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- in reply to: Gold Enters Major Bull Market #6293
Why I spend little time guessing, speculating, charting or recording data regarding the historical hydra of the gold spot price market. Some believe it to be an evil. Not I. Some believe it to be great value. Either way pundits or intelligent analysts are celebrating a positive first quarter while others are sending up a warning signal as they see significant risks to the downside because of rising real bond yields. Yawn.
In a report Tuesday, one wrote that the growing divergence between gold prices and rising real interest rates is becoming “increasingly precipitous.” Traditionally, higher real interest rates weigh on gold prices, increasing the precious metal’s opportunity costs as a non-yielding asset. Okay.
Fear over global trade negotiations and recent softer than expected economic data have weakened the long end of the U.S. treasury curve, which should be a positive for gold prices. Okay. Historically as the long-end of the U.S. treasury curve declines, relative to European and Japanese yields, the dollar moves lower which paves the way for higher gold bullion and silver bar prices. So what?
Continuing from various reports: yields have been under pressure since pushing up to the 2.95% level, following the Fed’s decision to increase interest rates by 25-basis points following their March monetary policy meeting. Investors appear to be unsure of the Fed’s forecast that yields will accelerate higher in 2019 and 2020. A declining 10-year treasury yield is the markets way of telling the Fed that your forecast for growth and inflation are too rosy. I’ve had enough and will stick to Lee Erdahl’s guidance years ago: “Mike, when asked about the price of gold, I say one thing is for certain. It will go up or go down.”
I like to read about those actual gold producing companies and how the life of a miner is going. I also study patterns of the exploration dreamers and how they present their case for eventual production. I do like to read about the political upheavals where armed guards are required for protecting the miners or when a regime decides to take a bigger chunk of production. The writers that really blow my mind (and have for years) are those predicting $5,000 an ounce or more. My greatest curiosities are the gold bulls and bears that baffle and manipulate the direction of spot towards their financial benefit. At times a gold bull wants to bring the price down for acquisition. A gold bear may favor an increase in order to short the commodity. Nothing new here but the game is much more expensive to play than dealing in cotton, corn or even oil.
in reply to: Ideal Time for Facts #6292IN 1970, JACK R. WAGNER WROTE “GOLD MINES OF CALIFORNIA”. It is a must read for those interested in understanding California gold. Chapter 14 entitled “The Original Sixteen to One Mine”, in thirteen pages, details one of the world’s greatest mines in a top ranking gold field, California. Following is the beginning of the author’s PREFACE.
“As a native Californian I was brought up to think of California as the “Golden State”, not only because of its heritage, but because gold mining was still a fairly important industry. Today this is no longer the case and I now realize that much of the California I knew is slipping away. Even the physical evidence is rapidly eroding due to the ravages of time, neglect and the constant rearranging of the landscape. In its own way I hope this book will capture the dramatic life and sad ending of what once was a major California industry produced between 1848 and 1967 nearly $2.5 billion in gold. It was an industry that influenced the placement and development of many California towns and contributed enormously to the prosperity of our state.
From the discovery of gold-bearing quartz on Gold Hill near Grass Valley in 1850 until December 31, 1965 when the Sixteen to One Mine in Alleghany shut down, California was world renowned as one of the most important gold fields. Fortunately in 1850, about the time when most of the easily-mined placer claims were worked out, miners were able to turn to deep or hard-rock mining. This period, which lasted 115 years, was aided by the newly discovered dynamite and the perfection of the air drill, both of which carried gold production to great heights and the mines to great depths.
Actually, it was the Sixteen to One mine that led to my undertaking this project in the first place. It all began when I read a short article hidden away on the financial page of a San Francisco newspaper, reporting the demise of California’s last producing gold mine. While I had known for years that profitable gold mines were few and far between, I had no idea of how many or how few still existed in California. It became apparent to me that this was truly the end of an era in our time and I determined to set some of it down on paper before it became lost entirely. Since the Sixteen to One was the last operating quartz mine it also seemed appropriate that it should be the final chapter in the book, which means that I wrote the last first.”
Does Jack Wagner’s research have any meaning 48 years later? Déja vu regarding the last operating quartz mine in California. The layoff of our Company’s miners in 1965, was directly related to the thirty six year freeze on spot price of gold plus the fact all production must go to the US government. Whew! No déja vu to that economic legislation. At today’s spot price for one ounce of gold, the Sixteen production according to Mr. Wagner is $1,350,000,000. Yes, over one billion dollars came from Sixteen to One gold. How much remains? Read our web site. The June shareholder meeting in Alleghany will number 107.
Jack Wagner began Chapter 13 with:
“A good story, like gold, is where you find it and this one began in he classified section of the San Francisco newspaper in June 1965 with an ad which read: To be sold. 25 beautiful irreplaceable quartz and gold specimens suitable for museum or private display. A simple ad, but behind it ran a pathetic story of the decline in the fortunes of one of California’s most famous gold mines, the Original Sixteen to One Mine of Alleghany. It is a story so typical of the plight of the California gold mining industry that it could be used as a textbook example.”
What Jack did not know was the miners stayed operating as independent miners keeping the main adit and some levels open as water flowed into the mine. The author concludes his wonderful story. “Barring an increase in the price of gold or some other economic miracle (or catastrophe) future historians must surely agree that the Sixteen to One mine was truly the last producing gold quartz mine in California, the once golden state.” The miner’s prayer: gold in the next round we drill, blast and muck.
in reply to: Two-headed Front #6290We were able to put the entire MSHA Brief on the web sit but not in the FORUM for you to enjoy. This is my small way to help Americans. How and Why?
Our public is ignorant about the necessities and benefits of the well run Natural Resource industries.
Go to the HOME PAGE.Under “Latest News” click “Respondents Post- Hearing Brief.” Perhaps think of it as a non fiction novel
in reply to: Technology #6288Hans, ich danke ihnen, vielen dank.
Before your last entry, my knowledge of MLP was zero. How sad to have worked so many years looking for the key to interest investors to investigate this venerable gold producing company. I like this concept, really like it. Even the recent tax legislation benefits investors in a MLP.
Others may be ignorant, like I was. Below is a brief explanation about Master Limited Partnerships.There are two types of partners in an MLP: general partners and limited partners. General partners oversee the daily operations of the MLP. All other investors in an MLP are limited partners, and their role is to provide capital to the MLP.
The limited partners, in turn, get to collect distributions from the MLP’s cash flow. Limited partners do not get involved in an MLP’s operations. Also, while limited partner units are publicly traded, general partner units usually are not.General partners typically own a small general partnership stake of the MLP, though they can also own limited partner units to increase their ownership percentage. Those who invest in MLPs are referred to as unitholders because they buy units of the partnership. Investors are paid through quarterly required distributions as specified in their contracts.
Because MLPs are not required to pay corporate taxes, they have more cash available to distribute to investors. To receive these tax benefits, MLPs must generate at least 90% of their income from qualifying activities, such as those related to natural resources, commodities, or real estate.Companies that take advantage of the MLP format are typically those that operate in steady, slow-growing industries. Because of this, cash distributions from MLPs tend to remain relatively steady over time. Furthermore, unlike corporations that issue stock, MLPs do not retain earnings for growth. Rather, they distribute them to investors as they become available.
Benefits of investing in MLPs
One major benefit of MLPs is that they tend to offer attractive yields, especially as compared to bonds. Furthermore, because MLPs typically emerge from stable, slow-growth industries, they tend to produce steady cash flows on a long-term basis.
There are also tax benefits to investing in MLPs. Limited partners in an MLP are only taxed when they receive distributions. Those cash distributions often exceed partnership income. When they do, it’s considered a return of capital to the limited partners, which means that applicable capital gains taxes are deferred until the units of the MLP are sold.
There are two types of partners in an MLP: general partners and limited partners. General partners oversee the daily operations of the MLP. All other investors in an MLP are limited partners, and their role is to provide capital to the MLP.
The limited partners, in turn, get to collect distributions from the MLP’s cash flow. Limited partners do not get involved in an MLP’s operations. Also, while limited partner units are publicly traded, general partner units usually are not.
General partners typically own a small general partnership stake of the MLP, though they can also own limited partner units to increase their ownership percentage. Those who invest in MLPs are referred to as unitholders because they buy units of the partnership. Investors are paid through quarterly required distributions as specified in their contracts.
Because MLPs are not required to pay corporate taxes, they have more cash available to distribute to investors. To receive these tax benefits, MLPs must generate at least 90% of their income from qualifying activities, such as those related to natural resources, commodities, or real estate.
Companies that take advantage of the MLP format are typically those that operate in steady, slow-growing industries. Because of this, cash distributions from MLPs tend to remain relatively steady over time. Furthermore, unlike corporations that issue stock, MLPs do not retain earnings for growth. Rather, they distribute them to investors as they become available.
You gave me a key answer needed to put a golden package together. One or two items are missing: some financing talent with integrity. Ideas welcomed.
in reply to: Technology #6289Mike, keine Ursache. Gerne geschehen.
I am currently preparing a listing at ASX for German investors and will be down under during most of May. During June I plan to be in Canada.
If you want me to do that, I could advise you and your Board on how to structure an Origsix-MLP offer to US-Tax-Payers and how to get it listed.
in reply to: Technology #6287You are certainly right Mike, when you compare the tax deference effects of Canadian Mining Tax Credits to US Master Limited Partnerships. (MLP)
But practical obstacles are the ease of buying or selling shares in a listed Canadian Mining Company compared to the effort of entering or terminating a US MLP as a partner.
To make it worthwhile and practiical for the general public to invest into MLP’s the Units in a US MLP should be listed at a Stock Exchange. P.e. in Toronto or Melbourne.
in reply to: Technology #6286Agree with you, Hans. Yet there is more to the story regarding Canada’s lock on mining speculation/investment.
Another side is pure share price speculation and has little to do with anything but trading stock. It’s called PUMP and DUMP. The PUMP and Dump infrastructure is a well-established industry in Canada. Not every gold company places stock promotion as a primary goal. Most do and base potential on exploration.Our great past director, Charles Brown, would say, “Instead of a gold mining company, I’d rather own a company that mines gold.” Me too.
History buffs or future investors may take interest in a brief response to Hans’s accurate entry below. We only need to go back to 1974, December 31, when the United States removed its restrictions on gold ownership and the price. Ah, gold could once again breathe in a free market. Manipulators are always tweaking spot. There are always admirers and detractors. These are not the bulls and bears, who trade but people and institutions where gold affects finances. You either own the stuff (in some form) or hold none. Gold is a commodity, but it certainly has underlying feature different from oil, corn, cotton, or lumber and pork bellies.
Stock Market places were many: Vancouver, Spokane, Alberta, San Francisco, Salt Lake, and of course Toronto. The Canadians took over. The financial groups were smart ant put in place tax benefits that US Stock Markets ignored. The United States retains an unusual and very appealing financial attraction equal to or beats the long standing (and evolving) Canadian scheme. It is the Limited Partnership. There is a major caveat, though. The investment must be focused on gold production for it to benefit the General Partner and Limited Partner more than stock appreciation. The biggest carrot goes to the Limited Partners. Can you guess why? Let us know.
in reply to: Technology #6285Technological progress in the mining industry is traditionally slow. And if it occurs anywhere, it will most likely be happening in a place like Canada or Australia. Why?
I may happen in Canada, because 80% of worldwide venture capital for mining operations come out of Canada. This large amount of Canadian VC in mining is owed to a special Canadian mining tax credit, that high income Canadian tax-payers can carry forward against their personal income tax liability.And R+D cost need to be financed somehow.
And it may happen in Australia. Because Australia has the largest JORC-Reserves in the world and because the cost of mining those ample reserves is directly linked to progress in mining technologies.
But not matter where it will be happening – once it happens US-miners will be benefitting as well.in reply to: Clips from Alleghany #6284Alleghany is an ICE BOX. Even running water is freezing. The 15 to 24 degree Fahrenheit low- invasion is causing problems as it continues through its second week. Looks like it’s here for another week.
Weather! Why does it get so much radio and TV attention? Between weather, sports and every local accident or shooting, news, real news is nowhere to be seen.
Okay. News… all those beautiful apple blossoms are frozen and gone. News…A very important federal brief was dropped off at Alleghany’s post office today, heading to Washington DC. News…despite billions with negative heads, Earth is still spinning and the sun still shines.
in reply to: From the Sixteen to One Archives #6283I’m writing a brief for the two citations heard last August. MSHA agents rely on history of citations issued to a mine operator to levy penalties. During this hearing the inspector admits to her careful review of past citations and used it to speculate on our negligence; however under questioning she admits that the actual situation she saw on September 21, 2016, didn’t resemble the historic situations she reviewed. She went ahead and testified that the past history elevated the negligent. Is this justified?
Our mining operation also has a history regarding MSHA performance. The federal government will not be proud to acknowledge the past of this most valuable agency. Over my life as a responsible person for the safety of our miners, MSHA has been a root cause in harming the miners. It must change, and I sense that it will as more responsibility flows from Washington DC to its agents. Below is a correspondence I found while preparing this brief.
MSHA Archive from 1997
A subtle but perhaps most serious side effect of the agency’s and its agents’ behaviors over the past thirty months can be found in the minds of our young miners. As we train and give ongoing guidance to the nuances of underground mining, they are witnessing unreasonable behavior from a powerful force or authority. It is MSHA. Quite naturally, they are confused regarding the interpretation of this behavior. MSHA continues to create problems where none exist. MSHA has become the ones that place underground bombs throughout the land only to then offer to cure the threat of harm by becoming the ones to remove the buried, potentially lethal hazard. Does this make any sense?Federal supervisor Bill Wilson, MSHA district office in Vacaville, warned, threatened, and intimidated that I and Original Sixteen to One Mine will receive federal citations if profanities such as the ones their traveling investigators have been experiences in Alleghany did not cease. He said we would be cited because we would be intimidating the agents. Wow. This action by Wilson obviously demonstrates and displays his furious ability to regulate and expression to intimidate. He threatened the FBI as well. What were the profanities? Several miners’ wives gave them the finger as they drove through Alleghany in their federally licensed cars.
I only imagine if they enact these threats, MSHA will master its goals of eliminating or taking over the operating of the mine(s). For without an independent or peer group determination of justice, our powerful Congressional granted agency gets in step with governments and largest conglomerated corporate organizations. Mineral extraction is big business. California is anti mining.
Distant federal agents who foster a program of intimidation and extortion stepped up their program to control the operations of mining in the United States. Slow but steady progress towards this goal enveloped the large mining companies. Why did the giants go down first? The top commanders of the large companies found the federal government a strong ally in crushing small companies and individuals seeking minerals. The reward: eliminate competition. Are there other reasons as well?
Little differences appear between the “want-to-be police enforcer” mentally displayed by field agents and a “want-to-be Perry Mason” advocate called the U.S Solicitors. My quest of discovery moves from Alleghany (the mine) and Vacaville (the field and regional headquarters of MSHA) to San Francisco (the lawyers). In this investigation, the route from San Francisco to Washington DC is very direct.
Find a way to inform Americans. Find local reporters to write an article. Contact national television personalities to do a story or interview. Our cash flow woes are a result of not finding enough gold. Our miners and company have been occupied with unreasonable demands by MSHA. We were unable to break enough rock for the statistical averages of success at our extreme high-grade gold mine to unfold.
Once a round (the daily footage advanced by an underground crew) is lost, it is never recovered. MSHA forced us to miss many rounds. Its unreasonable application of law (An Act of 1977) shifted from field agents and regional administration to US Solicitors offices in San Francisco. The country must begin looking into the behavior of a group of career federal lawyers. It seems to me that these lawyers have forgotten whom they represent. Like other silly and truly dedicated government employees, they are public servants for the tax paying American people. They forget the purpose of their work. Like poor little lambs, they have lost their way. For MSHA, it forgot the purpose it was created.
in reply to: Clips from Alleghany #6281Alleghany and other parts of Northern California are in trouble. Two beautiful apple trees in front of Sixteen to One office are in beautiful full bloom. Yes it would be bumped crops if only these white and pinkish blossoms can stay strong and hold off old man frost. Survive winter. Last week temps hit record heat but it lightly snowed yesterday. It is only mid-February. Don’t put your sweaters away yet.
Old mining camps and towns are ringed with fruit trees, especially apples. Those miners and their women loved apples. Hard ciders to pies are noted in old diaries. Scoop thinks the camp will be apple less this summer.
Scoop left Alleghany to investigate South America but is backin reply to: Two-headed Front #6280I think the water / arsenic issue is still there…
in reply to: Two-headed Front #6279Good news! Are there any other legal issues that our company is involved in?
in reply to: How to Approach Thin Veins & Cost #6278You might get in contact with of Elon Musk. He has an underground boring machine development company and your mine would be a perfect opportunity to work with this development. Also your mine is warehouse space for low temperature storage. especially for wine, or other long term low temperature storage to develop the aging process.
in reply to: Miscellaneous #6277$2.5M including alot of equipment! https://sacramento.craigslist.org/for/d/25-mil-gold-mine-fully/6462863240.html
in reply to: How to Approach Thin Veins & Cost #6276Few gold producers exist among the small vein deposits throughout the world. As a result modern equipment and innovative technology is centered on the monster volume operations. Unlike Sixteen to One, the industry became the playground for men-of-monster money or the ability to attract substantial startup capital.
Today, Mining Magazine set me an interesting article. I copied the first paragraph for you. Some of the mega mining operators continue to face mega economic obstacles. What will this mean for the small vein deposits?“Sometimes a turning point can only be seen clearly in hindsight. Such is the case for the mine of the future as we begin 2018, coming out of a 2017 where major mining companies continued to demonstrate capital spending austerity and focus on debt reduction. All the while, there were growing signals that digitization, electrification and automation were all gaining momentum, even though actual examples of mine site implementations could as of yet, still be counted on one hand.”
Stay tuned. Here is a clue: look forward to fully electrify the fleet of ground support, ore flow/secondary reduction, and utility vehicles, keenly aware that electrification is but one step in the ongoing mechanization of underground mining.
in reply to: Gold Enters Major Bull Market #6275http://www.goldenjackass.com/main5.html …Bonds stocks US dollar as unsafe in 2018 (with out silver gold backing MHO). Some reading in Geology/History as follows; 1) Elusive Pocket Gold of Southwest Oregon 2) Detecting for Gold 3) Rocks and Minerals 4)The Forty-Niners 5)The Miners Source is Ebay.com Meanwhile: Get well, get well regulated/makeyourbattlefreedom
in reply to: Gold Enters Major Bull Market #6274Hello new FORUM writer, parkerlarry. Your entry yesterday is appreciated. Our policy is to retain all entries unless they are grossly offensive. Yours is not at all offensive; however it is a collection of facts or opinions from internet sources and was difficult to read and understand. I’m moving it to Gold Enters Major Bull Market, a topic where Bluejay and others post relevant and personal facts and opinions. What I did this morning, instead of deleting or moving your entry to the Miscellaneous topic, downsized it from 1277 words to 776. Also I edited it to make it readable, unchanging its essence.
I know where you found this information and occasionally scan them. They reflect the current moods of one segment of our mostly ignored interests in gold, gold mining and international economic/currency environment. I’m pleased you have this interest. Much of what is posted on the internet has marginal impact or value in understanding gold mining or the major factors that influence the spot price. There are some interesting observations expressed in your compilation and perhaps others have additional thoughts on these.
For you who is reading this for the first time, instructions suggested: read Edited Version then Original Version or read the original for its content and understanding before reading the shortened edit. This is an unusual and very long entry with some very positive significance.EDITED VERSION
Spent time 2006 help Jack Martin with gate into deadwood and nosed around in gulches wherein now as a self-taught geologist know they missed a big up there and likely several of them. Meanwhile: Was watching the markets since 5:30 am this morning, Gold coming down from 1345.00 midmorning top at 197 and during the gold 12 noonish run straight down to 1332.X where in the $HUI dropped (index gold stocks) to 192.5. Noted that my investment in silver 3x leveraged was almost unchanged 12.1X $ where as JNUG dropped to Dec 20 lows and then was at 16.33 …it came back. This little 3x leveraged stock was so heavy invested in 2017 that it needed to be reorganized as ceilings had been hit for outright ownership in the stocks it was buying. It preformed opposite of a gold mine returns as a result of this. It’s opposite 3x bear did quite well as a result but dragged the entire mining stock index down as well as criptomania gripping the speculative masses. Red hot traders formerly here.(day low was 15.1X high was 16.80 that sold off fast). All $HUI came back only to 193.X. The indexes were are down fractionally in negative territory.Further noted Kitco.com 500 ounce US Walking Liberty coins were briefly at 9,900 for uncirculated mixed dates, Canada maple leaves were at 9450 $ and Australian Kagaroos were available in 250 quantity monster boxes only. Now ran across some items of news thought: Silver will never be money Cripto currencies
How would most people connected to the markets in some significant way/401K feel about being paid in silver plus a 10% fee for payment in a coin what Kitco offers via these govt. minted coins above spot price of silver? Sure at some point past couple hundred lbs. NO THANKS. But how about fractional gold 1/10 oz. @ 1500 and oz. cost or 1 oz. gold at 30 dollars an oz. over spot gold? So US mint has sold 500,000,000 silver ounces so far to the investing public. They are coming out with a silver coin) and silver gold ratio is 78 to 1. Looking at original silver gold 20 1$ in silver = 20 $ in gold 178X thru 1932… 20 to 1. How would you feel about payment in silver at 19$?
This spoofing sell came at the end of the month. Actually the gold price hit $1365, Jan 25 envelope for traders closing out monthly books. Gold and silver usually rally thru April and again in June and possibly one more wave up in August July given normal markets. When have we had any kind of normal market situation?
Gold is attempting to hold the $1350 level. The reversal in the GDX on Thursday also came on trading volume eclipsing that of rally days over the past few weeks, which does not bode well for a continuation of this move for the short-term. If you are not fully invested in the sector, I strongly suggest continuing to buy weakness in the best junior gold & silver developer/explorers and sub $1 billion market cap growth-oriented producers. A collection of micro-cap, early-stage explorer “lottery tickets” is also advised if you do not mind a bit more risk. Judging by the cryptocurrency and pot stock moves lately, I believe the mining space is no longer the riskiest sector in the stock market and has instead become the last deep value alternative left in the marketplace, especially when you consider the fact that the mining space has a combined market cap of roughly one half of 1% percent of the stock market.
To put this into historical perspective, at the peak of the last precious metal bull market in 2011, the miners made up 2% of the stock market. By the end of the fabulous gold bull which ran from 1971 to 1980, gold investments as a percentage of Total Global Financial Assets had reached 5.0%. This means gold investment as a percentage of Global Financial Assets were nearly 9 Times greater in 1980 than it is today. In the event gold investments, as a percentage of Global Financial Assets, again rises to 5.0%. It means $5.25 trillion will flood into gold.
Now is the time when funds hold miners down to cover their shorts, while buying all the shares from retails. When they have all the shares they need that’s when rally in miners may start. This week was an exciting week for Gold. One thing for sure happened, that minor train’ definitely left the station. After spending all that time, money, and research making investments, to see them start to preform was satisfying.
ORIGINAL ENTRY
Spent time 2006 help Jack Martin with gate into deadwood and nosed around in gulches wherein now as a self taught geologist know they missed a big up there and likely several of them. Meanwhile:Was watching the markets since 5:30 am this morning, Gold comming down from 1345.00
http://www.kitco.com/charts/popup/au24hr3day.html and the Dow up 24X points and other indexes up fractionaly. $HUI was
midmorning top at 197 and during the gold 12 noonish run straight down to 1332.X where in the $HUI dropped (index gold
stocks) to 192.5 noted that my investment in silver 3x leveraged uslv was almost unchanged 12.1X $ where as JNUG dropped to
Dec 20 lows and then was at 16.33 …it came back…this little 3x levereaged stock was so heavy invested (coupla billion
dollars)in/2017 that it needed to be reorganized as ceilings had been hit for outright owner ship in the stocks it was buying
and it preformed opposit of a gold mine returns as a result of this and its opposite 3x bear JDST did quite the well as a
result but dragged the entire mining stock index down as well as criptomania gripping the speculative masses and red hot
traders formerly here.(day low was 15.1X high was 16.80 that sold off fast) while all the $HUI came back only to 193.X and
the indexes were are down fractionally in negative territory.
Further noted Kitco.coms 500 ounce US Walking Liberty coins were briefly at 9,900 for uncirculated mixed dates, Canada
maple leaves were at 9450 $ and Austrailian Kagaroos were available in 250 quantity monster boxes only. Now ran across some
items of news thought: Silver will never be money Cripto curriences will (all still selling off since the big board has
been suddenly down three days in a row/SDS 2X leveraged short on $SPX 500 up to 36.X$ off 34.X low just 1 day before the
start on high volume unchanged that day) are just the latest trend in decentralization…THE NEXT BIG THING?
How would most people connected to the markets in some significant way/401K ect/ feel about being
paid in silver plus say a 10% fee for the payment to be in a coin/what Kitco offers via these govt minted coins above spot
price of silver? Sure at some point past couple hundred lbs NO THANKS. But how about fractional gold 1/10 oz @ 1500 and oz
cost or 1 oz gold at 30 dollars an oz over spot gold? Now we are talking. 50 lbs gold in coin as a max holding? The 1 in 1000
49’ers tipically got away with all they could carry/50 lbs. Thats 12 x 50 x 1377=826,xxx$ So US mint has sold 500,000,000
silver ounces so far to the investing public (1 Billion oz / year world output/Mexico 21% of that annually-They are comming
out with a silver coin)and silver gold ratio is 78 to 1 were as looking at original silver gold 20 1$ in silver = 20 $ in
gold 178X thru 1932… 20 to 1 (actually silver dollar was 77.344 oz silver, rest was copper so 16 to 1 got you an oz of
gold) 20 into 1345 is 67.25$ how would you feel about payment in silver at 19$? Larry
Oh the weekly chart dollar US $USD stockcharts.com is
unalterably set to death cross 50 day down through the 200 day MA and traders are unwilling to even venture an oversold
bounce give: USA bond sell off 10 year 2.77 indexes major selling off after 1.3 years of 1 percent gains by weekly plus. The
spoofing going on in gold silver no gold silver stocks yes during todays down and back 1345$ dip to Kitco market slant’s
‘Fork in gold rally below 1330’ article out for several hours before the sell down in gold/silver never budged. Also note
that conservatives as ourselves are protecting gains of a lifetime in silver coins and bullion ASAP ASAP ASAP. Those in the
know of what is comming given the markets behavior in decade or two and no way out of US liablities…YOU ME Retirees/welfare
staters feed and house and cloth but thats it given our human right s stance.
This spoofing sell of came at the end of the month and
actually the gold price hit on 1365 Jan 25 envelope for traders closing out monthly books. Gold silver usually rally thru
April and again in June and possibly one more wave up in August July given normal markets normal markets normal markets
When have we had-lastly any kind of normal market situation? 1990 s 2003 Irak invasion thru 2007? BUY BUY BY Larry PS
Ronald Regans OMB ‘drain the swamp’ David Stockman has been on alarm for 6 months about getting out and safe with your
gains…so far so good but the Teachings/preachings of Stockman are about to unfold. Explosion dead ahead as $HUI has been
being accumulated in consolidation in 2017 see stockcharts.com $HUI dead flat to down below the 50 day on the weekly until
recently above…Estimate value of criptos is 1/2 trillion hackable worthless trader super foddder.
gold is attempting to hold the $1350 level. The reversal in the GDX
on Thursday also came on trading volume eclipsing that of rally days over the past few weeks, which does not bode well for a
continuation of this move in the miners for the short-term. If you are not fully invested in the
sector, I strongly suggest continuing to buy weakness in the best junior gold & silver developer/explorers and sub $1 billion
market cap growth-oriented producers. A collection of micro-cap, early-stage explorer “lottery tickets” is also advised if
you do not mind a bit more risk. And judging by the cryptocurrency and pot stock moves lately, I believe the mining space is
no longer the riskiest sector in the stock market and has instead become the last deep value alternative left in the
marketplace, especially when you consider the fact that the mining space has a combined market cap of roughly one half of 1%
percent of the stock market.
To put this into historical perspective, at the peak of the last precious metal miner bull market in 2011, the miners made up
2% of the stock market and by the end of the fabulous gold bull which ran from 1971 to 1980, gold investments as a percentage
of Total Global Financial Assets had reached 5.0%. This means gold investment as a percentage of Global Financial Assets were
nearly 9 Times greater in 1980 than it is today. In the event gold investments as a percentage of Global Financial Assets
again rises to 5.0%, it means $5.25 trillion will flood into gold.
Now is the time when
Funds hold miners down to cover their shorts, while buying all the shares from retails. When they have all the shares they
need that’s when rally in miners may start. This week was an exciting week for Gold. One thing for sure happened, that minor
‘ train’ definitely left the station. After spending all that time, money, and research making investments. To see them start
to preform was satisfying.
You never want to be the proverbial man pictured running behind the train. Running to catch up. Especially that train. Funnything this week, there was a man running behind it. Almost ironic. As the man ran faster and faster to catch up to the train.
You could feel the tenison in the air. Then at the last second, a hand extended. Helping the man board!
That grab, that pick, was my favorite. That is where hero’s are born. Thank you Mr. Erfle for the hand. It meant a lot to me.in reply to: Two-headed Front #6273Below is news, important news. If you appreciate gold mining, natural resource production or the Sixteen to One crowd, you will be pleased. If the topic seems strange, unimportant or unfamiliar, give it a try to absorb its meaning and significance.
A federal Mine Safety Health Administration (MSHA) hearing was held commencing
August 9, 2017, in Nevada City. There were two dockets. The first docket had two citations and is currently under a briefing schedule by the Mine and Secretary of Labor. The second had nine citations and two orders to litigate. The meeting was conducted by William B. Moran, an administration law judge (ALJ) based in Washington D.C. Today I received a DISMISSAL ORDER from Judge Moran with prejudice.A 100% dismissal is a rare admission by the Secretary of Labor (MSHA) and the equivalent of a cancellation. All alleged wrong doings by the Sixteen to One miners and operator just disappeared as if they never occurred. The judge wrote “with prejudice” as an adjudication upon the merits and operates as a bar to future action. Another choice for the judge is a Dismissal without Prejudice. This usually means an indication that the dismissal affects no right or remedy of the parties (ours and MSHA). The decision is not on the merits and does not bar a subsequent suit on the same citations. You probably think I am elated with this news. Yes and no. Please read on.
The order dismissing our proceedings listed one old case (Lehigh Cement) considered by the ALJ that he heard in 2010. MSHA exhibited unusual behavior with Lehigh and Original Sixteen to One Min Inc. The joint motion9 MSHA & Lehigh) describes a “proposed settlement motion” for the citations as “vacated.” The joint motion was a peculiar submission in that it recites the penalty criteria then MSHA agrees to vacate [the two citations]. The Joint Motion concludes that “approval of this settlement is in the public interest and will further the intent and purpose of the [Mine Act]. This action by MSHA or more likely its lawyers caused me great wonderment.
The decision continues, “Normally, a settlement motion arises in the context of the parties’ negotiation of the particular citations listed, and more often than not, at least some of the citations are settled for an amount which is less than the penalty sums originally proposed. Where all of the citations in a given docket are vacated, as in this instance, the description of the result as a “settlement motion” seems inapt. Here, the Joint Motion seeks dismissal of the petition for the assessment of civil penalty. The question is whether a motion seeking a judge’s approval to dismiss a matter should be denominated as a “settlement.”
I not only agree with the ALJ, but what are the merits/reasons for MSHA to vacate all our citations? It wasn’t a settlement for no input given by operator? It must be somethings testified to under oath in the August hearing. But what are they?
An ALJ explained to me that the federal review commission has the right and responsibility to protect miners, operators and the public, who pay for all this regulation. What if MSHA and an unscrupulous mine operator conspired to reduce citations for the benefit of both parties? Shouldn’t the instances of this matter be recorded in a public hearing? These are good questions. For now, I can only surmise the reason all citations in this docket vanished, which I will later.
Case Law:
Cuyahoga Valley Ry. Co. v. United Transportation Union, 474 U.S. 3 (1985), held that the Secretary has the authority to vacate citations and that such actions are not review able. In Cuyahoga the Supreme Court noted the distinct roles of the Commission and Secretary of Labor as adjudicator and prosecutor, respectively, and that Congress did not intend a commingling of those roles. In this 2010 hearing the ALJ concluded: “ As at least the title, if not the substance, of the Joint Motion is to dismiss the petition for the assessment of the civil penalty in this docket, and as such action does not require Commission approval, the proceeding has become moot and therefore this matter is DISMISSED, with prejudice.”What were the merits of our August, 2017, hearing in Nevada City? It wasn’t a joint settlement because Sixteen to One was not a part of any settlement. It wasn’t even a settlement; however it was an admission by MSHA of something legally wrong. Nine citations have nine different standards for compliance. How could an inspector be wrong on nine citations in one inspection?
My experiences with inspectors actually predate the formation of MSHA. I enjoyed many conversations about every aspect of mining with inspectors. They felt comfortable telling me their stories as well. Years ago mine inspectors held onto the ability to judge a situation according to the specific things he saw, his strong background in the industry, his belief in what his role was and the standards established by Congress. Not so today. Very few situations are universally alike; however, the root of these standards is the health and safety of miners. But ones judgement does not come solely from books. What happened here? Were all citations written improperly? Doubtful. Without going crazy with wild speculations the conclusion most likely centers on the inspector.
Here it is. AN ACT, passed in the US Congress in 1977, has a Section 505: INSPECTORS; QUALIFICATIONS; TRAINING. It says, “Persons appointed as authorized representatives of the Secretary shall be qualified by practical experience in mining or by experience as a practical mining engineer or by education.” The inspector who wrote the nine citations and two orders had never worked in a mine. He was not a mining engineer nor did he have the formal education to meet this qualification. This language was specifically written by US Senators, Congressmen and other government and mining executives to insure the safety of those in the natural resources extraction industry. This industry was recognized in the law as a foundation for all other industries. Our government and private sectors knew this important fact.
The August 2017 hearing was more about the future than for monetary penalties. I want you to know what goes on in the trenches in my industry. Thank you for taking the time to learn. My conclusion is: someone, somewhere realized that the shadowy enforcement by unqualified inspectors cannot be continued. This inspector (and I suspect others as well) did not meet the legal requirement to issue citations and extract penalties from the Sixteen to One mine in Alleghany, California. Whoever you were, thank you, all of you. Keep up the good work towards responsible enforcement of important regulations.
Whew!! Glad this obscure subject is over and I hope you stuck it out to read. Truth like gold lies at the bottom.
in reply to: Ideal Time for Facts #6272In addition to the Sixteen’s petition for review by the State Water Board (full petition under Topic: Water and Arsenic: which came first? 01/26/2018), all residents have rights to petition this board for redress of an absurd position by public personnel. I chose to exercise this right and below is my petition to be heard by the State Board. Although I wrote both petitions, the tone represents a different perspective. If you have discovered this abuse of our public servants on our website, please help us broaden the exposure of this ignorance. For you and for future generations of Californians, public accountability of destructive powers based in Sacramento must be challenged and returned to the beneficial powers we want and expect. Help us.
State Water Resources Control Board January 8, 2018
1001 I Street
Sacramento, CA 95814Dear Members of the Board,
The Porter Cologne Act passed in California legislation as solutions of water quality, conservation, control and utilization. What water issues troubled elected officials, industries and businesses in the 1960’s? Fundamental observations, conditions, predictions and downright speculations contributed to this law. It was justified according to give and take actions by Californians for the benefit of Californians: protected for use and enjoyment by the people of the state. The Legislature declared regulations shall be reasonable, considering all demands made on our water quality and considering the total values involved, beneficial and detrimental economic and social, tangible and intangible. Development projects were growing in scope and size; however the law specifically cites factors of precipitation, topography, population, recreation, agriculture, industry and economics shall apply.
The law established a State Board and regional boards. They shall conform to and implement the policies of Chapter 1, (policy) at all times of the Act. Water quality objectives mean the limits or levels of water quality constituents or characteristics which are established for the reasonable protection of beneficial uses of water. The first item listed for a water quality control plan is: (1) Beneficial uses to be protected. The intent of the Legislature is unequivocal: waste or contamination must create a hazard to the public health through poising or the spread of disease.
One key in the Legislative and administration process was science. Science began and drove concepts and words that eventually were passed by our Senate and Assembly. Science, after all, is knowledge, understood facts or principles. Knowledge is gained by systematic observations, experiment, and reasoning; knowledge is coordinated, arranged, and systematized. Its goal is the prosecution of truth thus known, both in the abstract and as an historical development.
What John Stuart Mill wrote 160 years ago holds true today: “Since all phenomena which have been sufficiently examined are found to take place with regularity, each having certain fixed conditions, positive and negative, on the occurrence of which it invariably happens, mankind has been able to ascertain the conditions of the occurrence of many phenomena. The progress of science mainly consists in ascertaining these conditions. Science is nothing but the finding of analogy, identity in the most remote parts of the subject.” There is no science involved with the enforcement of the current CVRWQCB in Rancho Cordova, California.
In science, you must not talk before you know. In art, you must not talk before you do. In literature, you must not talk before you think. In government all three apply to our public agencies, public employees, elected and appointed officials. Science persists with the knowledge of things, whether ideal or substantial. Art works the modification of substantial things by our substantial power. Literature brings to the mind the modification of ideal things by our ideal power. All are lacking with the Prosecution Team, the Administration Team, most of the Board members and the Executive Team.
The work of the true masters of Science is a perpetual striving after a better and closer knowledge of their environment from the planet on which their lot is cast and the universe in the vastness of which our planet is lost. CVRWQCB execution of the Porter Cologne act has become an illegal taker of life, liberty and the pursuit of happiness with no sense of support from Science, Art or Literature. It’s good and worthwhile intent turned into a sham, nothing more than a trick put upon the public. It has become evil that lacks any bearing on its expectations. The people should fear the destroying of long standing public and private benefits of our water. If the environment is sought to be defended or pressured for the safety and benefits of Californians, some advocates and some enforcers twist, ignore and lie. It is a sham and the goodness we know and expect will be lost for future generations. The actions I witnessed at the December 8, 2017, public CVRWQCB hearing will alarm Californians as I was alarmed.
Porter- Cologne Water Quality Control Act is the law. It preempts all other plans, such as the Valley Basin plan. Its importance in Californian’s behaviors patterns the relationships between the Constitution of the United States of American and the Constitution of the State of California. Law has definitions: recognize shame answers, sham defenses, and sham pleas. The entire agenda item on December 8, 2017, was so clearly shameful, in fact, presenting no substantial issue. It is make believe to assert that natural waters traveling through the Alleghany aquifers, above and underground, produce harmful conditions to public health. An historical mantra holds true here in Sacramento: “We must have a case that we do not sham fallacies upon the people for current reason.”
Fear of this material (natural elements for life) and native water precipitating high in the Sierra Nevada mountains is a pretense for highjacking industrial freedom and rights, justify employment for the prosecutors, fatten self-serving appetites, and is illegal, immoral and against both State and Federal Constitutions. “Truth, like gold, lies at the bottom.”
In reference to the degree of specialization on display during this public meeting, the sciences may be arranged as follows:
(A) Mathematics, the study of relations of the parts of hypothetical constructions, involving no observation of facts, but only of the creations of our own minds, having two branches – (1) pure mathematics, where the suppositions are arbitrary and (2) applied mathematics, where the hypothesis as simplifications of real facts – and branching again into (a) mathematical philosophy, as the theory of probabilities, etc. (b) mathematical physics, as analytical mechanics, etc. and (c) mathematical physics, as political economy.
(B) Philosophy, the examination of and logical analysis of a general body of fact is a science in which reason and history precedes successful dealing with special elements of the universe – branching into (1) logic and (2) metaphysics.
(C) Nomology, the science of the most general laws or uniformities, having two main branches – (1) psychology and (2) general physics.(D) Chemistry, the determination of physical constants and the study of the different kinds of matter in which these constants differ.
(E) Biology, the study of a peculiar class of substances, the protoplasms, and of the kinds of organisms into which they grow.
(F) Sciences of organization of organisms, embracing (1) physiology, the science of the working of the psychical structures of organs and (2) sociology, the science of psychical unions, especially modes of human society, including ethics, linguistics, politics, etc.
No science was on display by the Prosecution Team, the Advisory Team or other public employees. My wonderment is that the seven board members voted six to one in support of the staff with so little knowledge of what they were voting for. Science is nothing but the finding of analogy, identity in the most remote parts of the subject: water. “The work of the true man of Science is a perpetual striving after a better and closer knowledge of the planet on which his lot is cast, and of the universe in the vastness of which that planet is lost.” –J.N. Lockyer. What science triggers the serious efforts across the spectrum of living in our Golden State? What is the duty of water?Terms contain some qualification to denote that it must not be excessive are to be based in science. The buzz ‘word’ has become ppb. The word “reasonable” being considerably used in law is not used now in science: reasonable in care and diligence, reasonable in economic evaluations (cost/benefits), reasonable unavoidable. This board lacks an understanding of reason because the staff either fails to know or withholds important information (exculpatory evidence or statements which tend to clear Original Sixteen to One Mine, Inc. from alleged fault or guilt). The duty of water is found not to be a constant factor for all places but varies with the character of natural surroundings, climatic conditions, diversification of environments and various other conditions.
Kanaka Creek does not present a water quality problem for fish, plant life or aquatic insects. No one suffers a beneficial loss downstream from the ancient 21 portal. During the meeting the question, “What is the full definition of serious?” was brushed aside by staff. The proper action for the Board to take at this meeting was to table the topic and send it back to staff for review and clarification on the issues raised by Operator. The insistence that it could not take this action is weak.
I am aggrieved by the action at the December 8, 2017 CVWQCB meeting.
I file this petition for review with the State Water Board.
I hereby attach to this petition by reference the three attachment filed by Original Sixteen to One Mine, Inc. as support for my request for the petition. I have suffered great financial losses due to the ongoing behavior if CVRWQCB in the Kanaka Creek watershed. I have suffered great mental strain and harassment.
Required Information:
Michael Meister Miller
PO Box 941
Alleghany, CA 95910
(530) 287-3224
mmeistermiller@gmail.comA copy of this request is given to the US Postal office in Alleghany today, addressed to the CVRWQCB in Rancho Cordova. Presenting new and accurate information and delivering true and scientific information regarding the issues under review by CVRWQCB in order to preserve, protect and enhance the regional environment both naturally and socially are not a choice but a right and a public responsibility.
Sincerely,
Michael M. Millerin reply to: Water and Arsenic: which came first? #6271Water is a California issue both in amount, distribution and condition. For too many years our Sixteen to One has been harassed by a public entity known as California Regional Water Quality Control Board – Central Valley Region. Read this Forum topic to gain a real view of how corrupt our public water agency has evolved from the legislative intent.
Not all the public employees are practicing corruption; however some are willingly doing so. Most Californians wants good water policies. The time and money spent to keep our water safe, clean and uphold the seasoned laws and customs of beneficial uses rights and responsibilities have vanished from the public consciousness. Our situation up in the Sierra Nevada needs your attention and support.
Following is a letter required to conduct a public hearing with the State Water Resources Control Board. As an individual I also filed a letter (a right for all Californians) seeking relief from the actions of the Central Valley staff and board members. California has become notorious as, well you slip in the next word after notorious. This behavior costs all of us when it has zero beneficial benefits. A goal is to replace ignorance with knowledge.
State Water Resources Control Board January 8, 2018
1001 I Street
Sacramento, CA 95814Dear Members of the Board,
Original Sixteen to One Mine, Inc. (OPERATOR) incorporated in San Francisco, California on October 9, 1911, has continuously operated its gold properties in Sierra County, becoming the longest operating gold mine and oldest United States of America gold mining company. We are proud of our accomplishments and our State’s history of gold and its importance to our country. During California’s Sesquicentennial celebrations, we were the only gold mining Company to participate. In the 1990’s, our operation was the largest private employer in Sierra County. I became president of the “Sixteen to One”’ in 1983. I write today requesting a hearing according to “Instructions for Filing Water Quality Petitions” on your website.
Original Sixteen to One Mine, Inc.
PO Box 909
Alleghany, CA 95910
(530) 287-3223
mmeistermiller@gmail.comOPERATOR request a hearing with you to present new evidence, seek answers to our questions of staff and challenge misinformation in a hearing held by the Central Valley Regional Water Control Board (CVRWQCB) on December 8, 2017. We are also confident that evidence presented by staff to the board members is inconsistent with California laws regarding relevant water issues. We received a copy of the result of the hearing by mail dated 14 December 2017, attached to this letter. We challenge this decision.
One main abuse in power is the understanding of beneficial rights. The Prosecution Team and the Advisory Team violated Sections 13000, 13001, 130029 (d), 13050(d),(f),(h) and (j)(1) and (l)(A) and (D)(q) (1) in their attempt to prosecute OPERATOR. The Prosecution Team and the Advisory Team violated Article 3. Regional water quality control plans: 13240, 13241 (a),(b),(c),(d), 13242(a), 132639(e), 13263.1, 13301.1, 13399 to fairly and accurately carryout California’s Legislators intent of established laws. The action taken in the December 8, 2017,public hearing was inappropriate, improper and illegal based on the specific site, Kanaka Creek watershed in Sierra County and an ancient tunnel that was driven into the north side of Kanaka Creek in 1865.
The regional staff has no Solution Team, which was raised by Original Sixteen to One president and its attorney during the hearing. The extremely high dollar penalty puts the ongoing operation in jeopardy, affecting the jobs and livelihood of local men, financial loss to over 1000 California shareholders and the most historic gold mining operation in our State. It puts in jeopardy tax revenue to Sierra County, California and the United States of America. It puts in jeopardy the availability of natural resources (gold, building stone), forest management and fire protections that benefit the public. The presentation was negatively slanted at the outset against OPERATOR. Its purposes appear to extracting money, possibility closing the operation and justify the very existence of the Prosecution Team.
CVRWQCB staff members refused to mitigate or engage in serious mitigation discussions initiated by OPERATOR to amend WDRs Order R5-2015-0002 (NDPES CA0081809) or introduce to the BOARD evidence that OPERATOR displayed good faith efforts towards eliminating or reducing century’s long natural water conditions relevant in the Kanaka Creek watershed.
The discussion by board members is worthwhile for you to gain an understanding of this board and its members. There is no doubt that all the members want to protect the water environment in California; however their ignorance was obvious from a science view, a beneficial view, a reasonable view and a common sense view. The staff failed to address these, which you can correct. These issues were raised at the December 8, 2017, hearing by attorney Klaus Kolb or president Michael M. Miller; however the Advisory Team more than once stifled Board discussions. Relevant questions, answers to questions and direct testimony from OPERATOR were denied. This was not the type of a public hearing that most California board members, public employees or elected official person would be proud to support. OPERATOR ordered the audio from the hearing and recommends you obtain a transcript for your individual review. A copy of this petition with attachments will be sent to CVRWQCB immediately after emailed to you.
Original Sixteen to One Mine, Inc. requests the State Water Board use all of its options to redress this regulatory abuse. An evidentiary hearing is requested. Petitioner includes this Summary of Arguments:
Violation of Porter- Cologne Water Quality Control Act
Violation of California Central Basin Plan
Violation of Waste Discharge Requirement (WDRs) Order R5-2015-0002 (NDPES CA0081809)
Reckless exclusion of Exculpatory Evidence in presentation to Board
Portrayed OPERATOR as scofflaw
Violated ARTICLE X SEC.2 of Constitution of the State of California…the general welfare requires that the water resources of the State be put to beneficial use to the fullest extent of which they are capable and that the waste or unreasonable use or unreasonable method of use of water be prevented, and that conversation of such waters is to be exercised with a view to the reasonable and beneficial use thereof in the interest of the people and for the public welfare.
Sincerely yours,
Michael Meister Miller
President
Original Sixteen to One MineCopied:
Central Valley Regional Water Quality Control Board
11020 Sun Center Drive, “200
Rancho Cordova, CA 95670-6114(Note): Email sent to waterqualitypetitions@waterboards.ca.gov contains this letter plus two attachment also included in the US Postal envelope to above address.
in reply to: Ideal Time for Facts #6269Google “New California.”
Good bye to the Water Board!
in reply to: Gold Enters Major Bull Market #6268The Shot Heard Around the World: Bloomberg reported that Beijing is reviewing the composition of Chinese reserves and considering reducing their allocation to U.S. Treasury securities. China has been diversifying away from Treasuries for years, including increased allocations to gold, direct investments in private equity, hedge funds and high-quality, euro-denominated debt.
The Shot Across the Bow mirrors what is shaping up as a new currency and trade war between the U.S. and China. The U.S. is preparing to slap tariffs and trade sanctions on China, so China is warning Washington that such actions can be met with retaliation.
A top Treasury official signaled confidence in the U.S. government debt market, which at $14.5 trillion is the world’s largest. China holds the world’s largest foreign-exchange reserves, at $3.1 trillion, and regularly assesses its strategy for investing them.
Yields were already climbing this week amid expectations the improving global economy will boost inflation pressures round the world, just as major central banks scale back their asset purchases.
Today’s spot price for gold: $1,341.70
in reply to: Risk Management Strategies #6267David I,hope you are still checking the FORUM. I was inundated with paperwork in December, which has continued and took a break from the FORUM. Thanks for your participation. I plan to get back on a schedule to keep shareholders, gold minded people and curious others up to date on how 2018, looks for Sixteen to One.
My major concern regarding a dollar backed currency with gold is who will be fixing the ratio of dollars to ounces of gold. Most of the deep gold minded people believe that the “price” of gold continues manipulated. It could be those who want a lower spot price (buyers) or those who want a higher price (sellers) or those who want equity balance. I prefer the market to set prices; however an ounce of gold becomes out of reach for most of us at $10,000 an ounce. What will be our choices?
In 1974, my choice was to find the gold and participate in my expected price increase that way. My economics and business beliefs are simple: supply and demand; law of diminishing returns; dynamics of scale; and for gold ownership as close to the metal as possible. I dredged. I mined some. I took over one of the finest companies with honest gold in the ground. Here we are.
What I see after forty three years is a very exciting future with the only concern is the dynamics of scale. The odds, as Sixteen to One sits today, foretell a struggle (as if we haven’t had twenty plus years of struggle)are not-in-our-favor. To eliminate the struggle (too small an operation) is achievable in multiple ways. My job is to find others who want to join our struggle to overcome this issue. I will.
Paper work, via ridiculous wrongful regulatory behaviors, is reduced to one source. Soon I can tell you about which agency seems better and which agency continues to break the law. Any guesses? Gold business which is out of my influence or control (spot price) is fun to think about but whatever I can influence to improve gold mining in the United States of America and especially with our Company, I will pursue vigorously. Anyone want to join us?
in reply to: Risk Management Strategies #6266Happy new year. There is some consideration being thought about by the Trump administration about returning America to a partial gold standard with the price of gold set at $10,000 per ounce. This would be a boon for your industry. Also a very important legal consideration is being viewed by the US supreme Court regarding a Mr. Brandon Rinehart’s case against the California Supreme Court to reverse the decision of the California indicating that the mining right of the 1872 Mining Act is limited to holding a claim, and not the right to mine the claim. This case was submitted to the US Supreme Court 01/05/ 2018 for review by the US Supreme Court to here the Case.
in reply to: Risk Management Strategies #6265The following report caught my interest. While Americans are buying Bitcoins, Germans recently brought 53,780 gold bars to their home country. Nice move! Story follows.
Deutsche Boerse says Germans continue to invest heavily in gold, with holdings of its gold-backed security reaching a new all-time high in 2017. The German marketplace exchange organizer reported (January 3) that the holdings of Xetra-Gold reached an all-time high of 175.04 tons of gold at the end of 2017, up significantly from 117.59 tons at the end of 2016.
Out of all commodities traded on the Xetra Stock Exchange, Xetra-Gold was the highest-performing security with order book turnover around 2.86 billion euros in 2017. Xetra-Gold has been around for a decade, having first been introduced in 2007, and last year the gold price ended up about 13 percent. “The increase is mainly due to the high demand from institutional investors” said Deutsche Boerse Managing Director Michael König. “However, more and more asset managers, family offices and private investors are showing interest in gold as an asset class.” For each unit certificate, 1 gram of gold is deposited in the central safe deposit for German securities in Frankfurt.
The World Gold Council (WGC) notes that Germany’s gold investment market has “boomed” in the last 10 years. The WGC explains that concerned investors turned to gold to protect their wealth in the face of “successive financial crisis and loose monetary policy.” German investors bought more gold per person in 2016 than investors in China and India, two other countries known for being gold powerhouses. Reasons given by purchasers were investment and retirement.
Germany’s central bank completed the transfer of US$27.9 billion worth of gold bars held by France’s central bank and the Federal Reserve in New York. The 53,780 bars were brought back to Frankfurt three years ahead of schedule in a move intended to build public “trust and confidence.”
!in reply to: Another U.S. precious metals miner goes foreign #6264This date stands strong with me for two reasons: Pearl Harbor and my father’s birthday, December 7, 1906. Now it also stands with September 11 as 9/11, as infamous days of terror.
The Japanese, with few natural resources, sought to copy the pattern of European colonialism in Asia. The Japanese military faced a particular tactical problem in that certain critical raw materials — especially oil and rubber were not available in Japan or their colonies. The intensification of Chinese resistance to the pressure of the Japanese military drew Japan into a draining war in the vast reaches of China proper. Japan was not militarily or economically powerful enough to fight a long war against the United States, and the Japanese military knew this. Its attack on Pearl Harbor was a tremendous gamble.
Our country and today my state home, California, must reform its understanding of our own natural resources. Our public service industries lead the nation in economic and scientific ignorance regarding its value and development. Let’s begin meaningful reformation today.
in reply to: Clips from Alleghany #6262Still Digging – ABC10 News segment on the 16 to 1.
in reply to: Clips from Alleghany #6261Here are my X-mas and New Year wishes:
A merry X-mas, a little dry walk on the lower level and several million dollar days in 2018 for the entire Origsix-Crew.
Regards from Bavaria,
Hansin reply to: From the Sixteen to One Archives #6260ONE HUNDRED YEARS AGO from
The Mountain Messenger
California’s Oldest Weekly Newspaper
Downieville, Sierra County, CaliforniaNovember 17, 1917
MINING NEWS
Items of Local Interest about Sierra’s Mines
There is a queer mix-up in the decision of the jury which tried the Sixteen-to-One vs. the Twenty-One case in San Francisco recently, and a new trial will have to take place. A report of the verdict in a San Francisco paper says:Although a jury in the United States district court gave a verdict in the Sierra county mining suit of the Original Sixteen-to-One Mine Company vs. the Twenty-One Mining Company last Thursday, no judgement has been entered by the clerk of the court. The verdict read: “We the jury, finding favor of the plaintiff and assess the damages against the defendants in the sum of $100,000 less cost of extraction of the ore on account of unwilling trespass.”
The defendant’s claims $78.000 as the cost of extraction. The verdict was returned at midnight and handled seal to the United States Marshal. The jury then went home. On presentation of the verdict of Judge Frank H. Rudkin the following morning, the judge said he would not order the judgement entered, as the verdict was too uncertain, and that he could not order the jury to correct it, as it had been discharged. The verdict then had to remain in midair. The trial occupied nearly four weeks, and involved mining property worth hundreds of thousands of dollars. During the course of the trial, moving pictures of the mines in operation were thrown upon a screen in the court room.
in reply to: Risk Management Strategies #6259Hi Mike,
to answer your question in Director Erdahl´s words: The price of gold will either go up or down.
But the truth at the bottom is more complicated than that, if you look not only at the price of gold in US-Dollars.
For instance, looking at the price of gold in Swiss Francs during the last 40 years – it has not changed much at all.
But for a gold-mining company in California, where all expense is paid in US-Dollars, the price in sfr does not matter much.
And for an investor who is invested either in gold or Swiss Francs, the dwindling purchasing power of the US-Dollar does not matter much either.
Hans
in reply to: Ideal Time for Facts #6258Michael,
I would gladly drink a glass of cold water that had leached out of your mine long before I’d gladly drink a glass of tap water in Sacramento !
Regards,
Fred M. Cainin reply to: Let’s back physical shares with physical gold #6257My email has a dozen investment/gold senders, which I quickly read until an article strikes my fancy. The following extract was from Investing News Network by Adrian Day. Mr. Day has been around the gold investment market a long time but less than I’ve been around the gold producing market. I wrote him decades ago and a note a year ago at the urging of a friendly investment/banker. Adrian never replied. Their mantra is predictable.
Day was asked: INN: Should we have a group of people that tells [gold producers] what they should be doing? This question upgraded my interest. I thought, how lovely, investment promoters wonder if they should start telling gold producers how to do their work. Sounded good to me to learn a fresh twist!
Adrian’s reply:
“I do like the idea, with a few caveats. The senior mining companies have had awful returns on the money that we (who are the we?) give them, not only over short term, but over long term Over the last 40 years, the gold-mining business has the second-worst returns of any industry in the world, and the worst was the airlines. In the gold-mining business you do have inherent difficulties. It’s a very, very capital-intensive business, it takes a long time after discovery, the odds of discovery are low. After discovery, before you put something into production, it’s a long time with environmental permits and everything else. Then once you’ve built the mine, you’ve sunk a billion dollars into Tanzania or something, the government can come along and say, “hey, now you’re here and you’ve spent the money, we’d like a little more of that.”
I think the gold-mining managements have really exacerbated the problems by being pro-cyclical. Now, pro sounds like a good thing, but when you’re investing it’s a bad thing. The gold-mining companies, with few exceptions, typically have been overpaying for marginal properties at the top and then not buying at the bottom. Very few companies were buying anything in 2013, ‘14, ‘15 when the prices were low. Companies were on the edge of bankruptcy, you could’ve stolen projects, but companies were selling their own assets and reducing their debt. The time to take on debt is at the bottom but not at the top. You don’t take on debt at the top when things are expensive, to overpay.”Compare his descriptions of gold mining companies or gold deposit situations with Original Sixteen to One Mine, Inc. The Tanzania reference can be global. You will find references in many TOPICS of the FORUM that tell details of the problems Mr. Day lists; however much analysists, promoters, puff the golden smoke into the public air, the marks continue to breathe deeply. As I wrote to Hans in Risk Management Strategies yesterday, I am a buyer of Sixteen to One on the open market higher than the last reported sale for reasons Mr. Day recognized that do not apply in Alleghany, California..
in reply to: Risk Management Strategies #6256Hi Hans,
Yes to your question, is the world running out of new goldfields. Remember the nuances for understanding the known unknowns and the unknown unknowns? Think about gold (and other natural resources) with both considerations. The known goldfields are becoming more expensive to mine as the ore changes and the access becomes more involved. “New” as a 20th and 21st century new gold deposit described discoveries which were really deposits that got a second or fresh look. Homestake mining, an old California gold corporation that was swallowed by Barrick, turned this trick in Yolo, Napa and Sonoma counties with its McLaughlen open pit mine. Was it new or rediscovered? It has happened globally.
Exploration has moved into regions that are awful to develop. This has also been ongoing for years. Gold is sought today in the high Andes Mountains, the frigid north Asia and elsewhere. What does this mean? Think supply and demand and come to your own conclusions. My conclusion is that gold will continue to be in demand, the supply is questionable and the cost of getting the stuff will increase.Thanks about asking about Origsix. Our leadership has acquire good mines since 1911. We shareholders now own gold deposits with over two million ounces of production, maybe even three million. At spot price the dollar range for gold produced is between 2.550 billion and 3,825 billion ($2,550,000,000 and $3,825,000,000). Currently, I am sitting above the apex and very close to the center of our gold deposit.
What about the remaining useful economic life-span? Geologists have told me, written about and talked about 80% of this golden anomaly in a well-defined quartz vein system remains for the taking. Even though our federal government froze the price of gold at $35 an ounce from 1934 to 1975, Origsix remained a useful economic asset for its owners. It is more so today. It is the most undervalued American public company, which is why I continue to buy shares and defer personal compensation.
Where do you think the future price to buy an ounce of gold is headed?
in reply to: Risk Management Strategies #6255An important risk in precious metal mining is the risk of depletion of known deposits.
If you look at global production numbers during the last two decades it seems that gold output has declined everywhere in the world except in China and Russia.
And if you look at the numbers for new goldfield discoveries in the 5000+ metric ton bracket the sad news is that there seem to be no really big new finds except one in China.
Is the world running out of new goldfield discoveries?
What about the remaining useful economic life-span of the Origsix orebody at todays prices?in reply to: Ideal Time for Facts #6254TRUE OR FALSE
The arsenic limit established by governmental speculation for harmful health is set ten times below the number used as medical dosages in the treatment of cancer. California enforces the natural runoff from subterranean sources flowing into Kanaka Creek (contains arsenic) be reduced to drinking water standards, which are arbitrarily set lower than the amount physicians prescribe intravenously to patients to cure leukemia and other diseases or conditions.
Sadly, this is true. Is this deliberate behavior?
in reply to: Another U.S. precious metals miner goes foreign #6252Scotiabank will sell its gold trading unit following a scandal involving a US refinery and smuggled gold from South America.
The Canadian bank’s ScotiaMocatta business is one of London’s main gold-trading banks, and was acquired by Scotiabank almost two decades ago., Chinese buyers are the key targets of the sale, which is being led by JPMorgan. What prompted the sale was Scotiabank’s lending to Elemetal, a precious metal refinery in Dallas.
Earlier this year, US prosecutors accused workers at NTR Metals, a subsidiary of Elemetal, of a money-laundering scheme using “billions of dollars of criminally derived gold,” mostly from Peru: “knowingly conspired to purchase gold with the intent to promote the carrying on of organized criminal activity, including illegal gold mining, gold smuggling and the entry of goods into the US by false means and statements to US Customs, and narcotics trafficking.”
Of course the whole issue has layers of responsible entities downstream from the bank. NTR Metals is said to have imported more than $3.6 billion worth of gold from Latin America between 2012 and 2015. Scotiabank and ScotiaMocatta have not been accused of any wrongdoing.
Scotiabank has been seeking a buyer for the unit for up to a year, and is likely to shrink the business if a sale is not completed. Scotiabank has the biggest foreign presence of any Canadian bank, and is focusing its international strategy on the Pacific Alliance, a Latin American trade bloc comprised of Mexico, Peru, Chile and Colombia.in reply to: Water and Arsenic: which came first? #6251John Stossal reports:
Anderson Cooper’s show recently featured a “two-part exclusive” that claims Donald Trump’s EPA director had conspired with the CEO of a mining company to “withdraw environmental restrictions” so the company could dig “the largest open pit mine in the world in an extremely sensitive watershed in wild Alaska.”
The report was enough to horrify any caring person. CNN showed beautiful pictures of colorful salmon swimming in Bristol Bay, and the reporter intoned dramatically, “EPA staffers were shocked to receive this email obtained exclusively by CNN which says ‘we have been directed by the administrator to withdraw restrictions’ … protection of that pristine area was being removed.”
No! A “pristine” area and gorgeous salmon were about to be obliterated by a mine! I would have believed it, except I happened to report on that mine a couple of years ago.
I knew that the real scandal was not EPA director Scott Pruitt’s decision to “withdraw the restrictions”; it was what President Obama’s EPA did to the company’s mining proposal in the first place.
Zealots at the EPA had conspired with rich environmental activists to kill the mine before its environmental impact statement could even be submitted. This was unprecedented.
The House Committee on Oversight and Government Reform later concluded: “EPA employees had inappropriate contact with outside groups and failed to conduct an impartial, fact-based review.”Now, appropriately, Pruitt undid that censorship of science.
But CNN, implying devious secrecy said, “according to multiple sources, he made that decision without a briefing from any of EPA’s scientists.”Shocking!
But Pruitt didn’t require opinions from scientists. He didn’t approve the mine. He didn’t make a science decision. He simply followed the law and allowed a company to submit a proposal.
Also, despite CNN’s repeated depictions of salmon on Bristol Bay, it turns out that the proposed mine would not even be on the Bay. It would not even be 10 miles away, or 20 miles away, or even 50 miles. The proposed mine would be about 100 miles away.Did CNN mention that? No. Never. We asked CNN why. And why not point out that the mining company is just being allowed to start the EPA’s long and arduous environmental review? They didn’t get back to us.
Of course, explaining that wouldn’t fit CNN’s theme: Evil Trump appointee ravages environment.Their reporter did at least speak with the mine’s CEO, Tom Collier, who tried to explain.
“It’s not a science — it’s a process decision.”
But the reporter, Drew Griffin, wouldn’t budge. He called Collier “a guy who wants to mine gold in an area that many scientists believe will destroy one of the most pristine sockeye salmon sporting grounds in the whole world.”By the way, Collier isn’t an evil Republican-businessman-nature-destroyer. He’s a Democrat who once ran environment policy for President Bill Clinton and Vice President Al Gore. CNN never mentioned that either. Instead, the reporter implied evil collusion: “This looks like the head of a gold mine went to a new administrator and got him to reverse what an entire department had worked on for years.”
Here at least the report was accurate. Obama’s environmental department did try to kill that mine for years. They colluded with groups like the Natural Resources Defense Council, one of America’s wealthiest environment groups.The NRDC is mostly made up of anti-progress lawyers who want no mines built anywhere. Don’t believe me? I asked NRDC spokesman Bob Deans:
STOSSEL: There are some mines where NRDC says, great, go ahead?
DEANS: It’s not up to us.
STOSSEL: Are there any?
DEANS: It’s not up to us to green light mines…STOSSEL: Are there any you don’t complain about?
DEANS: Yeah, sure.
So I asked him for some names. He and the NRDC still haven’t provided any.
If these zealots and their sycophants in the media get their way, America will become a place with no mining, no pipelines, no oil drilling, no new … anything.The acronym used to make fun of anti-development attitudes used to be NIMBY — Not In My Back Yard. Now it’s BANANA: Build Absolutely Nothing Anywhere Near Anybody.
in reply to: Stock exchange listing #6250My new purchase is only 1000 shares, at a cost of $64.95, including commission. Not worth paying for a certificate! I don’t know who bought the othet 17K shares. (9000 more shares were just traded today, at 8 cents. It wasn’t me!)
in reply to: Stock exchange listing #6248Michael, I’m happy to see that you’re willing to add to your holdings! I only got 1000 additional shares ($60) and they’re sitting in my Schwab account. I don’t think they make it easy to get a certificate, and it’s not much money, so I’ll “pass” this time. Thank you! (If I bought all 18,000 shares, I’d research getting a certificate!)
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