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Gold $1621.10 UP $60.90
Silver $28.55 UP $ 0.84Better late than never!
The link right below is to a daily graph clearly showing how the miscreants take gold down hard and fast to scare the pants off of you.
http://www.kitco.com/charts/livegold.html
It’s amazing but true, as the Euro gets taken down inversely the dollar strengthens and conversely gold is pressured but always with help from the anti-gold camp. Sadly for gold holders, the dollar does look higher on this current move.
Just another buying opportunity.
An excerpt from an email sent into Mineweb – author unknown
Since then there has been much speculation that China could be building up its reserves at a rate of four or five hundred tonnes a year or more given the level of domestic gold production and the big surge in imports seen. Although China is the world’s sixth largest holder of gold, the metal only represents a tiny 1.8% of its reserves and there have been a number of presumably government approved (is there anything else in China?) statements by officials that do suggest the nation is carefully buying on dips in the gold price so as not to create disruption in a relatively orderly global gold market.
Gold $1592.10 UP $17.80
Silver $28.72 UP $ 0.67Gold rebounded smartly early Thursday following the Fed’s assessment more easing may be necessasry while closing strong on Friday.
In the background is the mounting JP Morgan expanding derivative losses, now approaching $5 billion up from original estimates of $2 billion, along with, apparently, a collapsing banking system in Spain which could effect banks worldwide if depositors continue withdrawing their funds.
Recent comments below are from David Nichols in a recently published article “Manipulated Markets Can’t See The Future” that appeared at the kitco.com website:
“My theory is essentially every financial market is currently not experiencing proper price discovery, due to massive manipulation by central banks. This is especially true for bond markets and currencies, and by extension, gold. After all, what is quantitative easing other than the Fed intervening in the bond market to buy bonds? And they are an unnatural buyer. They don’t buy to capture profits or hedge existing positions, as market participants are supposed to, and they aren’t using currency backed by labor and savings – they are, quite literally, using “monopoly money” of their own creation.
My theory is essentially every financial market is currently not experiencing proper price discovery, due to massive manipulation by central banks. This is especially true for bond markets and currencies, and by extension, gold. After all, what is quantitative easing other than the Fed intervening in the bond market to buy bonds? And they are an unnatural buyer. They don’t buy to capture profits or hedge existing positions, as market participants are supposed to, and they aren’t using currency backed by labor and savings – they are, quite literally, using “monopoly money” of their own creation.”
Here is the article by Armstrong that speaks of gold’s current trend:
Gold $1539.30 OFF $5.00
Silver $27.19 OFF $0.53The person that has called the gold market correctly, all along, has been Martin Armstrong. In past entries many professional opinions have been submitted but none with the lasting correctness of Mr. Armstrong.
It would appear to be good advice for readers to keep reading Mr. Armstrong at http://www.armstrongeconomics.com.
Mr Armstrong’s current thoughts are based upon weekly closes in the metal. He see the weekly close below 1599 as a strong indication that gold will next test 1522. If 1522 gives way. the next stop is 1310.50
For the short term if this month and June remain weak there is a chance of a rally in July. If we don’t get the July rally then the August/September time period look to produce a good rally.
Aside from the above, gold remains in a bull market with the current protracted weakness still in force. It seems Jim Sinclair was right when he stated the swings would be wider for the metal going forward. I cancelled an order to buy gold coins at 1588 and I am in no hurry now to get more. The lower gold goes, the more I will be able to buy later.
Gold $1543.40 OFF $13.10
Silver $27.66 OFF $ 0.52Gold and silver are weak when they should be strong for two big reasons: Greece is on its way to pulling out of the Euro and sticking it to the banks who most likely got them into their financial mess and the derivative implosion at JP Morgan. When Morgan states they may have a $2 billion loss you better believe it runs deeper and most likely extends to a broad amount of institutions.
So what do our leaders do to keep the public calm? Act like all this is positive by dumping more and more paper gold. One wonders what the Chicago Mercantile Exchange’s books look like at their Comex devision with all this suspected paper dumping of so-called gold.
The whole illegal affair is a paper game of betting, minus the physical metal at commodity exchanges. The New York gold market today is no different than the “bucket shops” of past where betting was being done on which direction a security would go next minus the certificates. If enough bets were down, these too effected the physical shares. What a racket.
This manufactured drop effects honest people in a big way: shareholders, holders of physical coins and jewely plus the coin dealers inventory which they must sell at lower and lower prices to buyers. In order to hedge their inventory, dealers are forced to sell short the metal probably at the Comex adding more pressure to gold.
The banks, the bullion banks and the hedge funds are all suspected of dumping paper gold in mass with the blessings of the boss. The sad matter of fact is that China is buying elsewhere everyday and we are the laughing stock. In the end when physical should be delivered at the Comex, the US public will get stuck with the bill again as these entities will be bailed out by our representatives acting in our best interests but no physical will change hands.
This is a new trick of the metal exchanges: you don’t have to deliver physical but must make up the loss plus an additional subjective premium to the buyer to be determined by the exchange later. Feel like a hostage, I do.
These people are temporarily, because they’ll ever really win, ruining the investments in the mean time in our sector and in the process, we get doubled billed by the operators of rigged casino.
Gold $1598.20 UP $8.80
Silver $29.38 UP $0.11Comments below are Stephen Leeb’s from an interview yesterday at King World News:
“You are going to have a lot of currency devaluation. You are also going to see massive inflation. Everybody knows what that means for gold.
So you are in the last hours of turbulence for the gold market (to the downside). Once this correction ends, you are going to have a barnburner to the upside. Gold will just vault. I don’t think investors will even remember these frustrating days. I had been warning we could see this drop in gold because of the problems in Europe, but investors should take advantage of it.
Look at what China is doing. China is buying gold hand over fist right now. They are going to move the yuan forward as the world’s reserve currency and it’s going to be partially backed by gold. The world can also expect to see a gold standard imposed on Europe in the next 12 to 18 months.
The junior gold stocks, the ones with honest to goodness reserves which have not been developed, they will see one of the greatest, if not the greatest bull market of all-time.
But many of the big stocks have become like dinosaurs. Stocks like Newmont and Barrick don’t have enough gold in the ground. So what’s bad for Newmont and Barrick, is incredibly good for gold. We are sitting on the cusp of what may be the greatest bull market we’ve ever seen in our lifetimes.”
Just in case you missed this one:
Up to 13 states Now Seek to Coin Gold & Silver as Currency
By Blake Ellis
Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, more than a dozen states have proposed using their own alternative currencies of silver and gold.
NEW YORK (CNNMoney) — A growing number of states are seeking shiny new currencies made of silver and gold.
Worried that the Federal Reserve and the U.S. dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option. Just three years ago, only three states had similar proposals in place.
“In the event of hyperinflation, depression, or other economic calamity related to the breakdown of the Federal Reserve System … the State’s governmental finances and private economy will be thrown into chaos,” said North Carolina Republican Representative Glen Bradley in a currency bill he introduced last year.
Unlike individual communities, which are allowed to create their own currency — as long as it is easily distinguishable from U.S. dollars — the Constitution bans states from printing their own paper money or issuing their own currency. But it allows the states to make “gold and silver Coin a Tender in Payment of Debts.”
To the state legislators who are proposing state-issued currencies, that means gold and silver are fair game, said Edwin Vieira, an alternative currency proponent and attorney specializing in Constitutional law. And since gold has grown exponentially more valuable, while the U.S. dollar continues to lose ground, the notion has become increasingly appealing to state lawmakers, he said.
The state gold rush: Utah became the first state to introduce its own alternative currency when Governor Gary Herbert signed a bill into law last March that recognized gold and silver coins issued by the U.S. Mint as an acceptable form of payment. Under the law, the coins — which include American Gold and Silver Eagles — are treated the same as U.S. dollars for tax purposes, eliminating capital gains taxes.
Since the face value of some U.S.-minted gold and silver coins — like the one-ounce, $50 American Gold Eagle coin — is so much less than the metal value (one ounce of gold is now worth more than $1,700), the new law allows the coins to be exchanged at their market value, based on weight and fineness.
Local currencies: In the U.S., we don’t trust
“A Utah citizen, for example, could contract with another to sell his car for 10 one-ounce gold coins (approximately $17,000), or an independent contractor could arrange to be compensated in gold coins,” said Rich Danker, a project director at the American Principles Project, a conservative public policy group in Washington, D.C.South Carolina Republican Representative Mike Pitts proposed a currency system that would allow people to use any kind of silver or gold coin — whether it’s a Philippine Peso or a South African Krugerrand — based on weight and fineness. Pitts said in the bill, which currently has 12 co-sponsors, that the state is facing “an economic crisis of severe magnitude.”
Republican representatives from Washington State followed suit in January, introducing a bill that would also allow any gold and silver coins to be considered legal tender based on metal values. Minnesota, Iowa, Georgia, Idaho and Indiana are also considering similar proposals.
Many of the bills would make it possible for residents to exchange the physical coins for goods and services, so you could use coins to buy anything from groceries to a car as long as the store chooses to accept them.However, most people aren’t going to walk around with such valuable coins in their pockets, said Vieira. Plus, calculating the value of the coins — especially if they come from different parts of the globe and are of different sizes and shapes — will get tricky.
It’s more likely that the states will create electronic depositories and accounts for the coins to make transactions easier, when and if the initial bills are passed, he said.
Utah Gold & Silver Depository is already developing a system where customers could use debit cards linked to their gold holdings. When customers swipe their debit cards to make transactions, physical gold and silver coins would be transferred between accounts in privately-owned depositories (or vaults) based on the market value of the metals.
Before deciding on a specific form of currency, some states — including Minnesota, Tennessee, Virginia and North Carolina — are considering proposals that would first require a committee to review their alternative currency plan.
The future of U.S. currency: The states’ proposals have been gaining steam among Tea Partyers and Republicans, many of whom also endorse a nationwide return to the gold standard, which would require the U.S. dollar to be backed by gold reserves.
Tea Party “father” Ron Paul is sponsoring the “Free Competition in Currency Act,” which would allow states to introduce their own currencies, and rival Newt Gingrich is calling for a commission to look at how the country can get back to the gold standard.
But it will be the individual states that could really get the ball rolling, said Vieira. Even if several of the current proposals get killed, the introduction of so many bills at the state level is drawing national attention to the issue, he said.
Funny money: 11 local currencies
Of all the state proposals circulating right now, Republican-controlled states including South Carolina, Georgia, Idaho and Indiana have the best chance of passing their proposed bills this year, said American Principles Project’s Danker. If just one or two states implement an alternative currency, it could have a Domino effect, he said.“I think we could get a couple passed in this legislative session, and that would show this is mainstream, popular and it would be a justification for more of the risk-averse states for doing this,” he said.
You won’t be reading the following in any newspaper or having the content being reported on your TV.
Jim Sinclair’s Commentary
Just a reminder.
Dear Friends,
The European Stabilization Mechanism Treaty due to pass in July this year will take care of whatever money is required by Spain or any other Euroland nations for effective bailout. It starts with $700 billion in capitalization and has an open call for additional capital infusion with no limit placed on these calls and no further agreements required.
New additional capitalization called on by this treaty is mandatory, not elective and therefore will go to infinity.
The member nations have 7 days to pay up when ordered to by the management of the EMS who are protected against any form of attack or litigation to legislation. It will be backed by the US Fed via swaps while the US publicly denies it is adding any capital to the IMF or this new entity, ESM.
It is the mechanism for QE to infinity in Europe.
QE to infinity, properly understood, is debt monetization on steroids. Denials will be legion, but this debt monetization on steroids will not and cannot be avoided.
The advent of the ESM Treaty establishing the European Stabilization Mechanism is economically Earth shaking and recognized by almost no one out there. It cannot be otherwise, it cannot be avoided. It can de denied but it will occur.
Respectfully,
JimSwiss refiners can’t keep up with gold demand
posted on May 03, 12 11:51PM
Egon von Greyerz continues:
“At the same time, we are reading that a number of central banks are buying gold. So the nonsense coming from the mainstream media that people are not interested in gold is completely false. We are seeing massive accumulation of physical gold. This decline today is clearly only in the paper market.”
“Once people wake up to the fact that the paper market is not even a real market, meaning it’s a false market that can never deliver the real goods, once investors realize this, that is when people will really panic”….
The full interview from King World News:
Gold $1635.60 DOWN $18.10
Silver $30.07 DOWN $ 0.58It just seems the constant stacking of the cards against the public holders of gold with more and more price suppression at the Comex Casino will never end. The only thing that can be stated is that it will always the darkest prior to the new day.
When the metal finally raises its horns again it will become chrystal clear that the current days of the paper charades will be over for a while. The fact remains the western central bankers will defend their fiat currency, so-called money, with no expense limiting them even though their taxpayers in the end will be forced to accept all and every sale that was NEVER backed by physical gold. Iq believe everyone with a rational mind accepts this, sadly but true.
The miscreant’s attacks are planned and well orchestrated. In the last big attack these boys took the metal below $750 in 08′ from just over $1000. Even though they are back to their old tricks again for the past year they constantly have to keep selling gold at higher and higher prices. This is the reason that wider and wider price swings are in order for the months and years ahead but the percentage moves should be about the same.
A few hours ago at today’s lower price of $1636.60 more gold was acquired and it won’t be sold until years later.
Gold $1662.20 DOWN $2.10
Silver $31.16 UP $0.15An outstanding gold analyst, Alf Field, has stated that gold has bottomed following 12 months of declining prices. Within the big picture, western central bankers apparently have exhausted their resources, for the time being, for price suppression and the metal is ready to resume its upward march to new higher levels.
These central bankers and the people supporting their efforts behind the curtain will continue to fight gold as when gold moves higher their power influence over all of us is percieved by them as being reduced. One very important aspect of our financial well being is to keep a great distance away from their Monopoly money as best as we can.
It was back in 2008 that a great concerted effort was taken aligning all their forces to prevent gold from moving above the $1000 level. The thought of the metal bettering $1000 just petrified them for a while and then they went into action. Major US banks accommodated them with massive naked shorting of gold and silver in the first half of 2008 and other cohorts, a few major hedge funds, were to go into action a few months later selling shares they never owned with a vengeance.
Later in early July and for weeks later gold and silver were slammed along with the related shares, it was a real slaughter, gold went to $750 and later a little lower and the share’s value were cut in half. All this is history now with the important facts remaining: they were successful in scaring folks only over the short term BUT long term, THEY FAILED and will continue to fail as long as they persist in creating more and more of their Monopoly money while they cling onto their power throne and herd the people into financial slavery at increasingly alarming rates.
The western central bankers are after our hides in the worst way. PROTECT YOURSELVES with gold and silver and the related companies.
Recent comments from the accomplished Stephen Leeb:
“When asked about gold, Leeb responded, “Gold may get hit if Europe does fall. There might be selling of gold for liquidity. If gold does get hit, it will be one of the greatest buying opportunities people will see in their lifetimes, but it may not happen. My point is if you are fully invested in gold, stay there. In a few years you will find you are very wealthy. If you are 50% invested, buy the dip if one materializes.
China is buying gold because they know what is happening. This is a recipe for the Chinese yuan becoming the new reserve currency because they are accumulating a lot of gold that will probably be used to back the yuan.
What is that going to mean for the dollar and inflation in the West? It’s going to go to levels that we’ve never seen before. This is a when, not if event. And the when is, when is gold and silver going to soar to the sky?
I don’t even have a target for gold anymore. Investors need to be careful with anything that is denominated in dollars and paper. You have to be in hard assets in order to survive this cycle.”
I heard something interesting yesterday from a major coin dealer in Phoenix: The public has been doing a lot of small lot selling of gold and silver coins while the sales have been offset by fewer, larger buyers.
This is what usually takes place from my experience during the bottoming process. Gold has been in a corrective consolidation pattern for the past 12 months.
The MACD converging short term chart moving average lines have gone flat, thus indicating that the selling pressure on gold has been neutralized.
Although the 50 and 200 day average lines are above gold’s last sale, I suspect gold has been manipulated lower to reflect a short term negative environment. Aside from this ambiguously painted picture, gold appears in the early stages of rearing its head up again.
The key to ultimate success in preserving your wealth is with on-going purchasing of gold and silver coins ahead of these new anticipated updrafts during the current bull market.
Still, keep some funds available for any “behind the curtain” sponsored shake-downs as they have a tendency to crop up.
An excerpt from an article published yesterday by Jim Willie:
The USDollar appears to be topped out. As it falls, the global cost structure will be lifted again. Most commodities are priced on a US$ basis. Big challenges are in force against the global reserve currency. Aggravating the effect is the chronic high oil price.
The Iran effect is felt, not going away, only to grow worse as the backfire backlash develops into new platform systems. See the Hat Trick Letter in the April edition for much greater details on all these critical matters as history is being made. Sadly, the history is the final chapter of the USDollar and its written epitaph.
Americans appear to be the least informed on current events and risk levels. Many will see their life savings, their pension plans, and other valued assets suffer great loss since they have not put in place protection from the imploding beleaguered USDollar. The lost value of their homes is but the beginning of their great loss.
That warning has not been heeded effectively by the majority of the masses, who qualify as sheep. Steps are difficult to make, but they must be made. Gold & Silver offer the best such protection in the form of bars and coins, kept outside the US and UK, the axis of fascism.
REAP
Thanks for the excellent information.
Gold $1644.30 UP $2.80
Silver $30.63 DOWN $0.20Excellent interview concerning gold and other financial topics. Sorry for the extensive link to the story.
New IMF figures show at current rate central banks will buy almost 700 tonnes of gold this year
Gold slipping over 3% over the course of March, averaging $1,676 for the month, prompted central banks to stock up on the yellow metal IMF data showed on Tuesday.
Led by Mexico and Russia, central banks from 11 countries and the Eurozone added a combined 57.9 tonnes of gold in March.
Gold $1631.70 OFF $10.70
Silver $30.75 OFF $ 0.95Gold continues to be pressured lower, down nearly $300 from its recent all-time highs above $1900.
Gold is being dragged down by folks who fear it, causing unrest with those who own it. The whole affair is a game of numbers. Gold is gold and will always be gold, a store of wealth.
The miscreant pressure on the metal may very well be the last bold attempt to suppress it before reality sets in. The big lingering question is, at what price and when in time will this all end?
During bull market contractions the name of the game is scale-down buying. Forget the news being fed to you and the concern of lower price, just close your eyes and buy into this resting period. It will just be a matter of time until the bull raises his head again.
http://www.chrismartenson.com/blog/harvey-organ-get-physical-gold-silver/73933
US Gold Production Slips 7% In January – USGS
19 April 2012, 12:46 p.m.
By Kitco News
http://www.kitco.com/U.S. mines produced 20,200 kilograms of gold in January, a 7% drop versus revised December output, said the U.S. Geological Service on Thursday.
December output was revised to 21,700 kilograms, down from the previous estimate of 22,000.
The average daily gold output for U.S. mines was 650 kilograms in January, down from 700 kilograms per day in December and the average daily output of 652 kilograms for all of 2011. December daily production was revised down from the previous estimate of 711 kilograms and the average daily output of 656 kilograms was revised lower.
Total yearly output was revised to 238,000 kilograms, from 239,000 kilograms estimated last month.
Bluejay, thanks for the Armstrong link! My thought in posting this was the possibility of the Sixteen to obtain foreign investment, especially from the Japanese. I lived in Hawaii for 10 years, and still own property there. Because the Japanese love to visit Hawaii they are Very Heavy investors in HI real estate, especially in Top Tier hotels/resorts. Now that those are all bought and there is little new construction planned, this might be the time to attract Japanese investment into gold and specifically into the Sixteen-to-One.
REAP
Martin Armstrong is probably the expert on following and predicting international capital flows. I’m sure you can go to http://www.martin Armstrong.org and locate a report where he speaks in detail concerning this.
In past years, I gained a currency advantage that you speak of when I was involved with Canadian mining companies during which time the Canadian dollar advanced against our currency. I just can’t get into buying gold in foreign currencies because I prefer to keep part of our wealth in the physical.
Yes, you hit the nail on the head by commenting on maximizing possible profits in gold or holding losses to a minimum in being in the correct currency.
Jim Sinclair comments in a recent King World News interview:
On the heels of the Fed members commenting publicly, legendary trader and investor, Jim Sinclair, told King World News that even though we have already seen $17 trillion of money printing, we should expect another $17 trillion going forward. KWN also asked Sinclair how he knew, from the beginning, that there would be ‘QE to infinity,’ before anyone else. But first, here is what Sinclair had to say about the action in gold: “$1,650 is a comfortable number (for central planners). Haven’t you seen the tremendous jawboning and market intervention to hold gold in that range at $1,650? $1,764 and they lose control. That begins the move which is exponential.”
Jim Sinclair continues:
“It’s a formidable challenge (keeping gold below $1,800). The true range of gold is $1,700 to $2,111, but these guys are going to try to fight it like nobody’s business. Do you think for a moment they are not listening to you and I speaking right now? Forget it, Eric, we are the morning ‘Squawk Box’ tomorrow.
Now comes the payback. The hope and desire that things would improve is ignorant because of the fact that the trillions which have come in have been to save the financial organizations, not Main Street….
Vietnamese sociologist; “Empires may fall, currencies may change … gold will always survive.”
Here’s some good news that could push the price of gold much higher.
Hybrid copper-gold nanoparticles convert CO2
Copper — the stuff of pennies and tea kettles — is also one of the few metals that can turn carbon dioxide into hydrocarbon fuels with relatively little energy. When fashioned into an electrode and stimulated with voltage, copper acts as a strong catalyst, setting off an electrochemical reaction with carbon dioxide that reduces the greenhouse gas to methane or methanol
Now researchers at MIT have come up with a solution that may further reduce the energy needed for copper to convert carbon dioxide, while also making the metal much more stable. The group has engineered tiny nanoparticles of copper mixed with gold, which is resistant to corrosion and oxidation. The researchers observed that just a touch of gold makes copper much more stable. In experiments, they coated electrodes with the hybrid nanoparticles and found that much less energy was needed for these engineered nanoparticles to react with carbon dioxide, compared to nanoparticles of pure copper.
The link to the full article is:
http://web.mit.edu/newsoffice/2012/hybrid-copper-gold-nanoparticles-convert-co2.htmlFact Versus Fiction
Jim Sinclair lays it all out for us concerning gold:
[audio src="http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/4/3_Jim_Sinclair_files/Jim%20Sinclair%204%3A3%3A2012.mp3" /]
Gold $1647.50 UP $2.60
Silver $31.53 OFF $0.06
XAU Index 174.26 OFF 3.53
HUI Index 465.34 OFF 9.34
US dollar Index 79.74 UP 0.08Gold since the February 13th alert has softened as expected. The 1640 to 1650 area on its chart continues to offer support. If this level gives way the declining consolidation period from above the $1900 highs will continue. The downside exposure below looks to be at about the 1500 area. If 1500 level breaks the metal could retreat a few hundred points or so. Not that these levels will be reached during the current bull market or not but these are possibilities.
Gold is stronger than silver and silver’s next stop could be in the 26-27 zone.
The gold indexes look anemic in here. The XAU has its next support in the 170 area with the HUI expecting help at the about 440.
The dollar looks to be emerging to higher levels with some professionals looking for the 82 level to restrain it from advancing farther.
It is important to understand that the gold price is being orchestrated lower by the western handlers of a decaying monetary system from their towers of power which will prove to be futile in time. The lower gold goes in value the better of a purchase it will be for the fearless.
China continues to quietly accumulate the metal during this unknown period of softness.
More important gold related info from Jim Sinclair in this recent interview:
https://goldsilver.com/new/ellis-martin-report-with-jim-sinclair-and-the-nuclear-economic-trigger/
Keeping your eye on the ball
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/3/11_Dr._Stephen_Leeb.html
Pierre Lassonde interview:
[audio src="http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/3/17_Pierre_Lassonde_files/Pierre%20Lassonde%203%3A17%3A2012.mp3" /]
Many long-time followers are stating that recent weakness in gold was brought about by our leaders selling physical and paper gold.
And then you wonder about the following that appeared on the jsmineset.com website yesterday:
“According to comments made in the euro press, the Fed is in arrears concerning gold audits due to countries storing gold with the New York Federal Reserve Bank.”
Jim Sinclair updates his thoughts on gold:
[audio src="http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/3/16_Jim_Sinclair_files/Jim%20Sinclair%203%3A16%3A2012.mp3" /]
Professor Fekete on Silver
http://www.goldstandardinstitute.net/2011/06/the-marginal-utility-of-silver/
Mike, I’m Ron Pacholec. HEre’s my email address. I’ll send all my contact info to your email address.
Strong words from Jim Sinclair:
1. What is going to happen is going to take place in March somewhere between the 14th and 20th in all probability.
2. What will determine the fate of markets is what action China does or does not take in providing funds to IMF bailout funds.
3. I believe China can and will extract significant trade and other benefits for their presence.
4. I believe China will want the same immunity that the IMF just took for themselves on sovereign debt in liquidation.
5. Greek gold will be held hostage to their debt.
6. That will accelerate the modest trend of repatriation of gold for the cellar of the New York Fed to nations like Germany that are certainly able to store their own wealth.
7. There will be an acceleration in the trend of utilization of other currencies than the dollar for contracting internationally regarding goods, service, oil and minerals.
8. I do not agree that we are at the doorstep now of major changes in the international monetary system. That comes in June of 2015.
9. I am certain that we are on the immediate threshold of the monster kick of the financial can down the road that is a dead end.
10. I believe China and the US Fed will assist in that great last can kick that backfires.
11. I am certain that I am in the right business and that business is the identification and accumulation of gold as gold is the ultimate survivor of what is about to happen.
12. I am certain the gold industry is mad as a Danbury hatter in selling their product the moment they produce it.
13. I am certain the gold and silver industry is in a transition back to the dividend producers they once were.
14. I am certain that the volatility in gold, silver and equities we have already seen is nothing compared to what is about to happen.
15. The last man standing among asset categories as the new monetary system is introduced sometime post June of 2015 will be gold and gold alone.
Strike while the market’s HOT!! The strong expectation that the Bull Market will continue to make gold prices rise has been very successfully exploited by yet another Canadian gold company. Their Sales Pitch: Buy stock today, take losses today, and get richer tomorrow as gold continues to rise!
“San Gold announces $15.0 million private placement.”
This is another Canadian company placing tax flow-through stock through a syndicate. These shares are not available for sale in the US, only in Canada.
San Gold calls itself a “New Exploration and Production” company. In 2011 they reported revenue of $114M CD but reported a net loss before tax of $9.3M CD due to $25M CD exploration expense, $79M CD operation expense (28% of which was non cash expense Dep and Amort) and $17.5M CD Admin, about half of which was paid in stock.
BUT in terms of HARD CASH they Actually Made Money: $114 rev – $59 ops – $24.8 explor – $9 admin = $21.2MCD. (A more careful analysis would yield their reported cash increase of $17.2M CD) Besides making cash, they sold flow-through stock. Not bad for a year’s work. Though the mining and tax laws in Canada are much more favorable than the US, San Gold is an example of what clever finance and tax law can do. San Gold, by having actual revenue, is perhaps more similar to the Original Sixteen than Pertium.
Continuing on with the private placement concept for investors to profit and the company profit…
The rich history of operating the Sixteen to One mine is scattered throughout this website. An ongoing goal is to expand the readership, especially to people or companies thinking about buying a gold opportunity. Smart investors are on the prowl for finding ways to place money whereby the rewards make the risk advisable. I have yet to find a stock offering where the upside potential measured with the flat out downside probability is more favorable than OAU (the symbol when the company was listed on the now defunct Pacific Stock Exchange in San Francisco). Its history of trades was managed by a very competent market maker.
No one may ever know the outcome of my beliefs for OAU unless someone steps forward with an investment. It is against history that our small crew will mine a pocket of gold and finance the operation AS IT SHOULD BE OPERATING. We have data to approximate gold production, not by projecting reserves of some qualifying definitions. Few underground (if any) California gold mines can create actual gold reserves of economic substance. There are other ways to determine risk/reward: costs verse production, time and recovery of initial outlay.
The current price or whether spot increases or decreases are a very modest factor in analyzing Original Sixteen to One Mine, Inc. The only negative against our operation is the lack of working capital to run the company in a proper business-like fashion. We know how to do it even though our Canadian friends start the game with a five touchdown lead. I think Americans of large financial wealth don’t give a rat’s ass about gold. This is nothing new. I recently found my old files from 1975 to 1985. They support this opinion. Americans have the universal currency and cyclical trends whereby markets can be exploited for gain. Wealthy Americans are very smart and I am betting that these are the folks who will benefit from aligning themselves with one of the world’s great gold mines. The problem? How do they find us!
REAP. Send me your email address or other mailing address. Someone will find the solution as I have found the solution how to mine gold profitable and get it to owners in the most favorable way. Oh, I almost forgot. Technology, which we call metal detection, awaits. It has stood still for over a decade for our industry. Look what technology has done for oil. Predictions in the 1970’s were the world would run out by 2000. Now global reserves are greater than they were forty years ago. California has a lot of gold remaining underground.
Mike, I’m glad to help!
I agree with you about the capitalization in Note 4. I have some other Pretium financials and I am working my way through them to see what they did.
I think they call themselves an exploration company and don’t show any revenue from gold or silver for TAX reasons. This private placement was a bought deal constructed by a syndicate of underwriters led by Salman Partners Inc. The shares offered were “flow-through” common shares which allow the losses generated by Pretium to flow through to the investors filing taxes in Canada. Thus no revenue from sales.
“The gross proceeds of the Offering will be used during the 2012 exploration program to incur eligible Canadian Exploration Expenses (“CEE”) that will qualify as “flow through mining expenditures”.
As you said, Canadian taxes are different than in the US. However, the US tax code has some similar mechanisms for flowing losses through to investors (both individual and corporate). Though they exist, “tax shelters” are more regulated in this country. This makes them more difficult to create, but not impossible. But similar to the Pretium offering the US code allows flow-throughs mostly for investment partnerships and Subchapter S Corps.
One thing that Pretium did do to help their offering was to hire P & E Mining Consultants Inc. to produce a humongous (I mean 170 pages) “Technical Report and Resource Estimate” on the Brucejack Project. I have that if you want a copy. The timing of this report, “Effective Date: November 28, 2011; Signing Date: January 12, 2012”, sounds a little suspicious. Apparently they needed a “Sales Document” to make the deal work.
The Tax Code is not my expertise, but I am an excellent researcher. I’m happy to help the Original Sixteen. It’s an “Excellent Company” with a great history. My researching also helps me to better understand what to do with my Golden Gate Claim. And I agree that to really understand the Original Sixteen and gold mining in California requires a visit to Alleghany. I’m planning to attend the ICMJ Gold Prospecting and Mining Summit in Placerville, 11-15 May. I would enjoy meeting you and learning more about the Sixteen.
Thanks REAP for alerting me to Pretivm.
Robert Quarterman, president of Pretivm Resources has an interesting background in finance and increasing shareholder value. Silver Standard, a small company which Mr. Quarterman successfully exploited, had similarities to Original Sixteen to One Mine, Inc. Junior mining companies must be evaluated on their own. They do fall into classifications, when studied; however, their differences are most important to recognize and discuss.
In reading Pretivm’s financials, Note 4, the huge increases in capitalization puzzle me. Canada established accounting rules that differ from American. The treatments of “reserves” differ by definition before assigning them an asset value accounting on a balance sheet as well. Pretivm calls itself an exploration company. Most juniors are exploration entities.
Tax treatment is more advantageous for metal mining in Canada than the United States. There are very few US gold mining corporations operating anywhere. Having said all this, our Company can learn from Mr. Quarterman’s financial wizardly ways. Our holdings, current and past operating histories may be considered beyond exploration. Production comes to mind. I noted on the income statement for Pretivm no line item for gold or silver sales.
Over the past three decades, gold stock pundits wrote that the exploration companies (most speculative) were more exciting a gamble than gold producing companies. The belief was based on the notion that a big company would take over a small exploration project, thereby rewarding the exploration company shareholders a good uptick in stock price. They all chimed in that once a gold company begins producing gold the stock luster fades. I disagree!
Our properties are difficult to analyze. Our company is an anomaly. It is so strange an occurrence in junior gold companies that outsiders frequently don’t know the questions to ask. How can anyone with a feel for gold lose interest in pursuing an investigation! The Sixteen to One should bore no serious gold advocate or person desiring to profit from their accumulated wealth.
This is our immediate goal: expose the money making opportunities to people willing to take a close look and step outside the old conventional box. I need help extending invitations to individuals or companies willing to investigate America’s oldest gold mining company (Original Sixteen to One Mine) in the world’s most proven gold deposit with the least miners employed in their trade. That would be California.
Briefly, following are important facts: the mines are on privately owned property, not federal lands; the infrastructure for mining is in place; great maps and reports exist; corporate profile excellent for growth; knowledgeable people associated with the company; spot price for gold not an issue of importance due to unique demand for Sixteen to One gold; expectation of gold production immediate; motivated management.
Our business plan is to complete a private placement, spend the money wisely, evaluate results, reactivate stock market identity, prepare our first public offering, spend the proceeds wisely, declare a gold dividend, and evaluate California’s gold mining opportunities. The only way to fully disclose Original Sixteen to One Mine Inc. and its mines requires a visit to Alleghany. Your help is appreciated.
Bluejay,
I understand your point about being able to locate the pockets of gold in the veins before any investment is possible. I am searching some other technologies developed by non gold mining companies that might be useful in combination with the GPR data.
But, I want to add this post to show that private placement is becoming a more common form of finance in the gold industry. This is also a mechanism that can create a public market on the Exchange. Pretivm did increse its gold reserve estimates as a necessary first step, then sought financing. I am searching to learn what Pretivm used to determine these reserves.
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Pretivm Closes Bought Private Placement of Flow-Through Shares
MARKETWIRE – Mining and Metals
Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) (“Pretivm” or the “Company”) is pleased to announce that it has closed its private placement of 1,250,000 flow-through common shares (“Flow-Through Shares”) of Pretivm at a price of $18.50 per Flow-Through Share for aggregate gross proceeds of $23,125,000 (the “Offering”).- AuthorPosts
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