Paper vs Physical Gold
posted on
Jul 28, 2013 09:09AM
When the great experiment in fiat money comes to an end, a rush to tangible assets will occur. We have all been told how paper assets can and are managed for fun and profit. Futures and derivatives are here to stay until they fail.
Only then will we see who has the real stuff...............
The recent setback for most explorers, juniors and producers of metals has curtailed plans. Who would have thought that we would have seen the $1100's again? Not I but some did. As they say, the best cure for low prices is low prices...............
I still believe that a mine will be developed, we will reach a billion shares and the share price will not rise substantiallly until the first pour. Of course share consolidation will change share count and share price. Environmental and permitting is going through it's paces and will take longer than expected. The Missionary work is almost over................
As a Director of a public company, I can well appreciate the complexity of permitting a new venture. Financing expansion is quite a challenge. We do need the POG to rise above $1600 fairly soon for economic viability. Lenders are very cautious and will extract all they can from a beaten down entity that still has promise................
Small financings at these low valuations will carry us through to the big one. Just expect the dilution. The payoff will just take longer................
I am amazed at the resiliency of US based persons to the new reality of a lowered standard of living. It happened to the Brits when their empire was lost. It will happen to the next world power. Life goes on. As the US Government becomes more complex it is assuring it's own demise. Complex systems are doomed to fail as they consume themselves. Feeding the beast will take more and more as time goes by. I wish only the best for my friends in VT and WA.