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Last on gold is $826.00, up $5.80 from the NY close.
At jsmineset.com tonight CIGA(Comrades in Golden Arms) Alex presented a long term French curve on gold predicting that the 3000’s will be reached in the year 2012. Jim agreed with Alex by responding with an emphatic, YES.
Today, the extreme bottom of the formation is located at $735 with the high point being $1100.
By year-end 2009 the extreme low point is $875 with the extreme high point at an exciting $1300. So, the next time the paper’s and the cartel make a bunch of noise like today with lower metal prices, just keep in mind these future prices along with the $3000 plus price in 2012.
Don’t be faked out of your positions with all the negative chatter and especially, don’t let them effect your confidence in buying more on reactions.
in reply to: Gold Enters Major Bull Market #3550Gold $827.40 off $26.30
Silver $10.83 off $ 0.42
Gold/Silver Ratio 76.54
US Dollar 82.74 up 0.01
Crude Oil $39.08 off $1.75Gold is trading lower at $826.30 in early Comex trading. The $840 level has been breached but it is being only viewed as temporary. The Comex paper bashers continue to squash the price in early trading. To me, this early session selling is business as usual on the Comex.
Weakness in gold is being attributed to the European Central Bank lowering key rates sometime this week.
in reply to: Gold Enters Major Bull Market #3552Gold $820.20 off $33.40
Silver $10.60 off $ 0.65
Gold/XAU Ratio 7.67
Gold/Silver Ratio 77.38
US Dollar 83.11 up 0.38
Crude Oil $37.71 off $ 3.12Gold continue lower but up from an earlier level at $814.60. Although prices still remain below a neckline support area that was violated earlier at $840, there is trendline chart support at $810 and further support below at the $800 level from the emeging and advancing 50 day moving average line.
Gold’s weakness today smells very much like a planned campaign by the cartel. It seemed that probabilities favoring this new attack were solely based on the major gold stocks starting to drag as they appeared running out of gas as they zeroed in on their declining 200 day moving average areas. This may have been enough fuel, aside from the rhetoric of interest rate reductions in Europe, for them to get started on another bear raid.
In concert with fresh selling, most probably connected to major banks, their media resources were again summoned to prey on people’s fears.
One significant publication in Canada, The Globe and Mail, printed today a bearish commentary that was put out by Reuters earlier this morning.
Again, there was talk in the article concerning a Thursday meeting with members of the Euro Central Bank to lower rates. This event is assumed to strengthen the US dollar thus putting renewed pressure on gold.
In the Reuter’s article entitled, “Gold Hits 1 Month Low On Firmer Dollar, Weak Demand” the writer Anna Stablum collected some negative opinions and injected them to support her thesis that gold is heading south.
Pradeep Unni from Richcomm Global Services says, “Gold could drop substantially in the next couple of months.”
Citi’s David Thurtell says, “Precious metals, especially gold, should find little support from this front.” The front being a 1,100,000 job loss since November and the inferred lessening of demand for petroleum products from the unemployed. J.P. Morgan must have made a killing today on the oil market weakness as they are the “big daddy” bear on the Comex. If J.P. Morgan operates the same way Bear Stearns did in the silver market prior to their implosion then they are trashing the oil price with nothing more than buckets of paper.
The gold cartel, major bankers along with their financial stooges, find it easy to operate in markets as authorities permit them to basically run “bucket shop operations.” http://en.wikipedia.org/wiki/Bucket_shop_(stock_market)
These guys will mostly always be successful over the short term left unsupervised, less so over the medium term and sometimes over the longer term but NEVER over much longer term. One just has to accept this much longer term perspective based on history alone.
In reviewing China’s monetary history, how many Dynasties tried paper money and failed? All of them, eventually. Two others, the Wiemar experience and the French Revolution events were much shorter lived with both succumbing to the same end results, “gold was the winner.” Meaning gold went into the future while the fiat currencies were left behind as stark reminders that fiat currencies have no long term future.
Aside from all governmental efforts supported by large banking interests to suppress gold’s influence as a wealth hedging factor, the metal always continued to be a real nuisance for fiat managers as it was the main source of competition for their funny money. A supposed financial monopoly allowed to create money, in their definition, gives them ultimate power and influence to go on a slow and methodical spree to steal the hard earned income of the real workers. They steal or confiscate it from us with their silent and effective weapon, INFLATION.
Threaten this establishment and they will come after you. Right now, today, is just another sad instance of their power to subjucate one of the few weapons left in our financial arsenal to compete with their out of control printing presses.
The last sale on the Philadelphia Gold and Silver Index(XAU) is just over 107 on the chart and is very near big support under the 100 level. This is the converging position of the 2500 and 5000 day moving average lines. Royal Gold and Agnico-Eagle are presently, IMHO, available at reduced recent prices and are favored for purchase over all the rest.
in reply to: Miscellaneous #3551Yes to your thoughts that exposure is a vital goal for the mine to get working capital and get back into gold production. Exposure has many forms. First, whom are we trying to reach? You guys figure out eBay, I do not have the background. With the gold collection it includes philanthropists (people serious about historical maintenance, education, art, nature and the preservation of something beautiful, rare and worthy) individuals with disposable wealth, adventurers, visionaries (people who can turn this great collection into a money making, touring display.
The biggest goal is finding people who either recognize or may recognize the tremendous investment gains that will follow the implementation of our working plans, who also have a risk/reward mentality and the currency and guts to check us out. Maybe they are philanthropists or opportunists, greedy or fearful of the expectations of future economic trends; but it makes no difference in the ultimate success of becoming a player with the Sixteen to One mine and company. We will package a program that addresses risk/reward. Our plans are well thought out, practical no matter how the global economy treats gold and realistic in application. There are millions of ounces of gold still deposited in our mines
To this end, I want your input and will explain. At the encouragement of a caring friend, I wrote The Economist magazine for its advertising rates. Wow! Rates are very very expensive and completely out of touch. Why not a story instead? Below are my letter to the west coast editor and her reply. Your request is to write reasons or areas of interest or as she asks, “What do you think the most fascinating story angles are?”
The Economist has 1,400,000 subscribers worldwide with 750,000 in the United States. The angle should appear to its worldwide readers. I have lost confidence in the good old fashion of gut level investment capabilities of Americans. We are so over sold on the dollar that we do not see beyond its predictable slide. Send me an email if you want or post it under this topic.
January 8, 2009
To: A. S. K.The New York office gave me your email address so I could present a topic of interest for The Economist readers. I am a long time subscriber of The Economist and value it as a top source of objective information. My business for the past thirty years is in the Gold Sector, an investment and business sector that rarely makes your magazine. I actually am a Californian gold miner, president of the oldest US gold mining company and the longest producer of gold in America. Also we are rather small, sometimes called a boutique operation, which I used to think was odd but have learned to embrace its meaning.
I won’t begin to detail why I am positive that your readers will appreciate and find interesting and useful an article in an upcoming Economist. But I would like you to accept an invitation from me to check out this most unusual gold operation.
The mine is about two hours from Sacramento going towards Nevada City, then north towards Downieville. Gold is a topic of interest now because of the financial turmoil and uncertainties associated with all currencies throughout the world. I believe you will find several stories here in Alleghany that your readers will devour with relish. Also many good people will be stepping into gold in the coming months and years and unfortunately many will make tragic financial mistakes that should be avoided.
I would enjoy showing you or your designee this California gold operation and discuss other points of interest in the important Gold Sector of business. My phone number is (530) 287-3223.
Sincerely,
Michael M. MillerJanuary 12, 2009 (answer)
Dear Michael,This does indeed sound fun, and I’d like to visit some time. Unfortunately it can’t be very soon, because I’m rather backlogged and you seem to be quite out of the way. (Could you give me an address for Google Maps so that I can plot some drive times?)
I’ll add you to my planning list.
In the mean time, do you want to email me about 100 words about what you think the most fascinating story angles are?
Connecting gold to the gold rush is certainly always fun.
Regards, A.S.K.in reply to: Gold Enters Major Bull Market #3549Last on Gold is $850.40.
The following link provides access to Antal Fekete’s recent article entitled, “Open The Mint To Gold” from silverseek.com.
in reply to: Gold Enters Major Bull Market #3548Gold $860.20 up $3.30
Silver $11.27 up $0.27
Gold/XAU Ratio 7.55
Gold/Silver Ratio 76.33
US Dollar 82.30 up 0.66
Crude Oil 39.80 up 1.90Gold continues to be in demand each time it approaches the general vicinity of the $840 area. This morning the Comex paper bears took it down early in the morning session, as usual, towards this level but buyers didn’t wait for $840 contact as they started pressuring it higher at $845. The continuing premise here is that gold has broken to the upside from an almost year’s long declining phase with the $840 area being firm ground for getting its footing firmly entrenched prior to major acceleration, barring significant interference from authorities.
Silver is looking quite interesting lately. The chart is near a perfect replica of the chart basing pattern that preceded the Euro’s spike higher from 1.30 to 1.46. That was a quick increase in value of about 12% against the dollar that came close to spelling, “currency crisis.”
It appears that smart conservative money may be putting on large spreads in the precious metal’s arena by selling gold and buying silver. This event is being signaled on the Gold/Silver Ratio chart as the ratio is beginning to roll-over in favor of silver. Currently, the daily ranges are being confined lower under the 50 day moving average line at 78.15 or so. As the days advance with this suspected lower trending average gaining momentum, the odds favor silver outperforming gold on any and all moves to follow.
Silver is an interesting metal aside from its expected higher prices ahead. Did you know that the available ounces of silver above ground are far less than those of gold’s? Currently, there are about 8 times more ounces of gold available than silver.
IMO, aside from certain commodity’s potential during the next hyperinflationary period ahead, silver is super cheap. Historically, the average ratio between gold to silver has been about 16 to one. With the current ratio in excess of 77 to 1, one wonders how it got to such heights? One reason is that it is easier to manipulate than gold. Actually it’s been higher, about 87.5 on two occasions recently, once in the first part of October and again on the first trading day in December.
Although many analysts commenting on silver, to my mind, fail to address the major underlying reason for low silver prices I like to stay focused on the cause. The root of the problem is central bankers concern over silver’s potential to compete and undermine their government’s power and influence which is currently supported by the people’s acceptance of their manufactured fiat money.
One only has to visit the pages of monetary history to realize that government’s from the beginning of time have always forced their will on the people to accept fiat money.
From Wikipedia:
The terms fiat currency and fiat money relate to types of currency or money whose usefulness results not from any intrinsic value or guarantee that it can be converted into gold or another currency, but instead from a government’s order (fiat) that it must be accepted as a means of payment.[1] [2]
The governments’s efforts to keep silver prices tame have actually created the formula for expected shortages. Keeping silver prices low during an inflationary period equals a big backfire for the price manipulators. In this environment, miners will not mine silver for a loss as this will certainly reduce supplies in international markets which asserts upward pressure on prices.
In conclusion, it’s an old game of price suppression of real money, gold and silver, in efforts to prop up the fiat authorities power and influence in sustaining their existence. In the current systemic meltdown, expect more positive changes for them at your expense.
In France from 1789 to 1796 all “hell broke loose” for the people when their government tried one monetary experiment after another in their futile efforts at currency expansion to kick start a failing economy. In the end when all the machinery, plates and and paper that were used in printing the massive amounts of currency(Assignats) had destroyed the working class and the poor which completely wiped them out. Only a few elite in France in the very late 1700’s had the foresight to put their wealth into objects of permanent value.
Your financial well being, hopefully, will be enhanced if you choose to educate yourselves on monetary history and to explore avenues that are available now. Protecting your wealth should be your number one priority as we all move forward into the foreboding environment of unprecedented growth in the money supply.
in reply to: Miscellaneous #3547All good ideas Rick. I am in agreement with keeping a presence on eBay for the mine. at least have something running every other week or so. I was happy about the one sale on eBay and the interest in the specimens in general. I was on the otherhand quite surprised the RM piece didn’t sell. That piece felt to me to have a higher perceived value and was unique in its offering of part art and part gold. Also, as for reserves, I too have found that running anything with a reserve tends to scare off bidders. Personally, I would have listed these without any reserve and started the bidding at $1. The trick to eBay is to start a “frenzy” and attract attention to the auction by a high percentage of bidders. A low starting price and no reserve gets everyone in the game thinking they will win the piece for a song. When in reality, when all is said and done, there are usually a couple bidders who will run it up to levels higher than expected. Granted, there is always the risk of the auction “dying” during the last day and the item selling for less, but I’d say 90% of the time I have been pleased with the results.
Listing the whopper is another tactic that could generate great interest in the mine. I’ll have to look into the cost of doing it though as eBay charges fairly high fees for expensive listings. I’m all for it though if the cost of parading such a fine example warrants the fees. I can discus this with MM off line. Getting in with the Bonhams folks is another good idea. The whopper would surely steel the show even if it didn’t sell. BUt there again, I don’t know what their “seller fees” are for taking on such a mammoth item worth over a million.
in reply to: Miscellaneous #3546It’s time to head up a new topic. Ground-swell interest is building for all things gold, and OAu’s two recent offerings on eBay is a good start, yet only that. Maximum exposure for interest in the mine requires more than an occasional sale. We’ve watched the two eBay items this past week, one selling and one not.
I have a new suggestion: listing specimens on eBay should continue, but if there is to be a “reserve” let’s instead consider listing them with a starting bid that would be that reserve amount. It shows valuation from the start and eliminates the questions of what the mine figures is the correct scale for specimen gold.
If the point is exposure and not necessarily the sale, then let’s go BIG. List something so spectacular and high-end that people look at it for the novelty effect. Put the Whopper up for an outrageous price for that matter….people would talk for sure.
The recent Bonhams and Butterfield auction centered upon spectaular gold-quartz specimens from an old famous private collection of Original Sixteen to One pieces…I knew I’d want reference so I purchased a catalogue (beautiful 250+ page glossy color publication) and received the “prices realized” document after the auction closed. Very enlightening. The cover photo and presumed highlight of the auction was a 35.4 ozt crystalline specimen estimated at $100,000-$120,000; it didn’t sell but everyone sure knew about it.
The highlight and surprise sale was item #1293, a 36.7 ozt slickensides piece that although estimated at $60,000-$70,000 did meet a reserve and sold for $52,500.
The point I’m making isn’t necessarily the sale price or the estimated prices, but the exposure the whole concept received.
The mine should consider these avenues: (1) keep the eBay interest going, listing items on a weekly basis, perhaps a few with sacrafice “no-reserve-low-starting-bid” (which in my experience usually sell for higher amounts than those with reserves anyway), and then put up a MAXIMUM EXPOSURE item with an outrageous starting bid simply for show…after all, if it sells, the mine would be ahead of the game; (2) enter specimens into the next Bonhams natural history auction with the same objective; (3) remember the objective:
Obtain interest in working capital to go mining for the next generation of spectacular specimens through maximum exposure, while recognizing that the romantic past can and will repeat itself. that
in reply to: Gold Enters Major Bull Market #3545Not a very good day for news over here in Europe.
The stock of Germany’s second largest bank (Commerzbank) suffered a 20% loss today after Financial Times has reported that the bank needs 10 billion Euros.
And I have seen one article in a prime business publication, wondering in very clear language, how much more US-Debt the markets will be willing to absorb in 2009.
The base-line reads: “There is no way that the two trillion US-Dollars who will be needed in the very near future, may be sold to the markets at current US-Dollar interest rate levels. So, the Federal Reverve System will have to step in and buy some of the debt. These purchases will be paid for with paper instruments that are equivalent to printing US-Dollar bills”If that is the way things will go, US-Dollar prices for gold will probably move much higher in 2009. And the US-Dollar will not only be floating against other currencies. It will be kind of swift-boating.
in reply to: Water and Arsenic: which came first? #3544How about this article in the Sacramento Bee!!
January 3, 2009
Headline: “Kern inmates forced to use tainted water”.Here’s the scoop. Kern Valley State Prison opened in 2005 with local water registering higher in arsenic than the new federal limits. The government shelved a $629,000 filtration system and did not notify the staff and inmates. “Its not that major of an issue,” said Kelly Harrington, the prison’s new warden. The administrators say the health hazard from arsenic (from chemicals used in industry and farming) is insignificant and they will get around to it in the next few years. The prison’s chief medical officer, Dr. Sherry Lopez, said there was no immediate danger from the lockup’s water, based on an email from a poison-control expert who said arsenic is “much more a regulatory problem than a public health problem.”
Oxygen is a poison; plain water can kill, so can chocolate, meat, vitamins A-B-D and E. It’s all about dosage, the amount and time line of ingestion. Let’s hope this new and fresh look at America and ourselves will examine the utterly false and misleading claims of arsenic, especially natural elemental arsenic as dangerous enough to waste millions of our precious dollars.
in reply to: Miscellaneous #3543I’m away from my desk for a few days. After I return back home I shall try and find out how gold-quartz slabs could be channelled into the jewelry trade over here in Europe.
Europe has a very positive attitude towards the incoming new President. Under US and California Law – would it be legally possible to mint some sort of gold-silver medal to commemorate the inauguration of the first black US-President on January 20, 2009? Such a medal could probably be marketed above daily metal market prices over here in Europe.
And the media hype around inauguration would create an ideal surrounding to collect orders – payable upon delivery.
in reply to: Miscellaneous #3542Try going to a chat room where entries are kept chronologically. I lose all sense of continuity. If the Forum grew to 100 or more topics, the task of reading them or participating in a topic is like having a library without an index file, hard to keep reference material friendly. A decision was made to keep about 20 topics active, which is what we are doing. If no one adds to a topic, like the miners prayers, it may go into the misc. file.
We do our best to keep a sense of balance within the entries and rarely edit a writer’s entry. Actually the misc. is an interesting file to reread once in a while. The Forum had 30 topics. It looked like more would be coming in. Something had to be done. You will find very few Forums where a new reader can easily access old entries. We are always open to constructive suggestions for improvement. Please remember the stated intent of this Forum. Glad you care enough to write.
in reply to: Gold Enters Major Bull Market #3539Gold $848.70 down $26.20
Silver $10.96 down $ 0.57
Gold/XAU Ratio 7.14
Gold/Silver Ratio 77.44
US Dollar 82.68 up 1.34
Crude Oil 46.97 up $ 0.63Gold prices are being dragged lower today with a firmer dollar. The dollar continues to bounce higher at about 83 following the severe beating that it took in December when it collapsed from 89 to almost 78 in just two weeks. The recent 17 day move on the dollar is viewed as a “dead cat bounce” and is expected to fizzle out in due time.
The December dollar drop amounted to a 12% loss for the greenback. It’s snap-back reaction so far has amounted to about 6%. In a bear markets, as the dollar remain in, the 50% reaction following a crushing decline is normal and sometimes can be even greater before the lower major trend re-establishes itself.
Concerning gold, about three weeks ago the metal lifted above the $840 level from an intermediate declining phase restraint that been in force since it traded back under the $1000 level in mid-March of last year. The $840 area is now generally considered, a fortress of powerful support. Resistance areas once considerably broken later evolve into very support levels. “Generally” means that it can even trade lower but that would only be a temporary price condition.
A good example of a temporary condition would be the time gold rapidly approched the 1000 level and continued past it. Unfortunately, for me and many other people we became so excited at the event that we temporarily lost our perspective.
This can be equated to being at a party with four drinks under our belt and feeling that we are invincible. Stepping into a car with this condition, the following events could be disastrous. Considering that gold is in a very strong bull market, the long term buyer could have made a temporary purchasing mistake but the short term trader could have been really hurt if both had followed it past 1000.
History has taught the trained eye that the levels of 1, 10, 100, 1000 and 10,000 are psychologically formidable areas to better on first contact. The same applies to declining markets when prices approach these levels from above. A recent exception to this rule is the Dow Jones Industrial Averages breaking and staying below the 10,000 area on its first contact.
A valid case can be made for the 5 number and 50, 500 and 5000 but the previous set of numbers beginning with 1 are most significant.
Sinclair says, concerning the 1000 level on gold, that the third contact will be the charm needed to finally put it behind us. I personally don’t have Sinclair’s experience but based upon his uncanny success I will accept for now his judgment.
So, this morning with gold prices approaching the $840 area it is in my humble opinion that an OPPORTUNITY currently exists for you in acquiring the metal in the form of your choice.
in reply to: Gold Enters Major Bull Market #3541last on gold is $853.50.
A personal friend of an Agoracom.com user in Canada reports the following:
“We accumulated 3 emini contracts on Comex for December delivery and we had been given serial numbers and weights last week for the three bars. Today we were informed that Comex, which is now a division of NYSE Liffe, is invoking a rule in which they can deny delivery of individual mini bars(roughly 33 ounces) and issue you only a Warehouse Delivery Receipt(WDR) against your mini-contract unless you have 3 WDR’s, and then they’ll issue you a 100 oz. bar. Otherwise, if you have only 1 or 2 mini-contracts, you only own a WDR, which you sell by shorting a mini against it. If you own a WDR for a 100 oz., the WDR insurance encourages you to safeguard the gold at the Comex.”
Following are some more excerpts from the main communication:
“Our back-office guy at RJ O’Brien told us that he’s been doing Comex deliveries for 30 years and he’s never seen anything like this, and he’s never heard of this NYSE Liffe rule on the mini-contract.”
“Out of nowhere, some obscure rule is invoked and is used to override the terms and conditions of the mini-contract that we purchased over a month ago and fully funded for delivery.”
“We have witnessed delivery notices issued for close to 50% of the gold supposedly held in the registered category on the Comex during the month of December, and yet the reported Comex inventory of gold as of 1/2/09 shows almost no physical gold leaving the registered category at the Comex.”
It is only too clear that the mini-contract on the Comex has absolutely no gold behind it while the 100 oz. contract will have to cease trading if the outflow of gold from the Comex continues at its current demand rate.
TV viewers during the past 6 months or so have been innundated with commercials wanting your old gold jewelry. 85% of annual gold production goes into jewelry.
Is the government hiding the fact there is a major shortage of physical gold, thus hiding it from the public??? Would they be doing this to protect their bullion banks who are short? If any bank is over-extended on the short side it is JP Morgan. It is understood that there are some other big US banks short on gold as well.
It seems the Treasury under the leadership of one of the biggest past gold bears, Hank Paulson, is doing everything in his power to protect all of his banking buddies or other major gold shorts from facing the realities of a fully justified higher priced gold market.
Just look what he did for Bear Stearns when it financially imploded. Bear Stearns at the time was underwater with their extremely large short interest in silver which had no metal at all backing that exposure or funds available in case of future trading losses.
Paulson gave the positions to JP Morgan and guaranteed them against loss with US taxpayer money. JP Morgan probably had a little meeting with some of their banking buddies and put together an organized raid in the silver market and attacked gold at the same time just to make sure silver tanked.
How would you like someone to give you a silver short position guaranteed against loss and then be permitted to make naked short sales in silver or not even having to put up any money for any sales that you effected in overwhelming the marketplace? Well, that’s what happened and the US taxpayer who held silver at the time in their investment accounts got nothing from it but the shaft.
Today, Hank’s past buddies from Goldman Sachs, in either connected or not connected positions, were given the $12 to $13 billion dollar IndyBank today for $1.3 billion by the FDIC. Conflict of interest here?? You tell me.
in reply to: Gold Enters Major Bull Market #3540Last on gold is $854.70.
Flash traffic out of Denver indicates that Comex has defaulted on delivering the 33 ounce gold bars tied to the mini-contract.
/More to follow/
in reply to: Miscellaneous #3537I think Rick has hit the nail on the head by using the word, EXPOSURE.
What the company has been lacking is positive exposure and what we have with oakrockranch’s efforts aided by his 100% perfect reputation as voted on by eBay users along with his masterful marketing efforts is a great start in improving the company’s exposure to some degree.
It’s an exciting beginning plus it’s also an important step in the right direction.
What we have as shareholders is the ownership of possibly the best high grade gold exploration targets in the world. If we continue to market our potential with our past produced products it may very well help to stir up some interest for some outside investment capital.
I know issuing certificates of authenticity to origin of the offered specimens is a benefit to marketing but how about a grading service putting their stamp of authenticity on the specimens concerning eye appeal and rarity or whatever?
There is an outstanding grading service presently operating in Newport Beach, California by the name PCGS. Originally they were a coin grader and they are currently the most respected one in the industry. I have noticed that they are doing other collectibles lately and wonder if oakrockranch might consider contacting them to see if they have ever thought about grading specimens or would even consider entering the graded specimen field?
Wouldn’t it be positive for the company to have their specimens graded by a reputable grading service and eliminate all the unknowns that a prospective might have which might tend to make that person reluctant as a buyer?
PCGS’s graded coins have eliminated all the unknowns concerning condition, rarity and authenticity and as a result they are bought and sold usually sight unseen. They trade like stock certificates would on stock exchanges and in the OTC markets.
Maybe Hans might have some ideas on possible ways in marketing our jewelry and specimens in Europe. Ever since Hans has joined in on the forum my spirits concerning the company have been lifted.
in reply to: Miscellaneous #3538Thanks for your support Bluejay, as well as from other parties. I too think it is the right step to “expose” the company and its assets. Albeit a small one on eBay, with repetition we could be on to something. Even a simple step of directing consumers to origsix.com in the text is a benefit of running these auctions. You never know who may see these and drill deeper to discover what the 16 to 1 has to offer.
A future step would be to prepare some on line banner ads on “gold” sites that would provide a direct link to the 16 to 1. With the addition of a new landing page that explains in layman’s terms just what is happening and what opportunities exist for investors.
Bluejay’s idea of grading gold specimens is quite sound in theory. I’ll contact PCGS to see if they would be interested in such a service. I think having a third party grade each specimen would bring a whole new level of confidence in buying on line. I see so many crappy pieces of arsenopyrite or other “low-grade” examples on eBay that have been cleverly photographed to appear more golden, hoping to attract innocent buyers. If we introduced a solid grading profile that indicated purity, weight, etc we’d be far better than any other specimen merchant, and thus garner the highest prices and repeat customers.
in reply to: Miscellaneous #3536I find most 16 to 1 gold specimens by using advanced search and typing, Alleghany California. Not that I’m looking for gold specimens. I look for anything to do with Alleghany.
If you’re looking for the best category to list specimens, look at what everybody else is doing and do it, too. Use every possible descriptive word that you can in the title, just in case someone is only searching titles and not the descriptions. I think if someone is serious about finding a good specimen on ebay, they will find it!!!
I see that the same three bidders are after the two specimens that are listed.
Maybe I should list a specimen from the Osceola and see what happens.in reply to: Miscellaneous #3534It took awhile to find the specimens in my normal catagory searches. I usually look under “gold specimen” or “gold quartz” where most listing are found. After using the advanced search method and entering the item number I found them.
I suggest expanding the listing catagories to include both “gold specimen” and “gold quartz” in addition to the current “precious metals.” We’d get a much broader and complete base attention.
Excellent photos and presentation!!!! Now let’s use all our resources to achieve maximum exposure.
in reply to: Miscellaneous #3535Good points on the listing categories Rick, although every segment does add more cost to the auctions themselves. I’ll consider that next time around. The good news is I just looked again this morning, and item #150318914223 has already met reserve. Thanks for watching. 🙂
in reply to: Miscellaneous #3531Just letting you all know, I have posted two auctions of the specimens Michael sent me. They are running live on eBay right now and can be found under the following item numbers: 150318914223 and 150318914539. Get the word out and let’s bid up these beauties!
in reply to: Gold Enters Major Bull Market #3530Last on gold is $875.70, as silver continues to build relative strength against it while trading higher at $11.46.
Commodity Online January 1, 2009
As we analyze the possible reasons behind future directional move in gold prices in 2009, we get more bullish factors than bearish factors from both supply side and demand side.
Supply side factors:
Gold mine supply has peaked in year 2001(2600 tons). Gold mining supply worldwide has failed to grow during the seven-year bull market in gold and has fallen to 10-year low. As 2009 begins, gold mining projects are now struggling to raise new funds due to the financial crisis, coupled with shortage of skilled labor.
Apart from the credit problem, other reasons for reduction in mining output include accidents in the mining process like rock
falls and poisonous gas, power shortages and environmental concerns due to release of heavy toxic wastages.Despite the strong gold-price, incentives to produce mined gold supply are heavily constrained and any demand growth in the form of investment or jewelry would only see higher prices.
Central Bank Sales
Over centuries, central banks have hoarded gold. World official gold holding (September 2008) is around 29,783.9 tones. The Central Bank Gold Agreement (CBGA) was renewed in 2004, raising the annual gold sales limit to 500 tones, which will expire in September 2009.
The ongoing financial crisis has strengthened gold’s use as the ultimate international currency – the only form of money with intrinsic value and could lead to a considerable slowdown in gold sales by Central banks.
Demand side factors:
One needs to look back the price move of gold to understand how safe heaven sentiment has contributed supporting gold prices in 2008.
The unsustainability of the system of “Live now, pay later” leading to a credit problem was the main feature of the year 2008 that had to collapse. It also saw governments dealing systemic failures in the banking system, spreading out to all financial markets and eroding confidence and trust in the banking system.
The global economy as a result has given a deep recession. Moreover, with higher gold lease rates, gold is even trading in parity with money-market rates and increasing its appeal relative to holding cash. This all suggests that flight-to-safety will still be the main driver of gold prices.
In relative terms gold has witnessed a lesser percentage decline against other asset classes indicating outperformance. While comparing the fall of Commodity prices due to the credit crisis, we see that only gold held on so well, mainly due to the risk premium.
in reply to: Gold Enters Major Bull Market #3533Gold closed out the week at $874.90.
Check out the N.Y. Times story on the town of Battle Mountain, Nevada enjoying boom times as a result of the higher gold price.
The article concludes with the same never ending general inference or theme from US papers that gold will be going lower.
in reply to: Gold Enters Major Bull Market #3532Last on gold is $874.90
Check out the following link:
http://www.321gold.com/editorials/willie/willie010209.html
When you’re finished you may need a glass of wine.
in reply to: Clips from Alleghany #3525Welcome to 2009. It is welcomed because a line between true and false economic, monetary, sociologic, political, geographic values is visual to all with a brain and the time to read. To recognize the mores, history, culture, philosophy, blue and white-collar affects of this line may take all the New Year to determine true and false. But not for everyone. I already know a bunch that already knows the line, its truths and falsenesses. How will this line influence the Sixteen to One mine?
I drew a similar line years past after determining the above important human influences and behaviors and how they relate to me and my job as president of the mine. Our miners will blast into another pocket, one larger than any so far. It will not be easy to do but it will be done with or without fresh/new help. I just cannot tell you when it will arrive.
Thanks Scoop for letting me and those previous well wishers into your space.
January 1, 2009, just past midnight.
in reply to: Gold Enters Major Bull Market #3529Gold is off its high again at $890 and is now trading lower to $873.00.
Soon after FDR was elected the gold was called in. The majority of FDR’s campaigning expenses were paid for by the banking industry. A few years later the official price was jacked higher by about 70%. Who did this benefit, not the people who turned it in? I think there is a lesson to be learned here.
Does history repeat itself? I don’t believe the Roman State was the original early owner or owners of the Empire’s eventual complete dominion of all the gold placers. Bottom line, they probably confiscated the placers from the people when their currency went sour.
Concerning gold confiscation, governments have done this routinely over history when their fiat currencies entered an explosive inflationary spiral as people’s mounting losses in purchasing power influenced them to seek out gold as a store of value thus abandoning whenever possible the circulating or growing near worthless fiat bills or vouchers or coupons as some referred to them as.
Some eye opening figures:
Since the US moved to fiat paper money(inconvertible paper money made legal tender by government decree) in 1971 the dollar has lost, at least, 80% of it’s purchasing power.
Since the Federal Reserve was established in 1913 the dollar has lost in the excess of 98% of its purchasing value.
Who’s creating the money that causes us to lose our purchasing power or more significantly, our savings or wealth values? It’s the banker’s big brother, the Fed, and the banks themselves.
The banks have the system so rigged that when they nearly go bankrupt from their excessive gambling follies they rob us us through their well placed hired government employees forcing us to reinburse those losses. It is a perfect fool-proof system for success and riches if you happen to be a big banker.
The big banks are so influencial that they even got us to bail out the brokerage companies which they bought for peanuts with the money we gave them plus some smaller struggling banks to increase their market share. Use the TARP money to bail us out? Don’t be absurd squeaks the big-fat-bank-rat.
in reply to: Gold Enters Major Bull Market #3526Let us assume for a moment, that the forecasters, who foresee the US-Dollar price per ounce of gold going to $ 10.000 and who see a new currency replace the US-Dollar in 2012, may be right.
What would that mean for private ownership of gold and gold-mines in the US?
In my opinion, no Administration and no President will let the US-Dollar go down the drain without requiring all privately owned gold to be turned in to government treasury – in exchange for some piece of paper – and without nationalizing all gold-producing properties on US-soil in a desperate attempt to save the currency.
Unfortunately, such measures of last resort may already be a subject of government policy making. And behind all that paper-shorting of gold may be a Plan B that the public does not know about.
I see no way in which all the Federal Debt, that the Fed plans to sell in 2009, may be sold at current interest levels of the US-Dollar. Or does the Fed plan to sell US-Debt in other denominations than the US-Dollar for a change?
Of course, the Fed could always hit the start buttons of the printing presses to avoid selling debt that nobody wants anymore. But that is no long-term solution – as we all know. I sincerely hope, there is a Plan B for that problem.
There is a strange hum in the air over here in Europe these days. European policy-makers understand very well that the incoming president on January 20th, 2009 will need some positive results fast. The faster the better.
European leaders want Barrack Obama to succeed. They will be making a substantial effort to assist him in putting the US-economy back on it’s feet.
And I personally believe, that some European Leaders, like the German Chancelloress, have “been keeping their powder dry” to support a massive and coordinated effort to stimulate economic growth as soon as Barrack Obama has taken office and the “Bretton Woods II” talks move ahead.
On an overall basis, I see a solid base for likely improvements in 2009. If the Bretton Woods II talks go well, the global financial crisis may soon loose it’s awe. And if the US are represented by a President again, who shows some respect for other nations and other cultures, the number of people, who want the US to succeed economically, may grow substantially.
I expect the US-Dollar price of an ounce of gold to fluctuate around the 1.000 US-$ threshold for the next few month. And I wish you all well for 2009.
in reply to: Gold Enters Major Bull Market #3528Mike, it is very true that FDR’s confiscation ocurred in economically weak times. But, many commentators compare the Global Financial Crisis of 2008 to the Great Depression of 1934. Some even believe, the 2009 depression will be more severe, than the depression of 1934. So we are currently living in very weak times, aren’t we?
And in case the Bretton Wood II talks should fail or be postponed beyond the first half of 2009, I fear for very severe economic consequences in the second half of 2009.
The Wall Street Journal has printed an article on the former Russian KGB-Analyst Igor Panarin on Dec. 29th, 2008.
http://online.wsj.com/article/SB123051100709638419.htmJust two years ago such an article could never have appeared in the WSJ. It would have been dismissed as completely irrelevant, russian, antiamerican propaganda.
The formerly unthinkable has made a subtle transition into an unlikely, but not altogether impossible event.
If the Administration should plan to become serious about nationalizing precious metals, you will first get a wake-up call on your Income Tax Return Forms. As soon as there should appear a questionnaire asking for details on precious metals in your possession. (For record only).
The unbelievable pace in the accumulation of trillions of US-debt is scary. This development simply cannot go on much longer. The markets did not tolerate an oil-price of US $ 150 per barrel for a very long time during 2008. And the markets will not tolerate the amount of debt that the US is incurring right now much longer. An adjustment of some sort seems inevitable to me at some point in time during 2009.
in reply to: Gold Enters Major Bull Market #3527In regards to one of Han’s scenarios below, a government call on Americans to turn in privately held gold, here are my quick impressions.
Unlike FDR’s confiscation, which occurred in weak times, gold ownership in the US, a global economy with many options for gold ownership, unthinkable means of communication today compare with 1934, and perhaps most of all the small supply of gold held by US residents or citizens, such a policy will yield very little physical gold for the government. Also an observation I recognized over my past thirty-four years in the gold mining/investment industry, events do not repeat. It will always be a new game with a fresh twist. An ongoing power plan exists between the gold holders and the want-to be (paper holders). As a gold producer this battle is not my concern and is probably an okay reality for us. Sixteen to One operated during the last major bear market for gold, acquired more hard assets and improved its position for the next bull market. When will that flare up, it beyond my expertise to predict.
One fun history of gold during its last escape for the US population between 1968 and 1975, is the amount of and type of gold smuggling that took place. Great stories! The smugglers were much smarter and more motivated than the agents for the Government. I am sure that this new US administration knows this history and will never underestimate the ingenuity of its citizens. If the United State, the fifty individual states and the thousands of county and city governments cannot stop the most terrible habit of nasty drug use, especially meth, gold smugglers will be safe and prosper.
When FDR confiscated gold, his administration also raised the official price from $20.67 to $35 per ounce. This stimulated gold miners and investors to kick up their operations. Between 1934 and WWII, gold people licked their chops with delight. In 1934 bullion receipts of the Sixteen to One mine totaled $578,000 for the year. Dividends that year were $287,000 (almost 50% of bullion receipts).
Following Hans’ theme that the government confiscates gold, it would be prudent for the government to do something to stimulate gold production first. There are several ways to accomplish this. If the US wants to recharge its vaults with the precious metal, it will be because our financial gurus want to sit at the international poker table with a chest full of gold instead of guns and notes. Otherwise, why bother?
It seems to me that those who do not have gold want to diminish its importance in the marketplace and suppress its exchange rate with all currency. Gold gets in the way of those who battle for the value of the Euro vs. the Yen. vs the Dollar or in the good old days of international trade the German Mark and Swiss Franc. (I saw only one article in the Wall Street Journal about the conceptual beginnings of the replacement of Europe’s currencies with a single Euro and gold. The article discussed the debate about the percent of gold backing with a leaning towards thirty percent. Did this come to pass?)
Today no one mentions Fort Knox. Back in the 1970’s it was a hot topic with gold bugs (a peculiar name). I drove by Fort Knox and was surprised to see that weeds grew around the fence and gate. I never gave the question of, “Where has all the gold gone?” a hard study but others offered evidence that Fort Knox was stripped clean of America’s gold. When was the last time you read about Fort Knox as America’s storehouse for its gold? Remember the United States does not print dollars. We trade with Federal Reserve Notes. When FED is used in writing does the writer mean the federal government or the Federal Reserve Board? There are significant differences.
I treasure a vast and diverse library of both mining books and economic books that emphasize gold. I accumulated them over the years and still love to pick one up for a quick review. Maybe we can discuss this topic some more.
in reply to: Miscellaneous #3524Question for the board.
Which of our properties have liens against them, naming the contra parties and the amounts?
in reply to: Clips from Alleghany #3522Seasons Greetings!
in reply to: Clips from Alleghany #3521Happy New Year to ALL!!
in reply to: Clips from Alleghany #3523Happy Holidays to all from the Islands.
in reply to: Gold Enters Major Bull Market #3520Today I will sell 5.67 ounces of gold dust. Here is the reason I am selling today into a rising price: the mine needed to get its smaller loader repaired for the winter season. The large Cat 966 is rougher to operate and not the best for snow removal; therefore, it was transported to a repair yard early December, and now it will be transported back to Alleghany this week. So, for the economic thinkers is our Forum, it is because of demand,not supply,and not demand for gold but the demand for dollars to pay for the repairs.
The option of using a line of credit was no option at all due to the attitude of lenders. I am positive that other real gold producers, the ones who mine and process real gold face similiar decisions. We pay our bills with cash, not gold, except in rare cases. Over the past fifteen years I have been able to manage our gold inventory to gain the maximum returns. This is one of several reasons this company has survived the hard times for the small gold miner. While our owners have not seen rapid increases in the market value for their equity in the Sixteen to One mine, they have not experienced the devestating dilution prevelent in the small cap gold corporations (some of the big ones as well).
I am not a believer in the $2,000 plus spot price for gold, yet it may happen; however, I do believe that the last high over $1,000 will be tested and broken in the months to come. We are very happy with the price today. The bucks we get per ounce of Sixteen to One gold are not the problem. Working capital to go and get the stuff is the problem and one that I will overcome to the benefit of existing shareholders and those who provide the new money.
Where are those who believe the multiple thousand dollar per ouince predictions? If you are one, call me and realize your visions for the future.
in reply to: Gold Enters Major Bull Market #3519Gold $883.40 up $14.70
Silver $10.84 up $ 0.23
US Dollar 80.30 down 0.31
Crude Oil 39.15 up $ 1.44
Gold/XAU Ratio 7.45
Gold/Silver Ratio 81.10Due to the continuing conflict in the Gaza Strip gold is being pushed higher. Earlier in the Asian trading session it reached to nearly $892. The last currently, as it is being whipped around is $882.20.
Jim Sinclair stated tonight at jsmineset.com that Alf Field’s projections made in early December will be met. That’s strong talk as Alf has predicted uplifting waves to reach $3500 then to $6000 followed by a move to $10,000. In that price scenario environment our shares will become a blue chip holding envied by all.
Jim Sinclair, also says tonight, that a new currency will replace our present dollar in 2012. It sounds like it’s the right time for us all to be in hard assets or to be making plans for it.
The dollar chart was checked out tonight and it clearly shows an objective on the graph into the lower general area of 65. Again, the last sale on the greenback is 80.30. The posture for wealth retention should be to exit all dollar denominated assets with the exception of hard assets.
Silver continues to be the red-haired stepchild being ignored as a monetary metal. They would like us to believe that silver is an industrial metal just like other base metals but the truth is the people don’t agree. It’s not that the people arent’t putting some of their wealth into the metal, it’s that the short sellers continue to beat silver back with paper sales on the Comex.
Already, one or two US banks have sold 25% of the annual world production short. This enormous percentage is destined to grow as base metal mining operations are curtailed thus reducing by-product production of silver due mainly to the collapse in copper prices. Copper has fallen from above $4 some weeks ago to just $1.30 recently.
Some months ago when the Bear Stearns fiasco hit the news wires silver was pushing higher and stayed above $20 for awhile. Then a few US banks took control of the market plastering it with paper while taking it down below $9 or so temporarily only to have it inch back slowly. Silver in the past few days has managed to trade higher over a minor technical area at $10.40 and looks slowly higher. Once the $14 area is cleared the bankers could be in trouble as the silver market will be explosive from then on out.
The silver manipulation issue is heating up again with another CFTC investigation underway. For more background read Ted Butler’s recent article at silverseek.com.
One parting comment: We should never underestimate the power and resoursefulness of the people that want to control us as being oriented towards hard assets. The sharp drop in gold and silver prices over the past months should only reinforce this concern. In the past apparent moon shots on the precious metals have been met by temporary serious cooked-up selling maneuvers by the opposition. It is better to buy into declining markets avoiding up-flares for market tactics.
Some current trends: Money continues to flow into the Buffalo 1/10, 1/4 and 1/2 ounce coins. In the precious metal stocks cash continues to flow into royalty companies such as Royal Gold(RGLD-OTC) in the US and Franco-Nevada(CA:FNV at bigcharts.con) in Canada.
Royal Gold made a new high last week at $48.91. Franco-Nevada is still down about 20% at $19.98 from it $24.95 high in Canadian funds as both act superior to the general high priced gold group shares that remain on average at about 40% under their high points of the year.
in reply to: Clips from Alleghany #3518Merry Christmas from the Smiths !!!!
in reply to: Clips from Alleghany #3517On this shortest daylight day of 2008 and with all the worldwide unknowns, Scoop reports for certainty that it will be a white Christmas in Alleghany. Thanks to miner Reid, the road to the Sixteen to One portal is passable. So as soon as you fence straddlers, gold investors, speculators or just plain adventurers face the realities of the current (and not all that long lasting) fantastic gains to be made in the Gold Sector due to the realities of the current and carefully projected financial scene, plan your trip down this road to the Sixteen to One mine in Alleghany, the most proven gold deposit in the world with the least amount of miners drilling, blasting and mucking its treasurers. Your savings will never be placed in a safer spot, one with class.It will happen in 2009. Don’t you want to be in at its beginning?
“The problem of our age is the proper administration of wealth, so that the ties of brotherhood may still bind together the rich and poor in harmonious relationships.” Andrew Carnegie
There is little news to report so have a Merry Christmas as well as a safe one.
in reply to: Gold Enters Major Bull Market #3516So this was the last triple witch day this year. My guess is, that a lot of people had been caught on the wrong foot by the recent sell-out of the US-Dollar and have tried to pull the indices in their direction for todays closings. The US-Dollar has appreciated by 4 cents against the Euro. An extraordinary move for a single day! And that has hurt US-$ gold price as usual.
Volumes are not to large any more because many people have already left for their X-mas holidays. And the big players have made their stance for the balance-sheet ratios as well.
As triple witch day goes, fundamentals will probably return.
in reply to: Gold Enters Major Bull Market #3515Gold $339.60
US Dollar 81.08
Crude Oil 36.56A few Gold stocks and a quick review of the Philadelphia Gold and Silver Index(XAU)
In today’s gold sell off there are some pockets of strength in the gold stocks giving the bullion price some relative strength characteristics.
The following stocks will do quite well with higher gold prices and are putting in a good showing today.
RandGold Res.(GOLD_OTC) 42.70 up 2.54 or 6.33%
Royal Gold(RGLD-OTC) 43.49 up 1.47 or 3.5%
Kinross Gold(KGC-NYSE) 16.80 up .46 or 2.82%
Agnico Eagle(AEM-NYSE) up .60 or 1.37%
The XAU, following its naked short selling oriented crash to the 63.52 level, has righted itself. The last on the Index is 110.91, unchanged for today.
The major pivitol area in this market is where the 5000 and 2500 day moving average lines are currently located in area on the chart of about 100. Even though the forced selling that took place in the recent past breached this level the Index has returned to its positive bullish stance.
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Bill Murphy’s Meeting with CFTC – Update
posted on Dec 18, 08 06:05PM
GATA Chairman Murphy reports on meeting with CFTCSubmitted by cpowell on 02:31PM ET Thursday, December 18, 2008. Section: Daily Dispatches
By Bill Murphy, Chairman
Gold Anti-Trust Action Committee Inc.
Thursday, December 18, 2008About 45 minutes before I was to leave for my meeting with Commissioner Bart Chilton of the U.S. Commodity Futures Trading Commission, this news hit the tape:
“Obama to appoint Gary Gensler to lead Commodities Futures Trading Commission — AP.”
Gensler is a former undersecretary of the treasury and assistant secretary of the treasury.
Gensler is a Goldman Sachs alum and a Treasury man. Obama is putting one of the key figures in the Gold Cartel scheme into the top role at the CFTC. Talk about the fox guarding the henhouse! But the bad news might be good news.
My meeting with Chilton went on as scheduled and lasted about 50 minutes. The surprise was that three others from the CFTC staff attended, including the deputy general counsel. One of the other staffers had already viewed the video of GATA’s Gold Rush 21 conference.
Chilton listened intently, took notes, as did one of the others, and asked many questions. I laid out GATA’s presentation. I am not going to get into all the details, as we will see what takes place in the months to come. But I chuckled when telling them that if they really wanted to comprehend what the gold price suppression scheme is all about, all they have to do is go to their new chairman — at the right time. No one knows what is going on better than he does.
I did not hold back. I said the main culprit of the Gold Cartel was our own government, which has been in league with bullion banks like JPMorganChase.
Naturally, I drew parallels to the Madoff scandal and how the Securities and Exchange Commission ignored nine years’ worth of probable cause to suspect a Ponzi scheme. I also laid out how and why what is occurring in gold and silver could lead to a much bigger scandal if the price suppression scheme is not stopped — and that is because the Gold Cartel is running out of the gold needed to meet the growing annual deficit between supply and demand.
I was very impressed with Chilton, and he said my trip to Washington would not be in vain.
There are two things for sure. First, as in the Madoff scandal, no one can say the powers that be didn’t get the scoop, the facts about the gold price suppression scheme — what has happened and why. And second, if there is one person in Washington who will try to get to the truth about gold, this is the man.
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in reply to: Gold Enters Major Bull Market #3514Gold $833.90 off $19.20
Euro 1.3944 off 2.37%
US Dollar up 1.37%
Crude Oil off $ 1.77Gold started getting weak overnight near the close of the Hong Kong market by breaking minor daily support just below $850 and continued lower during the London session hitting $829.20.
Supporting gold’s fall was the continuing dead cat bounce of the US dollar. J.P. Morgan’s suspected continuing bear raid in the oil market persists in bringing down prices giving the US economy some much needed relieve. Merry Christmas motorists. I’ll be locking in some cheap gas prices on a RV fill-up tomorrow.
The cabal in the gold market continues to seize and smother excitement of the metal’s well wishers on daily technical strength. Their message is clear, if you join in on any buying sprees we will give you a hangover. I’m sure recent selling is coming from some big US banks along with the usual bashers at Goldman Sachs and J.P. Morgan.
At the moment in brisk trading gold is coming back with a last of $840 plus. I would suspect that more daily selling pressure will come back into the market at this level as it has shown to be troublesome in today’s trading.
Gold’s free fall from the $880 level is still in motion as we await the stench from the rotting US dollar to resurface.
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