For those interested in gold stocks

[Aussie]

i find it pretty hard to swallow all the manipulation/conspiracy theories . . .

Peat, for me and many other gold investors out there, there are no conspiracy theories when it comes to gold. The truth is there for those who care to look with open eyes. GATA has been collecting information for a decade now and their case for the manipulation of the gold market is overwhelming. Have a look at their website.

http://www.gata.org

Manipulation of the gold market (price) is by extension a manipulation of the gold shares and is illegal under US anti-trust laws - except if the manipulator happens to be the US Government itself.

Add to this the incredibly destructive practice of naked shorting, which is only made possible by the collusion of the very government agencies that are charged with the responsibility of market oversight, and blind freddie could tell you that the game is rigged in favor of the banksters.

Have a look at the evidence that GATA has discovered including a recent top secret document from the archives of the St. Louis Federal Reserve that is the virtual blueprint for the modern day scheme that has depressed gold, kept US interest rates artificially low and has become the cornerstone of the Rubin "strong dollar policy".

http://www.gata.org/node/7095

One has to ask the question . . . who stands to lose the most from a rising gold price and why? Now there is a rabbit hole if ever there was one . . .

Cheers

[Aussie]

It's been a while since anyone posted in this thread so I thought I would bump it up with this commentary from Bill H at Le Metropole today. My gold stock portfolio is starting to come along again. Goldcorp is back well into the green and doing well, Yamana not far off.

_____________________________________

Bill H…

It is 1930 all over again, except...

To all; as the title suggests, 1930 is exactly where I believe we are. If you overlay a chart of the Dow from 1929-1937 with a current chart of the Dow, they are almost exact in their timing and rate of decsent. It has been over 100 years [1871] since we have witnessed an earnings decline equal to the current episode. If you go back and look at a chart of Homestake mining you will notice that it bottomed in the 1930-31 time period and then went ballistic for 5 or 6 years. I believe we are looking at a replay of this action.

Back in the 1930's, the Dollar was backed by Gold. People routinely would enter their bank with Dollars and exit with Gold coin, that was changed by FDR and Gold became "illegal" to own after 1933. His "illegal" proclamation did not make Gold worth less however, in fact shortly after the Gold was called in, the Gold price was marked up from $20 per ounce to $35 per ounce. It was for this reason that Homestake exploded upward. Their mining costs declined greatly because of the "deflationary conditions" and the "money" they produced [Gold] became worth more, thus leaving much more left over for profit. The only difference today, is that the Dollar is backed by nothing except a bankrupt government that plans to "fix everything" by borrowing more. What a concept!

The inflationary actions by the Federal Reserve will serve to propel Gold much much higher in Dollar terms simply because the promised future over supply of said Dollars. I believe very strongly that Gold shares will equal and surpass their 2006 and 2008 highs before or during summer proper. The shares should have the help of course from a higher Gold price but the real kicker should be the shorts (both legal and illegal) being run in. I believe that the carnage we witnessed amongst miners was an "operation" to create a false panic and to dislodge as many longs as possible. Remember, every share that was sold in the downdraft had a buyer on the other side. My bet is, the "other side" were the "operators".

If correct about this hypothesis, we will have a mark up in mining shares by the very same entities that created the waterfall. When all else is failing, investors will flock to what is perceived as a safe haven. When banks and financial institutions are failing, when the Treasury bubble is bursting, what better place to have your capital than the very entities that produce money, GOLD and SILVER. This is the way I see it, the "games" that have been played are about over. The world's central banks will (are) no longer playing the patsy and funding U.S. financial lunacy. Central banks will be buyers of metal instead of sellers, quite the recipe for a moonshot that will make the Dot-Com bubble look like child's play. It is now time for our rewards. Have a nice weekend and don't bother picking up the $100 bills being launched from helicopters, they will become worthless.

Regards, Bill H.

[airedale]

G'day Aussie, very pertinent article. You don't have to be a Rhodes Scholar to to realise that the US peso is becoming less valuable with every truck load printed.

[JBmurc]

Anyone that has ever or continues to follow Gold/Silver shares should well look how dire the ASX PM sector is currently ....really blew my mind how hard hit the Share prices have been since 2010-11 .....just a few producers short SP history..Marc Faber stated he believed it to be a good time to buy....well you certainly buying at their lows

TRY -hit a high of $5 2012 today 94.5c

NCM -$40+ 2010-11 today $9.84

KCN -$11 2010 today 74.5c

SBM-$2.80 2010 today 16c

CCU-$1+ 2011 today 0c (admin at 5.8c)

RSG-$2+ 2012 today 56.5c

RMS-$1.60 2011 today 10c

Now to put the above into perspective GOLD-ETF asx =$175 2011 to $129

the same for Bullion I paid average $25-26oz NZD 2009-10 for Silver bullion today much the same with the cheapest I've found $25.80oz

[Joshuatree]

Very int thanks JB ; .some quality lower cost producers in there ,smashed down.I agree re value but have already caught the knife. Im not ready to top up atp will watch for a trend change; keep thinking its bottoming and keep being wrong but there is amazing val in some selected Goldies a few paying divs too!

[Joshuatree]

just saying ... its a moose mashup special. Generallist covering.

A lot of gold producers will be put on care and maintenance at this rate which will bring a few shiners to the div paying foreground.

[JBmurc]

Past highs do not guarantee a return or surpassing of such levels. Remember, there are those that have called gold a bubble (rightfully imho) and the Nasdaq,which hit giddy heights in 2000, has yet to touch them again, even without inflation adjustment! Could be a looooooong time before the economy starts chugging through commodities like it used to. Just when you thought it couldn't go any lower...

Just saying...

Well thats the funny thing when it comes to the PM's you wouldn't say that demand has falling off a cliff anywhere like the traded price

Just look at Jewelry demand over the years ...for 2013 =3863 ton
yet during 2013 with the latest tech the world Producers could only bring out 2770-2800 ton from the ground .....Recycling would have likely filled the gap ....then of course you have Industry demand / Bullion etc ....the Idea that the demand isn't there is just pure fiction



Attachment 5883

[Joshuatree]

Yeah a mashup putting commodities and PM's in the same basket. as i said a wide confused generalised rave up but not pertinent to Gold.

[JBmurc]

Problem is that gold is a commodity! I agree that demand is rising and has been fot awhile (there's no use debating cold hard stats!), but what most miss is the fact that the price is artifically controlled by institutions which should have nothing to do with the commodity. As we have learnt over the past few years, their interests trump any price relative to classic supplu/demand. The sooner we learn this, accept it (and I'm not condoning it at all!) and learn to profit from it the better we will be. Like falling in love with a stripper; it feels great, but you know it ain't real and yet you chuck more money at it pretending it is!

Got to love the free market eh?

Yeah I have to agree ...But............With so many major changes in the PM landscape ...we may well see the once master of control loose some control ...just like GFC ...some points to think on...


-The end of the London silver fix AUG14,,,,,After the London silver fix shuts down, investors can expect “volatility, volatility and more volatility,” said Andrew Chanin, chief executive officer of PureFunds, which offers the PureFunds ISE Junior Silver ETF

-Shanghai Gold Exchange (SGE) will launch an international board in the Shanghai Free Trade Zone (FTZ) for investors worldwide to trade gold spot contracts denominated in renminbi.

-The unprofitable of the majority of the major PM producers + the ongoing lowering of the average grades mined...(somethings got to give here we need a MAJOR to hit the wall before the General media WAKE up to this farce of a so called free market pricing)

-Demand is and continues to be Strong.... “In week 21 (May 19 – 23) Chinese wholesale gold demand, measured by SGE withdrawals, was 36.4 metric tonnes, up 22.98 % from the week before. This is the highest weekly demand since week 9 (February 24 -28).”

-Many of the Bullion Banks are looking to exit from their commodity desks ..

-Oil hitting higher highs ...PM going the opposite way unlike recent history...?

-T/A wise the PM heading towards a major Triple Bottom ??

-India’s central bank, the Reserve Bank of India (RBI), eased tough gold import rules recently