Motivational visit to Royal Canadian Mint in Ottawa
posted on
Dec 13, 2008 05:33AM
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I was on a short business trip to Ottawa this last week, and after checking out of my hotel, I had a few hours to kill. So I dragged my suitcase through the snow and went to the Roal Canadian Mint. I was taking a chance, as there was a transit strike and I may have missed my flight if I did not get a taxi in time after the Mint, but I really wanted to see some of the world's most pure gold.
The Canadian Mint makes "five nines" gold, which is 0.99999 pure, ten times more pure than any other mint. I had a personal tour, one on one. It was a real adventure for me, to see gold and silver ingots, then seeing them pressed into 14 foot long x six inch wide tongue-depresser looking strips, each worth $800,000! Then seeing these heated and rolled into about 30 foot long strips. These then have blanks cout from them, and they are then burnished in something like a huge dryer, with tings insite to bounce against the coins to burnish them. Then they are stamped, both sides at the same time, into Coins of the Realm.
The demand for these coins is very high, said the Mint, but they are prodicing them full-tilt and keeping up with orders. Some banks, says the mint, are not keeping up with their orders, and are giving cusotmers certificants in stead of gold. At the mint, they 1 Oz coins sell for $1148 Canadian, which is more of a premium than banks charge. They reccommend Kitco as a good source that is not short of coins.
They also have these nice 1-oz rectangular investment products, which sell for about $40 less than the coins. I did not buy an coins, because I had a sort of vision that my shares in tyhee represent tongue-dpressors size holdings of gold, and are still selling at a considerable discount.
It made me think about buying shares faster now, on the risign trend, as these shares are still at a deep discount. I believe that they will be worth multiple dollars in the next year or two, so buying them at 18 cents, 20 cents, 35 cents all seems a deep deep discount. In fact, I recall when I bought some at 37 cents in the fall, and felt that I may have gotten the last cheap shares. I was way wrong, and the financial collapse had effects on POG that I had not idea would come. It's such a blessing. Now my mortgage is 3.4%, my credit cards are all paid off, and I've been able to double my holdings of TDC. So I'm thinking of how and when to absolutely max out, "ALL IN" on TDC.
My confidence is high and rising. I am sure that Dave Webb's geological vision behind the YGP and the Tyhee strategy is bang on. He's frugal, proved very fortunat in his timing on financing, and as I have seen on my site visit, has generated a high morale, solid working team at the camp. The massive influx of US printing press cash is on the horizon, and the value of gold in this crisis has been demonstrated. So the POG will soon behave as we gold bugs had always believed it would. Patience and persistance is to be rewarded in this.
So lets get on with this building of a mine! Let's see those drills turning this winter. Sure, many of you want to see cash horded. I don't. I want to see them continue to move forward with exploration and the more inexpensive office work involved in getting EA done, permits, engineering and mine construction plans worked out. By this coming summer, the share price will be strong enough to raise cash, market cap will be passing a hundred million, and a listing on TSX just as a rush to gold juniors really comes into the fore.
Good things happen to good people. We are the good guys!
A final motivational image. Suppose the "average small guy" (ASG) has 80,000 shares of tyhee. That's about 1/2000th of the company. I believe that there are 10 million ounces to be found in the constellation of properties that TDC has already started to convert to reserves/resource. So ASG has 5000 Oz of gold. By the time the mine is working, POG and costs may be 1500 - 500/oz. But let's be a bit conservative and cover over financing and share dilution, so minus another $500! leaves a net of $500/oz x the 5,000 oz that ASG has. So ASG has $2.5 million to be taken out of the ground over the life of the mine (15 years +). That would be three of those 14 foot x 6 inch long tongue depressors. That will result in owning the equivalent of 2,500 of those beautiful Five Nine's Canadian gold coins. Laid out on the floor, it would cover your bedroom floor with gold coins!
But it only cost him, say at an average price of 25 cents (if he averages down to that), it would only have cost him $20,000. Or less than the cost of 20 coins.
SO would you trade 20 gold coins for 2,500? I would. I would do it five times over! You would have to have patience and some degree of trust in Tyhee actually becoming a mine...there actually being more gold under the drilled of resource, and there being a weakening of the US dollare and most other currencies in the next few years....you would have to believe that at some point, people will not want to buy US debt any more. It does not require armageddon, just a small investor shift into gold and the very small pool of high quality gold exploration / development companies. And not being bought out at low prices.
Watch for a purchase of another 35,000 shares on Monday....
SKELEG
SKELEG