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Thank you Sam.Increasing production on the first line is good.Yes,we must expect fine tuning to get the second line functioning properly-both in terms of ore grinding and the chemicals needed.
Not so sure about a 43101 though.We do not have the drilling needed I suspect.Sam,is the resource report to cover the known base metal resource or the gold resource?
Is gold going to take out $1,100 in November?
Thanks all for kindness.
Re conferences.I got one piece of positive news,I cannot release,but do believe we have more news coming possibly to coincide with the conferences.
With the Lluvia mine coming on,TRGD will get cash from that .All profits are good profits.
Re the German interview,that is creating a lot of interest,Rich notes we really do not need to be seriously looking at other property-we have enough to keep us busy for years.That is a major positive that could go under noticed.
Good to see the price of TRGD and TARM getting close to being in balance.Ratio now 3.5:1.Soon the shares should move in tandem.
Thank you Bob.Very kind of you.
Is TARM a USA restricted security?I have been told TARM shares take about 2 months to sell and here is corroboration of the law.
http://www.sec.gov/answers/restric.htm
But does this apply to TARM? Personally,I have never heard of such a thing?
Sam,I am very uncomfortable with your numbers,not with you.I find no blame in you but mining gold grades as high as have been voiced,and written is a worry.I simply do not believe we have adequate evidence to support such mega grades.Heck,4-6 grams a ton of gold near the surface is excellent,let alone 10 grams.Well over 10 grams-we could end up with egg on our company's face,if the mega grades are not proven.
In short,some conservatism when making announcements seems wise to me.I do not want to see our management getting a reputation for being wind without substance-previously many shareholders have come to that negative view.
No news yet of our second production line.Possibly it would be best to wait till the line was producting say 100 tons a day.If we are there by Christmas,that is present enough for me.I do not expect miracles,production has many variables that affect an operation-but I feel,neither should we suggest miracle gold grades,unless swell proven.
We lucky few;we lucky hundred few.
Gosh,there are not many of us in this small brotherhood .We get really hot news and buyers will have to cue.So few sellers.
Sam,remember how so many seek to find gloom and to bash Rich?I am reminded of the Scot's saying,
"Finding spots on the sun."
Hence I suggested in the good news,why there must be something the negatives could find to create a new problem,a new worry.(Tongue in check,as I was.)
One can talk of huge profit levels.Personally,if TARM's Don Ramon made a pre tax profit of 15 million a year,I would be happy.Any more is a bonus.Rich with a spare $10 million,excluding current cash,would allow a lot of development work.
No idea where the thought of preferred shares comes in.Rich has never issued such.
Yes we should be worried.TARM is now $1.73 so it has so much further to fall than the 50 cents I paid.I shall prepare to panic.
Anyone read Rich's recent interview,posted in German?
TARM is now priced at $1.60.That makes TRGD look very underpriced.
Hitting $1.60 seems very positive to me.Volumne is up and we are in the conference run up.This week should be the one,if hot news is in the wind.I cannot imagine keeping an announcement for the actual conference.
No news on the second production line or the third.Getting the second line running smoothly would bring a top initial profit target of $10 million a year.For a very minor junior,that is a lot of income.Okay,potential income as production is not a smooth process.
What could Rich achieve if we had 10 million in the bank,debt free of course?
Yes Sam,we are in a short term waiting season presently.
A good volumne increase with a commensurate upward price move today.Only a week or so till the conferences.
Be impressed.Be impressed.The major commercial shorts are having trouble meeting calls for real precious metals.When it becomes more obvious the ability of the future's markets to set PM prices will collapse.
"End of US$ Global Reserve Currency
Jim Willie CB
Jim Willie CB is the editor of the "Hat Trick Letter"
Oct 16, 2009
Use this link to subscribe to the paid research reports, which include coverage of several smallcap companies positioned to rise during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.
The heralded end to the Petro-Dollar defacto standard completes the loop, the vicious cycle that will work to destroy the USDollar. In a sense, the US$ had to face an end, its sunset guaranteed when Nixon defaulted on its redemption value. The United States served as custodian for the global reserve currency. Naturally, the most damage will be to the US as a consequence of its twilight, especially after the recent era of fraud & counterfeit. Few look back to that date in 1971 as prophetic for declaring the USDollar’s days as limited and finite. The world will continue to trade the US$ in future years, but it must stand on its own value, based upon its own merit, the result of balancing its supply & demand, from the integrity of its fundamentals. Some climax events have come, or at least are previewed on an unfortunate path. Never in my memory has USGovt leadership been so disrespected. Never has Wall Street been so culpable for financial ruin, yet still in power running the USGovt finance ministries. The global revolt against the United States has many sides, but the financial aspect is most profound. It is hardly even covered in the US press. The US citizens have little comprehension of the enormity of a lost global reserve currency, with all its privileges, abused for constructing financial engineering towers and funding foreign wars. The direct effects will be felt in higher costs and assured supply, including credit.
No need to enter details, but the nation with each passing year resembles even more a very large Third World nation. Empty foreclosed homes, empty shopping malls, millions of jobless, discouraged business formation, nationalized failed firms, vanishing Middle Class, trillion$ federal deficits, monetized debt, reduced liberties, selective elite law enforcement, syndicate stronghold, huge prison population, controlled press networks, distrust of leaders, aggressive military, these are the characteristics that most people agree are unsavory. But when one takes them as a cornucopeia table display, they are described as Third World. This article will be shorter than most, since the more complete analysis is provided for Hat Trick Letter members. We are not fooled by the banter, the propaganda. We have been preparing for the surge in gold & silver, the powerful erosion in the USDollar, the ruin of the banks, the universal bust in bonds, the insolvency of the homeowners, and the army of jobless. Personal fortunes have by and large not been ruined. Some have thrived.
(Click on image to enlarge)
COMPLETED LOOP: FINANCIAL & COMMERCIAL
The swirling motion of the above loop is powerful. With the crude oil sales no longer taking US$ payments, the loop is completed. The financial engine in the Dollar Carry Trade now will have a commercial engine to further its momentum, to add power to the cycle, and force powerful lethal feedback reactions. Only when the financial and commercial sides fit like two giant interlocking pieces does the power take hold, much like a toilet assembled. The Fisk report on a 2018 timeframe for the phase out of US$ petro sales is more politically massaged information. The timetable will be just a couple years, doubtful more. The reactions from systems will force the timing to be much sooner, out of desire, out of necessity, due to broken systems that accelerate the breakdown process due to the announcement itself in feedback loops. By the way, the swirling motion in the vicious loop should remind people of a toilet being flushed. In the Northern Hemisphere, the motion is clockwise. Thus my representation, since my entire life has been spent roaming the north. To people reading from the Southern Hemisphere, imagine the elements of the graph in mirror image format. Thanks for the cooperation.
REDUCED US$ DEMAND IN FOREIGN BANKS
Entire foreign banking systems have been constructed with USTreasury Bonds serving as important assets in their foundations. The requirement was clear by virtue of payment for crude oil for Saudi and other OPEC nation crude oil. The Petro-Dollar standard required nations to prepare for payment in US$ terms, and thus build systems to make those payments. The banks act like giant ATM machines to dispense USDollars for oil payments. Many did so reluctantly. The purchase of crude oil is without doubt the largest and most important economic commodity purchased, next to food supply. The demand for USDollars will be sharply reduced in the future. Payment for crude oil in IMF basket terms will reduce the need for holding all those USTreasurys. Banking systems will change their structural makeup. They will adapt to other non-US$ swap facilities that aid in trade. One should be on the lookout for outright refusal to accept USDollars, the next step. The toxic bonds could easily lead to perception of USTBonds being toxic as well.
FOREIGN RESERVES DIVERSIFICATION
Nations have been struggling to diversify their FOREX reserves for the last few years. They react to the fundamental problems of the USEconomy, the USGovt deficits, the US Bank insolvency, the US Home insolvency, the dismissal of US Industry, and the trend toward nationalization. The foreign managers of finance suddenly awakened in 2005 to find they had accumulated a surfeit of bonds in the form of USTBonds, USAgency Mortgage Bonds, and US Bank Corporate Bonds, with no semblance of balance in their portfolios. Add to their reserves the Sovereign Wealth Funds, and the magnitude of the problem was deemed unreasonable, unwise, and unacceptable, in need of change. So foreign finance accounts have been buying more EuroBonds, even Chinese Govt Bonds, more Gold, more commodity stockpiles, and more foreign assets that assure commodity supply. China leads the way in setting the standard in diversification practices.
USFED STUCK AT 0%
The USFed does the most talking about an end to its free money, also known as monetary easing. But the United States will be the last to raise interest rates, stuck without an Exit Strategy. Australia did not talk about it at all, but recently raised its rates by 25 basis points. Generally speaking, those who do too much speaking do too little doing. The crippled nature of the conditions in the United States dictate continued 0% easy money. The powerful players in the Dollar Carry Trade will ensure that the free money parade does not stop. It is self-sustaining. They will even influence the USFed not to hike rates. Furthermore, the next round of bank losses from commercial mortgages and prime Option ARMortgages will deliver big blows. Some astute analysts are already estimating the magnitude of the next round of bank losses. Any hike in interest rates would not only add costs to borrowers across the USEconomy, but add costs to the USGovt. They are, by the way, producing trillion$ deficits.
GROWING USGOVT DEFICITS
The endless series of stimulus for a moribund USEconomy, reduced payroll taxes collected as federal revenue, nationalized Black Hole costs (Fannie Mae, AIG, GM), current health care costs (Medicare), hidden banker welfare (TARP funds one pearl on a string), sacred military budget (contractor largesse & syndicate benefit), and stupid pork projects will continue to churn out gigantic mind-numbing federal deficits. The only reduction seen is in forecasts by official agencies, which bear little reflection to reality. The permanence of trillion$ deficits will be clear in another year. Removed stimulus, removed props, removed monthly special programs, these steps will cause a return to deteriorated conditions. The Clunker Bank and Clunker Home programs are well along.
USTBOND MONETIZATION
The USTreasury auctions are the biggest congame since the Wall Street mortgage bond sales, whose monetization eclipses the Weimar machine. The primary bond dealers are required to bid on USTreasurys that come to auction. They are reimbursed in Permanent Open Market Operations by the USFed within a week or so. The US press does not notice or does not report or is told to look the other way. The foreign central banks turn in their USAgency Mortgage Bond to the USFed, which with newly printed money buys the USTreasurys offered. These central banks use the sale proceeds and additional funds drawn from the Dollar Swap Facility to bid on USTreasurys that come to auction. The US press does not notice or does not report or is told to look the other way. The USGovt continually promises the foreign creditors that no monetization of debt will take place. They lie. The true victims are confidence and trust, essential to any fiat currency.
LOST CONFIDENCE IN USDOLLAR
Confidence is lost, never to return. It takes years to build confidence and trust, but only a few moments or days to lose it. Actions and developments in the last several years have contributed to a powerful and deep loss of confidence. In my view the mortgage bond fraud export combined with the Iraq & Afghan Wars to shatter respect, trust, and confidence. Nowadays, monetization worsens the lost faith as a crowning blow. Bully tactics by the US & UK for years added constant strain, producing resentment. The result is less support for the USDollar, and almost no cooperation for US$ and USTBond support programs outside the central bank franchise system.
A KEY IS THE JAPANESE YEN
As the Yen Carry Trade enters its final phase in wind-down, the Dollar Carry Trade will accelerate. Imagine, the global reserve currency in the US$ is used to fund a carry trade, from a Japanese handoff !!! The world has been turned upside down in its financial axis. No doubt about it. We live in a bond-driven world. National finances matter little compared to the interest rate yield offered to financial speculators, whose efforts are amplified by leverage. Take the Japanese, for example. Their trade surplus endured for 30 years. In the last year it vanished. Yet the Japanese Yen is rising versus the USDollar. The carry trade is seeing a grand handoff. The Dollar Carry Trade is a bond-driven phenomenon once again. Its power might be best seen in the Yen currency valuation, in its surprising rise. The Yen is analyzed in the October Hat Trick Letter report. The invitation for the USMilitary to depart Okinawa has some effect. The bond arbitrage has much more. The Japanese finance firms receive little attention. They are experts at running and exploiting the carry trades. They are switching programs.
If you believe all is well in Japan and Tokyo support will continue, then you miss the ‘Lost Lackey Effect’ from the last year. The Saudis will not carry the US bags any longer. The Arab squires will carry bags with Kremlin markings. The Japanese will not carry the US bags any longer. The Toyko squires will carry bags with Beijing markings. The chief strategist at a major Japanese bank Sumitomo today warned that the US$ might fall to 50 yen this year. That would be a 45% decline. Daisuke Uno at Sumitomo expects the USEconomy to suffer a second sudden recession. He said, “The US economy will deteriorate into 2011 as the effects of excess consumption and the financial bubble linger. The dollar’s fall will not stop until there is change to the global currency system.” The strong warnings reflect the growing rift between Japan and the USA. The outcome of recent elections in Japan changed the entire bilateral landscape. The pro-American LDP party was ousted, a major new piece to the ongoing Paradigm Shift.
JUST THE BEGINNING FOR GOLD & SILVER
Gold reached 1060 this week, and silver touched 18. This is just the beginning. The pullbacks like today should be exploited to purchase more at discount. Purchases of gold at the London exchanges are being interfered with, due to basic problems of not having sufficient gold bullion to satisfy delivery demand, otherwise known as DEFAULT. Reports arrived privately cite the LBMA officials offering 25% more than contract value if high volume gold futures contracts are settled in cash. Two different central banks are scrambling to locate gold for the contracts, but much of it is substandard bullion with under 90% purity. Sounds like a default is right around the corner, and some members have their nether stones caught in a vise. CLEAR EVIDENCE SCREAMS OF GOLD HAVING A $1300 CURRENT PRICE.
The next target for gold is 1130, with a midterm target of 1300.
The next target for silver is 19 with a midterm target of 26.
The Bank of England news today was comical. The central bank is the most disrespected on the planet, for inconsistency, wavering, desperation, and cluelessness. Their table pounding in desperate confusion caused a big 200-pt rally in the Pound Sterling versus the Euro. The chief loser currencies in the current phase will be the USDollar and British Pound Sterling. They are both used toilet paper, long spent in wiping an empire’s dirt.
A FINAL NOTE: See the King World News series on “Systemic Failure” in its four parts (CLICK HERE), where the Jackass is interviewed in a logical comprehensive argument. The fourth and final segment is to be posted before this weekend of October 17th. The King World News has had a stream of stellar guests from the highest tiers, that recently included Jim Sinclair, Gerald Celente, and Chris Whalen. See their front page for numerous interviews (CLICK HERE).
THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS."
I am not sure that that is cureently true.
I know,the GORO presentation has very much'yesterday's' major shareholders.Then it was some 80% of stock tied up.I have not been able to get the latest major shareholders.Jason told me only the limited:
Reids 24%
HOC 24%
Tocqueville 13%
Well accounting for 61% is not much help.
I know of no major holder selling but have heard we have gained some institutional support.Any help here appreciated.
Share go up,consolidate,go down.Juniors jsyt do so in an exaggerated fashion.
Question.
Do you have reason to believe that good news is likely from TARM in the near term-say next 3 -4 weeks?
If so,today's downward dalliance is of little substance.We have 2 conferences to attend in early November.(Frankfurt/Chicago)That is opportunities plaything for news and attention.Is there reason to expect news?I believe so:a second prodution line;maybe news of more gold assays;possibly a little gold production.
Do look at out charts the last 6 month.From 6 month ago's low,it goes up;drifts;consolidates;rises.The pattern is a rising pattern.
Gold shortings getting caught?
THE GOLD BASIS IS DEAD ?
LONG LIVE THE GOLD BASIS!
Antal E. Fekete
Professor of Money and Banking
San Francisco School of Economics
aefekete@hotmail.com
Fool's Gold Basis
A year ago I conducted a Seminar on the gold basis and backwardation in Canberra, Australia. I suggested to my audience that the gold basis (premium in the nearby futures on spot gold, with negative basis meaning backwardation) as a "pristine indicator that, unlike the gold price, cannot be manipulated or falsified by the banks or by the government. Thus it is a true measure of the perennial vanishing of spot gold from the market, never to return, at least not as long as the present fiat money system endures."
That was then. Today we are one year older and that much more experienced. We now know that the banks and the government have in the meantime found a way or two to manipulate the gold basis as well. Next month I have another Seminar coming up in Canberra. I shall address the problem of gold basis, giving a full account of what we know about the efforts of the powers that be in trying to falsify this most important indicator, the guiding star of refugees who have entrusted their fate to a golden dinghy on a stormy sea. To the government, the gold basis is like the naughty child who blurts out unpleasant truths. He must be gagged and silenced at all hazards. Fool's gold basis is even more important than fool's gold in terms of the number of people victimized.
The "Let's get physical" movement could trigger a chain reaction
A prime suspect is the gold basis calculated using COMEX futures prices, or the forward gold price of the London Bullion Market Association (LBMA). Further suspects are: certain gold Exchange Traded Funds (ETF's) such as GLD and their weekly updated bar lists; certain central banks such as the Bag Lady of Threadneedle Street (nickname of the Bank of England) that has rushed to the rescue of her agents, the bullion banks, trying to bail them out by offering substandard (22 carat) gold in settlement of contracts at the verge of being defaulted. Substandard gold stinks, as I shall explain below.
There seems to be circumstantial evidence that this month the gold exchanges are unable to honor their expiring contracts for which delivery notices have been issued in September. It has occurred in spite of a robust, even increasing, contango. Furthermore, circumstantial evidence exists that counterparties to these expiring contracts for future delivery - bullion banks, to be precise, the name of J.P.Morgan and Deutsche Bank being prominently mentioned - have offered bribe money up to 125 percent of the quoted spot price to holders of long contracts if they would take settlement in paper, on condition that the embarrassing affair will be kept secret. If true, these maneuvers are motivated by the desire to conceal the real gold basis, and to deny that gold is in or approaching backwardation. If the truth were widely known, then there would be a run on the bullion banks. The "let's get physical" movement would trigger a chain-reaction culminating in all offers to sell physical gold being permanently withdrawn around the globe. "Gold would not be for sale at any price", whether quoted in US or in Zimbabwe dollars - or, for that matter, in any irredeemable currency - the only kind of money people are allowed to have nowadays. The curtain would fall on the "Last Contango in Washington". The day of permanent gold backwardation would dawn. The chapter on a reactionary episode of history, irredeemable currency, allowing the Treasury and its central bank to create unlimited liabilities out of nothing which they have neither the means nor the intention to honor, but could use them for check-kiting purposes to mesmerize gullible people around the world, would be closed and become but a bad memory.
"Honey, I've shrunk the bar-list!"
We must guard ourselves against falling victim to the rumor-mills, while keeping our eyes peeled for the very real possibility that the growing shortage of physical gold can no longer be papered over with paper gold (pun intended). Another story is about GLD, a leading gold ETF, which publishes its bar-list every Friday at the close of business, reporting the serial number of every bar in inventory. The list is customarily well over a thousand pages long. But, lo and behold, on Friday, October 2, and on Friday, October 9, the bar-list shrank to a mere couple hundred pages, with no explanation offered. Could it be that the management of GLD has taken a bribe, and replaced physical gold in inventory by paper gold, in order to save the face and skin of the bullion banks that have gone naked short and subsequently got cornered?
If so, it won't get very far. The leadership of the US House of Representatives may well be able to put in deep freeze the motion of Dr. Ron Paul, seconded by over 250 other congressmen on both sides of the aisle, to audit the Federal Reserve, but it has no power to stop the auditing of the ETF's or bullion banks as required by contract law. According to some reports independent auditors, at the insistence of parties holding expired forward purchase contracts to deliver gold, are descending on ETF's and check their vault's contents against their books. The noose is tightening around the neck of fraudulent banksters caught in the short squeeze.
Archimedian Test
Reports are circulating that similar audits of certain Asian depositories have already produced "good" delivery bars (400 oz or 12.5 kg gold bricks) that have been gutted and stuffed with tungsten - a metal whose specific weight approximates that of gold, so that the famous test of Archimedes (fl. 287-212 B.C.) based on the Law of Buoyancy, designed to expose fraudulent goldsmiths, would be inapplicable. Isn't it strange that criminal law punishes the fraudulent stuffing of gold bars, but allows the stuffing of gold assets in the balance sheet with paper gold? After all, the specific value of tungsten is much higher than that of paper!
According to a well-known anecdote, King Hiero II of Syracuse ordered his goldsmith to make him a new crown in the shape of a laurel wreath out of solid gold. When the finished crown was delivered to him, the king had reasons to suspect that he had been short-changed by the goldsmith who presumably diluted the gold with base metals. He called upon Archimedes to make the determination but without damaging the crown. After some hard thinking Archimedes solved the problem. He could determine the volume of the crown by submerging it in water, and from the volume and weight he could calculate the crown's density. Comparing it to that of gold, the fraud would be exposed if the density of the crown were lower. It is evident that, if the goldsmith had had a metal at his disposal of the same density, but cheaper than gold, then Archimedes' test would have been inconclusive. It is this property of gold that makes it second to none among the metals, along with other similar fine properties, explaining why it is a most desirable form of wealth.
The revenge of the looted coins
In 1933 F.D. Roosevelt did not stop at the mere confiscation of the constitutionally mandated gold coins of the realm. He sent them to the refinery in order to melt them down. He wanted to expunge the evidence from history that this great republic once had the largest pool of circulating gold coins anywhere, ever. Roosevelt betrayed his oath that he would uphold the U.S. Constitution and went ahead to rob the citizenry by calling in the gold replacing it with Federal Reserve notes, the value of which he promptly cried down by 56 percent, under the disguise of monetary reform. The melted gold was given the shape of gold bars and was stored in Fort Knox, West Point, and other depositories.
Careful as though Roosevelt was to cover his trail in getting away with the loot, he has made one major blunder. He failed to make the looted gold fungible. The coins were not made of pure gold: they were an alloy 22 carat in fineness. The reason was to make them stand up to wear and tear better in circulation. All countries striking coins for general circulation employed an alloy. Roosevelt thought that he could save the cost of refining the melted gold to the international standard of 995 fine (24 carat) so the gold bars in Fort Knox are only 22 carat fine. In consequence these gold bars are not fungible. They are easily identifiable as contraband, the proceeds of the Great Gold Heist of 1933. The shear quantity of this looted gold makes it impossible to refine it at this late hour. The U.S. gold stinks, and will keep on stinking.
The memory of the Crime of 1933 comes back to haunt the government that committed it. For 75 years nobody suspected that one day these gold bars may be needed to pacify the market. Everybody thought that they could rest in peace in the depositories till doomsday. But then, as the proverb says, ill-gotten goods seldom prosper. The Great Financial Crisis of 2007 struck and the dollar got into hot water. The U.S. Treasury ran out of fungible gold and had to dip into its hoard of looted gold. It is too late now; the bad odor cannot be expurgated from the U.S. gold hoard. Should this gold ever show up at an audit, or as bribe money, it will immediately be recognized. Everybody will see that it originated from the Great Gold Heist of Roosevelt and that the shame of the U.S. government is attached to it. Worst of all, it will also reveal that the U.S. has fallen upon hard times. The looted gold was released in desperation, in trying to stem the tide of burgeoning gold backwardation.
The result is that every time 22 carat gold pops up anywhere in the world, for example, as an offer to pacify angry possessors of expired gold futures contracts, it will be new evidence of the fact that Uncle Sam is cornered and tries to bribe his way out of the corner with looted gold. If Uncle Sam is trying to pay the blackmail on behalf of his cohorts the bullion banks, in offering 22 carat gold in settlement of contracts calling for 24 carat fineness, then the world will immediately know what's up, even if the substandard gold is offered through intermediaries. Everybody will know that Uncle Sam is trying to cover up, or fend off, backwardation to prevent the gold basis from going permanently negative. The telltale sign will haunt him and make the gold crisis worse, not better. Most of the possessors of expired gold futures contracts will refuse to take substandard gold for settlement, but neither will they keep Uncle Sam's secret. Apparently there are already two known instances where the looted gold turned up. Central banks, in coming to the rescue of their agent bullion banks that were caught red-handed in being naked short in gold, offered 22-carat gold to bail out their agents. This fact in itself makes the quantity of gold available for resolving the gold crisis smaller. Permanent backwardation in gold, the Nemesis of irredeemable currency, cannot be postponed much longer.
Blight on Humanity
Rob Kirby, the best sleuth we have to uncover government hanky-panky in the gold market, has castigated the cover-up of what he considers a severe backwardation in no uncertain terms. He calls central banks for their complicity in the cover-up a blight on humanity. In his opinion, the central banks are aiding and abetting the plunder of the sovereign assets of their countries to bail out their agents or friends in an attempt to "sweep the whole bloody mess under the carpet". This assessment is apt. It is no exaggeration to say that the regime of irredeemable currency is a blight on humanity. The Uncle Sam will never be able to live down his shameful role in plunging the whole world into the monetary abyss.
Central banks are also guilty of corrupting the young - a crime that was punishable by death in Athens at the time of Socrates. They have hijacked monetary economics lock, stock, and barrel. They have commissioned scribes for hire to rewrite it as a eulogy of their sordid trade, the creation of fiat money. Graduates of our universities are no longer taught that this regime has a 100 percent mortality rate through the sudden death syndrome, pauperizing the population in the process. The role of gold in history is falsified and distorted. People are told that harking back to gold money is a sign of backwardness and reactionary thinking. Modern money is managed money - as long as they themselves are entrusted with its management. In this view the U.S. Constitution is a backward document not worth bothering with, so they don't bother with proposing a constitutional amendment changing its monetary clauses to conform it to present practice.
Aristotle On Alibi
An axiom of Aristotle states that no substance can be present at two different places at the same time. The reason for gold's monetary role is rooted in this very axiom. The same paper promise can be present in the asset column of the balance sheets of any number of individuals. The same gold coin cannot. This eliminates the possibility of a miraculous proliferation of money - putting latter-day money changers out of business. But once gold is removed from the monetary system, the miraculous proliferation of money starts in earnest. Central bankers will distribute it, if need be, from helicopters hovering overhead. The proof that this is beneficial to society is ad hominem. In this way, so the argument goes, the niggardliness of nature to release only so much gold per annum from the gold mines can be overcome. Money will get into the hands of those who need it most. They will certainly spend it. Never again will the economy seize up because of shortage of money.
The Quantity Theory of Money is a false doctrine because it describes the economy in terms of a linear model, when in reality the world runs on a highly non-linear pattern. Therefore we need a better theory to show that the miraculous proliferation of money is bound to come to a sorry end. It has been my ambition to construct a better theory. I am pleased that my theory of the vanishing of gold basis, and the ultimate permanent backwardation of gold under the regime of irredeemable currency has found resonance in some blogs and discussion groups, even if it is still taboo in the media and academia.
We have made great progress since last year's Seminar in Canberra. This year's Seminar will discuss the gold basis in the light of the very latest developments. The gold basis is not dead, it just needs to be correctly interpreteded. I shall show it to my audience how to do that through uncovering the hidden premium in the price of 24 carat gold available for immediate delivery; through the spread between the share price and the NAV of the gold ETF's; through the popping up of 22 carat gold bars offered as bribe money, and other miscellaneous signs of a very real physical short squeeze in the market for monetary gold.
See you in Canberra in November!
October 17, 2009
How many shares are now outstanding?
I have heard up to 53 million,though I do not have substantiation for this.Does anyone know?
Anyone know who the major shareholders are and their %?
HOC and the Reids hold 24% each.Tocquiville 13% but that is all I can find presently.I do know,a year or so ago institutions and management held some 80%.
The nuts on raging Bull had that rot.Check the quality of anal posts there.(They are that bad.)
No one would sell out prior to production.Product's first 2 years are THE time to own a miner.That is when the fastest gains occur.
Remember-GORO has 5 properties.The last grades were moontouching stuff.70 gold ounces a ton!If the motherlode has any width,depth,breadth,the stock will go crazy on early mining grades alone.
Would you sell out to me,to Horschild,to Redingo Bulla for that matter?Of course not.
Leave the nuts to feed the monkeys.
Sam,I would not dare to whisper such extravagant dreams.If such numbers were to be forced on us we would gain a huge ground swell of public attention very fast!
That is far in excess of what the high flying GORO has in known resources.Mind you,GORO hit the motherlode recently.If that lode has any breadth,width or depth,GORO will go ballistic.
I hope you are right Sam but I dream small beer dreams.However,I am open to persuasion.
Sam,the crucial varible is the gold gradings.To get better revenue from gold that from our base metals needs quite rich gold ore.Just a rough quess , I would say you would need 8-10 grams of gold a ton, to equal the value per ton of our base metals.
Bob,the gold find was fortune's child;discovered while road building.It was an unexpected bonus.
TRGD has a relative value near 50 cents.Guessing where the stocks might go is impossible but we have reasons for some confidence.
We have reached production super fast on DR with more lines coming as they will.The gold line is the one currently creating expectation.Just profits will give us underlying value.Just profits open our properties up to much closer 'inspection.'
Exploration and drilling will help establish our production base and production possibilities-so a lot of our real value lies ahead-we do not know.We have many properties and certainly,early gold and base metal numbers are excellent-just how much is there of those metals?
The early production model has the advantage-production pays for both plant costs and exploration/drilling.
I have little idea where we might go but the limited evidence is better than the vast majority of juniors can come up with.Lets face it,a million ounce gold find is 1/1000 and I think we have such in Picacho alone.If DR's gold remains high grade and extends-could be hot there too.(I know some are rather excited by DR's gold so far)
I feel this.I would not swap Pichachio and DR for all of San Miguel.I think we have better than SM.PZG seeks money as we start making money.Suits me.
One production line running and a second being worked on is getting us to my target.Personally,once we are processing 200 tons of ore day,that means serious money flow to the TARM bank account.Then the financials get intereting.
I assumed it might take a month or two to get the second line up and running smoothly,but someone who has visited the site,believes the second line could be on target earlier than that.Heck,if it did take a month or two,I would still be a happier investor.
Doug Casey still sees a major rerating of gold(silver?)as the true state of the fidiciary money system becomes clearer. His model seems to be the 1970s-early 1980s model-and the move in the related stocks at that time.Certainly,horse pasture stocks boomed then but give me a stock with inground assetts or production.TARM is now getting a production foothold but adding in gold could see us on the wave ,if Casey is right.
One should add,Adit gives TARM a second bite of the gold cherry and Centenario a third.
Still early days,as we build a more substantial base for our share price but looking positive.Patience does seem to be getting rewarded.
Let us go smiling into that good day.
PS be kind to one another.
Harry,what you say makes sense of course,but consider the situation.We have started production and that should be increased.Then consider,we have a number of properties close by that offer potentially profitable ore,both base metals and gold,that can be taken to DR for processing.Thus I believe more production increases are in the wings.Management has told you that is our strategy.To pay dividends would greatly hinder future production and exploration.Do read the news announcements carefully.
Increasing productivity the easy way?
TARM needs to get 2 new production lines successfully on stream and to get the chemicals right.That will allow much greater revenue,but is not the issue I would like to present now.
A further way for TARM to increase revenue at Don Ramon is to truck,or barge ore(In the case of Centenario)to the Don Ramon mill.My question is,can the mill cope with extra ore,or would expansion with extra machinery costs and delays be necessary?
Some are talking about a 3rd production line at DR being for processing gold and allowing higher profits.To be more profitable that the Zn,Pb,Ag ore currently being processed,gold ore would need to grade a rich 10 grams or thereabouts.
Both the best silver and gold are fantastic.Goodness knows what could lay ahead.We do not seem to have hit the best yet.
One point that has not been noted.The bonanza silver grade was encountered,while MINING.
Once mining is officially announced,I see $10 becoming hindmost quickly.
Both the best silver and gold are fantastic.Goodness knows what could lay ahead.We do not seem to have hit the best yet.
One point that has not been noted.The bonanza silver grade was encountered,while MINING.
Once mining is officially announced,I see $10 becoming hinmot quickly.
According to a shareholder at DR,production fine tuning is occurring.Work is going on to find the best chemical mix-too much Zn in the Pb ore and visa versa.Seems water problems still exist,having to bring water up some 250 metres to the plant.Probably not particularly difficult issues but time consuming and of course,slowing.More information from the source should be available shortly.
MUST READ.
http://www.traderview.com/tedbits/tedbits-Sep18-09.pdf
Remember:you are free to believe the government/media lies,or to think and investigate for yourself.Try the freedom route.
Very interesting.
Once we shtart mining more deeply,the gold ration will drop,based on our current knowledge of the ore.The open pit offers a higher gold ratio.
Less emphasis currently on driling as the focus is heavily on getting production occurring.It is reassurring to know that the big price appreciation of mining stocks is traditionally in the first 1-2 years of production.The best could weill lie ahead.
That is not to discount the future too much-we do not know ho good some of our future grades might be as we have so much prospective land still to explore.
Stuff up.Yes,if you read the tech. report properly,the third quarter is the start of production time,not production news time.
However,I do believe news is due very soon.TRGD's PR officer will be paying a visit to DR shortly,with accompanying shareholders,that could be interesting.
The steady price rise of TRGD is reassuring but of course,information provides better surity.
As an original TARM shareholder,life is much happier.I do not know what the production news will be,many variables can affect that news:quantity,number of production lines,ore grades,recovery rates,base metal prices.
Most of us will still be taking big losses on TRGD but hopefully we will make nearer say 60 cents this year-that would take away a lot of pain.Heck,getting your money back,or most of it,in the volatile juniors,is not too bad,but TARM like profit making is more enjoyable!
Yes,you are right re production.I am currently seeking more information to tidy up my faulted model.
Mamona,you clearly have a personal agenda against your betters.
Clear off as you are not a legitimate investor.What happen,did Rich run over your mongrel dog?
We will receive production news this month.I suspect we will not reach initial targets but as all know,instant production does not occur.Fine tuning of equipment ,ore assays are needed for tuning , and ore selection are all relevant.
Wait the news.Production from a debt free junior.A rarity.
Yes Old Pro,the market trend is in our favour.Significantly,the fastest profit growth occurs during the first 1-2 years of a company coming into production.If you owned Desert Sun,you experienced exactly that.
TARM will get re rated as production becomes consistent and profits accrue.That will not be the end of a serious TARM rerating I suspect,as TARM is not just one property.Heck,we still have exploration on Don Ramon.
Yes,exploration and drilling costs money(a la San Miguel)but if DR produces good profits,they will pay both taxes and exploration.
Quietly bear distantly in mind,our management are extraordinarily good at acquiring very promising properties-as in SM,DR and Centenario.I would not rush to discard our gold properties either.
For now,DR is our prime focus-a focus that seems rich in the white gleam.Silver me up.
A great run greatly.What is serious production news going to do to GORO's price,let alone news of plans to increase production to 300,000 an ounce,a year or 2 out?
A slight pullback but on volumn of 2.5 times normal.Someone is still accumulating.
I do not know how long before we have enough new assays to declare 3 million gold ounces,maybe a year out.Once that mark is reached,GORO will be looking forward to 300,000 ounces of production.
Normal volumn about 130,000
Recent sale have been 230,000 to some 300,000.
Finally through $7. I assume a serious buyer or buyers simple have to pay more to losen up share. I cannot see any knowledgable shareholder selling presently.
Remember,the sharpest price rise in a miner is in the first 1-2 years of production.The biggest moves have yet to come.
Some production has been occurring.Management has already had time tuning at least a production line,with say 3 more weeks fine tuning.I have no idea what our production level will be by the end of September but it is fair to expect some related announcement.
Good point.
The Reids have made very clear,they are not collecting a resource to last indefinitely,they are about production.A 10 year mine life is their model.
Once production is making money,a lot more exploration and drilling will occur.It is realistic to expect an increase in production,as our reserves increase,thus mine and plant expansion.
The really interesting phase with GORO might actually be the increased drilling on our properties and the subsequent possibilities revealed.For now,productionis enough to have me happy.
Incidentally,very good volumn through today.