.
emf
Congratulations, as Sinclair would say, you are spot on!
Gold $835.40 last
Silver $15.74
Gold/Silver Index 52.87
Gold/XAU Ratio 4.31Well folks, the gold bull market is roaring as I type.
The inflation talk has taken a back seat to more serious troubles, namely Pakistan and the continuing melt down of the very under-reported OTC derivatives market.
As I mentioned this advance has all the earmarks of the advance that took place in 1979.
Silver pushed out of a massive consolidation formation earlier today and is now trading at $15.83. This move is significant and opens the gates to the $20.00 to $24.00 area.
The gold stock Indexes continue to to push higher along with gold. The Gold/XAU Ratio is at about 4.30 and is not overextended. You don’t have to be concerned until the Index starts moving towards the 3 area.
I again stress that you read Jim Sinclair daily. You need to hear what he is saying! The reason for this is that his http://www.jsmineset.com these days, is one of the few real sources of the truth.
Gold is moving in a perpendicular fashing now and is possibly exposed to any kind of a sell off from here on out which should be temporary when it arrives.
Again, beware of the western central bankers with all their possible propaganda that they could at anytime unleash onto the gold market.
If they create a phony sell off be prepared to stand your ground with your longs and get into position, if possble, to buy right into shakeout.
Do what Jim Sinclair does: Buy gold down every $10 on the chart.
I did not check the price of gold today and was about to leave the mine office for home. Oh, well, I’ll check to see if it held $800. David keeps a daily record and he entered $822.50. All the participants to this FORUM are probably less surprised than I. Gold’s strength is more than just a currency adjustment. For every transaction (buy/sell price adjustment) someone bets on an increasing price and the other side bets on a decrease. Some paper pushers are caught in a squeeze. Too bad for them and I’ll tell you why later.
Is all this drama taking place on paper or is someone actually buying gold to hold? Are the sellers selling a paper pledge or are they really selling their gold? As a gold producer, the Company is not trading promises on paper. When we sell gold, we take dollars, which we immediately spend. There is an active gold buying market in northern California.
Are all the big forward sales that financed the yet-to-be-mined gold in the ground covered? How are forward sales accounted on a company’s balance sheet? Are they liabilities? Or can a Company write them off as a loss and avoid disclosure? Forward sales just like shorting the market may be influencing this bullion market. How about covering an old forward sale with another at this price? A company could theoretically cover the loss (spread between the old sale and the new sale) and merely move the liability and day of reckoning ahead. If a company (or group of speculators) actually have access to physical gold, it may still hold a catbird position and flood the market with sales. Just how strong is the buying (upside) pressure?
A year ago I posted a thought about the new Dubai gold exchange. Its method of play was unknown; a new face entered the action. I still hold thoughts that gold is the world’s most private and safest storage of wealth. Personally, I’ll stay away from these players but it sure is fun to be involved in the game. Who knows, maybe it really is all about oil.
I recently signed up for a two-week trial for a gold based web site at the suggestion of a shareholder and active gold buyer. I am disappointed in the depth of the participants’ knowledge or behavior. They are still yapping about the things that moved gold and gold stocks twenty plus years ago. Each writer seems to think that the market will react the same today as it did then. It won’t. The fundamentals of mine production are very different as is the technical side of the market. The world’s finances have never been in the current environment.
This is a fun and ultimately very profitable time for Sixteen to One owners. Once I secure working capital, watch or participate and enjoy the ride. My questions are real questions and the answers with any source backup are appreciated. Thank you.
The world cash price is available at kitco.com.
Gold closed out the week at $806.00.
Gold has just surpassed the $800 mark. Last is $803.10.
Don’t be surprised to hear from the western central bankers soon.
Usually whole numbers find it difficult, most of the time, to be passed on their first attempt.
Gold’s ultimate destination appears to be over $1,650 in the months ahead.
Where do you get your spot prices? What is the best/easiest/fastest place on the Internet to find the price?
As of 11/2 after close:
I have $807.10 (NY Merc.)
and/or
$808.50 (Gold GC/1 Future Delayed)I agree with your “whole numbers” observation…
Gold’s last sale is $796.30 as we approach $800.
Gold $783.30
Silver $14.32
Gold/Silver Ratio 54.70
Gold/XAU Ratio 4.22Gold is down $10 from last night’s high and is unusually weak in Asian markets tonight.
This looks like a slam dunk for the gold bashers on the COMEX in New York tomorrow.
When these episodes appear smart money is buying into weakness. Jim Sinclair buys physical gold every 10 points down during gold selloffs.
Hopefully, we’ll have a quick turnaround after the bashers have their day in the sun.
This is interesting. This came out a couple years ago. One can buy bullion through an exchange traded fund (ETF) on the NYSE, and don’t have to take delivery or pay storage fees. The shares supposedly track the price of the metal, more or less, and are backed by actual bars:
http://www.streettracksgoldshares.com/us/index.php?noMsg=true
They do have internal management fees, so they will have to liquidate gold from time to time to cover this.
(This item is FYI ONLY. Please know that I am in no way affiliated with these guys, and do not advise or recommend anyone buying this unless they have researched it thoroughly and know what they are getting in to)
The picture of the vault is pretty impressive.
Gold $791.70
Silver $14.29
Gold/Silver Ratio 55.33
Gold/XAU Ratio 4.33Gold is strong tonight and it may not all be in the U.S. dollar’s weakness.
On Jim Sinclair’s website at http://www.jsmineset.com he has been saying for a few weeks now that, “This Is It!”
What he’s referring to is a meltdown in OTC derivatives. Everyone needs to bring themselves up to date by reading this site for an unparalleled education of the danger we’re currently exposed to.
It appears that Merrill Lynch could have some very serious continuing exposure to OTC derivative failures. Merrill could be the catalyst that wakes people up!
One only has to recall what the Oracle of Omaha said in the spring of 2003 to understand what has been happening since the sub-prime problems started, “Derivatives are time bombs and financial weapons of mass destruction.”
This push higher on the metal looks a lot like 1979. We could see an extreme push higher on this current move.
The folks that have been selling gold mining shares short during past months on Friday gave away their fears as they knocked down most big gold shares in after hours trading. If these people are that worried we could see one heck of a squeeze on the shares in the period ahead.
In early 1980 gold hit a high of about $875.
I suspect somewhere along in time the western central bankers will have their say with a concerted effort to depress gold with some tough talk about more gold sales.
Good luck everyone.
Gold is selling at $788.50, up $5.00 in Sydney and Hong Kong.
$783.50 last on gold in NY.
Gold trading at $775.00 in Asian markets.
Gold $768.00
Silver $13.78
Gold/Silver Ratio 55.73
Gold/XAU Ratio 4.32There’s a great self explanatory picture tonight at jsmineset.com’s website of what is in store for the gold shorts.
Answer to Greenhorn’s Question – (see the question below)
Performa Statement: ORIGINAL SIXTEEN TO ONE MINE, INC.
Factual production:
Historical production from Plumbago veins is four (4) ounces of gold per foot.
Historical production from Sixteen to One veins is eleven (11) ounces of gold per foot.
Historical production (Recent) from Sixteen to One mine between 1992 and 1997:
Total production is 32,924 ounces of gold, which average 5,487 ounces per year.Assumptions:
Spot price of bullion gold: $650.00 per ounce.
Footage mined: Four hundred (400) feet per month.
Development mining = Two hundred (200) feet per month.
Production mining = Two hundred (200) feet per month.
Ounces of gold from development are zero (0).
Ounces of gold from production are eleven (11) per foot.Conclusions:
Production and revenue based on actual mining between 1992 and 1997:
Annual production: 5,487 @ $650 per ounce = $3,566,550.00
Production and revenue based on actual early historic figures:
Total production: 26,400@ $650 per ounce= $17,160,000Performa statement for Special target #1
Production and revenue based on similar actual work and results between 1992 and 1997.
The production phase is eighteen (18) weeks long or thirty-five percent (35%) of a year.
Total production: 1,920 @ $650 per ounce = $1,248,000Performa statement for Special target #2
Production and revenue based on similar actual work and results between 1992 and 1997.
The production phase is twenty (20) weeks long or thirty-eight percent (38%) of a year.
Total production: 2,085 @ $650 per ounce = $1,355,250Total first year production and revenue for Special Targets:
Recent Assumptions:
Total Production 9,492 @ $650 per ounce = $6,169,800
Historical and Actual recent Assumptions:
Total production 30,405 @ $650 per ounce – $19,763,250Notes: The company sells gemstone quartz/gold that exceeds the spot price.
The use of proceeds includes a long term mining plan without projections of gold production and is classified as “development”; however a study of the history of the Sixteen to One suggests that it is highly unlikely to develop the vein to the extent planned without encountering an ore shoot.Here’s a question. If you look backwards at what the last $5 million in effort bought in terms of gold production, what do you see? Obviously this has to be approximate, etc., but might give some idea of what $5 million more could deliver.
Just a thought.
I rarely jump into the gold price discussion. Peter Degraaf’s views on the fundamentals are those that I and some of the people I associate with have known for years. Fundamentals do count. A technical analysis is also a method of determining an investment. Maybe the appreciation for open discussion will be the straw that breaks the doubt of people with a desire to get into gold and have access to money to look into our operation and plans for growth.. Please don’t remind me of Brea X as if we somehow fit into that category.
The Sixteen owns outright its mines. It is a gold producer. Its working capital needs are modest ($5 million). It has the mining expertise. It has a proven product that sells for a price that greatly exceeds the spot bullion price. It has large holdings with identifiable past production and large virgin ground. It is in a secure country. It has a history of perseverance and wisdom to exist for 100 years.
So, where are the men to step to the plate? Many more pieces of evidence are out there to support an investment in gold. If anyone knows one as good as ours, please write me. It is a risk/rewards evaluation. Also what is the upside potential verses the downside risk. Work out that equation as you search for the best gold play. I did.
The following article complete with charts can be viewed at http://www.kitco.com/ind/Degraaf/oct112007.html
By Peter Degraaf
It will never cease to amaze me how many people who call themselves ‘gold bugs’, still don’t believe that the current gold move is for real. They worry about the central bankers, the plunge protection team, the COT’s and goodness knows who else.It’s time to step away from the ‘daily noise’ and look at the fundamentals, and then see if the ‘technicals’ line up alongside, to provide confirmation.
The fundamentals are incredibly bullish!
The money supply worldwide is increasing about seven times faster than the supply of newly mined gold.
Much of the gold listed as inventory by central banks, has been leased out, yet still shows up as physical gold.
The gold at Fort Knox has not been audited since 1953!
New gold discoveries are few and far between.
Every gold mine is a ‘depleting asset’. Once it’s gone, it’s gone.
Due to rising energy prices, the cost of exploring and mining is making some projects uneconomic, even at 740.00/oz. In addition a lot of mining equipment is on ‘back order’ – tires, trucks etc.
There is a shortage of qualified mining experts. The good ones are all employed, and due to the fact that the industry went through a bear market from 1981 – 2001, not enough people graduated with mining degrees, to replace those who are now retiring.
Even if a new supply of gold were found tomorrow, it would take many years, dozens of permits, and possible court challenges from ‘tree huggers’ before this new supply could come to market.
There are several billion more potential buyers (think jewelry), on the planet who were not part of the consuming public in 1980, when gold rose to 850.00
Two of the fastest growing economies are China and India. It just happens that both of these groups of people have a love for gold. The middle class in both of these countries is growing by leaps and bounds.
Adjusted for inflation, today’s gold price of 740.00 compares to just over 300.00 in 1980 dollars. GOLD IS CHEAP!
Now for some exciting charts:Featured is the GDX, gold ETF. The green arrow points to an upside breakout, from a pennant formation (blue lines). Very bullish! The RSI is rising again after having eliminated some excess bullishness (blue arrow). The MACD is preparing to turn up again (black arrow). The 50DMA has just completed a ‘golden crossover’ with the 200DMA (blue and red lines). Both moving averages are rising (green oval).
Featured is the HUI index of unhedged gold and silver mining stocks. The green arrow points to an upside breakout from a flag formation. This is usually a very reliable bullish signal, and sets up a target at 490! (That’s 490!)
The blue arrow points to the RSI turning back up in support of the move. The black arrow points to the MACD which is about to turn positive again. The 50DMA and 200DMA (red and blue lines in the middle of the chart), are in positive alignment and both are rising. IT DOES NOT GET MUCH BETTER!
Featured is the XAU mining stock index for those of you who prefer this index instead of the HUI. The picture is just as bullish as for the HUI. An upside breakout from a bullish flag (green arrow), the RSI and MACD rising in support (blue and black arrows), and the 50DMA and 200DMA (green oval), in positive alignment and rising. The target here is 215!
Featured is the chart that compares the XAU mining index to the gold price. When this chart pattern is rising, it indicates that gold and the gold shares are in ‘rising mode’. We are looking here at another bullish pattern called: “Cup with handle”. The blue arrow points to the handle. We can see it not only in the index itself, but also in the supporting indicators, RSI and MACD. This is very unusual, and the upside breakout pointed to by the green arrow, is a very bullish signal.
This last chart compares HUI gold stocks to XOI oil stocks. The trend from March till July favored oil stocks. Then in July, the trend turned in favor of gold stocks again. This trend is now well established, having moved back above the 200DMA (solid red line). The two supporting indicators are positive (blue dashed lines). This tells us that, while oil is rising, pulling oil stocks up along with it, gold stocks can be expected to rise even faster.
Summary: The signs are pointing to much higher gold and silver prices, this is most likely the start of our annual “Christmas rally”. Now, if gold should drop five or ten dollars, caused by an attempt on the part of traders who are short, (to force the market down so they can cover their short positions), don’t send me your Emails, telling me I was wrong, instead get in there and buy! Don’t miss this train!
Trust the fundamentals, and trust the technical analysis that backs it up.
They did announce a new strike
in Australia a week or so agoIn world markets tonight gold is trading at about $738.
Rick
I forgot to thank you for your kind words.
By reading Jim Sinclair you will receive the best possible
financial education. On Jim’s site Monty Guild and Dan Norcini are contributors. These are very smart people. Monty is in Asia now scoping out things and has been reporting from there. Monty is one smart cookie. Dan knows markets inside and out.I hope, someday, your jsmineset.com education and desire to learn the truth will provide you with a comfortable amount of financial knowledge and security.
Good luck buddy!
Gold $733.80
Silver $13.48
Gold Silver/Ratio 54.44
Gold/XAU Ratio 4.39An informative article today on the Fed at jsmineset.com.
John M. Berry at Bloomberg writes an article entitled, Greenspan says “Pending Tsunami” May Hurt Fed.
The Economist rarely has a gold article. The Sept 15-21 issue has one on page 90 entitled “The bear’s lair”. Actual quotes are:
1. Gold can still be hammered into pretty shapes and worn around the neck to impress the neighbors;
2. Lead has outperformed gold over the past two years, which might be some comfort to alchemists staring at pools of molten metal that stubbornly refuse to transmute.
3. Goldman expects the price of gold to move to $725 per troy ounce over the next year or so.The article also has a cartoon type colored insert that says, “Sack the alchemist”. Isn’t this a cute story? But is it a story that the venerable Economist should place before its readers?
The article ends like this. “The wedding season (India), which comes after the monsoon, is just around the corner. Lots of shiny things will be expected as part of the dowry.
Now to offer a little insight, the article reports that, “New sources of demand have appeared. Central banks in the Middle East and Russia are building their own gold reserves. Gold bugs are watching to see if the Chinese central bank does the same”.
This last statement confirms the belief that main line financiers pay no attention to gold. It is only those darn gold bugs that watch the market.
Oh, gold broke $730 shortly after the magazine was delivered.
Bluejay, specifics on the referred web-sites you cite are major help, as well as your insight.
You’ve added another missing link to my old-time notion that “weak dollar = stronger gold”….of course it’s not that simple, as current trends point out when analyzed with a bit of scutiny. Perhaps such was the case at one point, but with a broader perspective a more complex picture emerges.
Bluejay, the references are extremely valuable, as is your tenacity to refer. Thanks
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