Thursday, March 28, 2013

Exeter Resources

I'd like to bring your attention to a company I like...it's a gold/copper play...with some silver.


Friday, March 22, 2013

Unfounded Fears or Valid Pessimism

I recently receive correspondence from a friend who is close to capitulation. In markets like these it's easy to understand. But is it acceptable?

Capitulating and selling your positions makes sense if you are operating from a rational, non-emotional state. Easier said than done, I'll grant you that.

Below is his email to me and my response. Maybe you're feeling what he's feeling?

Message to me:


With all due respect, all that seems to keep happening is that I lose money on my mining stocks...   currently down 15k + (or - rather) And its been years! A financial adviser would say Drop The Losers... I'm not sure if its hope or laziness but I continue to hang in....

My response:



Well then both you and I are bailing water out of the same sinking ship but I see a port off on the horizon! Actually as of yesterday a few of my stocks have moved into the green. Not by much but it’s encouraging.

If you’ve been losing money for years you may just be picking bad stocks or your timing is off. Remember I’m not a financial advisor but there aren’t too many out there available to the public that are worth their weight in salt. Just yesterday an advisor told Carrie that the Dow is on an amazing run due to the strength in the economy. Well, I have two charts for you…. You tell me how it’s going to go for the Dow.


Do you see that big spike right before 1980? That’s gold correcting. Everyone thought the bull market in gold was over. I think we’re seeing that process fill out presently. The leverage in the system MUST be wrung out and there’s only two ways to do that. Cancel the debt or inflate currencies to pay for them. The Fed has already told us in clear terms they have chosen the inflation route. Gold must rise but in the short term, so will the Dow. Why? The Fed has told us they are in the market buying stock. They’re doing it to create the “wealth effect”.  They want people to “feel” wealthy so they will spend their money.

Does that sound like a healthy situation to you?

Now you say you’ve been losing for years. I’ve been watching my stocks creep down since 11/2011. That’s when I started moving heavily into the miners. I’m down over 10K. Some of the financial advisors that I read are down more than I am percentage wise. It’s discouraging but I’m sure of a turn around. Think about it, are all the miners going to go bankrupt and the whole sector wither away? That’s a mind succumbing to fear. My problem has always been timing.

Let’s look at another chart….


Do you see that waterfall decline from the 2008 crash? Well that’s when I sold all my stocks last time around due to fear. I then missed a several hundred percent gain in some of the positions I had sold out on. A huge mistake and it was all due to bad timing and fear.

Now I’m not saying there aren’t challenges in the mining sector but  the powers that be are also creating an illusory world for us to be deceived in. They want us to believe that money printing is good and healthy and that gold will not protect you because we’re on the path to recovery.  Do you believe those things?

Personally, I am not selling out. I will address my fears and embrace reality. I am prepared to wait a full two more years for a recovery in the miners. Do I think it will take that long? No. I think we’re at the bottom or very close. Keep in mind though, “close”, can mean months. These processes take time to play out. All we need is for time to pass.

Listen to this interview by Rick Rule. Pay particular attention to his mind set…. And I encourage you to seek out other videos with him. He has helped me tremendously.



 



I hope that info helps you.

Thursday, March 21, 2013

Bullion Banks Playing Their Book

How does a bullion bank play their book and make $ on the COMEX and LBMA?

Easy, lie to people.

Societe Generale Sees Gold Under $1,400 Gold By Year-End, Copper Underperforming Base Metals

 Compared to:

SOCIETE GENERALE SEES GOLD AT $2175 IN 2012

 

   

Monday, March 18, 2013

We Are Definitely Screwed

House Speaker John Boehner says he “absolutely” trusts President Barack Obama — not that they don’t have their differences.

Boehner tells ABC’s “This Week” that the two have a good relationship and that they’re “open with each other … honest with each other.” But the Ohio lawmaker says they’re trying to bridge some big differences.

One issue they agree on: The U.S. doesn’t have an immediate crisis in terms of debt. Link

Like I said, SKREWD! 

Sunday, March 17, 2013

Cyprus

I have one thing to say regarding Cyprus and the power elite:

You are on watch.

My friends, this is the final walk. Determine now your character, it will resonate with you until the end of time.

Be you brave or a coward in your one life to live? How will you live it?

Thoughts on Recent Events


The US is in full collapse.

You wouldn't know this though with the Dow reaching new highs day after day. Forget Friday, the down day was most likely allowed due to shame.

It should be clear by now that the Fed has chosen inflation rather than deflation. Being that debt is "money", deflation means money destruction and money destruction to a banker is like holy water to a vampire. The Fed is clearly trying to reflate all the assets that are leveraged. There is no other way to support all the money and debt that's in the world and the money is needed to service the debt.

The Fed can print money to buy bonds but the world doesn't have to accept them nor will they in perpetuity. Keep holding  bonds at your own risk.

With that in mind, let's discuss some recent events out of China. It appears they have changed their tune. Just recently we have the following statements out of China:

Jin Zhongxia recently stated, "The dollar’s global dominance will continue." And that "the world was moving to a “1+4” system, with the greenback serving as the anchor of global payments, supplemented by “four smaller reserve currencies” – the euro, sterling, yen and yuan." Link

Commodityonline.com reports that, "A deputy governor with Chinese central bank, Yi Gang has said that China is likely to cap its gold holdings at 2 percent of its total foreign exchange reserves. Back in 2009, China had gold reserves to the tune of 1054 tons amounting to 1.8% of its forex reserves." 

Well this is a peculiar stance is it not? Let's look back at China's position over the years.

  • Nov, 19, 2008: Dow Jones reports that China is considering a target of four thousand metric tons for its official gold reserves to diversify against the risks of holding US dollars. Rickards, Currency Wars, 2011.
  • February 14, 2009: Mr. Luo, a senior Chinese banking regulator stated, “We hate you guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] . . .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.”
  • March 30, 2009: Agence France Presse reports that Russia and China are cooperating on the creation of a new global currency. Rickards, Currency Wars, 2011.
  • April 26, 2009: Agence France Presse reports that China is calling for the reform of the world monetary system and replacement of the US dollar as the leading reserve currency. Rickards, Currency Wars, 2011.
  • June 16, 2009: Reuters reports that Brazil, Russia, India and China...call for a more "diversified, stable and predictable currency system." Rickards, Currency Wars, 2011.
So since 2009, we are to believe that China is STILL in the process of adding only .2% of their forex reserves in gold? This doesn't pass the smell test. Consider this: Gold now accounts for about 9.2% of Russia’s total reserves and 16% of Kazakhstan’s, according to the World Gold Council. That compares with more than 70% for the U.S. and Germany, the biggest bullion holders and less than 2% for China. Link

Are we to believe this? Just like that China folds and throws their cards on the table. They just simply walk away in defeat and take the back seat on the bus?

A passage from, The Art of War, comes to mind, "And as water shapes its flow in accordance with the ground, so an army manages its victory in accordance with the situation of the enemy. And as water has no constant form, there are in war no constant conditions. Thus, one able to gain the victory by modifying his tactics in accordance with the enemy situation may be said to be divine." Samuel B. Griffith, 1963.

I'm inclined to believe that this is a ruse. It is a sleight of hand due to a few factors:

  • Temporary dollar strength due to the perceived success of the US "Shale Revolution" which is doomed to fail. I urge you to read, The Fracked-up USA Shale Gas Bubble where William Engdahl states, "In reality it is becoming increasingly clear that the shale revolution is a short-term flash in the energy pan, a new Ponzi fraud.."
  • China wishes to suppress the price of gold so they and other members of the SCO are able to acquire more. Gold Econ 101.
  •  A coming monetary conference in China in September where a new global reserve currency will be discussed.
 What I believe is happening here is that China is realizing that their rhetoric over the past few years, born out of anger and frustration, has not been helpful in managing expectations of what the future of money will look like. You would have thought they are seeking a primary role in being a reserve currency for the world given their diatribe over the years but that's not so easy after all.

China is riddled with corruption at the local level, they are many years away from having the depth of markets you find in the City and in New York, their is fear of fraud in their markets and they still have not allowed their currency to float freely on the forex exchanges. These issues are being addressed but it takes time to resolve these matters.

So what is this monetary conference in September all about that no one is speaking off? Let's look at the website and see. Here's a statement from the intro that gives us an idea:


Global Sustainable Currency Summit, as a satellite meeting of Euro-Asia Economic forum, will be held in Xi’an from 26-28 September, 2013. This conference aims to show solutions how to overcome losses because of currency speculations and currency wars, economic crises due to budgetary shortcomings and currency problems. And develop a harmonized currency system without injustices to developing countries allowing a level-playing trade field for all.
Interesting they mention currency wars, of which there are none according to the latest G20 Summit.

Let's look at some of the agenda items that are listed in this pdf that can be found online. No conspiracies folks, it's all right there for us to see if we just take the time.

Objectives:
  • Analyse the failures of actual and past currency systems
  • Discuss and resolve the international currency crisis/currency wars
  • Define a global solution with the possible global currency such as the "G"
  • Implementation procedure with all governments and stake holders
Now what in the world is the "G"? Are they referring to the Special Drawing Right? And will it include gold?

Take a look at the symbol from the website's front page. 


What do you make of that? Is that "G" for gold or "G" for global currency. And the chain? A golden link perhaps that binds all currencies together? "One ring to bind them all....."

Now let's look at some of the agenda items:


  • Analysis of the failures of national currencies used as world currencies
  • The problem of gold reserves vs. zero reserve currency risks
  • Transition from national and regional currencies to a world currency
  • Scenarios with the staged introduction of the global currency "G"
  • Implementation, mechanisms, legislation and interest policy
  • The election of a (UN) global currency control board
  • Administering the world currency system, implementation time schedule  
Wouldn't you just love to be there?

Now after considering all these things it is clear to me that China is still in the gold game but wants to encourage other countries to accumulate gold and participate in the new "G" global reserve currency (sorry, no Amero folks).

Why do I think that? Agenda item: The problem of gold reserves vs. zero reserve currency risks. Basically, if you have zero gold reserves, you have a problem.

What are your personal reserves looking like? Will you be a tourist on a boat witnessing the largesse and eerie songs of the whales maneuvering the seas of the "G"lobe?