I'm not stating that the following will occur but it is not outside the realm of possibility.

China and Russia have huge amounts of gold. The Shanghai Gold Exchange is now on line. Suppose China prices gold at $1400 on the SGE. This creates an arbitrage opportunity. Buy from the Comex at $1250 and sell to SGE for a $150 profit per ounce.

How long will the scant supplies of gold on the Comex and London metals exchange last?

Soon these western centric exchanges are going to be drained and Chinese exchange will be the price setting mechanism. Since the Chinese (and Russians) hold so much in terms of ounces and since they understand that gold is ridiculously underpriced the price of the reset will be much higher than most would expect.

Rather than valuing Tyhee based on gold @ $1400 per ounce, consider what Tyhee would be worth with gold at $2000 or $2500 per ounce. We could see numbers like this within this year.

A few years ago, Jim Sinclair estimated the reset value of gold (based on the same thinking he used in the 1970's) and came up with $12,000 per ounce. More recently the same calculation produces a gold price of $50,000 per ounce. Both China and Russia would appreciate such a more realistic valuation and may insist on it as they have extensive holdings of the metal. They hold far more than the numbers they release.

NOW what is Tyhee worth if it can hang in there? Of course production costs will rise in the face of such prices but the differential will yield a very much higher valuation. At $12,000 per ounce Tyhee would probably be valued in dollars not pennies.

At $50,000 in might well be valued in tens of dollars.

P.