Forum Replies Created
- AuthorPosts
- in reply to: Gold Enters Major Bull Market #4925
Gold $1642.70 DOWN $14.50
Silver $30.41 DOWN $ 0.52It sure would have been nice if someone had whispered into our ears that the announcement below concerning margin increases was coming out after the markets closed this past Friday. We all could have sold short gold and silver and made a tidy sum. Unfortunately for the shareholders in this group, the heavy-handed hedge funds and banks went berserk with their naked shorting slaughtering everything precious in sight.
If you believe there will be investigations taking place on the front-running of insider information, you had better think again. The regulators are paid to look the other way when it comes to the big boys. All this naked shorting causing wild swings in investor shares got started when the banks were allowed to get into the stock brokerage business.
The big banks have cleaned the clocks of our children with their house purchases in the past years, they have mismanaged depositors money, they have influenced their cronies in Washington to make us pay for their gambling losses and they are playing with our securities held in street name. Maybe, aside from naked short sales, our very own held seurities in account were used to flush everyones nerves on Friday.
Don’t buy into the Bank’s philosophy of having a paperless society. They are using our certificates as collateral for their insider trading follies. The way to get back at them is to take delivery of the shares and don’t leave more than enough money for three months check writing expenses with them. Aside, from their unnerving folks by crushing gold, silver and the shares, withdraw your excess bank funds for disposition into gold, silver and some into the senior gold shares.
23 September 2011, 4:55 p.m.
By Debbie Carlson
Of Kitco News
http://www.kitco.com/(Kitco News) – The CME Group is raising the margins needed to trade Comex gold and silver futures are being increased by 21.5% and 15.6%, respectively, and the change will take effect after the close of business on Monday, the exchange said late Friday in a press release.
The exchange is also raising copper futures margins by 17.6%.
The move by the CME Group to raise the margin needed – also known as performance bonds – to trade gold, silver and copper futures on the Comex division of the New York Mercantile Exchange comes as prices for the metals plunged during the past two days as part of a sell off in financial markets in general. The CME Group is the parent company for the Comex and Nymex.
in reply to: Water and Arsenic: which came first? #4923How did it go? I’ve been rooting for you!
in reply to: Water and Arsenic: which came first? #4922I think the judge will turn this
Summary Judgement aside. The State
premise is absolutely prepostrous.in reply to: Water and Arsenic: which came first? #4921Best of Luck today !!!!
in reply to: Water and Arsenic: which came first? #4920Mag…
Whether or not filters are effective, cheap or or otherwise, to answer your question regarding “constant”:
Arsenic levels are ambient upstream and downstream of the Original Sixteen to One Mine due to the natural deposition of arsenopyrite. It is NOT the business of the to remediate a naturally occuring elemental.
IT IS THE BUSINESS of the Original Sixteen to One Mine to fight the spurious allegation that the mine is resposible for such.
Perhaps your suggestion should be deployed a few miles above the Kanaka Creek site. AND, perhaps you should recognize that this private sector business isn’t responsible for ambient arsenic levels which have existed there long before man settled there.
YOU SHOULD INSTEAD question why the Water Board thugs are trying to exterminate a private sector entity by Chicago style political motives.
in reply to: Gold Enters Major Bull Market #4919Gold $1742.10 DOWN $38.40
Silver $36.16 DOWN $3.46
Gold/Silver Ratio 48.44
XAU/Gold Ratio 0.113 DOWN 0.007The precious metals along with the shares got zapped today once the Dow Jones Averages started to considerably get attacked with selling. The DOW closed off 391.01 today at 10,733.83.
Looking at the DOW chart, it is supected that the “powers to be” will use everything in their bag of tricks to hold it at the 10,750 level where the 1,000 day moving average line resides.
Today’s weakness in gold and silver and the precious metal shares smells of extreme market rigging. It is suspected that all the fiat cherleaders were involved: The plunge protection team, major banks and some of the major in-the-fold hedge funds.
Today’s slaughtering of our group brings back memories of the 2008 attack when major U.S. banks took the aggressive posture of selling short gold and silver while they all feared bank runs during the financial crisis. These miscreants discredit gold and silver and their companies by the use of paper products and the phony selling of shares that they do not hold.
My son compares these types of attacks as a hamster running of his wheel, a lot of noise and motion that go nowhere in long term time. The power mongers are raddling your cage in hopes of frightening you from either buying gold and silver and the shares or scaring you into selling them. Don’t fall for it!
Remember, paper products and naked shorting are forcing real assets lower. How much longer do you really think they can keep this up with banks around the world begging for more monopoly money from the U.S.? If it weren’t for the recent $2.3 trillion cash-swaps from Uncle Same, many European banks would have had to close their doors affecting in the process major U.S. banks. Who’s fooling who?
in reply to: Water and Arsenic: which came first? #4914Isn’t there some kind of statute
of limitations on the issue?
We will pray!!!in reply to: Water and Arsenic: which came first? #4913PLEASE THINK ABOUT COMING TO COURT
Friday, September 23, 2011 at 1:30pm the Superior Court will hear a motion by the California water agency and Attorney General for a Summary Judgment.
Between April 1, 2006 and April1, 2007, the mine failed to file 13 water monitoring reports. The agency wants $2,145,000 damages and says there are no facts to dispute its claim. If granted the mine will not have had both an administrating hearing or a hearing in a courtroom.
If you are in the area, think about coming to support the mine.
Sincerely, Mike Miller and the crewin reply to: Gold Enters Major Bull Market #4912Gold $1798.20 DOWN $6.60
Silver $40.32 UP $0.58Gold completed its last Granville up-field of progressive advances at 19 about three weeks ago by advancing past the $1900 level for the first time. Eleven days ago it made another attempt at this level but retreated.
Currently, we are in a down-field of about 4 as gold pursues a resting period. Previously, these time-outs since early July have only lasted but a day or two with three cumulative down days needed to register a minus one in a down-field.
The relative strength of the gold and silver shares compared by the XAU Index to gold’s price continues to improve. The last on the $XAU:$GOLD chart from stockcharts.com is 0.123. Nine days ago the Index pushed above the 0.12 level which was considered positive. Breaching the 0.124 area where the 50 day average is located would be even better.
Overall, it appears the naked short sellers are slowly accepting the message that the gold price is for real. The greed factor is like an Arkansas tick once it gets ahold of you and these stock counterfeiters have always had a good dose of it.
in reply to: Miscellaneous #4911Director of Agnico Eagle(NYSE) with strong Wall Street connections becomes president of Sutter Gold. Sutter Gold’s main asset is their Lincoln Project located between Amador City and Jackson which is preparing for gold production.
http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aSGM-1882052&symbol=SGM®ion=C
in reply to: Ideal Time for Facts #4910During all this, where does Sierra County stand on the State’s beating up on one of its resident companies who use to be a significant employer?
I strongly believe the County owes us as a result of the mistake of permitting the State’s carpetbagging attorney lynch mob into our backyard.
in reply to: Ideal Time for Facts #4918Keep in mind, Judges no longer work for the county, but the State of California.
in reply to: Ideal Time for Facts #4917Is this why we have 12 to 20 per. Unemployment ?!
In California ?
The Golden State
in reply to: Ideal Time for Facts #4916Go Mr. Miller
I will read your note to my daughter in the hopes they can get us out of this mess.
Viva California, and it’s free citizens
in reply to: Water and Arsenic: which came first? #4915Sorry, but what do you mean by constant? The arsenical sulphides are naturally occurring. Large sono filters would take out the suspended arsenic making a very clean creek. They are passive and use no power. The filter uses gravel, wood and fine ground iron sand. Something like black sand only much finer. Cheap and very effective.
in reply to: Ideal Time for Facts #4909The following is for the youth of America
California regulators are suing our corporation to protect their own personal interests. Unknown others are supporting litigation and other forms of interferences to either gain a personal advantage or for their own personal interests. None of these legal shenanigans benefit the public. The California employees who are initiating and perpetuating this particular lawsuit are doing it willfully, which, if supported by evidence, creates personal exposure to monetary restitution and criminal prosecution.
The thread of California Department of Conservation (formerly known as the Department of Mines & Geology) justification extends from a regulation born in legislation of 1976. Surface mines became a public concern when technology, equipment and the miner’s mental capacities to exploit low-grade large surface deposits of valuable minerals expanded. The fears were the surface disturbances after mining would cease. Reclamation became the solution and regulations were the guidelines to solutions.
Over the years the regulations expanded faster than open pit mines in California. The initial permit carried no or low costs; the surface disturbance requiring compliance shrank from 5 acres to a teaspoon of dirt; fees and monitoring increased like feral cats in Alleghany. Eventually, mining in California stopped as the miners and financiers moved to other countries. By the way, other countries have few regulations; therefore if stopping mining in California is a goal of environmental advocates, their approach has failed to protect the earth.
SMARA recognized conditions that existed prior to passing the law. The Sixteen to One sites qualified under this exemption except for a cut and fill bench that was excavated by a lessee after 1976. A reclamation plan was approved by lead agency, Sierra County, and after seven years the cut and fill were approved as reclaimed. A payment (bond) of $5,000 was returned to the Company.
There are widespread problems in California with regulation management. Individuals responsible and accountable to the public are not held accountable up the chain of command for negligence. (In the Executive Branch the governor is chief. In the Legislative Branch our Senators and Assemblymen are top dogs.) We are experiencing the worst kind of negligence by government employees…knowing and willful negligence. If proven, those perpetrators may face criminal prosecution as well.
California legislators and more noticeable all employees working in the Executive Branch are failing the public’s interests , rights and protection as stated in the U.S. Constitution, Amendment XIV, Section 1: “nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.” This lawsuit ignores constitutional rights.
Neither the Department of Conservation nor the State water regulators held a public administrative hearing to discuss and eventually vote on motions affecting the Sixteen to One mine (required). The mine never had the opportunity to face its accusers as required in regulations for both departments. This seems odd. If the charges of wrongdoing were harmful to the public, both agencies failed to act responsibly and in a timely fashion to stop or mitigate the source of the concern.
Both agencies waited years before filing a lawsuit. If the problem was serious, such as killing bugs or fish, why didn’t those responsible for monitoring the reports report the failures to file sooner and help with a solution? A common answer: they do not care about the information in the reports. They care about filing paper and collecting money.
It is the public agencies that are negligent not the Sixteen to One. If anybody failed the public, it is the agencies; however they do not really care about results. In both cases the negligence is gross, knowing and willful. Unfortunately, the prosecutor for both lawsuits is also the enforcer of criminal complaints against those who hurt the People of California. The Attorney General is prosecuting the wrong party. Justice, in our third branch of government, is difficult and costly to attain.
I am trying to stay focused on SMARA (Surface Mining and Reclamation Act) lawsuit as cited by Rick but both lawsuits are similar. The Sixteen to One is an underground operation and has surface improvements (assets) such as roads, buildings and storage sites. Should gold mining cease, these improvements will remain. They are not only assets to the owners, but they benefit the public as well. The Sixteen to One mine is not subjected to SMARA. The government knows this or should have known this prior to requesting the Attorney General to file a claim for damages, which hurt the gold mine operation. Youth of America, the saying is old but true: FOLLOW THE MONEY.
in reply to: Miscellaneous #4906Check out this Max Keiser video, “Flaming Banks, Burned-Out Economy.” This video in particular is a blockbuster. It clearly shows, along with an outstanding presentation by Aaron Krowne, how Americans are getting ripped-off over and over again by financial institutions while the government watchdogs with all their regulatory agencies do little to nothing in preventing this ongoing fraud.
in reply to: Ideal Time for Facts #4908So far, no one has responded to my question.
I’ll cut straight to the issue:
My question regards the lawsuit against our Mine, specifically regarding how ambient arsenic levels in the local water upstream and downstream of the mine remains not only ambient, but also how the thug legal angle falls flat and hence is spurious….
The spurious onslaught has shifted. Since there is no “angle” for them regarding ambient levels of naturally occuring arsenopyrite, the thugs try to re-define the historic nature of this operation:
Hey, guess what??? The Original Sixteen to One Mine is now a “surface mine” !!!
REALLY?????
in reply to: Miscellaneous #4907Please see my message in the ‘Technology’ topic. The mining men that I am affiliated with in Reno are good people. My partner would be glad to introduce an experienced negotiator/attorney to you guys if you are willing to share some of your correspondence about your legal prolblems. I fear you are facing a stacked deck. But then again I am new to this mining idea and what do I know?
in reply to: Miscellaneous #4905Bigsbkahuna, if someone offers you the Brooklyn Bridge to buy, refuse. Since most of the regulars know how to respond to your silver nuggets purchase but out of respect remain silent, Scoop must reply.
No silver nuggets have ever been found in the Sixteen to One mine. An educated guess is that no mine in the Alleghany district sports silver nuggets. Write eBay and report a fraud. Are you sure your nuggets are steel balls?
Scoop knows that the Webmaster will move your interesting purchase to the miscellaneous topic. Write again. You have had a most unusual experience.
in reply to: Miscellaneous #4904Kissinger, the Bush’s and Bill Clinton all should take the dubious honor of destroying the working class in this country. The only person standing up for the U.S. worker’s security was Ross Perot, a proven businessman, during the 1992 presidential debates and, overall, the minority in Congress.
Mr. Perot said all NAFTA would do was create a “Giant Sucking Sound” (of U.S. jobs) and NAFTA was only “A One-Way Street.” Bush and Clinton said this was not true. This is just more proof that politicians have no idea how their decisions effect their constituents, or do they?
Bob Chapman recently stated that 8,000,000 U.S. jobs have been lost to free trade globalization. To whose benefit? Big U.S. corporations increased their profits by employing cheaper labor abroad which led to off-shore accounts and tax evasion. There maybe 2 to 3 trillion dollars of U.S. corporate money on deposit abroad in an attempt to circumvent IRS tax codes. And the U.S. is seeking to locate individual foreign tax payer’s holdings with a requested 35% hold on them to the benefit of the IRS? How about U.S. corporate foreign deposits?
With the shrinking U.S. job market, people have been forced to cut-back on their living expenses. Many folks have been lured to Walmart type stores because of their competitive pricing just to survive. Who is Walmart’s big supplier? Why China, of course.
Cheap products flowing into this country from China have given the Chinese a huge trade surplus with us, thanks Kissinger. As a result of the government’s failed attempts with massive debt expansion to jump start a faltering economy because of production loss and failed gambling endeavors by the big banks, the integrity of the U.S. dollar has greatly dimished.
Now, China is looking to buy into U.S. assets with their questionable Treasury holdings. Thanks, Kissinger and all your supportive cronies who lick the boots of big U.S. corporations at the huge expense to American families.
Ambrose Evans-Pritchard has an excellent article linked below depicting the China situation with their U.S. Treasury holdings. China seems interested in an acquiring an equity position in Apple and Boeing. China has already purchased farm land in the U.S.
What’s next, Kissinger. What other long term deals did you make in your 1974 meeting with them?
in reply to: Miscellaneous #4903Just bought some natural silver nuggets on eBay that were said to come from the 16-1 ?
Silver and platinum would be in some formations, right?Love to buy some stock.
Matthew Kramer
Santa Barbara, cain reply to: Technology #4902Kit Carson rode over to his Nevada Lode claim, and took a very low tech look around. Amazing, in that I found myself in a canyon of Quartz. There were quartz veins at the surface everywhere. Brown, yellow, and orange quartz were observed. There were pieces of black granite streaked with white quartz. Quite amazing, beautiful, and a long way from the California mother lode. The veins even went over the mountain to the dry stream on the other side.
in reply to: Miscellaneous #4901Sound familiar?
The following are some recent thoughts from Martin Armstrong:
During the Bonus Army march upon Washington in 1932, the government sent in troops and tanks against veterans and their families using the label “criminals” to justify the government strong-arm tactics. History repeats for today the same labels are appearing rolled out once again for England and Greece.
Government blames society for breaking down into single parents and then there is the school discipline issue to blame. Of course what also emerges is the Marxist view that instantly attacks the rich, bankers, Wall Street, and the overall materialism/capitalism.
This justifies higher taxes, more regulation (as if the sea of agencies actually have prevented anything), and the general witch-hunt to imprison
those on the periphery and never any real culprits who are part of the oligarchy feeding the elections of some of the corrupt politicians. Prosecuting anyone produces the impression it is NOT those in government that have screwed anything up.in reply to: Gold Enters Major Bull Market #4900well, I just viewed an article on
“fair and balanced” Fox tv news
on mines in Calif. and all the
enironmental “red tape”. I guess
the rest of the country just doesn’t understand the plight of
the mining in Calif. (or do they?)in reply to: Gold Enters Major Bull Market #4899Gold $1839.70 UP $25.30
Silver $41.15 UP $ 0.86
XAU Index 218.52 UP 1.57Gold continues to bounce around, generally, between the $1800 to $1900 area.
Affecting gold today is, what will be the outcome if Greece falls?
Included below is a link to an excellent article written by Ambrose Evans-Prichard concerning the possible fate of Greece along with potential problems for Germany.
in reply to: Gold Enters Major Bull Market #4897Reap
Martin Armstrong is the man that might have some answers or direction for you. Check out his website at http://www.martinarmstrong.org and maybe, send him an e-mail.
Check out his latest paper on the history of direct taxation, “Bound by the Theories of the Past.”
http://www.martinarmstrong.org/files/Bound%20to%20Past%2009-08-2011.pdf
Continue your education!
in reply to: Gold Enters Major Bull Market #4898Mathematical based risk/reward summaries specifically created for the benefit of persons or companies interested in gold investment will help a beat up industry sector that remains a mystery to most financial professionals and investor/speculator folks. The old standby of reserves is mostly used; however it has become convoluted beyond value as an inclusive tool. I’ll pass today from going into the real and phony representations about “reserves” due to time constraints.
REAP, you are pondering why Gold mining died in California. The missing ingredient at the Sixteen to One and other locations is working capital, MONEY. To go forward in this discussion, the Sixteen will be the site. The analysis may be applied to other locations but not without tweaking for the most sensitive factors: geology, mineralogy history and location. What should capital look for in assessing the Sixteen or any gold mining venture?
It’s easy: return on capital; duration of time; break even , acceptable and whopping possibilities. Return will be from a cash dividend, a gold dividend or an increase in the price per share of stock. The Sixteen has 13,399,505 shares of common stock outstanding. Gold production measured in ounces or dollars must be divided by this number to gain a perspective for reward. The 2500-ounce day a few years back was valued at $1 million. Today that same day would be about $5 million or $0.35 a share.
How do the big mining companies look using a share outstanding analysis?
Below are shares outstanding from a Reuters Report.
Newmont……….…493,270,000
Barrick………….…999,330,000
Harmony Gold…..…429,810,000
Anglo American…..1,319,900,000
Goldcorp…………….736,300,000
Kinross…………….1,131,000,000I don’t have a calculator handy so you do the math regarding what it will take in gold production to use a comparison analysis of reward based on gold production. Gotta go
in reply to: Ideal Time for Facts #4896In my years being associated with this stellar underground mine, I cannot recall any hint that the original Sixteen to One Mine is a “surface mine”, and does anyone ?????
Long ago, mill-processing may have brought under-ground mining rock to the surface, and then all piles were sent down into the mill within hours of being exposed to the surface.
Residual non-baring coarse rock was routinely sorted through the grizzly process. Most of this rock has lined the roads to the portal to support safe travel.
HOW is it possible that the ongoing legal issues concerning Water, in a current outrageous legal action against this mine, is a debate surrounding whether the Original Sixteen to One Mine is a surface mine??????
Outrageous.
Anyone with common knowledge to identify this fraud, I implore you to go on record to decry this onslaught.
I will personally testify to the fact that surface rock has no gold; that never has surface mining been in practice; and testify to this fact ever since the mill was shut down.
If some a-hole lawyers want to suggest that hauling underground rock above the surface for mill-processing (stopped a decade ago) somehow suggest an above-ground mining project today, I will eat a donkey.
And I’ll go further: any a-hole state-sponsored lawyer who suggests that a ‘surface-mining-operation’ exists today and/or since the mill shut itself down, I invite their deposition.
in reply to: Gold Enters Major Bull Market #4895By education I am a Physicist/Business Consultant. One of my “hobbies” is applying mathematics to business problems. So here is an interesting question….at least to me. How much of the short term changes in the spot price of gold is caused by the degree of instability in the Stock Market?
Gold is known best as a safe haven in times of increasing risk. These days there is a long term and ever increasing risk due to possible Sovereign Debt default, deficit spending and inflation, and a growing realization of how little we can trust in the national and international financial systems. I believe that these are long term problems and will increase, or at least plateau out the price of gold for the foreseeable future. This kind of long term trend is not new and is well understood.
However, in the shorter term, say month to month, or quarter to quarter, the price of gold does fluctuate. And so does the Stock Market, but by larger deviations. The best mathematical relationship of risk, due to stock price variance, compared to the safe “risk-free” Treasuries is the Capital Asset Pricing Model, or CAPM. According to the CAPM formula the more a stock price varies from its average, the greater the risk, and the higher the return on that stock needs to be to offset that risk. The CAPM also applies to the Stock Market as a whole versus Treasuries.
Therefore it seems reasonable to look for a similar relationship between the Market as a whole and spot prices for gold. The greater the variances in the overall Market, the greater the risk; the greater the risk the greater the flight into safe assets like Treasuries and gold; and up goes the spot gold price. If such a relationship does exist, it might be useful for mining companies with sizeable inventories of gold. Has anyone looked for a correlation between the shorter term fluctuations of gold prices and the fluctuations in the overall Stock Market, or various Stock Market Indices? Or better is anyone interested in looking for such kinds of correlations? I’d like to hear your thoughts and comments.in reply to: Gold Enters Major Bull Market #4894Gold $1862.30 UP $46.00
Silver $42.29 UP $ 0.69
Platinum $1843.00 UP $23.00
Gold/Platinum Ratio 1.01
XAU/GOLD Ratio 0.121
Gold/Silver Ratio 44.04The following was stated by Jeff Clark at Casey Dispatch today:
Governments: The CME hiked margin requirements on gold twice recently and five times on silver earlier this year. At some point a hike could be one too many, prompting investors to slow down on gold and turn to the undervalued equities to capture bigger returns. Another catalyst could be a government announcing they’re lowering tax rates on miners – a shock in the current rapacious environment that could see new money pour into the sector overnight.
in reply to: Gold Enters Major Bull Market #4893Gold $1816.30 OFF $57.30
Silver $41.60 Off $ 0.36
Gold/Silver Ratio 43.66
XAU/Gold Ratio 0.124 UP 0.006As gold sold off today, a positive development took place for shareholders of the senior and junior producers. The XAU/Gold ratio advanced from a positive right ascending triangle chart formation. That ratio was up 0.006 at 0.124, surpassing resistance at 0.12. This definately puts added pressure on the shorts with gold falling while being great news for the longs.
The trend of gold and silver over the shares continues to be positive, which is negative for the stocks, but the shares are saying, not so fast as we are ready, willing and able to make up for lost ground.
I was in there today trying to fill an order for a senior gold and it wasn’t easy buying shares on the bid side just below prevailing prices with gold sliding.
I believe the gold shares are sending everyone an important message, the tide may be turning.
in reply to: Miscellaneous #4892Dear Mike,
I hope you had a great Labor Day weekend! Thank you for your reply to my posting. I very much appreciate the thought you put into it. Clearly you are a well-spring of knowledge and experience in both mining and the Kinky idiosyncrasies of California government. I know that you have most of the answers I’m looking for, and I will also search this site studiously. Naive as I am, I really did expect to hear the hills alive with the sound of music from air compressors and happy miners singing “Hi Ho! Hi Ho! It’s off to work we go!” REALLY I DID! But I learned that this isn’t the case, so I felt a need to explore the Topic which heads this blog. Let me explain why I did this.(Beware! This is a long post)
My business experience has been Management Consulting in Strategy, primarily Competitive and Marketing, in “production based” industries. However, now my focus has shifted almost totally onto gold mining. This is because I recently became the owner of a gold mine with patented claim which has been an important producer in Sierra County gold mining. The mine has had excellent historic production, and I hope great future potential. And so my Task One is, as you recommend, to conduct my “Due Diligence”, learn about the industry and the specifics of my property.
My research is still preliminary, but if gold mining was like Hi-tech, at the current prices, companies and mines would get snatched up like corn cobs in a tornado! Clearly this is not the case, so I am trying to understand why. The structures of “normal production based” industries are determined by relative cost position and the nature and strength of the internal competition. In mature industries, those with very strong competition and low friction, such as semiconductors, the top 3 competitors own 80% of the market. The top competitor sets standards and controls the product/market definition. Production cost is proportional to cumulative volume. The industry price is generally set by the cost structure of the #3 competitor. This produces stability and lets all 3 make acceptable returns on investment.
My current understanding is that resource based industries follow a different pattern. Some of the difference is that resource assets differ in quantity and quality from company to company. Cost is based more on the character of these assets rather than on total cumulative volume. Buying resource assets is easier but much more risky than buying manufacturing facilities. And seemingly, Government Regulation may be the most important variable in determining profitable production. Until now, my only direct experience with a resource based industry was aluminum production with Kaiser Aluminum & Chemical. But in this global industry the controlling resource was not the ore, but rather the availability and cost of the energy needed to refine it. To get into the aluminum business all you needed was a hydroelectric dam, or lots of cheap coal.
Government Regulation seems like a Great Black Pall which hangs over the whole resource industry in California. It sounds like this is currently the dominant force, an inconsistent and inescapable force, and one that I need to understand. On the international stage mergers, acquisitions, and joint ventures are becoming more common as gold price increases. Large companies are using this as a quick way to obtain ready assets to compensate for the depletion from operations. I don’t know if this is or will become important in California.
One thing that I do know well…..I know how to do research. There is a wealth of information on the Sixteen to One website that I am working through. I am also taking mining and geology courses through the University of British Columbia, studying USGS surveys, and hunting on Google. I would greatly appreciate any direction you other experienced members of the Forum might give me. And especially THANK you for reading through this long post.
Ron Pacholec
in reply to: Technology #4891My horse was exhausted after the 19 miles ride up Ridge Road from hiway 49. Fortunately, my Falcon MD20 metal detector (with 300KHz) was a lightweight tool so we had the energy to ride out of Alleghany after the tailings were tested. Mike Miller said I needed a positive attitude, so when it started to wane, I turned up the sensitivity. I handed Mike a bag of false positives, hoping one or two might prove to have a bit of pay. It was a good experience, but I realized gold is expensive because it is quite rare. Let’s hope my Nevada Lode is El Dorado, and Mike hooks up with an honest sheriff and also some cowboys with guts. Kit Carson is on his side.
in reply to: Miscellaneous #4886Retired in silence the glorious past producers continue to await the magical unknown gold price that will rejuvenate the District which is needed to surpass the heavy negative factor of regulation.
For the moment, mindless career politicians continue to rape and squeeze the companies and people of California. In order to start mining, near curent gold prices, these immoral vampires will have to be purged.
in reply to: Gold Enters Major Bull Market #4887Gold $1884.20 UP $58.80
Silver $43.25 UP $ 1.75
XAU/Gold Index 0.118
Gold/Silver Ratio 43.56Comments from the Internatioanl Forecaster yesterday: “As we predicted a week ago Wednesday that gold would bottom out Thursday and rally $200 by today(Friday). Spot gold was up $47.70 to $1,873.70, as December rose $55.70 to $1,884.80. We apologize for being off by $15.20. Spot silver rose $1.54 to $43.02 and December rose $1.78 to $43.31. This was accompanied by a statement that the ECB hasn’t ruled out PIIGS gold as collateral for gold backed euro bonds. That was the impetus for the rally. No one considered that the scale of borrowing required is so large that there probably are other ways of trying to deal with the problem rather than gold. Gold could prove to be a drop in the bucket. In this conversation the Central Bank of Ireland said, it will not disclose whether the gold reserves of Ireland, six tons, had been swapped or loaned out, which means they are long gone. What a duplicitous group.”
It seems Bob Chapman is more in touch with the short term than Martin Armstrong who stated that last week gold would be in a trading range from about $1700 and $1825.
It is strongly advised that listening to Bob Chapman will be of great benefit for those still seeking a financial education. Access to daily interviews of Mr. Chapman are available at http://www.bobchapman.blogspot.com.
The two most favored gold Indexes, HUI and XAU, continue to lag in relative strength against gold. This lagging has been in process since September of 2010. During the period gold advanced over $600 while the shares have remained, generally, stagnant.
Both Indexes are at intermediate resistance areas or just under them. The HUI has trouble in the 600 to 620 zone and up to 650 while the XAU has problems at 230. The HUI close Friday at 618.30 while the XAU closed out the week at 222.79.
Many analysts suggest that the shares are undervalued. One of these market watchers is the respected Pierre Lassonde the chairman of the Canadian royalty concern, Franco-Nevada Corporation.
The gold and silver shares for months have been under pressure from the hedge funds who have been lessening their risk to their gold positions by shorting the shares. This spread has been profitable for them but people like Jim Sinclair and Bob Chapman have been saying lately that these folks have over-stayed their welcome with the greed factor consuming their better senses.
Somewhere in the future when the adjustment is made back to reality the shares will stage an historical run. It’s just a matter of time.
in reply to: Miscellaneous #4889From the Casey Daily Dispatch
A sub-species of particularly stupid and destructive capuchins in the California legislature appear poised to pass a bill that will effectively put an end to hiring an adult babysitter or anyone seeking casual employment doing odd jobs.
Historically, the producers of the real wealth and the revenues for the State have been the hard working farmers and the hard working miners. Now we have a herd of buffoons in Sacramento unable to learn from simple high school history doing what they do best, suffocate and restrain the folks who want to work.
in reply to: Miscellaneous #4888This following below is an outstanding description of the big problem faced by miners in California. Although intended for the malfuction-junction group in Washington, it can equally be applied to the political gang in Sacramento.
Comments by Martin Armstrong:
Politicians just don’t get what is going on. They are living in a dream world where they are so wrapped up in themselves that they fail to realize (1) they are the problem, and (2) the emperor truly has no clothes. They said Nero fiddled while Rome burned. They are jousting for position only to be able to blame the other party for the next election and to HELL with our future.
The majority of politicians are so wrapped up in themselves they are completely disconnected from the people. They rant and rave over pointless dogma but are clueless to how the real world actually functions. They must be living under a rock because they are completely void of any common sense whatsoever and are oblivious to the future.
They assume that government is exempt from EVERY law and economic principle and can actually manipulate their way out of anything. Some are just lining their pockets and getting theirs before it is too late.”
in reply to: Miscellaneous #4884Back in the days when Bernard
Baruch was a stockholder things
were a lot easier going with capital a lot easier to come by. Mr. Baruch was always a “dead serious” investor and gold was rather cheap. Now with the price very high in the sky we have to wade thru some unbelievable opposition. But
with the assurance that we have
an unbelievable “lode” under our feet there is only one choice: “Go for it Boys”.in reply to: Miscellaneous #4883Gold is rising like a Saturn 5 rocket on its way to the moon! The rocket fuel: the global economy, debt, financial and currency problems will be with us for the long term. In addition, buying by central banks, frightened investors, and flight from fiat currencies is predicted to increase, or at least remain stable in the near time. This will keep demand strong, at least for now. In this kind of an environment, which could change quickly by political will or investor preference, traditional Competitive Strategy says “Get as much product to market as fast as possible”. What has been the response to this situation by gold mining companies in Sierra County, or California in general? Are there significant new investments being made or planned for exploration, development, maintenance, and Especially for bringing dormant mines with significant, potential, back online? Consolidation through acquisition, merger, and joint venture is often the favorite Corporate Strategy in an industry in which current asset prices are low and potential is high, but which might change quickly. Do we expect there to be consolidation in mines and mining companies in the County? Are there any indications for M&A, or that major investments are being considered by larger financially stable companies in smaller pocket and dormant mines? In brief, what might be the future structure of mining in the County? Anybody have an opinion or a “Crystal Ball”?
- AuthorPosts
