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- in reply to: Gold Enters Major Bull Market #3513
The big summer rally of the US-$ is probably best explained by roughly 10 Trillion US-$ that European Banks had borrowed from US-Banks earlier and that had to be repaid when lending among banks froze up.
The rally was also funded by large amounts of American investments in other currencies that where terminated and called back home when credit tightened in the US-home-market. I have no information about the size of this “repatriation”-Cash-Flow though.
Now both US-$ buying activities have come to an end and the fundamental trend is back. And the fundamental trend is signalling a much weaker US-Dollar. Much weaker than what we saw in March of 2008.
As long as market-participants are using gold as a hedge-tool against currency risks, the US-Dollar denominated price of gold will continue to go up while the US-Dollar floats against other currencies except the British Pound.
Because that is floating just like the US-Dollar and is nearing parity to the Euro. “Sic transit gloria pfundis”.
in reply to: Gold Enters Major Bull Market #3510Gold $855.60 off $11.80
Silver $11.03 off $ 9.33
Gold/XAU Ratio 7.57
Gold/Silver Ratio 77.57
Crude Oil $38.00 off $2.06
US Dollar Index 79.21 up 0.65Gold’s party of the recent past days got a wet blanket thrown on it this morning near the $880 level and has been back peddling ever since. It appears that gold will be on the defensive for a short unknown period of time to follow.
Crude this morning is lower at $38. Who would have thought? Thanks, J.P. Morgan. See, these guys are good for something after all. Gasoline here in Sebastopol, California was $1.59 yesterday and is expected to go a wee bit lower. This is a nice Christmas present for motorists.
The US dollar is doing a dead cat bounce this morning being up 0.65 at 79.21. The recent intermediate rally to about 90 looked much like the Fannie Mae rally in March of 2008 when it went from $18 to $35. The last on Fannie today is 67 cents.
I looked at the chart on the Euro this morning and saw a significant chart formation that it busted out of to the upside from about five days ago at 1.31. The formation is called a right ascending triangle. The five day run took it near 1.45. That’s about an 11% move, not bad.
The Euro made its high at 1.60 in March this year and during the dollars big rally traded down to a low of 123.50.
I consider $846 to $850 as being support for gold over the days ahead. Go gold!
We’re hitting the road in the RV on Saturday, weather permitting, to spend some Holiday time with our girls in Reno, Nevada. I hope we can get over the icy Sierras in one piece and back again.
Our family wishes one and all a festive and Happy Holiday Season.
in reply to: Stock exchange listing #3512That is good news, Mike, that Origsix does not owe any money to the banking sector. Thank you.
in reply to: Gold Enters Major Bull Market #3509The sale of the US-$ aginst the Euro continues today at an unprecedented pace. As well as the sale of the Pound Sterling, by the way.
In €-Denomination the price per ounce of gold has actually dropped below the 600-line in today’s fixing at London.
Physical gold is hard to get in Europe too. The mints in Switzerland are now working three shifts and still cannot meet the demand for coins and small bars. And golden X-mas presents are available only with huge mark-ups.
in reply to: Stock exchange listing #3511To answer Hans’ question in the last entry: origsix owes not a penny to any bank. Its debt is with private parties, most of who are friendly as well as supportive to its success. I thought I might have been alone in distrusting the stock market game. After reading Hans, Bluejay and Rockroby, my concerns are not signs of paranoia. The pit is probably much deeper that we can imagine.
When I was seeking shareholder proxies between 1976 and 1983, several times a shareholder would tell me, “Well, everyone should have a worthless gold certificate hanging on the wall.” It was said with a smile because each and every person I contacted during that proxy battle for control believed his or her Sixteen to One stock was a prize worth keeping. I heard some wonderful stories about the mine.
The only problems I see in holding certificates are knowing where you have them and taking them to a broker if you want to sell. Neither seems too difficult for the benefit gained.
in reply to: Stock exchange listing #3508First of all, I agree with bluejay’s analysis of the state of Stock-Dealer’s competence and morale.
As the old Romans used to say two thousand years ago: “Judge a man by what he does, not by what he says”. Especially people like Bernard Madoff.
Maybe you should dismiss the plan to reenlist OSTO-stock for trading at a stock-exchange and save all the related expense along the line, Mike. Maintain an informal trading platform for shareholders on the company’s website.
If company-websites would have existed 100 years ago, stock-exchanges would have never been needed and would not have been created at all. And if they disappear again, it may be a change for the better. The world doesn’t need the Bernard Madoffs any more.
Is Origsix still carrying a loan from a bank that is secured by physical gold?
Although it is a sad decision to make, I would suggest to sell the amount of gold that is neccesary to cover all loans outstanding while the market is still strong.It is not that I am worried about declining values of gold right now – I am worried about the recklessness of any potential future liquidators who might size Origsix assets and sell them for a piece of cake.
As long as Origsix owes money to the banking sector – and I don’t care what specific banks are involved – the title to the loan may be transferred from one bank to another bank and in the end to some liquidator.
Eliminate that risk, Mike, if it still exists. And don’t worry about selling too cheap – we can always go back and dig up some more gold as long as Origsix owns the mines.
in reply to: Stock exchange listing #3507First of all, I don’t believe DTCC is a reputable organization. They can’t even get sellers that fail to deliver sold securities(naked shorts) within 13 days and don’t require a buy-in to replace shares that the seller won’t produce that the buyer has already paid for. Otherwise, they perpetuate the on-going phantom sales scheme by lawbreakers which dilutes a company’s share price.
Patrick Byrne of Overstock.com(OSTK_OTC) has been spearheading a reform movement in court for years in an attempt to protect shareholders rights. To get to the point, Overstock.com had 19,000,000 shares outstanding and according to buyers, they owned from 35,000,000 to 40,000,000 shares the last time I checked. Someone, unknown to the company, was manufacturing about the same amount of shares that the company originally issued without any serious protests coming from the NASDAQ or the DTCC. Do you know why? The more shares that trade, the better it was for business.
This is the sad state of affairs that law abiding investors find themselves in today. The naked shorts game is to pound down the share price of specific companies thus inflicting damage on shareholders. These crooks do not sell naked shorts in an up market. The only exception is that some bullion banks do this in a rising gold market as agents of the Treasury.
The bottom line with me is, if someone else is holding your assets your risk exposure is magnified by their potential incompetence. Why take the chance?
The day has come and gone where I feel comfortable knowing that the FDIC or the SIPC will bail out any incompetents for losses that they create with my trusted securities or funds on deposit with them.
The IRA’s and ROTHS etc. are sterile stock holdings. You can’t get your fingers on them ever! The shares of these plans are suppose to be segregated but you would have to hire an attorney to PROVE that their custody is totally safe. Who do we trust?
Just take a look at what just happened to Bernard Madoff Investment Securities. Their ponzi scheme was just revealed that cost investors $50 bullion. They kept several sets of books, had falsified documents and lied to regulators.
We live in times of shameful widespread corruption. Your valuables should be intrusted to yourself in a well fortified home safe.
Ever wonder what happened to all the small denomination gold pieces like the 1/10, 1/4 and 1/2 ounce gold coins that used to be offered at coin shops? They are mainly in home safes now waiting for whatever tomorrow brings.
Do not leave your securities with the broker, order them out as soon as you can.
Check out this article:
in reply to: Stock exchange listing #3506The experience of Rockroby is not uncommon these days. It is happening all around the globe and in large numbers. Large numbers of affected customers and large numbers of affected balances.
If a bank comes under serious pressure to maintain a certain core capital ratio against it’s loans outstanding position it will first try to shore up it’s core capital.
And if that doesn’t work any more, outstanding loans will be called back. From banks and from individuals. Upon maturity or on sight. Whatever is available will be grabbed to reduce the pressure.
As they say over here in Europe: “Banks are handing out umbrellas as long as the sun is shining. And as soon as the first rain-drops appear, they are recollecting the umbrellas again.”
There are still many umbrellas out there that have been handed out to financial SWAT teams called “Equity Funds”. It is hard to recollect those umbrellas without driving the Dow Jones below the 4000 level.
But many Equity Funds are making the same experience as Rockroby right now – if that is any consolation at all.
in reply to: Gold Enters Major Bull Market #3503The US-Dollar lost 8 cents against the Euro within less than 24 hours. I cannot remember such a wild move of the US-$ within the last 45 years that I know from personal experience.
When I was a young man, one of my teachers used to compare the circulation of paper-money to the issuance of corporate stock that is fully transferable without the endorsement of the secretary of the company.
In this comparison, paper-money bills were the share-certificates of the stock of the “issueing company”, the national economy emitting the “stock”.
Bill Bernanke has issued a lot of new certificates recently, watering down indivdual share-holder value. And the outlook for future appreciation or dividends is bleak.
Therefore the shareholders do what you would expect them to do, if stock is underperforming and outlook is dire – they sell. And it seems to me that there are still many stop-loss orders in the market.
Gold will probably go much higher in US-$ denominated prices.
in reply to: Stock exchange listing #3505When this market crash happened I owed U.B.S Financial about $1,800.00 and they called in my marker giving me less then 24 hours to come up with the cash,so I told them to sell all my National Lampoon stock.It was not enough to cover the $1,800.00 so without asking me or even telling me they unloaded 3,000 shares of my OSTO stock for .05 cents,I had other stock they could have sold and am not sure why they did it but they did.I can not get it back for that even though the stock sits at .02 cents right now,will put in bid’s for a higher amount’s as soon as my Christmas bonus comes in,short on funds right now.
Thanks Mike for letting me hike down into Kanaka Creek over the Summer even though I could not do much with the other miners in their,will be sending a care package before Christmas & found some decent placer gold this year up around the Merced River,will be back up looking for gold as soon as my rush is over.
Wishing you all the best this holiday season.
Craigin reply to: Gold Enters Major Bull Market #3502WE HAVE BLAST OFF
Last on gold is $869.30 and its running.
Right on Hans!
in reply to: Stock exchange listing #3504THE FOLLOWING NOTICE WAS SENT TO ME TODAY FROM A SHAREHOLDER WHO IS ALSO A STOCK BROKER. What does this mean? My comments begin below the notice. Your thoughts are encouraged. Thanks Hans and Bluejay for your recent contributions.
“Beginning Jan. 1, the Depository Trust Company (DTC) will provide a Direct Registration System (DRS) statement in lieu of a physical certificate for all DRS-eligible and participating issues that request withdrawals-by-transfer (WTs). For such DRS-eligible and participating issues, DTC no longer will permit participants to request issuance of a certificate on the WTs instruction. The final date for certificate withdrawals-by-transfer is Dec. 30, no later than 3 p.m. CT.
For client protection and efficiency, the securities industry has been moving toward eliminating physical certificates. The DTC recently filed the proposed rule change with the Securities and Exchange Commission.
DRS is a book-entry system that enables investors to register their shares electronically with the issuing company or its transfer agents. Instead of a paper certificate, investors receive a statement of their holdings. In 2008, all of the major and regional exchanges in the United States mandated that DRS become a listing requirement for all issues.
An investor will still be able to request a physical certificate by taking the investor’s statement directly to the DRS agent for conversion to a certificate.”Have you ever wondered how the brokerage businesses back room handled the massive increase volume of transactions? My doubts about their abilities began years ago. A growing concern was they are not able to do it. The result is that while an individual client may have accurate records, transfer agents may not. I encouraged our shareholders to take physical ownership of the stock certificate for mutual protection.
Why would a public corporation be concerned? Naked shorts! Short selling has brought small market cap or modest volume trading companies much grief, probably some large ones as well. It is proven that selling a stock down is more rapid and easy than buying a stock up. There are rules about short selling or there were rules when I did some short selling shortly after graduating from UCSB in 1965. I always may a profit short selling and can’t say the same about my long positions.
Working with Original Sixteen to One Mine, Inc to get it approved for the Pacific Stock Exchange between 1987-89 and afterwards paying attention to its stock activity, I realized how the stock market works from the view of a corporate president with a substantial holding and long term interests. I also realized how traders could destroy a very good corporation. Today I may be the only corporate executive who hand signs each share certificate; however once shares trade in depositories, I lose touch with our owners and market activity.
In order to short stock the shorter was required to hand over the number of shares, which were borrowed from someone else who actually had the shares to sell. Do you believe that this requirement was actually performed? If so (and I do believe that for many transactions someone’s account was credited and someone’s was debited shares) what happens when the person whose shares were loaned to cover the short wants to sell his shares? Does the broker borrow from another shareholder? It has been my opinion for years that with such large volumes of trades, the there are mistakes and now we all know that no one is really watching.
I believe that the public should demand that public companies continue issuing certificates of ownership. Why? To prevent fraud or manipulation. America needs a stock market industry. But it must have a level playing field and the transparency Americans have sought for most of my life. The market resembles the casinos in Las Vegas more than a capitalist’s tool.
Finally, as a director and president of a SEC reporting company, I will be the first to get the blame for a crashing stock price even if the present circumstances remain unchanged. I remember going to a two day gold seminar in New York as an invited guest by Donaldson Lufkin and Jenrette when the president of Barrack blasted the US stock exchanges and specifically related that traders could bring shareholders a loss that has nothing to do with the management or results of the company. I remember it well.
in reply to: Gold Enters Major Bull Market #3500Gold is $852.50, up $15.60 and running.
Gold could experience some further strength today as it appears on the verge of breaking a declining 10 month consolidation period around the general area of $850. We’ll have to wait for confirmation that this event has taken place with some trading in the low $860’s.
Next minor resistance is $905.
The last time the metal pushed out of a significant declining consolidation phase like the current one it was in October of 2006 when it cleared $600 to the upside. Following in February of 2008 it hit $1,030, that’s about a 60% advance.
Let’s see, 60% of $850 gives this next possible move a conservative chart chance of hitting $1,360. We’ll just have to wait and see.
Go Gold!
in reply to: Gold Enters Major Bull Market #3501The price of US$-Denominated gold will probably continue to rise as long as the current weekness of the Greenback persists in the currency markets.
But mind thou well, it is not gold that is increasing in value – it is the US-$ that is losing it’s purchasing power abroad.in reply to: Gold Enters Major Bull Market #3499Last on gold is $836.90.
The following link with a lead comment and follow-up story clearly supports what I said a few nights ago, crisis are created for devious reasons. This is an old time and tested Rothschild trick. The TARP a bailout plan for the banks, I don’t think so.
in reply to: Gold Enters Major Bull Market #3498The last on gold is $833.70.
Gold finally surmounted the troublesome $830 today after being higher at $843. There is some more resistance higher up on the chart at $850 and below from a descending recent tops connected line.
Like Hans has said the dollar is looking suspect at the moment. Since the it gave up the 84 support level recently it has preceded to sink to a last of 82 in just a few days. watch out below!
The OTC Pink Sheet market maker took in 6,000 shares of our stock today at 2 cents, what a joke.
The ridiculous trading of our stock is reason enough to always have in some stink bids to keep this guy honest. The trader is probably some young kid in the business for a few years or so that also watches, maybe, another 100 or so inactive issues.
What is really sad is the incompetent broker that failed to adequately represent his customer in securing the best available price. The poor seller ended up with a gross of $120 minus the cost of the ticket which might have been anywhere from $25 to $50 because our stock on the Pink Sheets doesn’t qualify for an automatic transaction which would have been much cheaper.
It’s really sad for this seller as our company’s shares in assets alone are worth over $1.50 in my humble opinion.
The 16 to 1 Mine as mentioned is more than likely worth from $10 to $15 million. The Brown Bear Mine has to be worth well over $2 million and our Plumbago Mine has to be worth well over $1 million and that’s not to mention our other small past producers.
In the future all these past producers will be yielding high grade gold specimens valued by this inside market far in the excess of gold’s general market price.
Hey Rick, I bought four two 1/2 ounce gold sets from the US Mint today. Each set has an Eagle and a discontinued Buffalo gold coin in it. The Mint produced this year only the Buffalo 1/10 of ounce, one quarter of an ounce and 1/2 ounce coins which they will not produce again, as far as they have indicated. These coins will hold a high numismatic premium as they will always be rare for only limited quantities were minted.
in reply to: Gold Enters Major Bull Market #3497Thanks for your comments bluejay.
I shall write a letter to the team of Barrack Obama, asking them to reinstate the M3-Statistics for the US-Dollar.
By the way – the value of the US-Dollar is melting like ice in the sun-shine against all other major currencies since about a week. Markets have obviously given up on the US-Dollar.
That decline of the US-Dollar should result in higher US-Dollar gold prices, well beyond the 830 level. Because many traders are thinking in Yen-, Renmimbi- or Euro-Values. Not so much in US-Dollar price levels.
in reply to: Gold Enters Major Bull Market #3496Gold trading higher at $828.90, up $7.90.(Just as a passing thought: it wouldn’t be surprising to see the evil forces surface at the $830 level with more paper gold selling)
Thanks for your thoughts Hans.
I remember reading back a few months or so comments from John Williams at shawdowstats.com that the money supply would continue to shrink until November or December when he anticipated a trend reversal.
Usually when the banks take in capital, as with the current handout program to them, they would use it for justifying more loans which in effect increases the money supply. This time it’s different as they are content to buy government bonds for safe income while keeping their loan activities to a minimum.
During the depression of the early 1930’s in the US it was not the lack of capital at big banks that kept everyone down, it was the bank’s unwillingness to make loans that extended the problem and forced nearly 30% of the workings class into the unemployment ranks.
The banks have basically halted their lending practices which I think the government is not pleased over. Obama’s stimulous plan of handing out free money to the public in the suspected amount of $1 trillion, the first time around, will get the money supply moving higher quite soon.
It is my belief that this whole collapse was engineered way ahead of time with the creation of OTC derivatives. Brooksley Born the acting commissioner of the CFTC in 1987 tried in vain to regulate these derivatives but was beaten back by the likes of Greenspan, Rubin and Phil Gramm in the Senate.
I believe it was all setup by strong banking interests to purposely create a crisis. The aftermath of a crisis results in the public’s wealth being destroyed to some extent and the influence and capital of large banks being increased.
It is a known fact that J.P. Morgan created a banking crisis in 1907 that cost Americans millions of dollars both in the stock market and in smaller banks which eventually closed their doors.
This crisis was one of the reasons that the Fed was voted in replacing the US Treasury for creating money which was approved by Woodrow Wilson soon after he took office in April of 1913. Wilson’s campaigning for president was strongly supported by the banking industry.
Concerning contacting Bernanke to reinstate M-3 money supply levels, Bernanke takes his orders via J.P. Morgan and they from the Rothschilds in Europe. Not even you, being closer to the source than we are here, stand any kind of a chance trying to persuade by far the richest entity on the plant to change their money making ways.
These are the same people who believe, “Give me a control of a nation’s money and I care not who writes its laws.”
The following link has many interesting graph studies including the current unofficial chart on US M3 money supply.
in reply to: Gold Enters Major Bull Market #3495Deflationary and inflationary impacts of previously unknown size are causing will swings in the money supply M3.
After excessive growth during 2006 and 2007 we have seen a sharp decline in M3 growth during the last 6 month of 2008. It is now down to almost no growth and the trend is pointing at a further decline of M3-growth, that means deflation. The first actual contraction of M3 in decades is looming on the horizon. And that is despite all the huge cash-outlays in 2008-bail-out operations.
The only explanation that I can offer for this phenomen is, that the gigantic equity losses of the global banking industry have triggered balance-sheet clipping operations in the area of some 20 to 30 trillion US-Dollars. Most of this clipping is achieved by reducing the position “Loans outstanding”.
The deflationary impact of such action is substantial and it may be a while until inflationary forces kick in again. The fact, the platin is cheaper than gold these days, shows how desparate some people are strapped for cash. More commodities will be sacrificed at very low price levels to raise cash during 2009. It is not only crooks who are manipulating the price of gold. Some very hard facts, like the need for cash, are supporting deflationary impacts these days.
Please keep that in mind, Mike and bluejay. And maybe, ask Ben Bernanke, to make the Fed publish M3 figures again. It is outraging, that the US-Gov’t has discontinued the publishing of such important information for almost three years by now.
in reply to: Gold Enters Major Bull Market #3492Gold $824.30 up $4.60
Platinum $819 down $17.00
Silver $ $10.21 down $0.10The platinum price has moved under gold’s for the first time since 1996. Sure, this in effect is being caused by the current world recession with 50% of platinum’s yearly production consumed for industrial applications. The remaining past production of 40% goes for jewelry, Japan consumes 90% of this amount, with the remaining 10% going for investment purposes. It is suspected that these last two percentages are on the increase due to wealth protection demand.
Very little has been written about the suspected increased demand for platinum bullion coins. Holding platinum, to some degree, may be more important that holding gold just based alone on its scarcity. Currently there is 16.67 times more gold mined than the metal with silver’s yearly totals being 100 times greater.
Currently there is so much hot money flying around in markets that opportunities do surface once in awhile with price extremes. If you want to bet on scarcity ruling during the hyperinflationary environment coming then platinum bullion coins may have a place in your investment survival kit.
Platinum is down over 60% from its recent highs and remains oversold in comparison to gold.
Some backs back Mr. Jim Rogers was asked if he would buy platinum when it was trading higher over $2,000 an ounce. His answer was, “I’m not interested in platinum at current levels.” What do you think he would say today at $813?
in reply to: Gold Enters Major Bull Market #3493Gold closed the week out at $822.00.
The following is Jim Sinclairs thoughts tonight concerning the miscreants trying to keep the lid on gold:
I firmly believe the scams in gold, once disclosed, are going to set your hair on fire.
These will take the form of no gold gold certificates, paper gold rather than bullion confirmed as bullion to simply taking your money, sending you a confirmation without anything whatsoever behind it.
Dr. Fekete’s warning of gold scams don’t even scratch the surface of what I assure you will surface.
Just because someone says or writes what you want to believe, don’t for a second assume the author has ethics.
in reply to: Gold Enters Major Bull Market #3489Gold is trading lower at $818.40 down from a high today of $830.
The latest data from the World Gold Council shows that demand for coins, bars, and exchange-traded funds (ETFs) doubled in the third quarter to 382 tonnes compared to a year earlier. This matches the entire set of gold auctions by the Bank of England between 1999 and 2002.
in reply to: Gold Enters Major Bull Market #3491Last on gold, after hitting a low tonight of $804 in Asian markets, is $813.60.
The news tonight is the lower US dollar at 83.26. This is significant as it is trading under the weekly established trading range of 84-89. At the same time it is apparent that the Plunge Protection Team(PPT) and the big banks are working over-time at pressuring gold lower in an attempt to effect the dollar to recover some and rally.
It feels like a big push on gold is coming. Two days ago the cartel had one of their stooges attempt to freighten believers in the metal when he put out the story that the IMF would sell 3,000 tons of gold and in the following weeks gold would trade down to $455.
Someone is running scared with their gold and silver short positions. Putting out that type of information spells desperation.
in reply to: Gold Enters Major Bull Market #3488Last on gold this morning is $829.70.
It appears that all the voodoo magic that the spin doctors have thrown at gold since late July is over for a while.
To learn more on the origin of the spin doctors, or the money mafia, view the link below.
in reply to: Gold Enters Major Bull Market #3490The link in a few entries below does not work. You’ll have to go to youtube.com directly and search: Federal Reserve Scam – How It Happened And What It Means.
in reply to: Gold Enters Major Bull Market #3487Last on gold is $803.20.
Tremendous Liquidity Transmutes Into Unprecedented Inflation
Jim Sinclair December 10, 2008 at 4:42 pm
Dear Friends,
I believe through the $2 trillion of fiscal intervention stimulation, a number I hear from the inside, the 8.5 trillion total so far is going to $20 trillion. Before this is all over the tremendous liquidity will transmute into inflation without precedent.
That is what you heard from Gold today.
The general equity rally in the early 30s was a humdinger so expect that rally to occur in the USA.
The only difference is when the monetary cat is let out of the bag by fiscal spending that Fat Cat will not go back into the bag. Gold will be launched into a multi-year phase of the long term bull market even when the equity rally in this bear equity market completes itself.
That encapsulates all you need to know concerning gold and the US dollar.
Respectfully yours,
Jimin reply to: Technology #3486Interesting reading. Talked with a company about Pulse Induction Metal detectors. They say about 15 feet deep. Un like radar witch needes to work down and is usless other wise. Works with Magnetometer. And is afforadable for mining.
in reply to: Gold Enters Major Bull Market #3485Gold is pushing higher with a last sale of $779.30. Is this the beginning of the next major upleg?
I’ve recently been hearing some disturbing speculation concerning the government’s plan in the future to enact a special tax on gold bullion profits. The numbers I’ve heard range from 70% to 90%. Concerning how people generally feel towards oil company profits when gas prices were high, I strongly feel that the majority, who will miss the expected big run up in gold values, will not oppose this new law directed at the minority who had foresight.
The Homeland Security legislation defines gold bullion as being valued at two times the last gold price and below. Could this be for future confiscation purposes?
It’s interesting to note that since the US Mint stated that they will no longer be making certain types of gold coins again that some of their past bullion coins have now taken on numismatic premiums.
One such series is the Buffalo half, quarter and one tenth ounce coins which were made just for one year. The last time I checked these coins were selling for a premium in excess of two times gold’s price. Many people believe if you are concerned about a coin’s integrity then the best way to safely buy it is in a graded state by a reputable grading service.
If you do have an interest in graded gold coins the perfect grading is MS 70. My favorite grading service is PCGS. I believe PCGS has graded over $11 billion worth of coins in their history. Also, these people grade about 100,000 coins a month.
You can search PCGS on the net and learn more concerning their services along with grading levels.
In the the time period ahead I see growing demand for gold coins in the excess value of two times the metal, gold affiliated companies with limited to no debt along with all types of gold specimens.
If the company can extract its highly valued gold specimens I see it significantly impacting our earnings along with improving our general financial health. Once income starts to flow, our valuable properties will support rich dividends to shareholders that have been more than patient over past waning years.
Alf Field recently projected a possible price on gold of $10,000. Mr. Jim Sinclair did not take issue with his projection. If it becomes reality, you don’t have to be a rocket scientist to grasp that the value of our share price would exceed $10.
The goof-ball that makes a market on the OTC Pink Sheets shows a last sale of 5 cents for our shares. To illustrate how crazy that valuation is just consider this, a reputable source has estimated the value of the Sixteen to One Mine alone at between $10 to $15 million.
If anyone wonders what would justify such a high price they need only to research the Weimar Republic experience. The parallel to the German War Reparations of Weimar in the early 1920’s is the derivatives area today.
There is no avoding the arrival of the hyperinflationary cyclone. All we can do is prepare for it.
in reply to: Ideal Time for Facts #3484Another story about the serious problems of counterfeit coins (see 12/02/08 entry below) was released by the American Numismatic Association in Colorado Springs, Co. Full story found at its web site, http://www.money.org.
Excerpt: “New counterfeit operations have sprung up across the world, particularly in China, where relaxed laws protect these operations from liability. The counterfeiters use clever production methods and cutting-edge die-making technology, creating forgeries that are difficult for most collectors to detect. A wide variety of counterfeit objects are being produced, including U.S. and world coins, paper money, errors, and even slabs. With the assistance of unprincipled dealers and investors, this new material is flooding the market at an astonishing rate, compromising the investments of collectors and the integrity of honest dealers. “
BUYERS BEWARE !11in reply to: Gold Enters Major Bull Market #3483Gold $771.70
Silver $9.97
Gold/XAU Ratio 8.10
Gold/Silver Ratio 77.38
Crude Oil $43.85
US Dollar 85.87The consensus is growing among monetary science experts that gold is nearing an important inflection point in which gold will explode higher.
The following is a retrieved section from an article entitled, “The Crisis Goes Forward As Gold Goes Backward” by Darryl Schoon that appeared on Kitco.com today:
“Professor Fekete recently posted his article, Red Alert: Gold Backwardization!!!, in which he alerted readers that for the first time in history the cash price of gold is higher than the nearest futures price, indicating that buyers value the present physical possession of gold more highly than future possession.
Professor Fekete stated that when gold recently moved into backwardization on December 2nd, a historical line had been crossed, a line which signified whether or not the present system could be saved. Now, according to Professor Fekete, with gold in backwardization, it cannot.
While the war between paper money and gold and silver is still being waged, according to Professor Fekete the outcome is no longer in doubt as the present system is now beyond redemption. This has profound implications for the future price of gold and silver and for gold mining shares.
In the last Great Depression, the shares of Homestake Mining, the world’s largest gold mine, went from $4.19 in 1929 to $495 in 1935, paying a $56 dividend that year. In the coming depression, gold and gold mining shares should do just as well—and, after the onset of the depression, just imagine what they will do during hyperinflation.
THE COMING CAPITULATION OF PAPER
Physical gold and silver, whether in hand or in the ground will be the last refuge for the trillions of dollars still invested in paper assets. With an estimated $27 trillion of wealth already lost this year, the day is coming when the last believers in paper assets will finally look to gold and silver to preserve their dwindling wealth.
But when that day comes, those owning monetary metals will not exchange their gold and silver for paper money at any price, i.e. permanent backwardization; and the last believers in paper assets will be stuck with now worthless government issued coupons which previously had passed for money.
The recent historic backwardization of gold is a clear indication that sometime in the future a state of permanent backwardization will occur—and on that day, the world will finally be free from the tyrannical slavery of central bank induced indebtedness.”
Freedom, oh freedom
Someday we will be free
Freedom, oh freedom
How sweet that day will be————————————–
The day will be returning when the western flank of the Sierra Nevada range will be over-run again with gold seekers as the current recession is looking to be headed toward a depression.
A depression is a severe economic downturn. The last depression lasted 10 years in this country with gross domestic product skiding lower for a good part of that time.
Bernanke believes pumping money into the system will be able to avert the expected cataclysm but will it? Bernanke is playing right into the hands of the bankers who require more and more money to be available for their profit schemes. The best consideration for the public would have been to make gold part of bank reserves. Since this day has passed according to Antal Fakete, it will all be downhill now until the OTC derivatives forest fire burns itself out as it continues decimating everything in its path.
People become much poorer during a depression when they are unable to service debt, they are the first to fall. During the early 1930’s public debt wasn’t anything like it is today.
A time tested method to guarantee your wealth survival in these coming times is to reduce debt or completely eliminate it along with building up your expose to gold. Maintaining your wealth in dollar denominated assets is a long shot to escape the punishing depression ahead that will be accompanied with hyperinflation.
Gold’s future is almost upon us following a delay with the last futile stabbing thrust of the ruthless and evil miscreants who are the tunnel visioned purveyors of our paper and ink tender.
in reply to: Ideal Time for Facts #3482The shareholders of the Sixteen to One along with the company, like others in the country, are being subjected to cash flow problems as income slows down for a myriad of reasons, not to mention the shrinking value of our money as a result of the continuing trials of expanding inflation.
The day is coming when debt, if not eliminated or reduced to manageable levels, will control our destiny. If debt continues then it will only become magnified as our purchasing power shrinks to levels where we may not be able to service it in the future which is coming sooner that most believe.
Its really quite ironic that the banks get so much help. Rothschild of western Europe is worth $500 trillion which is half the world’s wealth and their right hand in the U.S., being represented by the privately owned Fed and J.P. Morgan a large recipient of bailout funds. The Fed and J.P. Morgan should be asking Rothchild for money, not us. Can you imagine one thing that $500 trillion couldn’t buy(government reprsentatives?).
Our debt that people owe the banks was never their money, they were allowed to print it based on consumer deposits and collected interest from us based on someone else’s money. This is the reason that gold is manipulated, so the public is turned off by it thus leaving their savings in the bank for them to profit by.
Rothschild over their long history have made their money off the people like us along by using their influence to hand pick presidents, crashed stock markets(gold and silver shares?), bankrupted nations, orchestrated wars and have impoverished millions.
As shareholders we are owners of gold in the ground as opposed to the Rothschld’s massive gold holdings in their underground vaults. We still have a chip in the big game with some other rich owners of gold but we must eliminate any risk of losing it by kicking out our debt responsibilities before they get out of hand.
I remember Boomtown just across I80 in Nevada has display cases of memorabilia including Silver. Why not ask them or other casino/hotels in Reno if they would be interested in any of our specimens for lobby displays? Why not contact large owners of gold companies in the western U.S. to see if they might have an interest?
If we can’t sell our specimens or statues, the next step may be to saw them down for jewelry. I understand that this market is in short supply.
It appears that the board needs to make some immediate decisions concerning the elimination of our debt exposure.
During this same time period the board should be contacting mining or exploration gold companies to do a private placement with them for the cash we require to go on.
in reply to: Gold Enters Major Bull Market #3481Well, bluejay’s writings last year have certainly reflected the truth that is upon us. Remember, “This is it, are you prepared?”
I’ll admit, I wasn’t. My personal do-over would be to invest in actual gold (not coins).
So, given the way it has played out, I reaaaallly value the input bluejay brings to the forum.
in reply to: Gold Enters Major Bull Market #3480Last on gold is $754.30
“It won’t matter much if you purchase gold at $750, $800, $850, $900 per ounce, or even higher. All of these prices will be looking extraordinarily cheap in a few months. The price of our pretty yellow metal is about to explode, and it is probably going to soar, eventually, to levels that not even most gold bugs imagine. Comex gold shorts will be playing the price a bit longer, in an attempt to shake out some remaining independent leveraged longs. Once that is finished, however, and it will be finished soon, the price will start to rise very quickly.”
The above was written by James Conrad in his concluding paragraph from the article entitled, The Manipulation Of Gold Prices. The complete story can be accessed from the below link that appeared December 04, 2008 at SeekingAlpha.com.
http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices
in reply to: Gold Enters Major Bull Market #3479Last on gold is $754.30.
On December 2, 2008, “gold went to backwardation for the first time ever in history.”
The below provided link to the article, RED ALERT:GOLD BACKWARDATION!!!was written by Antal Fekete.
Professor Fekete’s article ends with his final projection:
If the governments of the great trading nations had really wanted to save the world from a catastrophic collapse of world trade, then they should have opened their mints to gold. Now backwardation has caught up with us and shut down the free flow in the ststem. This will have catastrophic consequences. FEW PEOPLE REALIZE that the shutting down of the gold trade, which is happening, means the shutting down of world trade. This is a financial earthquake measuring ten on the Greenspan scale, with (the) epicenter at the Comex in New York, where the Twin Towers once stood. It is no exaggeration to say that this event will trigger a tsunami wiping out the prosperity of the world.”
Prepare Yourselves.
in reply to: From the Sixteen to One Archives #3478Yesterday, I sent the article (see 12/04/08 entry below) to some business friends and acquaintances. Four sent back comments. Here is my introduction to the Bonham release:
To: Director Scott Robertson
Scott: I’m sorry the collection will no longer be on display at the bank in Nevada City. It is short sighted of the trustees. MMMTwo people recognized the loss to the public from this sale, one suggested getting the Ghidottis to invest the proceeds in a plan to mine more gold from the Sixteen to One (both are deceased and the foundation will put the proceeds into education) and the other well wisher took a different meaning from my mentioning “shortsightedness of trustees”. I want to clear this up now and sent him the following:
Hi Dagwwod,
No,the trustee remark did not feel good nor is it a reason why I included it in the brief introduction I sent about the upcoming auction. The shortsighted remark is my reflection on the loss of history with this sale. It is directed to anyone who is aware of the current Sixteen to One collection on the chopping block with money or contacts with people or organizations that work towards the conservation of history. The Ghidotti collection is historically relevant in a minor way. Our collection is historically relevant in a miner way. The loss to our grandchildren is an awareness of how the great American West came into being. A collection is just that. A collection broken individual pieces is something else. That is the basis for my remark about shortsighted. After the first of the year I will be examining ways to break up our historic collection. It will not be a shortsighted decision because the money is needed for our survival as a gold producer not any other reason.I appreciate your comment and continue looking to the date we set to show the mine to the investors you mentioned. Light a candle or better yet a torch under their bed. MMM
in reply to: From the Sixteen to One Archives #3477I looked at the offerings on lone and must say there are some real treasures to be had. I plan on attending and may bid on several of the specimens. I particularly admire the gold “slickenslide” example. All of you should check out this amazing collection being sold. Go to the link below for details, and then start viewing the individual lots at #1278: http://www.bonhams.com/cgi-bin/public.sh/pubweb/publicSite.rsContinent=USA&screen=catalogue&iSaleNo=16155
in reply to: Gold Enters Major Bull Market #3474Gold $767.40 (last $762.00)
Silver $9.56
Gold/XAU Ratio 8.60
Gold/Silver Tatio 80.25
Crude Oil $43.96
US Dollar Index 86.43Gold is off from the highs of the day at about $783 with a last sale of $768.50. In the past few weeks the gold price has been finding support in the $760 area as well as finding resistance in and about the $782 to $783 zone. This seesawing, hopefully, will resolve itself to the upside.
Most interesting today is the continuing weakness of crude oil. The last on crude currently is just below $44. Gas prices at the pump are at least at three year lows.
Lower crude is obviously benefiting the dollar as well as all net importing countries but for how much longer as it is way over-sold? If a guess were made on when bottom hits, a fair estimate would be the $40 to $42 zone. It is suspected that all oil related products should bottom along with crude.
Gold has done well against a background of lower oil prices recently being aided by a suspected major buyer, China. It seems that the paper derivatives market is playing right into the hands of Chinese interests to significantly increase their official gold reserves thanks to the artificial pressure on it being supplied by JP Morgan and their croud.
The JP Morgan interests are the main reason why crude has dropped so much creating red faces in the oil exporting nations, especially Russia. Morgan seems to control gold, silver, oil and interest rate futures by manipulating the unregulated paper derivative markets representing these products.
How much longer they can continue pushing the horse by an artificially propelled cart is anyone’s guess. Is there any wonder why investment banks and regular banks had their boys like Rubin and Greenspan push so hard against regulating derivatives?
It is absolutely amazing and shameful how paper products can influence the prices of hard assets and overwhelm those markets to scare and steal from unsuspecting investors. For simplicity purposes, it is considered that naked short selling is also a another paper product.
This subject brings back memories of Brooksley Born’s efforts as the then head of the Commodities Futures Trading Commission in 1987 to inforce regulation of derivatives through the power that was given to the Commission by the Commodities Exchange Act of 1974.
It was Ms. Borns contention along with their attorneys that the Act granted the Commission jurisdiction over all instruments with risk management functions. In 1998 Borns went head to head with Alan Greenspan during Congressional hearings on this matter and lost. Or should it be stated, the American people lost as it is now quite evident today?
Today the OTC derivatives market between banks and broker dealers is overseen by the federal banking agencies and the SEC, respectively.
Below is a link to a recent Richard Russell article discussing the value and viability of fiat money.
http://www.321gold.com/editorials/russell/russell120308.html
in reply to: Gold Enters Major Bull Market #3476Last on gold is $769.30.
The following paragraph is from goldmaps.com:
A streak of gold mines and gold prospecting sites extends from near Montgomery, Alabama to Washington D.C. The gold was placed there when Africa overrode North America about 250 million years ago. North Carolina, South Carolina, Georgia, Virginia and Alabama have many gold mines and prospecting sites. These states were our main source of gold for 45 years before the California gold discovery. In 1837, the US Government established gold coin mints in Georgia and North Carolina, rather than transport the raw gold to the Philadelphia Mint.
in reply to: From the Sixteen to One Archives #3475Bonhams & Butterfields is delighted to offer the distinguished William and Marian Ghidotti Foundation Gold Collection in its upcoming Natural History auction on December 7 & 8, 2008 in Los Angeles. Initially accumulated over a 50-year period by owners of the famous “Original Sixteen to One Mine, the collections legacy harkens back to the historic California Gold Rush of the 19th century. Additionally, it represents William Ghidottis legendary philanthropic vision as a Californian.
A renowned collector, William Ghidotti’s name is intimately linked to the history of Nevada County, California, where, among other philanthropic projects, he and his wife Marian Ghidotti devoted themselves to the improvement of education in the region. Mr. Ghidotti’s acquisition of the acclaimed gold collection followed his discovery of an advertisement in the classified section of a San Francisco newspaper in June of 1965. The ad read: “To be sold. 25 beautiful irreplaceable quartz and gold specimens suitable for museum or private display.” A simple announcement, but beneath the modest offer lay the heartbreaking story of the decline in the fortunes of one of California’s most acclaimed gold mines, the “Original Sixteen to One Mine” of Alleghany. The mine was faced with such rapidly increasing operating costs in the mid-20th century that the owners were forced to sacrifice their collection of choice showpiece nuggets.
Interestingly, the gold mining company sold the collection of natural gold specimens for 400% more than if the gold and crystal had been crushed and sold as bullion, illustrating the profitability in collecting gold specimens of historical importance and aesthetic appeal. Offered publicly for the first time since 1965, more than 20-lots of gold specimens, weighing a total of approximately 230 troy ounces, come to auction in Los Angeles.
Top lots within the collection include a specimen weighing more than 36 troy ounces described as magnificent, displaying distinct perfect cubes (est. $125/150,000).
Another lot maintains a mass of large outstanding gold crystals, weighing more than 35-ounces, estimated at $100/125,000. Considered a rare find is a gold slickenside specimen. Slickenslide refers to a specimen displaying a vein of gold growing through quartz, the offered example weighs more than 36-ounces, with multiple veins and blue quartz seen beneath the layers of gold (est. $60/70,000).
This extraordinary private collection not only represents William Ghidotti’s deep and abiding passion for this distinctive precious metal, its sale will now become the means to continue the Ghidotti Foundations funding of college scholarships, reflecting the original collectors philanthropic spirit.
In addition to the William and Marian Ghidotti Foundation Gold Collection, a selection of gold in quartz cabochons and mounted rings from the famed Sixteen to One Mine will also be featured, one examples is a gentleman’s ring adorned with diamonds and gold in quartz, estimated to bring as much as $1,500.
According to Department Co- Director Thomas Lindgren, This is the largest section of gold Bonhams & Butterfields has offered in its Natural History sales since the 1994 auction of specimens from the Sixteen to One Mine. We are pleased to offer such a rare assortment to the public.
in reply to: Ideal Time for Facts #3473Three months ago I reported on the growing awareness that coin collectors were buying fake rare or high dollar gold coins. Many in the numismatic crowd feel secure with the coins in their possession and many felt that way because “professionals” gave them assurances that the coins were genuine. Even after a serious collector purposely purchased a fake coin in China, got it certified by an expert and told his story, collectors did not wish to believe the evidence.
Beth Deisher, editor of Coin World in the 12/15/08 edition, writes, “It’s up to collectors, dealers and grading services to fight the scourge of counterfeit coins from China, not the federal government with its limited resources.” I agree.
When I decided to seek out and add gold to my assets (1974), I studied all the ways to accomplish that desire. Owning an interest in a producing gold mine rose to the top of the list.
Coins are worthy because you can hold them, look at them and know that no matter what they are yours (assuming you take possession). Paying a huge premium above spot goes with the trade. I don’t like that. Now with the full-blown awareness that counterfeit coins are in the market place, I wonder how the coin business will deal with this serious problem. As an aside, the gold mining industry was alerted that counterfeit Krugerrands were in the market place, bought, sold and stored by unsuspecting gold bugs thirty years ago. It hardly made a ripple in their interest. This coin issue may be different.
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