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- in reply to: Miscellaneous #3432
Maybe this topic will be the one that changes our destiny. The following is my response to the ideas of the preceding submitters.
Over sixteen months ago as we were preparing a comprehensive program for investor review, the following items were listed as corporate opportunities, circulated to inquiring parties and posted on our web site:
Natural resource exploitation
Participation in new outlook towards forest management
Media and entertainment venue and products
Natural and organic cosmetics for men and women
Hydropower and bottled drinking water
Baby boomer interest in related areas
Recreation and tourismAll are worthy of further development when we have the money. Our cash flow shortfall is understandable, but it requires an effort to get the picture correctly. Whoever takes a financial interest in this company and its well thought out plans will reap significant financial gain.
During our great profitable 1990’s, we decided to invest in sinking a winze in the southern part of the mine. For decades (1930’, 1940’s 1950’) management wondered whether gold continued below a well-defined fault in this southern area. Gold was concentrated and deposited there. We proved it by sinking a winze below the fault and drifting a new 2600 foot-level.
Unfortunately, a series of events beyond our control forced us to discontinue mining this level so we placed further development on hold. Those events included: doubling electrical costs in California, tripling costs for workers compensation in California, which made this area too expensive to work.
The lengthy bear market in gold bullion pricing, the insane investor fascination with the dot-com markets and the growing state and federal policies against the natural resource industries contributed to our cash flow problem. We mined in less costly areas for the next ten years, but we were slipping behind new development in the need to produce gold.
This is a great topic for discussion. People with investment capital who are sitting on the sidelines for whatever reasons must learn of the opportunities that exist by joining Original Sixteen to One Mine. Our company is not one-dimensional. Not only has it purchased three very important gold properties during the bear market with its scarce resources, it has developed a very successful jewelry department. Its hydropower installation is marching forward with conceptual approval from PG&E and FERC.
A RV park, gold events, recreation and tourism are worthy ideas, real and practical to establish diversification and cash flow; however, our company is the home of two millions of ounces of recorded production. Professionals consider that another two million (likely significantly more) ounces await the miners’ drill. Management knows what it owns and has combined the elements into an idea to attract and reward those who join us now as we put our plans to the test.
So, here is another twist worthy of your input. How do we find those with the financial wherewithal and spirit to join us? Remember we are broke, (no big ideas to place ads in the Wall Street Journal) asset rich (a priceless gold collection is on the market), confident, capable and dedicated towards accomplishing our goals. Maybe you can help.
in reply to: Miscellaneous #3428The Board should look into creating some additional areas for revunue flow as waiting for the next pocket or pockets to be discovered has stressed out the company financially for too many years.
As an example, consider establishing a plan of operation like the Tuolumne Lodge has running in Yosemite at Tuolumne Meadows.
Tuolumne Lodge is basically canvas covered tents for accommodations with each having a pot-belly stove and a few dressers inside with a solid wood floor and screened windows and entry door.
The main lodge area is a larger canvas covered tent with a much bigger stove. There is a check-in/lounge area with a larger back area on a running stream for serving meals. The kitchen’s working and storing area is winterized as are the bathrooms and showers.
Every night it is customary to have a fire pit going with surrounding chairs and benches for the guests. In Alleghany local historians can drop in and talk about the history of the area and answer questions.
The key draw for such an operation would be people’s desires to get away from it all and stay in this beautiful area. I have visited Tuolumne Lodge and find it quit similiar to the beauty of Alleghany.
These are some of the testimonials from visitors to Tuolumne:
Great hiking-a wonderful area for a solitary hike-excellent food-kindness-good tour shuttle service-laid back-friendly service-beautiful place-excellent staff-we had our wedding there-breathtaking nights-gorgeous afternoons.
The most impressive reason for wanting to visit the lodge was, “all the troubles in the world seem to melt away.”
Years ago the favorite attraction at Knott’s Berry Farm in southern California was an area they had been set up next to a mock mine tunnel for panning of gold. There were always people waiting in line with their youngsters for a chance at finding some color. The prospective lodge operation could have a similiar area.
During the winter the canvas tents would be taken down and stored in the winterized buildings.
Drawing people for overnight stays in Alleghany would have its benefits. Hopefully, a source of revenue would be a great benefit to the company. In addition, we could turn into a seller of various items including gold specimens and jewelry.
Ray Wittkopp could even give his thoughts concerning how our new envisioned project could strike it rich during some nightly campfire gatherings when he is in town.
Once the people come, and they will, our exposure to the investment community could be heightened as well. Some years back I discussed with executives of U.S. Energy and Gold the bright future that opening up a tour division at their Sutter Creek mine would have for them. I told them that people want to connect to California’s past gold mining era and they had a great thirst for it.
To my surprise, the idea was persented to their board and it was approved. Today, Sutter Gold has been running a successful tour operation, a retail store along with an area for viewing films for a matter of years now.
People will come.
in reply to: Gold Enters Major Bull Market #3427Last on gold is $727.70.
The following is an excerpt from a news release issued today from Emgold concerning the publishing by the city of Grass Valley of its environmental draft report:
The Idaho-Maryland mine was historically California’s second largest underground gold mine producing 2.4 million ounces of gold from 1862 to 1956 at an average grade of 0.43 ounce per ton grade. It is adjacent to the historic Empire mine, which was Newmont Mining Corp.’s first operating mine. The Empire mine produced 5.8 million ounces of gold from 1850 to 1956. Newmont retains the mineral rights to this property. The Grass Valley mining district produced over 17 million ounces of gold and is historically one of the richest gold districts in North America.
in reply to: Miscellaneous #3429Scoops suggestion of opening up the 1,000 ton ore pile could be a great component of a get-a-way “lodge” too. Have a few rock hammers and metal detectors for rent with a “pay-by-the-pound” fee and we’re off and running. I imagine there are some logistical obstacles to this plan though. Most concerning liability insurance on the property and staffing for such a venture. Not to mention, I bet Mike’s gonna say we’re in the mining sector, not hospitality business. But what the heck, creative ideas are worth considering. Even a more concerted effort toward promoting the 16-to-1 mine tours could be good. The Empire Mine has done great with that, albeit funded by the US Government. What about doing events that coincide with other local cities that already have a following? If Grass valley, Downieville and Nevada City have annual events, we should leverage those periods and get people to come to Alleghany since they’re already near. Keep those ideas flowing folks!
in reply to: Gold Enters Major Bull Market #3425Last on gold is $723.70.
The following article clearly reports the the debt abyss that is consuming the nation.
National Debt Soars $500B In Under A Month
Financial Bailout Plan The Primary Culprit In Record-Setting Debt Accumulation
Nov. 1, 2008(CBS) This story was written by CBS News White House correspondent Mark Knoller
It’s the surge you won’t hear anyone boast about.
Never before in U.S. history has the national debt increased as much and as rapidly as it has over the past month.
Since September 30, the day the national debt hit the $10-trillion mark for the first time, the government has run up over $500 billion in new debt.
That’s more than the federal deficit for the entire 2008 fiscal year, which ended September 30. And it’s the most rapid increase in the national debt ever: over half a trillion dollars in less than a month – 23 days to be exact.
The government’s latest calculation of the national debt stands at $10,530,893,033,778.21 – that’s $10.5-trillion for short. It took less than four months for it to rocket to that level from $9.5 trillion on July 21.
Less than four months! To put it in perspective, consider this: it took the U.S. government over four decades, from 1940 to 1982, to run up its first trillion dollars of debt.
The second and third trillions were racked up much more quickly – each in just four years. And it only took from 1990 to 1992 for the national debt to hit $4 trillion.
On the day President Bush was sworn in, the debt stood at $5.7 trillion. Less than eight years later, the it’s within days of having swelled $5 trillion dollars on his watch – an embarrassing milestone for a president who considers himself a conservative and an advocate of fiscal discipline.
What’s to blame for the most recent surge in the debt? Above all else, it’s the federal government’s response to the financial crisis.
“It’s the Supplementary Financing Program being run by Treasury to provide cash for the Federal Reserve,” says Corrine Hirsh, spokeswoman for the White House Office of Management and Budget.
By that, she means the billions of dollars disbursed by the Fed to keep the financial markets at home and abroad from collapsing. It includes the $124 billion used to keep insurance industry giant American International Group from going bust.
And this week, the Treasury Department started to spend the $700 billion dollars in the congressionally authorized bailout program, so the national debt can be expected to soar even more rapidly in the coming months.
But on January 20, it becomes another president’s problem. And unless he slashes federal spending or enacts major tax hikes, the ballooning deficit and debt leave no money for any of the big ticket programs he’s promised to deliver.
Instead, the 44th president will have to deal with the problem of how to pay the interest on the expanding debt. If past practice holds, it’s a good bet the government will just borrow the money.
in reply to: Gold Enters Major Bull Market #3426Just a taste of what is coming.
The News Today
Posted: Nov 02 2008 By: Jim Sinclair Post Edited: November 3, 2008 at 1:24 amFiled under: In The News
Jim Sinclair’s Commentary
Between 400,000 and 1,000,000 STILL cannot get access to their savings.
Don’t follow the spin, and let your guard down. This is the beginning, not the end. This could have been you!
The primary target that should be faced has not been even been aimed at. That target is called over the counter derivatives.
Part of the rescue is the use of an OTC derivative by the Federal Reserve – a swap.
Reserve Funds investors still waiting for their money
30 Oct 2008 11:53 amThis isn’t good:
At least 400,000 people, and perhaps as many as a million, can’t get access to their savings, a problem that has quietly persisted in spite of widely publicized federal efforts to restore confidence in money-fund investments.
Some of these customers — who, like most Americans, assumed their money funds were as safe and accessible as bank accounts — are getting desperate.
“Longer term, I just don’t know how we’ll deal with it,” said John Oakes, a retired engineer in Austin, Tex., who can’t tap $20,000 in a Reserve account to pay his mother’s nursing home bill. “They say we may get some money this week, but we don’t know if we’ll get 100 percent, 90 percent or 30 percent.”
Sandra and Lawton Dews, a retired couple in North Myrtle Beach, S.C., had more than $250,000 — 35 percent of their retirement assets –invested in the Reserve US Government Fund.
“They even bragged that you could sleep at night if you invested in their funds,” Mrs. Dews said. “In the past month and a half, we don’t sleep at all.”
Her insomnia began soon after Sept. 15, when the Reserve Fund was hit by a wave of redemptions, apparently because its largest fund had a stake in notes backed by the newly bankrupt Lehman Brothers.
in reply to: Gold Enters Major Bull Market #3424Last on gold is $723.70.
Extortion 101
Paulson’s Swindle Revealed
By William GreiderOctober 29, 2008
The swindle of American taxpayers is proceeding more or less in broad daylight, as the unwitting voters are preoccupied with the national election. Treasury Secretary Hank Paulson agreed to invest $125 billion in the nine largest banks, including $10 billion for Goldman Sachs, his old firm. But, if you look more closely at Paulson’s transaction, the taxpayers were taken for a ride–a very expensive ride. They paid $125 billion for bank stock that a private investor could purchase for $62.5 billion. That means half of the public’s money was a straight-out gift to Wall Street, for which taxpayers got nothing in return.William Greider: United Steelworkers Union prez Leo Gerard cracks open the sweetheart deal that bailed out nine banks–and likely lined the Treasury Secretary’s own pockets–with billions of taxpayer dollars. Does anybody care?
These are dynamite facts that demand immediate action to halt the bailout deal and correct its giveaway terms. Stop payment on the Treasury checks before the bankers can cash them. Open an immediate Congressional investigation into how Paulson and his staff determined such a sweetheart deal for leading players in the financial sector and for their own former employer. Paulson’s bailout staff is heavily populated with Goldman Sachs veterans and individuals from other Wall Street firms. Yet we do not know whether these financiers have fully divested their own Wall Street holdings. Were they perhaps enriching themselves as they engineered this generous distribution of public wealth to embattled private banks and their shareholders?
Leo W. Gerard, president of the United Steelworkers, raised these explosive questions in a stinging letter sent to Paulson this week. The union did what any private investor would do. Its finance experts vetted the terms of the bailout investment and calculated the real value of what Treasury bought with the public’s money. In the case of Goldman Sachs, the analysis could conveniently rely on a comparable sale twenty days earlier. Billionaire Warren Buffett invested $5 billion in Goldman Sachs and bought the same types of securities–preferred stock and warrants to purchase common stock in the future. Only Buffett’s preferred shares pay a 10 percent dividend, while the public gets only 5 percent. Dollar for dollar, Buffett “received at least seven and perhaps up to 14 times more warrants than Treasury did and his warrants have more favorable terms,” Gerard pointed out.
“I am sure that someone at Treasury saw the terms of Buffett’s investment,” the union president wrote. “In fact, my suspicion is that you studied it pretty closely and knew exactly what you were doing. The 50-50 deal–50 percent invested and 50 percent as a gift–is quite consistent with the Republican version of spread-the-wealth-around philosophy.”
The Steelworkers’ close analysis was done by Ron W. Bloom, director of the union’s corporate research and a Wall Street veteran himself who worked at Larzard Freres, the investment house. Bloom applied standard valuation techniques to establish the market price Buffett paid per share compared to Treasury’s price. “The analysis is based on the assumption that Warren Buffett is an intelligent third party investor who paid no more for his investment than he had to,” Bloom’s report explained. “It also assumes that Gold Sachs’ job is to protect its existing shareholders so that it extracted from Mr. Buffett the most that it could…. Further, it is assumed that Henry Paulson is likewise an intelligent man and that if he paid any more than Mr. Buffett–if he paid $1 for something for which Mr. Buffett would have paid 50 cents–that the difference is a gift from the taxpayers of the United States to the shareholders of Goldman Sachs.”
The implications are staggering. Leo Gerard told Paulson: “If the result of our analysis is applied to the deals that you made at the other eight institutions–which on average most would view as being less well positioned than Goldman and therefore requiring an even greater rate of return–you paid a$125 billion for securities for which a disinterested party would have paid $62.5 billion. That means you gifted the other $62.5 billion to the shareholders of these nine institutions.”
If the same rule of thumb is applied to Paulson’s grand $700 billion bailout fund, Gerard said this will constitute a gift of $350 billion from the American taxpayers “to reward the institutions that have driven our nation and it now appears the whole world into its most serious economic crisis in 75 years.”
Is anyone angry? Will anyone look into these very serious accusations? Congress is off campaigning. The financiers at Treasury probably assume any public outrage will be lost in the election returns. I hope they are mistaken.
About William Greider
National affairs correspondent William Greider has been a political journalist for more than thirty-five years. A former Rolling Stone and Washington Post editor, he is the author of the national bestsellers One World, Ready or Not, Secrets of the Temple, Who Will Tell The People, Thein reply to: Gold Enters Major Bull Market #3423Last on gold is $733.50.
For a behind the scenes analysis on what’s up and where gold is going, go to http://www.jsmineset.com and read Mr. Jim Sinclair’s commentary, “The Beginning Of A Great Economic Drama.”
Also, in another commentary Mr. Sinclair states that he is buying gold future contracts and will be taking deliveries of the 100 ounce contracts on a monthly trading cycle basis.
in reply to: Gold Enters Major Bull Market #3422Last on gold is $734.40.
In another daily vain attempt at approaching the $775 area gold has failed to hold and has slid back with renewed selling pressure. The move above recent resistance at $748 or abouts is now moot.
An anticipated major low on gold will apparently take its time and on its own terms to establish. At the moment, $680 is its recent down spike low.
Yesterday the Fed reduced its benchmark interest rate lower by one half point from 1.5% to 1.0% to lessen major threats to economic growth and did not rule out more reductions to follow.
Lower interest rates eat up bank capital as it stimulates the redemption of higher interest debt. This occurs when the redemption amount is higher resulting from lower interest rates. When rates go down bonds go up, as an example, thus retiring the original debt becomes more expensive and eats up capital in the process. The bailout package is intended to replenish lost bank capital.
The banker’s and the Treasury’s greatest fear is that the banks will go belly-up for lack of capital. The derivatives mess only adds to their problems. Reacting to banking troubles, people have been pulling their funds out of these institutions and into U.S. Treasuries and into gold and silver. The threat has been so great that the FDIC has recently announced doubling the insurance levels for funds on deposit at banks.
On an important note, people must know exactly what insurance means. In the worst case scenario, what are the mechanics of returning your insured money?? One possiblity that some folks might not like is how the money is returned to them. Will it be in restricted Treasury instruments? Will it be in another short term irredeemable form of some sorts?
This is the main reason that the western central bankers became part of a major price suppression scheme in July to effect gold and silver prices. It seems that the Asian markets have been buying gold when they are open for business and as trading switches to London and in the U.S. at the infamous COMEX Exchange prices fall on a somewhat, regular basis.
Paul Van Eeden of Canada has generally stated that the approximate area of $650 is a rock-bottom low price for gold based on current monetary expansion. Some months ago Paul correctly forecast lower base metal prices based on his projection of reduced economic activity.
These unanticipated lower prices in gold and silver should continue to be considered a rare purchase opportunity and certainly, not a time to sell.
in reply to: Gold Enters Major Bull Market #3416Gold $754.00 Up $10.20
Silver $9.83 Up $ 0.64
Gold/XAU Ratio 9.53
Gold/Silver 76.70Gold is higher today as it has pushed above some recent daily resistance in the $745 area. Gold reached higher into the vicinity of the previous important low spike reached some weeks back at $675 where China was reported to have taken gold from two failing hedge funds. Reaching this level awoke the bear element in the market as the attack dogs were unleashed chasing the buyers and driving the price back down to about $752. Hopefully, the $745 level holds which is now short term support.
We read in the paper that every asset has been effected by margin calls, failing hedge funds and fearful selling but never is it mentioned in the general news that there are entities out there that have agendas for twisting people’s minds concerning the banking industry by trashing gold and silver. Sure, it’s reported that the public is leary of banks these days but no reports concerning the US Treasury’s efforts to depress the precious metals prices.
It’s been the belief here that all along that a great transfer of wealth is taking place from the public into the hands of connected people or entities and foreign countries, especially China. One just has to take note of all the shenanigans that have taken place to force all the gold and silver related stocks down to the bottom of the pit.
Unbridled savage attacks of the exploration sector in Canada have left that group devastated with percentage declines of 80% and more common. The naked short sellers have been ravaging shareholder’s assets as if they were prey locked in a cage. What has been permitted in Canada says very little of the country’s regulators. The regulator’s up there run a “so-called” honor system with the naked shorts, they just have to state that they have intentions to deliver sold stock and THAT IS IT. One would have a difficult time proving that the regulators weren’t crooks themselves.
In this country the SEC has allowed the gold stocks to be pummeled unmercifully by naked short selling, effecting lower prices without delivering any shares. Not many in Washington care to admit this. The gold and the gold stock shelling is working on the minds of the public and is putting money into the pockets of thiefs.
The trading norm of the relationship of the XAU Gold & Silver Index to gold was, with a few minor exceptions, 3 to about 6. Each time the Index reached the neighborhood of 6 the gold stocks were a buy and when they returned to the 3 to 1 ratio with gold it was time to sell them for followers of this intermediate to long term trading approach.
Last week the Index hit 11.50. Where did this come from? It’s all the naked shorts looking for more and more of the investor’s blood. Hello, Mr. Cox are you there? Cox is the head of the SEC and is the worst do-nothing Chairman of all-time.
Jim Rogers has said other guys in government along with their handlers, the banks, have messed up the system far more than the average person comprehends. Like Jim Sinclair says, no one wants to talk of OTC derivatives. They are all sucking the system dry in their final attempt to make off with all the silverware before their day comes to an end with disgrace and a lot big money stuffed into their pockets.
Unfortunately as has already been established from the Blanchard-Barrick lawsuit in New orleans the governement and their agents are immune from prosecution, how convenient. So that just leaves the banks and certain connected people to answer.
Jim Sinclair has said that the massive OTC derivatices disaster can’t be remedied. All the Treasury can do is hide the problem and hope that it goes away. Fat chance! The Fed buys the junk contracts in exchange for more taxpayer debt and the banks get a free pass with massive infusions so they can start over again. This is the biggest crime of the century, all at our expense. Even the banks have influenced their buddies in government to lower generally accepts accounting standards to put a value on all the worthless derivatives that they still hold.
In Japan the banks did the samething 18 years ago with all their junk real estate loans. Banks that lie about their real worth are known as “zombie banks.”
In this country all the banks are basically bankrupt. Why do you think the government is giving them all this money, our money? There capital has evaporated with 28 years of declining interest rates as Mr. Antal Fekete has so brilliantly described in past articles.
Golden Sachs and J.P. Morgan recently reclassified themselves as banks and now the both of them are in line with the other banks milking us of our long term financial security as a country.
When this mess finally ends, if ever, all these criminals will be holding gold, silver and all the related companies and they will have secured them at fire-sale prices that they, themselves, created. That is why it is important to just tune out from all these temporary, ridiculously low prices.
What do you do when a burglar approaches your home at night? You lock all the doors and windows, hunker down and be prepared, you most certainly don’t run away crying in hysterics.
On another note, the Chinese have been recently more vocal with their thoughts on our continuing meltdown. The “People’s Daily” the official newspaper of China’s ruling communist party recently stated the following, “Growing chorus of Chinese disdain for Washington’s economic policies and financial dominance in the wake of the credit crisis.” “The U.S. has plundered the world’s wealth.”
China is quite worried and with the recent strength of the dollar inspired by financial unrest in Europe who could blame them for quietly reducing their masssive exposure to the dollar. This is one significant reason that the recent strong rally of the dollar is doomed and gold’s rebound is near.
One reason that Fannie Mae and Freddie Mac were temporarily saved is that China holds one fifth of their total agency debt. This amounts to $447.50 billion as of June of 2008. China also for the same period holds $502 billion in US treasuries.
One thing the Treasury doesn’t want and that is a panic out of the dollar of which China would not really want to be part of. China is more of a methodical buyer and seller. It would be quite naive if anyone would assume that China is not buying gold, silver and many of the bigger precious metals companies along with base metals and their producing companies and relieving themselves of their excessive dollar holdings.
Go Gold!
in reply to: Miscellaneous #3415The audience of eBay is world-wide.
As far as pricing goes, I have found the “free market” to be the best method on eBay. Time and time again, I have seen auctions die off because of excessive pricing, whereas an open bidding situation with a low start price stimulates greater interest and thus a higher close. I have had the best success by running “no reserve” auctions on items in the 5-10K range. Considering the high-value of most 16to1 items, there may be a need for a fair reserve price (protecting the asset).
A bit of PR and advertising before any eBay launch would also be helpful to drive traffic to the auctions and create a sense of urgency or call to action.
in reply to: Miscellaneous #3414e-Bay marketing is a good approach. I hear over a million people make their living selling here. The big pieces would probably be well received by successful gold writers as well as heads of gold mining companies to be put on display in their lobbies or in their offices.
When items are put on e-Bay the audience is quite extensive.
The most difficult barrier to cross is not pricing these items at Alice in Wonderland levels.
in reply to: Gold Enters Major Bull Market #3421Last on gold is $768.10.
Check out this 80 year view on the sell-offs in the Barron’s Gold Stock Index.
in reply to: Gold Enters Major Bull Market #3420Last on gold is $766.30
The following in an eye-opening article concerning China’s future and our worsening status in the eyes of the world.
Quotable
I’m fed up to the ears with old men dreaming up wars for young men to die in.
– George McGovernSource: antiwar.com
October 28, 2008
A Win-Win Situation for Chinaby Sascha Matuszak
China currently stands alone in its ability to weather virtually any storm the banking crisis in the U.S. whips up. With almost $2 trillion in foreign currency reserves, China can afford to be unconcerned about an economic decline in the West that spreads throughout the world, hurting dependent and emerging economies from Pakistan to Panama.China is not completely insulated from the economic crisis – a slowdown in orders from abroad and a credit crunch at home will hurt the Chinese economy like it hasn’t been hurt before – but the difference is preparation. China is prepared, socially and economically, for a slowdown. The U.S. is not.
The calls are beginning for China to step forward as a responsible stakeholder and shore up the currencies and liquidity of the Asian economies and help ease the pressure on European banks as well. China, in turn, assures the world that it is “seriously” considering its options and the proposals of near-desperate bankers hoping that China’s 20-year economic rise will help defuse the West’s 20-year economic decline.
China is now in a position of power that it may have been enjoying for years, but it is now becoming even more apparent. The talk of China taking over the world has always been a “what if” scenario accompanied by calls for social and political reform and sidelong glances at the U.S., still considered by many to be the preeminent power in the world. The next few years will see more and more nations gathering under the umbrella of Chinese solvency and leaving the Coalition of the Willing(ly Misled) behind.
For now, China is taking care of its own through land reform that should give peasants in China the freedom to “lease their land use rights to other individuals or companies, such as big farm contractors, or to exchange them” and send hordes of country folk flocking toward the cities with their loot looking for fortune. This is the latest in a development, started after Deng Xiao Ping took over in 1979, that will bring the peasants of China into the social fold and eventually urbanize the nation.
China hopes to protect its domestic and international interests through increasing the sophistication of its military. In the final frontier, the U.S. is “apoplectic” over the success of a Chinese space program that has now “changed the game” with the recent Shenzhou manned space mission and the addition of a surveillance satellite that passed within 30 mi. of the International Space Station. According to the Richard Fisher in the Asia Times:
“By the middle of the next decade the PLA [People’s Liberation Army] will have a robust surveillance satellite network that will allow a many-times daily target tasking on a global level. It will also have the ability to perform ‘information operations’ by being able to give a range of clients updates on global U.S. military activities multiple times a day.”
China might be getting those rushes of adrenaline one gets when victory is nigh and your opponent lies struggling in your dust trail. America’s irresponsible, immoral leadership in the White House, on Wall Street, and by extension throughout the world has finally come home to roost with this economic crisis. Now, with the giant of the 20th century down and in trouble, all of the nations in the world that have suffered under America’s benevolent hegemony are looking for somewhere to hide.
This is exactly what the Chinese leadership has hoped and prayed for and most likely expected: the return of China to the center of the world.
Supposed allies of the U.S. are looking to China for help in these days of crisis, with Thailand’s deputy prime minister, Olarn Chaipravat, who is attending the Asia-Europe Meeting, stating in the Sydney Morning Herald:
”The message of this initiative is for China to consider whether or not China would open up its banking system and allow the strongest currency in the world, which is the Chinese yuan, relative to anybody, to be the rightful and anointed convertible currency of the world.”
Pakistan’s President Ali Asif Zardari just finished a visit to China in which he declared that he would be ready to “visit every three months” and that Pakistan’s economic and security crises are best solved through cooperation with China, not with the U.S.
The whole Asia-Europe Meeting is a sign of times to come. Nobody trusts U.S. leadership anymore, and despite China’s list of thuggish buddies (Burma, Sudan, Iran, North Korea, etc.), protest-strangling Great Firewall, and tendency to sell counterfeit and/or tainted goods, world leaders are choosing China. What an incredible statement about the influence and reputation of the U.S.
The bailouts engineered by the central banks of Europe and the U.S. represent the desperation of thieves caught in the act together, not sympathy and goodwill between two staunch allies. The collapse of Wall Street is the last act in the tragedy of America’s fall from leadership in the world.
So What?
What we will see is the decisive triumph of the merchants in the low-level battle over what to do with China. Many of the campaigns to halt human rights abuses in China will migrate to the fringe of U.S. policy, if they haven’t already, and the tone will ease.
The U.S. will not be able to confront nations with the arrogance of a world leader and the righteous indignation of a moral compass. For many of us, this is a development that has been a long time coming, but for most of America, it will be something very new.
What Americans lack more than anything is a concept of history. It is absolutely natural and normal and desirable for a nation to go through hardship and struggle and eventual transformation. The era of the American Imperium, dependent on historical ignorance and determined action, is over.
What is needed now is a domestic revival and a more nuanced and intelligent approach to international relations. This means talking with people before we bomb them. This means an emphasis on cooperation, not obedience.
China’s sound economy and pragmatic, if despotic, leadership make whatever happens in the coming American election into an opportunity to gain political capital or financial assets. It’s a win-win either way.
in reply to: Miscellaneous #3419ztuz
Thanks for the comments. I’m sure the rest of the shareholders would appreciate any information that you could supply concerning history of the mine. Thanks in advance.
in reply to: Clips from Alleghany #3418Alleghany village gossip.
The maintenance crew and a shareholder spent a couple of days and plugged away in the 1000 plus tons of ore brought to the landing years ago for milling. The reward was only a dozen or so pieces. Not as much high-grade as estimated was found.
Turn some gold detecting pros or hobbyists loose on that pile for a weekend and see what happens. Could be interesting. Could be fun. Could be a shipwreck. Scoop told Mike this afternoon to consider the idea, make a fair entry price and set a percentage share formula. He sighed and said, “Oh, brother! What’s next? How much entrance fee? What about security?” Why bother? Scoop thinks plenty of people would pay $200 to detect this ore pile. So, Mr. Miller, why not?
in reply to: Miscellaneous #3417I started working at the Brown Bear mine in 1972.
At 16 years old and a height of 6’5″ It was hard work to say the least.
I went to Deadwood origanally for two weeks vacation with my Dad who had bought stock and knew the owner.in reply to: Miscellaneous #3413I’m obviously on board with this. Mike may have some hoops to jump through (but then he’s good at that) to settle any contract terms or commitments with Halobird-Kagin first. IMO, the sum of the individual parts is always greater than the whole. I’d be happy to do a “test” sale on eBay just to see where this could go.
Let’s hear from others please…
in reply to: Miscellaneous #3412I’m putting this topic back on top, because we should all chime in regarding this….
Let’s go…speak up!
in reply to: Gold Enters Major Bull Market #3411Last on gold is $741.30.
A link is provided to the December 08 commodity chart where you can get an idea of trading volume in the most popular month. This does not include the electronic market.
It is difficult to pinpoint volume. Dan Norcini does a commitment of traders volume chart about every week at jsmineset.com with comments.
in reply to: Gold Enters Major Bull Market #3410Over here in Europe Gold is trading at US $ 720,00 per ounce right now.
The traders say that Equity Funds are unloading large amounts of gold to cough up cash for withdrawals and to meet stiff margin calls.
As far as I can see, Scoop, no purchases are possible at US$ 600,00. Not yet – at least.in reply to: Miscellaneous #3409Sectioning the gold collection may in fact even enhance the value overall, as there are specialists who collect in their area only. Best example: section off and offer only pieces of the sculptures…yes, they are fashioned of extreme highgrade gold-quartz, and may be of special interest, especially as individuals. Nobody’s going to crush them. (After all, if one is sold, who wouldn’t want to aquire the rest?)
Market places are amazing. Test the market. I think the eBay suggestion is a good one, and not simply because I made it. Put a reserve price on one of the sculptures and see what happens….publicity reigns and generates interest.
Back to sectioning the collection. Competition drives the free market. If in fact there is an entity or two that has their eyes on the entire collection yet have been dragging their feet, sectioning the collection may set off alarm bells…
Mike, let’s consider this. Actually, when I think of the Sixteen to One gold collection and where it stands historically, I must admit that I envision the pure aesthetic as-found specimens only, (not to diminish the value of the sculptures, for they stand on their own as collectables)…hence the suggestion that a purest may welcome the collection of specimens only.
Just a thought.
in reply to: Gold Enters Major Bull Market #3408Please, please, please, Bluejay or someone with the access to and the brains to figure this out. What amounts of gold in ounces(volume) are trading to set these lows. Shocking to see $600’s. Who were the lucky stiffs who now own it and how much was available at that price?? Can we get this from future contract sells and buys? Scoop’s not too flush right now but Gold in the $600’s, who could resist if we knew how to get gold at that price?
in reply to: Gold Enters Major Bull Market #3407Last on gold is 745.60. We may have hit bottom today.
in reply to: Gold Enters Major Bull Market #3406UPDATE
Gold is currently higher at $736.50 substantially above an early morning low of $680.30.
in reply to: Miscellaneous #3404I still suggest selling the collection in smaller lots to generate immediate cash and lower debt. Why hold out for one giant sale? If the collection were divided into groups of “like” items (ie: jewelry, carvings, slabs, specimens) they would appeal to the different market sectors, allowing more buyers to surface. To find one buyer (or coordinated group of investors) who wants everything for $3.5 million is IMO a long-shot. And honestly, does it really matter where and to whom this stuff is sold to? I thought the goal was to generate cash and get things moving again. Why not try every option, tap all prospects and exhaust other options. Your thoughts?
in reply to: Miscellaneous #3403Management is actively seeking sources of working capital. For more information, write me or call.
The Company and Proposal
Original Sixteen to One Mine, Inc (the Company) is a California corporation with thirty million shares authorized and 12,867,250 outstanding. There are 1,642 shareholders. The Company has a history of trading on the Pacific Stock Exchange (now defunct). It files reports to the Securities Exchange Commission and maintains a public market on its web site. Management consists of a board of directors and officers elected annually. Its president, Michael Meister Miller (1983 to present), has been a director since 1977, and is responsible for the day-to-day operation. He has thirty-four years of gold mining and corporate management experience. Former Directors and seasoned professionals maintain an active interest in the affairs of the operation and are called upon for specific situations.
The primary operation is the Sixteen to One mine from which more that 1,200,000 troy ounces of gold have been retrieved since the mine began operation in 1896. The Company began doing business in its present form in 1911 and has operated continuously. It employees fifteen people and operates year round. The Company has a long history of acquiring significant gold properties. Consequently, its assets are recorded well below market price. (See Addendum A for a market analysis.) Its real estate is offered as collateral for the requested money. Recent purchases are the Brown Bear Mine (1994), Plumbago Mine (1999), and Gold Crown Mine (2005). Total gold production from all the Company’s mines exceeds two million ounces (over one billion dollars). As important as this statistic is, the professional opinion that less than twenty percent of the gold bearing vein systems have been utilized is most relevant.
For accounting purposes gold revenues are accrued when the metal has been recovered. For tax purposes revenues are not recognized until the gold is sold. Rare high-grade gold and quartz is sold at a significant premium above the daily “spot” price for bullion. Gold inventory is recorded at the bullion price without an allowance for its proven added value as a precious gemstone or prized specimen. Over the last decade the Company established and retains a world-class gold specimen collection valued at $3.5 million.
The Company is one of the world’s pioneers in electronic gold detection technology. Beginning in 1992 and continuing to the present, it has worked with numerous companies and individuals to improve the sensitivity and depth of detection equipment. With each improvement it has retraced prior areas in the vein system previously mined and found additional gold. The historical results prove that with better technology more gold will be mined. The budget ($250,000) allows for finalizing the detector, conducting programs where signals are identified and massaging a software program for the miners to use on a regular basis. Currently, detection has not exceeded seeing four feet into the quartz. The Company has a realistic expectation that reliable detection from ten to fifteen feet is possible. The Company is a leader in underground gold detection. This new tool will change the face of gold mining in California’s Sierra Nevada goldfields as well as other areas with quartz and gold deposits. The Company will own the equipment.
Much of the mining equipment in use today has been a standby in the small vein underground mines for many years. The drill-blast-muck sequence continues to be the most cost efficient method of mining; however improvements in these areas have increased efficiency for the Company. Because of its use of and knowledge of metal detectors, the Company developed improved ways to process its high-grade gold and mill its low-grade ore. There have been many changes in the gold industry over the last two decades. The Company plans to rejoin the public marketplace at this time by listing its stock. Another relevant fact that has changed over the past decades is the reduction in real gold producing companies. The major companies have been growing through acquisitions and mergers. The choice for investors that are seeking some type of gold position has shrunk, leaving Original Sixteen to One Mine, Inc as an honest choice for joining the current interest in gold.
Financial Summary: The Company files quarterly and annual financial statement with the Securities and Exchange Commission (SEC).
in reply to: Miscellaneous #3405A major part of my job is to evaluate the corporate assets while seeking the necessary working capital to go mine more gold. The balls I juggle vary. Right now there are different parties with credible interests in investing that have no interest in the gold collection. This is nice, so I have prepared an answer to those who have hundreds of thousands of available dollars but not millions.
Before the Company takes any money it needs pledges totaling $600,000. This is a minimum amount that gives management the assurances that it will succeed in mining more than $600,000 of gold. I am confident of this! It will not build the new shaft nor refine the gold detection process or get us moving in a public marketplace. It will, however, put us back underground and mining gold. How much gold remains to be seen. Therefore,we may not need to go to investors again because the upside potential for major ounces from the places we will be mining is quite great.
Splitting up the gold collection will likely take time. Maybe not and I will explore this avenue.
in reply to: Gold Enters Major Bull Market #3401Gold $735.00 off $34.90
Silver $9.38 off $ 0.65
Gold/XAU Ratio 9.58(This figure indicates that gold stocks have never been cheaper compared to the last in gold)
Gold/Silver Ratio 78.36The suspected secret meeting to assassinate the precious metals and their stocks between the Plunge Protection Team and bankers, plus possibly some select hedge funds, that took place in late June continues unchecked.
As Hans has pointed out physical gold is more fun. Well, this paper party that is permitted to persist by the SEC with the shares along with the CFTC’s and their controlled paper exchanges is becoming disheartening to all believers in honest money.
In July the banks went wild shorting gold and silver in an unaccustomary manner. By requesting their help to join in on the raid the Treasury and the Fed thought it a good idea to build up their dwindling reserves a little at our expense.
The psyche of short sellers significantly hinges on massive destruction and pain. So, has the plan not accomplished their goal?
A government’s role in manipulating gold and silver has always been the same: destroy competition when our fiat currency system starts to falter. Stalin did it to silver years ago when the people hung on to their coins as that currency’s value was collapsing. Stalin even executed his collecting agents when they didn’t acquire it fast enough from the poor people and even some clerks who were tallying up how much had been collected. Following, the people fearing for their lives relunctantly turned it over.
Are we not almost in the same position today as fear of declining prices scare us into either selling or contemplating it? In 1931 when the gold was called in by FDR there were also threats extended to the people that scared them to part with it. If you didn’t turn it in you would be fined and possibly sent to jail. Fear is the name of their game. Today in modern times, it’s instilled fear through manipulation of rapidly falling prices to hold a faltering malignant currency and keep our funds in a suspect banking system to save their asses.
So, when any fiat currency starts to falter, as is the case now from increasing astronomical debt, the SCARE TACTICS have surfaced boldly once again. If you and I tried this scheme why wouldn’t we expect to be incarcerated? Manipulating the precious metals and stocks is no less than a crime against the public.
History will always be our guide: Who did it benefit and who did it hurt to part with the gold and silver during financial upsetting and confusing times? The answer is clear.
In the months and years ahead severe price inflation as the result of mounting monetary increases will result. The true time and tested wealth protector will mostly be in holding gold and the companies that produce it. There will no other way around this. Eventually, gold will be the victor not some debt ridden paper factory.
It’s important to accept that the prices being reported on gold, especially, is just a vain attempt by scared public officials to remove the threat by the people against their imploding mismanaged US dollar. The sad part is that certain closely associated private entities are greatly benefiting by the use of inside information being supplied ahead of time by criminals that work inside our government and their friends.
The friends are the banks and the two remaining big brokerage firms that are now calling themselves banks plus some suspected loyal hedge funds. Hedge funds? Believe it or not, some hedge funds have actually attended meetings of the Plunge Protection Team consisting of the Treasury, the Fed, the SEC and the CFTC. And who controls the PPT? It’s our commanding chief.
The good news for holders of gold and their gold stocks is that this man’s family is long gold through their interest in the powerful Carlyle Group. The Carlyle Group holds the majority of the remaining long sides of many gold hedges that producers continue to hold.
If history is any guide, time will not wait much longer for gold prices to turn abruptly higher and the lofty artifically pegged dollar much lower.
in reply to: Clips from Alleghany #3400Thanks Scoop. your updates about the mine and the Alleghany community are greatly appreciated.
in reply to: Gold Enters Major Bull Market #3402Last on gold is $721.50.
It wouldn’t surprise me with the storm of storms hitting the precious metals and especially their stocks that the manipulators eventually someday will all be behind bars.
The following attachment is must reading for those that continue to hold part or all of their wealth in Treasury bonds.
http://market-ticker.org/archives/622-Fiscal-Cat-5-Hurricane-Warning.html
in reply to: Gold Enters Major Bull Market #3399Whilst trillions of US-Dollars and Euros are handed over to the financial markets by the Feds of this world we should remember where all this money comes from:
I is not coming from tax-increases because everybody is talking about tax-cuts.
I is not coming from saved gov’t expenditures because additional gov’t spending is encouraged anywhere on this globe during the crisis.
Money is created as book-money garanteed by the people who have the authority to print the money on real paper if the markets won’t believe in their books.
And as far as the physical markets and the paper markets for gold are concerned – let’s stay physical. It is more fun anyway.
in reply to: Clips from Alleghany #3398Alleghany is experiencing another great California fall, especially today. The villagers are burning their wood stoves at night but the daylight hours are shirtsleeves or less. The Sixteen to One roadwork stirred up a lot of waste rock. Also those 1000-ton ore piles on the landing above the mill have been spread over the landing. After last week’s rain a half a dozen quartz/gold specimens were found much to the gold sales department delight.
Some of the water lines had to be moved to get better erosion control culverts and water bars in place. The worst water situation is the four inch line that runs behind the upper shop. Those shareholders who walk down the path next to the historic superintendent’s house will remember this aged steel pipe. It’s on the list to be changed this week.
Mike says he is getting an increasing number of phone calls from people asking about gold. He added that most of the people are new to the gold game and somehow expect to become a gold dealer, making huge percentage profits by putting gold sellers and gold buyers together. He has a couple of serious inquires from out of the country. Americans with extra dollars to locate avoid gold as if it were the plague. After sixty years of the $$$ being king of the world, they continue to hang on to the belief that the dollar rules the financial world. Maybe they are right. Ha, ha, ha. To everything there is a time and right now the $$$ is out of time.
Scoop plans to look into some history that relates to gold and this old industry. A shareholder called the office this week suggesting that Mike list the gold collection on Ebay. Why not?
in reply to: Gold Enters Major Bull Market #3397Massive selling or selling pressure usually drive prices down faster than massive buying or buying pressure. True or false?
Short selling, naked selling or selling what you do not have but either have a source for delivery or a source for borrowing influences driving a price down. True or false?
Owners or keepers of a commodity usually are more reluctant to sell the commodity when they believe the current price will increase in the days ahead. True or false?
In order to gain insight about spot price fluctuations of gold, one needs data about the volumes of outstanding: short sales, pledged supply, daily or monthly new mine production, sources of supply (the more the better), coin sales, bullion sales, central bank exchanges, and……more.
Facts are important for gaining a worthwhile opinion. Next comes a useable formula. Then a good market statistician well versed in computer programming could set the gold speculation world aglow. Are you out there? If so please write this FORUM. I would be one of many interested gold players.
in reply to: Gold Enters Major Bull Market #3396Last on gold is $782.90.
Posted On: Sunday, October 19, 2008, 12:10:00 AM EST
The Bullion Market Versus The Paper Gold Market – An Explanation
Author: Jim Sinclair
Dear Friends,
It is axiomatic that the most leveraged gold market most often (95 percent of the time) sets the price of any cash market. First derivatives (listed futures) commands price.
This remains true as long as the COMEX warehouse of gold is NOT meaningfully depleted by long gold contracts by taking delivery from the exchange warehouse.
As long as an exchange maintains a warehouse that historically overwhelms historical demand for delivery the first derivative, The COMEX listed gold future, will be the primary cause of price.
Taking delivery from the COMEX warehouse is not an easy process as the system is designed not to violate your contract but to be a world-class pain in the ass.
The COMEX requires re-assays, assuming you wish to re-deliver. This then places another raving pain in the ass in your way.
The COMEX market is effectively an international 24-hour market as there is no location where you cannot buy or sell a COMEX clone.
Cash bullion gold as opposed to the semi cash markets that non-USA banks trade is the only totally private means of buying and selling gold.
As currency problems increase, first the knowledgeable public such as you clean out the coin market.
This is the first time that the international coin markets have been cleaned out everywhere. This did not happen globally in the 70s.
Large gold bars are still available in major markets but the backup inventory is getting low.
As long as the COMEX warehouse remains adequate and large bars still are available, the paper market, the leveraged COMEX market, will rule the price.
Only with a decline in COMEX warehouse inventories and a run down in large bar supplies of the cash market will the cash bullion market command the price of the COMEX futures market.
It was not the buying by the Hunts that caused silver to move above $30 into the $50 area, but rather the universal belief that they would take delivery, which would deplete or exceeded the COMEX warehouse supply.
The War between paper gold and bullion gold is a war to determine which will take command of the price of gold, nothing more, nothing less.
There will be no two markets trading at different prices.
All this battle is about is IF the bullion gold market is going to take the lead in making the singular price away from the traditional axiom that the most leveraged market makes the price. I believe the bullion, in these most unique conditions, will command the one gold price making it hard to impossible to manipulate the gold price via the paper gold market, as is the practice every day.
in reply to: Gold Enters Major Bull Market #3395Last on gold is $782.90
The following link is to an article that clearly details what is occurring to our financial system and the corruption behind it.
Owning physical gold in this environment makes perfect sense.
It’s an enigma how folks can sleep at night with their savings entrusted to any financial institution.
in reply to: Gold Enters Major Bull Market #3394Gold $778.90 off $25.40
Silver $ $9.26 off $0.49
Gold/XAU Ratio 8.94
Gold/Silver 84.11Gold Stocks Make Historical Bottom
In what everyone thought farfetched when gold breached the magical level of $1,000 the precious metals and the precious metal shares following were abosultely thrashed. They were taken behind the barn, severely assaulted by the powers to be and whooped by the media in an unprecedented attack that left us all shell shocked and dizzy.
This vicious storm was inflicted on us all by the western bankers who still believe they control the financial world whose fiat controlled systems were coming apart at the seams and continue to unravel. Their motto through the years has always been the same, eliminate the competition, destroy gold.
We are all aware of the trickery they have employed to dislodge us from the only real money, gold.
Around the world, believe it or not, there is a counter-balance of smart people that consistently make money on the antics that bankers use against precious metals and their shares to mold public opinion.
Aside from the gold follower’s predictions and forecasts concerning this group, many have errored in understanding the bankers capabilities, including myself, over the years in commenting on the short and intermediate directions of the metal. Basically, gold continues firmly in its bull market but the bankers have used unbelievable resources in an attempt to disturb our confidence.
Today, is just a continuation of those underhanded efforts of propaganda by selling paper gold contracts at the CRIMEX(COMEX) market in New York. One has to wonder where all this gold is coming from. During president Reagan’s administration he once considered going on a gold standard. Unfortunately, when an audit was completed of our gold holdings at Fort Knox none was found. It seems that the privately run Fed was holding all of our gold as collaternal for all of the country’s debt. What a great invention, create a currency out of “thin air” and end up with gold. The Fed was greated in 1913 when only a few Senators were present for the confirming vote.
In the constitution it clearly states that the our currency will be managed by the US Treasury. The Fed is an illegal entity that is privately run for the bankers that comprise that institution. Ownership of it is a closely guarded secret with its chairman appointed only by the president.
The Fed has done such a miserable job at managing our currency that the Treasury recently had to bail it out because it went bankrupt(not reported in the press for obvious reasons). Has the Fed been selling the country’s gold? If not, where is it??? A major point is the Fed will do anything to preserve its illegal power and that means selling the so-called collateral held by them against US debt.
Gold’s contrived weakness is a total sham to protect the Fed against this dangerous truth and they are not in it alone. One of its co-members of the Plunge Protection Team is the SEC. The SEC has blatantly allowed the precious metal shares to be savagely beaten down by the connected bullion banker’s stock trading divisions. These cohorts have been allowed by the SEC to sell precious metal shares they don’t own and can’t even borrow. For them, this is a currency that painly does not exist but the bullion banks are allowed by the SEC to practice this fraud upon share holders and destroy their wealth.
In the history books of the future this price manipulation scheme will be discussed as one of the greatest financial crimes the world has ever known.
Aside from all the dirty players and their tactics, the current values of gold, the rest of the precious metals and their shares is not going unnoticed by the big players that know value.
A person would have to be really “out to lunch” not to conceive the idea that with China holding its massive reserves of dollars that the Chinese are now and have been recently exchanging them for the precious metals and shares at these fire sale prices.
Some years ago a commentary discussed on these pages stated that gold had breached its long term 5000 day moving average line and had entered a new major bull market at around $350. These long term averages are quite potent and hold siginificant forecasting abilities.
In the last few days the Philadelphia Gold & Silver Index(XAU) has crashed into its 5000 day average, sold through it at 90.00 or so and has hit a low of 82.01 today with a last of 87.03. Even though the mark was penetrated its significance still holds until such time that it starts presenting resistance problems.
These long term averages hardly ever get eliminated by severe drops from higher levels over short periods of time. On its last major advance the XAU Index hit nearly 210. Current trading levels represent at drop of 61%. All probabilities infer that a MAJOR low has been established in the Index today.
If anyone has any money available or can convert some assets into cash it is suggested that core assets of gold stocks be added to with the following three stocks:
Agnico Eagle at $35.92
GoldCorp at $20.04
Royal Gold ar $30.44
The Original Sixteen To One Mine shares continue to be one of the best perpetual call options available in today’s market waiting patiently for expected firmer gold prices in 2011 which will be considerably higher that these current Alice In Wonderland prices for precious metals and their shares.
in reply to: Gold Enters Major Bull Market #3393Gold up/oil down? Seems a fair amount of moneyed folks must think the dollar’s been inflated and the U.S. economy (oil demand) is going to go down far enough to increase oil supply. W & W (the new firm of Washington and Wall St) are stealing from our great great grandkids.
in reply to: Gold Enters Major Bull Market #3391People are writing and talking about the shortage in gold in one form or another. It is not so much of a shortage as it is a mismatch of a classical chart on supply, demand and price. We studied those charts in Economics 1A and later in upper division classes. Unless the holders of physical gold need the liquidity of cash, why would they be inclined to sell their gold inventory for a price that seemed below its present and future worth? They would not sell and apparently many will not sell physical gold until the supply/demand lines cross at an acceptable price.
Perhaps an owner of gold has pledged it as collateral for a loan of cash and cannot sell; however the economic rule above still applies. Gold miners must sell gold for their production to pay labor, supplies and other costs to mine the stuff.
Another point worth pondering is the current relationship of gold and oil. This relationship goes back at least forty years and has been written about in numerous publications. BUT now gold is rising while oil is falling in price. Any comments?
in reply to: Gold Enters Major Bull Market #3392It’s truly amazing how, in just a few hours, when things look promising, it can all just fall apart.
They refer to people as cattle and sheep. This really applies when it comes to the markets. Something spooks one of them and all of a sudden you have a full blown stampede. Today, it looks like the “herd” decided to play musical chairs with some commodities and drove the price down on just about everything that is used in industry. Just because somebody is predicting that the U.S. economy is going to take a big dive and industry will not be needing such a large supply of those commodities. So, it’s sell now before it’s to late. The upside to this is, If you wish you had bought some of those commodities when the price was lower, like gold and silver, now might be the time. The platinum group metals have taken a big hit and may be worth a second look. The one good thing about palladium being at a lower price is that maybe now, the meth heads will slow down on catalytic converter thefts. - AuthorPosts
