Welcome To The Tanzanian Royalty Exploration HUB On AGORACOM

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Message: Re: No one seems to have an answer to this

You got to look at the big picture and not just one company. This is impacting all gold miners not just TRX and more specifically explorers and eventual royalty companies. To answer the question you have to consider currency issues and bond issues domestically and internationally.

The focus has been on Europe not the US currently. Since the Sept 20th meeting when the Fed began the operation twist program. The emphasis shifted from money printing in the US to a non QE temporary program turning the emphasis from the US directly on to Europe and the banking and currency issues in that country block. This has strengthened the dollar and put undue pressure on the mining sector. Surprisingly the physical market has held up well. If fact try ordering physical from several dealers and you will find increased premiums or lack of available inventory or several week delays in filling your order.

The problem in Europe is also in the US. It is being downplayed but it will come back here shortly. Very little press is focused on Bank of America and the failure to access bank accounts over the past few days using their online banking system or the Morgan Stanley derivative issues not being discussed.

When the dollar tops and the US bonds begin breaking down that is the spark that triggers and ignites the entire precious metals sector. Stay with the companies in the mining sector that have access to cash or reliable lines of credit with experienced management that understands the global issues that can manage in the most difficult of times.

Gold mining companies and specifically royalty companies will become the new banks of the world as precious metals will take center stage in the formation of a newly backed currencies both domestically and internationally.

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