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The only thing I can add to your post is we can throw out the $1000 gold figure. EVERY indication is that we will be $1500 plus next year. With the amount of tonnage that SFMI has to process we are in the perfect position to reap the reward of higher PM prices. Jim Sinclair says we are in the process RIGHT NOW of repeating the 1980 massive move in the pm's and the pm shares.
Here's an example of what happened..........
Let me give all you fellow gold and silver investors and people reading this essay who are thinking about buying some gold and silver shares a few of the many examples of the kind of gains that were made in the last gold and silver bull market a generation ago(before cell phones, the internet, and p4 computers) so you can have an example of the kind of gains we may see in the new gold and silver bull in the 21st century.
Lion Mines – 1975 price $.07 / 1980 price $380 YES that’s right it’s not a misprint you could of bought 1000 shares of lion mines in 1975 for around $50 dollars at 7 cents per share and held on for 5 years riding the wild gold and silver bull until 1980 where you then sold those same shares for $380 each for a total profit of around $380,000. Not bad hey!!!!! This is only one of many more examples.
Bankeno
1975 price $1.25 / 1980 price $430
Wharf Resources
1975 price $.40 / 1980 price $560
Steep Rock
1975 price $.93 / 1980 price $440
Mineral Resources
1975 price $.60 / 1980 price $415
Azure Resources
1975 price $.05 / 1980 price $109
These are only a handful of gold and silver stocks that participated in what I consider one of the biggest financial opportunities in the history of human civilization. I don’t know of any other time except maybe the .com bubble where in only a 5 year time span you could have tuned so little into so much wealth.
Imagine buying in 1975 a handful of gold and silver stocks for under a dollar and selling them in 5 years for $100, $200,or even $500 per share as gold fever ripped through Wall Street.
This is a great example of the kind of investing philosophy that Dr. Marc Faber talks about where to be a great investor you only need to make a few good investment decisions in your whole life to be successful.
This one decision in 1975 to buy just a handful of gold and silver stocks and sell them near the all time high’s of hundreds of dollars per share could have set you up financially for the rest of you life!!!!.
I
Nice to see you back DC. I'm confident we will have plenty to talk about here very shortly. With a lot of the big players travelling, I'm curious if volumes will decrease or not. Those fully invested now are about to have gains that can/will be life changing!
While we wait, here's JS's latest............
International Demand For Gold Evident
Posted: Sep 16 2010 By: Jim Sinclair Post Edited: September 16, 2010 at 1:50 am
Filed under: General Editorial
Dear CIGAs,
I just arrived in Dubai and am expecting to attend a meeting later today only one inviting hour from Oman.
It is 7am and already the gold store here is three deep with clients. The demand for gold is international with a superior understanding of its status as the currency of last resort.
The ability of the paper gold exchanges to be the playground of gold banks is now quite limited in time. Gold’s break to a new high, regardless of the machinations of the manipulators, indicates that ballistic move to $1650 is now within easy reach, as was $887.50, the true high for gold in 1980.
Those persistent little buggers short of gold shares are about to have the spiritual payback experience for what they gave us.
It is time when fabrication, manipulation, and pretend and extend no longer control markets and influence economics. Confidence in an all powerful Federal Reserve is about to implode.
I sent you a message to strap yourself in as this repeat of 1979 is about to take gold to $1650 and beyond.
Respectfully,
Jim in Dubai
By end of next week!
Strong uptrend is undeniable...............
SILVER FALCON MINING (NASDAQ:SFMI)
Strong Uptrend
Smart Scan Chart Analysis confirms that a strong uptrend is in place and that the market remains positive longer term. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.
Based on a pre-defined weighted trend formula for chart analysis, SFMI scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend):
+10 Last Hour Close Above 5 Hour Moving Average
+15 New 3 Day High on Tuesday
+20 Last Price Above 20 Day Moving Average
+25 New 3 Week High, Week Ending September 11th
+30 New 3 Month High in May
+100 Total Score
Open High Low SFMI Price Change
0.234 0.239 0.214 0.238 +0.004
For those that don't understand the potenial of what we could be seeing in share prices over the next few years............
There were a few articles about gold from 1972 to1975 but the real big stories didn’t really get published until around1978-79 and especially in January of 1980 the final blow off top in both gold and silver. What I really wanted to uncover from the old financial papers were old stock tables so I could see how high most gold and silver stocks got to in January of 1980 and from what level a few years earlier.
What I found was absolutely shocking. In 1975 most or all of the gold and silver stocks were trading under $2 most were penny stocks under
.50.
Even with gold up 400% from the 1972 low of $60 to the 1975 top of $200 most gold and silver shares did little to make anyone notice especially the mass public who had no idea what was going on. It was not until gold bottomed out in late 1976 at $100 and into1977 that gold and silver stocks started there historic bull market that would end where some of the prices for gold and silver stocks were unthinkable only a few years earlier. I printed out stock tables from1975 up until the January 80 top and was totally stunned at what I found.
Let me give all you fellow gold and silver investors and people reading this essay who are thinking about buying some gold and silver shares a few of the many examples of the kind of gains that were made in the last gold and silver bull market a generation ago(before cell phones, the internet, and p4 computers) so you can have an example of the kind of gains we may see in the new gold and silver bull in the 21st century.
Lion Mines – 1975 price $.07 / 1980 price $380 YES that’s right it’s not a misprint you could of bought 1000 shares of lion mines in 1975 for around $50 dollars at 7 cents per share and held on for 5 years riding the wild gold and silver bull until 1980 where you then sold those same shares for $380 each for a total profit of around $380,000. Not bad hey!!!!! This is only one of many more examples.
Bankeno
1975 price $1.25 / 1980 price $430
Wharf Resources
1975 price $.40 / 1980 price $560
Steep Rock
1975 price $.93 / 1980 price $440
Mineral Resources
1975 price $.60 / 1980 price $415
Azure Resources
1975 price $.05 / 1980 price $109
These are only a handful of gold and silver stocks that participated in what I consider one of the biggest financial opportunities in the history of human civilization. I don’t know of any other time except maybe the .com bubble where in only a 5 year time span you could have tuned so little into so much wealth.
Imagine buying in 1975 a handful of gold and silver stocks for under a dollar and selling them in 5 years for $100, $200,or even $500 per share as gold fever ripped through Wall Street.
This is a great example of the kind of investing philosophy that Dr. Marc Faber talks about where to be a great investor you only need to make a few good investment decisions in your whole life to be successful.
This one decision in 1975 to buy just a handful of gold and silver stocks and sell them near the all time high’s of hundreds of dollars per share could have set you up financially for the rest of you life!!!!.
From what I'm hearing, there will be no cell phones [for pictures] or cameras allowed inside the mill or at the mine site. [security reasons]. best check with RK
" Has there been a shm before? "
Rabidgod, there was a SHM on site in late Sept.08. There was about 30 of us there. We got a full tour of the mtn and viewed a fair bit of the massive tailings piles. Also we were shown the Sinker tunnel and then back to the only restaurant in the country for burgers, beer, and a Q&A session moderated by RK.
No I didn't forget GHDC and you may well be correct that we will have some news to go on before then, but I'm still feeling there will be additional positive info released at the SFMI SHM.
Yes 11 more sleeps and 9 trading days before the sh meeting.
So the big question is, what if anything will be released before the meeting. IR has said the timing for the meeting was picked for a reason. I'm thinking that the mill tour starts at 1:00 PM and the meeting at 2:00 [right when the market closes] So maybe there will be news released at the SHM that will be also released on the news wires, so everyone has a chance to view it before the new trading week begins. The tape seems to be telling the story very well. Hmmmm....
Also DickFL this story is a growth story as seen by the last years accomplishments. If the company continues to move forward efficiently as they have demonstrated, the market will substantially reward the long term patient shareholders.
Hey BC, your dreamin' if you think we will see core samples. Lets not get worked up, only to be disappointed. They are currently installing the vent system for the Sinker which needs to be in place prior to drilling. Now some numbers on the tailings sampling is a different story. Stay tuned...
SILVER FALCON MINING (NASDAQ:SFMI)
Strong Uptrend
Smart Scan Chart Analysis confirms that a strong uptrend is in place and that the market remains positive longer term. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.
Based on a pre-defined weighted trend formula for chart analysis, SFMI scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend):
+10 Last Hour Close Above 5 Hour Moving Average
+15 New 3 Day High on Friday
+20 Last Price Above 20 Day Moving Average
+25 New 3 Week High, Week Ending September 4th
+30 New 3 Month High in May
+100
Wow interesting day in the gold trade today and the cartel is getting creamed. Normal action over the last few years would see the gold price lose 5-10% before option expiry [this week]. Today the boys knocked her down to $1209 and now it's come back +$26 and still rising [$1234]. Times are a changin'
Nice to see SFMI is progressing on all fronts at the mill. We should see some interesting numbers before the big meeting.
See you there!
Some of the big boys will be at the meeting. One fund took a block of 10 rooms at the Marriot.
For those that think there has been no institutional involvement here might just want to reconsider. Do you really think the 60 mil in shares that moved this in April/May was all from retail.
Those that will be attending the SH meeting will be able to meet the NY/TO deep pockets and hedge fund boys, as they will all be attending. See you there!
Yes RK knows the business well and does a great job and not an easy job either. He's moderating the SH meeting and you will always learn something at these meetings. On the last tour in 2008 it was really impressive seeing the size of the tailings piles on the mtn. It's quite the country, see you there.
They started the rehab on the Sinker Tunnel earlier this summer. They had mine safety come and do an inspection so they could comply with regs. There's not a whole bunch that needs doing, a vent system being the main item, which has been ordered and may even be in place for the sh meeting/tour. They are in the process now of identifying targets for the drilling to start once a safety inspection is done. As the Sinker has year round access, I would imagine the drill program will continue thru the winter.
With gold likely to be $1500 plus next year along with new silver highs, those in position now will do very well. IMHO of course
This should do it.........
Diamond Creek Mill Facility
14877 Silver City Road
Murphy, Idaho 83650
Very interesting premarket for SFMI. Hmmm...
Yada yada yada, blah blah blah, same crap you were spewing last year at .02 and telling us to run for the hills as the sky was falling in over here. I feel sorry for those who believed you and lost out. nuf said!
If the news your waiting for is a great 10Q, IMHO you will be very disappointed. Not bashing, but being very realistic. Others have stated that already, but there still seems to be a few here who expect otherwise.
The commissioning of a new mill is a process, which has likely taken a few months to get optimal recoveries. They will be reprocessing even the low grade material to verify the recovery rates. Also the concentrate gets run thru numerous times.
How much was sold and how much was stockpiled will also make a huge difference.
I do think that most realize this and that the sp will be some what supported.
Next few quaters should be a totally different story and I expect the sp to reflect that.
Volume will be tough to find on a mid summer Friday afternoon. Some of the others I follow have barely had any trades. Somebody's accumulating/covering. Hmm.......
Absolutely confirms my belief how clueless some are as to what has taken place in the junior market since 2006. The number of juniors that have had their share price trashed and sat on due to heavy hand of shorts [naked or not] in both US and Can. markets is massive. For those that have not read and seen this happening have had their heads buried somewhere.
In regards to the piles of inaccurate info some are posting here and in consideration of the claim that GHDC owns the Sinker, try this news release..........
On October 9th, 2008, Silver Falcon Mining, Inc. completed acquisition of the assets of Mineral Exploration Company of Idaho (MINEX). Amongst the assets were the Sinker Tunnel complex on War Eagle Mountain, giving SFMI year round access to the Oro Fino and the Poorman precious metal veins on the mountain and enabling us to drill into our various shafts and adits impervious to the weather vagaries on the mountain.
Also the statement about $640 gold payback is more totally inaccurate info!
"Would you think that GHDC is expecting their stock to have a decent barter value in the near future??? And if so, wouldn't that also mean that they expect SFMI to be successful? "
You're totally correct on this.
My point was that the increase in GHDC shares, as explained to me by the company, was for any new acquisition needs.
It's true some of the tailings piles that SFMI will be processing are solely owned by SFMI and GHDC will not gets its 15%, which would make our bottom line more attractive.
The SOLE reason GHDC wants to increase its share structure has nothing to do with SFMI. They are considering other acquisitions and if they find a deal they want the share structure in place if they need to do a share/cash agreement.
Keeping it real here is important, as some here are setting themselves [and followers] up for disappointment concerning the upcoming 10Q. There was basically 60 days of operation for the quarter. This was the commissioning of the mill stage where it did not run continuously. There were down days for MSHA certification along with a daily fine tuning process. This is normal procedure as it generally takes 3-6 months to get things tweaked for max. recoveries.
Also a very important point to consider is how much concentrate was actually shipped. Generally when using a refinery the more concentrate you take in the cheaper it is to process. I'm thinking that SFMI would like to maximize their return and wait until the economics made sense. That being said if they were holding a quantity of concentrate, would that show on the books some where. It couldn't go under accounts receivable as it wasn't sold yet. Unlikely to be in inventory as it would be hard to assign a value. Maybe some one here knows if the accountants have a spot for that in the 10Q.
Right now they are capable of doing the 140 t/day. If the grinding of heavier material is required this number won't be reached daily. They have stated production will be increased thru the installation of some additionally equipment, but I'm thinking we are still a few months away from that.
I do expect we will have updates well before the SH meeting, including some numbers on the mill and also news on the work being done on the Sinker Tunnel.
This company is moving moving forward just fine and remember nothing moves quickly in the mining industry.
I think a few people don't understand both the importance and depth of today's news. As indicated by the company's profile below, Davenport is a large company that will help move SFMI's sp forward thru their large network of brokers and associates.
Taking on a position on the board of directors is no small commitment and you can be assured that there was alot of due diligence done on his behalf thru their own research dept.
In a brief chat with the largest shareholder of SFMI this morning, he was very pleased to see that PQ had managed to accomplish this. It demonstrates that this story has more credibility than most understand and is moving forward very quickly. I expect we will see more news in this area, along with other supportive news.
"Davenport & Company LLC is 100% owned by its employees and is the largest independent investment firm headquartered in Virginia. Davenport is a full-service firm offering a complete range of investment services, including comprehensive stock and bond brokerage, investment management, research, financial planning, insurance, public finance, and corporate finance services.
Davenport & Company LLC is a New York Stock Exchange member firm, a member of FINRA, and a Registered Investment Advisor under the Investment Advisers Act of 1940. Davenport, headquartered in Richmond, has branch offices in Virginia and North Carolina. Davenport has nearly 450 associates, including more than 193 Investment Executives, and oversees billions in assets for clients."
BTW.... that would be BILLIONS
glta
The difference with CRK is that they have production costs of around $700 I believe, compared to our very low costs for processing these tailings. Also they are in Australia where they added a new mining tax of 30%, however I'm hearing it may not be for gold producers. The sp was as high as $2.40 before this new tax scare.
So many underestimate the potenial explosition in the juniors, just think where SFMI will be at with $2,3,4, or $5000 gold or better! When we see these prices over the next few years we will have proven the value on War Eagle thru a drill program and gearing up for major mtn. production. Also the 10 year supply of tailings will be WORTH THEIR WEIGHT IN GOLD!
Why Many Analysts See Gold
Going As High As $10,000
by W. Lorimer Wilson, FinancialArticleSummariesToday.com | June 23, 2010
Print
My first reaction when I read an article on this site by Arnold Bock - articulating why gold would go to $10,000 – by 2012 no less - was amazement. Who in their right mind would suggest that gold would eventually reach $2,500, let alone $5,000 or even $10,000? Well, I did some investigation and, believe it or not, Bock is in lofty company. Many respected individuals, such as David Rosenberg, Peter Schiff, Harry Schultz, Rob McEwen and many others, have come to the same conclusion. Below is a partial list of such individuals with sound reasons to substantiate their views.
01. Peter Schiff:
As President & Chief Global Strategist of Euro Pacific Capital, Schiff correctly called the current bear market before it began. As a result of his accurate forecasts on the U.S. stock market, economy, real estate, the mortgage meltdown, credit crunch, subprime debacle, commodities, gold and the dollar, he is becoming increasingly more renowned.
He recently was reported in Business Week as saying that "People are afraid of the debasement of all the currencies. What's surprising is that gold is still as low as it is ... Gold could reach $5,000 to $10,000 per ounce in the next 5 to 10 years.”
Source: http://www.thecapitalgoldgroup.com/2010/06/where-is-gold-headed-from-here.html
02. David Rosenberg:
Rosenberg, the former Merrill Lynch North American Economist and current Chief Economist and Strategist for Gluskin Sheff, an independent investment firm for high net worth individuals, believes that "$3000 an ounce on gold may yet prove to be a conservative forecast." He went on to say:
- "if the gold price to world GDP ratio were to ever scale up to the peak three decades ago, it would imply an ultimate peak for gold of $5,300 an ounce.
- if the relationship between gold and the M3 money measure where to revert to the 1990 high, then gold would move to $5,700 an ounce.
- if gold were merely put on the same footing as the CPI, and head back to the previous peaks in this ratio, it would suggest $2,300 as the peak in gold — only a double from here.
- if the gold price-M1 ratio was used then gold would go to $3,100 per ounce under the proviso that prior highs get re-established."
Source http://www.thecapitalgoldgroup.com/2010/06/gold-is-increasingly-being-vie.html
03. Alf Field:
Alf Field has been called the “world’s best gold analyst.” He is well known for his many spot-on predictions in the precious metals market and these are some of his determinations regarding the future price of gold;
a) "In the 1970's bull market, gold increased from a low of $35 to a peak of $850, a massive 24.3 times the low price. If the current bull market was to be of the same order, then one could project an ultimate peak of $6,221 (gold’s low price in the current cycle of $256 x 24.3).
b) Field outlined in an article back in August 2003 his conviction, which he referred to again in his concluding November 2008 article on the subject of Elliott Wave and the gold price, "that the world, and especially the USA, was heading for a major financial crisis that would be so powerful that it would overwhelm all other factors [which] I referred to as the 'Big Kahuna' crisis. I anticipated that the Big Kahuna would give rise to the risk of a systemic meltdown, which would result in the authorities 'throwing money at problems', bailing out all the banks and large corporations that got into trouble. This would lead to the [eventual] destruction of the currency...The consequence of the systemic meltdown would be a vast increase in newly created money which would result in a massive rise in the price of gold" culminating in a "Major FIVE...to $10,000" [which] "can really only be possible in a runaway inflationary environment, something which many thinking people are suggesting has become a possibility as a result of the actions taken during the recent crisis." [Indeed,] "the odds strongly favour an inflationary outcome. Given a strong will and the ability to create any amount of new money via the electronic money machine, it seems a foregone conclusion that runaway inflation will be the end result. If Mugabe could do it in Zimbabwe, there seems little doubt that Ben Bernanke and his associates in other countries will have no trouble in doing it too."
Source: http://www.gold-speculator.com/alf-field/7413-elliot-wave-gold-update-23-a.html
04. Forextraders.com:
a) "As gold keeps breaking new records...the fundamental factors behind the trend remain clear:
- increased worries about the solidness of U.S. public finances
- the lack of any serious government plan to resolve long standing issues related to the future of the social security system
- eroding credibility of the U.S. motto about a strong dollar
- the general weakness in the fundamentals of the global economy"
[all of which make the] purchasing of gold...a store of value that thrives when uncertainty, insecurity, and fear rule the global economy. And when we recall the never ending speculations about the U.S. dollar's demise, it is only natural that the metal will find attention regardless of the price tag, until a bubble develops [but] we are apparently very far from that turning point. Gold has some powerful dynamics behind its rise, and it doesn't seem outlandish to imagine a target of $3000 - $4000 in the next 5 years, if, as anticipated, economic activity goes for a second dip once the impact of government stimulation and private speculation and bubble-building lose their dominant effects in the markets."
b) the ten-year long correlation between gold and the Euro has broken down recently [and it is] "our expectation that gold will generate a super-bubble in the next 2-3 years, and perhaps longer, provided that policy accommodation remains in place even as investor confidence evaporates completely."
05. Harry Schultz:
Harry Schultz' International Harry Schultz Letter (a paid subscription investment service) has gold going up eventually to $6,000 saying "We (collectively) are poised at a heart-stopping moment in economic times. On the one extreme side, the world is on the edge of massive deflation and depression. At the other extreme is - hyperinflation. My view is that both these extremes are possible. Certainly deflation is, on balance, in play today and gaining ground as money supply is actually declining! Hyperinflation seems impossible when there is not much inflation in most economies. But ... hyperinflation is a monetary event, not an economic one, and will happen on an overnight basis, not via a general uptrend in inflation data... As I write, gold is holding very near its high, as most stock markets are bungee jumping. This implies the unexpected hyper is pending, because if it were exclusively deflation ahead, gold action would be less buoyant."
As such Schultz recommends that one put 40-50% in gold stocks and bullion; 10-15% in other commodities; 30-40% in government notes/bills/bonds; 8-10% in non-gold stocks and 0-5% in bear stock-market protection via inverse exchange-traded funds.
06. Egon von Greyerz:
von Gruyerz, Managing Director of Zurich Switzerland based Matterhorn Asset Management and founder of precious metals investment and storage company GoldSwitzerland.com commented in an interview with CNBC Europe's Squawk Box recently that the nominal high of $850 per ounce gold price, when adjusted for “real inflation” as per shadowstats.com, is equivalent to approximately $7,200 in today’s prices. Accordingly, “gold could easily go up 6 times from the current price of $1,220 and still be within normal parameters.”
He went on to say that at current prices, “There will be nowhere near sufficient gold to satisfy demand.” As a result, his firm is expecting the gold price ascent to be “relentless during the remainder of 2010, with very few major corrections but with high volatility. Moves of $100 in one day could easily happen. So gold is likely to make a top in the next few years between $5,000 and $10,000.”
Source: http://matterhornassetmanagement.com/2010/06/07/cnbc-squawk-box-interview-egon-von-greyerz-june-7/
07. Peter Cooper:
Cooper, author of a book entitled, appropriately, "Dubai Sabbatical: The Road to $5,000 Gold," maintains that "Governments around the world have forced interest rates to artificially and unsustainably low levels to combat the global financial crisis. Low interest rates mean high bond prices. Ergo, as soon as interest rates go up – as they will have to sooner or later – bond prices will fall...and if you want to keep your money out of bonds...then precious metals and/or cash are the best options.
The real kicker for gold, and even more for silver is in the supply and demand position. Precious metals are in limited supply – that indeed is their great strength as a store of wealth – so once the shift out of bonds accelerates so will the price of gold and silver.
Now government bond markets are far bigger than global stock markets while precious metals are amongst the smallest of major asset classes. Pouring this quantity of money into a very narrow precious metals market will send gold and silver prices through the roof. $5,000 an ounce for gold is a very conservative forecast under these circumstances."
Source: http://www.arabianmoney.net/gold-silver/2010/05/12/5000-an-ounce-in-sight-as-gold-its-new-all-time-high/
08. Rob McEwen:
McEwen, Chief Executive Officer of US Gold Corp. and founder of Goldcorp Inc., believes global gold prices may increase to $5,000 an ounce between 2012 and 2014 as rising U.S. government debt weakens the dollar saying recently in a Bloomberg Television interview, “Money supply has expanded so rapidly that there are a lot more dollars looking for a steady home. Governments cannot help themselves. They want to help the economy. They are printing money. They are going into debt on a horrific scale, and that will depreciate the value of the dollar.”
He says his forecast for gold represents a “once-in-every-300-years” phenomenon and holds by his previous forecast that gold will rise to $2,000 an ounce by the end of this year.
Source: http://www.bloomberg.com/apps/news?pid=20601082&sid=ajm6lryLYViQ
09. Peter Krauth:
Krauth, a highly regarded market analyst and expert in metals and mining stocks, maintains that " there are 5 sound reasons why gold will soar to $5,000 an ounce, namely:
a) Potential Inflation: Since 2001 - under benign price inflation of roughly 2.5% - gold has managed to rise about 400%. Meanwhile, the U.S. Federal Reserve is widely expected to keep short-term rates near zero through this year, leaving the door open for rampant inflation, and central banks worldwide have rolled out an unprecedented $12 trillion worth of stimulus programs, with most of the money still to be spent.
b) Exploding Investment Demand: Large institutional investors - hedge funds and pension funds - are making large allocations to gold, as are individual investors. According to the World Gold Council, demand advanced 15% from the second quarter to the third last year with a quickly developing middle class, whose members are experiencing rapid escalations in disposable income, becoming a major bullish driver for the price of gold.
c) Central Banks are Becoming Net Buyers: 2009 was first time in 20 years.
d) A Looming Currency Crisis: The "PIGS" - Portugal, Italy, Greece and Spain (or "PIIGS," if you want to include Ireland) - aren't in very good fiscal shape - and they aren't alone. Iceland has already gone over the edge. The United States, the United Kingdom, and countless other economies are struggling. That reality has ignited a crisis of confidence about fiat currencies in the minds of many investors. Under such conditions, gold - the ultimate store of value, and the oldest existing form of money on earth - will soar as investors seek to protect their purchasing power.
e) The Mania Stage Has Yet to Begin: The gold bubble that takes prices to all-time-record levels will inflate in three distinct stages - currency devaluations, growing investment and then a stratospheric ascent - and, make no mistake, the $5,000 price point will most likely be reached in this third and final phase."
Source: http://moneymorning.com/2010/01/14/gold-superspike/
And let's not forget:
10. Arnold Bock:
"No wishful thinking here! As I see it gold is going to a parabolic top of $10,000 by 2012 for very good reasons:
a) Sovereign debt defaults,
b) Bankruptcies of “too big to fail” banks and other financial entities,
c) Currency inflation and devaluations,
d) Precious metals market manipulation,
e) Insufficient physical supply, and
f) The need for a safe haven investment refuge,
All of the above will lead to rampant price inflation and drive precious metals bullion and mining stock to unimagined heights."
Source: http://www.munknee.com/2010/06/gold-going-to-parabolic-top-of-10000-by-2012-%e2%80%93-for-good-reasons/
Conclusion
So there you have it. Many sound reasons by some of the most informed individuals around who all contend that given the financially troubled and volatile times we live in that gold (and by implication, silver) is the place to be for an outstanding return on one’s investment and to shield oneself from the rampant inflation and currency devaluations that are on the horizon/
Copyright © 2010 W. Lorimer Wilson
Editorial Archive
Lorimer Wilson is Editor of www.FinancialArticleSummariesToday.com.
report violation 2 recommendations
There will be news soon enough with a mill update. They are operating one shift now and will be adding the second shift as early as this week. They also are very pleased with the way the mill is performing and the fact that the tailings are breaking down much easier than thought, which will allow more tonnage per day, maybe even double earlier estimates.
As for the Sinker tunnel mine it's sole purpose was not for drainage. It goes right thru the mtn and intersects numerous veins on War Eagle. The one mine on the far side of the mtn. that does have water can be accessed and drained if they chose, but there is many years of other production available before they contemplate that.
Back to earth buddy, please. They aren't predicting 24 oz/ton, lets not mislead people. Yes they have some high historical intercepts, but even averaging 1oz/ton would be exceptionally good.
Also the cost per ton of $50 is for processing the tailing's only.
Obviously mining costs for the Sinker would be quite different.
Not bashing, but lets try to keep it real.
There's a very interesting article on 321gold site by Bob Hoye.
I've followed this guy for quite awhile and he has been close to 100% accurate in his technically based projections. He nailed everything in 2008 including the market bottom. He's no gold bug but has $2100 in range for 2011.
However to get there he offers 2 scenarios which both include a 15% correction in the gold price.
We either go from here to $1680 then drop 15% to about $1400 and then off to $2100 or
We lose 15% fairly soon and then off to $2100 for 2011.
With Jim Sinclairs [www.jsmineset] yesterday comments that if the Euro intervention of the $1.205 mark fails the shorter/hedgies will start covering and gold will make a move up, which is exactly what appears to be happening at this moment[euro at 1.19]
Either way at $2100 gold next year all producing juniors should launch. Don't fall into the more than obvious agenda of the detractors and give your shares away cheap.
BTW sounds like we should/could have some encouraging updates next week.
glta
Billionaires understand what's going on in this world and they want gold. SFMI has the gold and maybe, just maybe they would be willing to do a little trade. Financing the future development on War Eagle and receiving bullion for pay back. Never say never or you will be proved wrong again.
The facts are that SFMI has done what they said they would by doing the Brazilian translation on the website. Now, you really should sit back and ponder this point. Why would they do this?
I think the reason is very obvious that they do have Brazilian connection and are moving forward towards a listing. Just coincidence, not likely. Why Brazil? Time will answer that question.
For those that haven't noticed, scroll down on the left handside of SFMI's website and click on the Brazilian Flag
Yes, that is interesting about the Brazil translation. From what I understand there already has been buying from the Brazil boys, which helped move the sp to where it's at. Nice to see they came thru with the translation, which was indicated as a project in a previous nr. There is obviously a reason for this move maybe 'Tink aboud it' for awhile.
I read this great debate all week on where exactly we are at concerning the mill production levels. Those that have concerns must be the trading element here, certainly not the long term invester who's looking at the much larger picture down the road in a year or two. This company has moved forward very fast from where we were a short year ago or even 8 months ago, when we hadn't even purchased the property where we now have a producing mill on site. SO WHAT if they aren't up to speed yet, it will come just as everything else they said they would do has come thru.
The bigger picture is what we need to be thinking about. This mill and tailings are great, but very small in the scope of the overall potential what lies in those veins on War Eagle.
There has been a considerable amount of work done in advance of the major work scheduled for this summer. We as loyal longs have lots to look forward too this year and if the last few months are any indication, the Sept. shareholder meeting should see a lot of happy campers.
Have a good weekend
Yes it's the same old play. The MM's see a bit of weakness on the bid and start it take it down, this puts the day traders on the run and the mm's are there waiting at the botttom AGAIN!
You also need to consider a week ago we were at .24, and more than likely half the volume is short term holders [traders and mo mo players] which is the way it is these days.
A few detractors steppin' up there game today also. Coincidence, not likely! glta
The value of the tailings at todays prices is about 80 Million in gold alone and doesn't include silver credits. ALSO this is 100% owned by SFMI, there is no monies payable to Goldcorp [GHDC] on this revenue. YES this has been confirmed from the company.
With the precious metal prices likely to increase over the next year when SFMI will be processing these tailings, we have a much larger upside revenue target in picture.
Wrong again pdw. Missing a bit of DD again apparently, so here you go. They do NOT require a tailings pond. This new state of the art mill uses centrifugal gravity system with a recirculating water ONLY system. The left over product after the gold/silver extraction becomes a damp sand, which in this arrid climate evaporates in no time.
nice try though pdw and hope this helps
As of wed/thurs there was 32 guys on site. I don't know the breakdown of how many were part of the milling crew.[yes, the operational mill]. They are still doing lots of other projects also, as in installing the security fence etc.
PMW...You still seem to be pushing the point that it will be months until they get operational. For those that are inclined to believe these opinions here's another thought. I talked to probably the largest shareholder this company has a few days ago who was at the mill and he says that things are moving along just fine and then some. Oh yes I need to add JMO