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how about silver in the last half hour of trading? talk about a rocket launch. but y'all are right, the stocks dont trade as if people think it will hold. i used the opportunity to load up on some more silver stocks (and unload some others) all in a days work
hi ho hi ho
its off to work we go
jon
au contraire monsieur: i think that this is a very serious setback for cumberland: it means at best a delay of 1 year until production, at worst putting the project on hold awaiting higher gold prices. i think that the share prices will continue to sink over time IF the gold price stays around 400. there are better plays elsewhere - im glad im out of it (well i did a little time in it in 2003 and turned a modest profit). alamos gold - AGI.v is a much better play from here out.
butler on silver:
http://news.silverseek.com/TedButler/1079479077.php
Last week, the state copper mining company of Chile, Codelco, made an extraordinary announcement. Actually, an extraordinary announcement was also made last year, when Codelco first decided to withhold 200,000 tons of its roughly 1.2 million ton annual copper production, until world copper inventories declined from excessive levels and prices recovered from then-depressed levels of around 70 cents per pound. Now that copper prices have recovered (prices recently hit eight-year highs of $1.40) and inventories have declined sharply, Codelco announced that it sold 75% (150,000 tons) of its stockpile (to China). There is no way to praise Codelco management enough for a magnificent performance. It was the mining industry's grand-slam of the decade.
Not only did the company make a killing on its brilliant strategy (around $200 million in inventory profits), it behaved as a miner should behave when faced with unsatisfactorily low prices for its product. Instead of dumping more product on the market through hedging and forward selling or increasing production when prices are low, Codelco withheld and trimmed production until prices improved. I hope the silver mining and resource companies learn from and imitate Codelco's lead. It's a good idea whose time has come.
I'd like to offer a constructive solution to the silver miners and resource companies that will potentially offer great benefit to their shareholders. Investors in silver companies have enjoyed recent outsized gains. (In the interest of full disclosure, I have had and do have interests in silver companies.) It appears to me that most of the gains in silver share prices have come as a result of anticipated increases in the price of silver. I say this because the rise in the price of silver to date has not resulted in any earnings to speak of for the silver miners. Even at $7 per oz, and the highest prices in six years, it would appear most primary silver miners, like CDE, HL, and PAAS, will be reporting profits for the current quarter of mere pennies per share. Clearly, if the silver miners hope to earn large amounts, we must have sharply higher silver prices. My solution will help create a true free market price for silver.
The solution is simple, just follow Codelco's lead. Producers, like CDE, HL and PAAS, should withhold one quarter's worth of silver production from the market. Resource companies like Apex Silver, and others flush with cash, should buy the equivalent of one quarter's anticipated production. This production should be withheld until the COMEX silver short position is in line with the short position of all other traded commodities.
To be fair, similar solutions have been suggested before by others. For instance, Jason Hommel made a recent suggestion that the silver miners should invest all, or most, of their corporate cash in real silver. This was too radical an idea for the miners, although it should be pointed out that had they followed his suggestion, immense profits would have resulted. And since then, the silver companies have raised staggering amounts of new corporate cash.
My solution is not radical and it's easy to do. We're not talking a lot of money, because silver's so cheap. In fact, some silver companies could decide to withhold more than one quarter's production. More importantly, for the first time in decades, the silver mining companies are actually able to do it. That's because they are flush with cash because of a flood of recent share offerings (common stock and convertible debentures). Withholding a quarter's worth of silver production would be a piece of cake financially. It would also be a tremendous service and reward to their shareholders, the real owners of the companies. And please consider, in this age of ultra-low cost money, there is little real damage in the loss of 1% short term interest returns.
Let me give you some examples of just how affordable this would be for the silver companies. CDE (Coeur d'Alene Mining Corp.) has over $250 million in the corporate till, and would only be temporarily denied the revenue of one-tenth of that amount, or $25 million, to hold one quarter's worth of silver production off the market. Apex Silver, currently a non-producer, now has more than $400 million in cash, and would only need ten percent of that amount to buy 6 million ounces of real silver, one quarter of their often-announced projected production.
Why should silver companies withhold or buy one quarter's worth of silver production? Let me count the ways. For one thing, it can't hurt them much financially and may help them significantly. At worst, if silver prices decline from here, the loss they would have on the withheld/purchased silver would be minimal. It still remains, dimes to the downside, dollars to the upside. Even after the recent two dollars plus to the upside, it is still dimes to the downside, in my opinion. Besides, even if silver does move dimes to the downside temporarily, the loss on the withheld or purchased silver will be peanuts compared to the potential loss of market cap to shareholders from a falling silver price. Remember, it is the price of silver that will determine the long-term viability of the silver companies.
The potential rewards, on the other hand, are decidedly not negligible. Just like Codelco did in copper, silver companies could see double or triple gains on this inventory. There's tiny risk to the downside, giant potential to the upside. Every silver company public shareholder expects higher silver prices, otherwise he wouldn't be a shareholder. These shareholders will be ecstatic if a small amount of the companies' cash were used for a real silver investment. Especially when they realize why withholding production is such a good idea.
Public shareholders of silver companies, as the real owners, sometimes have different interests than do management. For instance, CDE recently trumpeted the extraction of the 100 millionth ounce of silver from its prolific Rochester, NV, mine, over its near 20 year history. What they didn't announce was how the shareholders benefited. I doubt if many, or any, of those ounces were produced at a profit. All shareholders had to show for the 100 million ounces was a big hole in the ground (and admittedly, the cash flow that may have kept the company alive). If we are moving into an era of sharply higher silver prices, the 100 million ounces, in retrospect, would surely have returned a lot more in the future. Holding back some production now, in anticipation of those future higher prices, would go a long way towards rewarding shareholders for the past dissipation of a finite resource.
Perhaps the best reason for the silver companies (as well as the byproduct silver producers), to withhold production is the favorable effect it can have on price. Let's face it - the silver miners have been tied to the whipping post by the naked shorts. They have not lifted a finger to defend themselves from the more-obvious-by-the-day silver manipulation. Incredibly, most silver company management still deny the existence, or even the possibility of the silver manipulation. Here, they are badly out of step with the vast majority of their public shareholders. (By the way, my definition of public shareholders are those who paid for their shares with hard-earned money, and were not given their shares and options for performance regardless of performance.)
The naked shorts on the COMEX have engineered the theft of the miners' real silver at uneconomic prices for 20 years. Mine management have rewarded themselves while shareholders have not seen a penny's worth of dividends. While share prices are sharply higher, due to anticipated higher silver prices, shareholders are weary of the silver price being manipulated. For mine management to stand up for themselves and their shareholders and refuse to further donate scarce product would fill shareholders with joy. If management doesn't believe that, let them ask their shareholders. Or better yet, as a shareholder, don't wait until you are asked - tell management now just how you feel about them holding ten percent of your companies' cash in real silver. The companies who do decide to withhold or purchase one quarter's production should make sure it's real silver in their possession, or registered COMEX warehouse receipts.
The timing is right for the miners to act, as the COMEX naked short position has grown more extreme and manipulative. The COT report, for positions held as of March 3, shows the total commercial net short position has grown to a new record of over 488 million ounces (futures plus call options), with the 8 or less largest traders net short almost 325 million ounces. Sometimes, I hear people say that when I use the gross short position on the COMEX (currently around 900 million ounces) that figure contains spreads and arbitrages and may not be a pure short. That's why I use the net short position figure.
Incredibly, the net short position in COMEX silver has grown so large and manipulative, that even on a net basis, this short position is almost as large as total world annual production, in addition to being ten times larger than annual US mine production, as well as more than 3 times larger than known world inventories. No other commodity has such a net short position.
With such a brazen and uneconomic massive short position, dealer engineered sell-offs can't be ruled out, although this monster short could just as easily blow up in the dealers' face. Holding tight is the order of the day. It is becoming increasingly clear that the manipulative short position is running smack into a tightening wholesale physical market. Even though the dealers added 30 million net paper ounces short in the latest reporting week, the real physical silver story is very different. I've been told that the Central Fund of Canada still hasn't received the last million to million and a half ounces of the 5 million they purchased four months ago. Further, they were told it may take months longer. Huh? Does that sound like the kind of news to make someone aggressively short silver to the tune of tens and many hundreds of millions of paper ounces? And if recent rumors are true (they come from reliable sources) of a Canadian individual buying 8 million ounces for delivery, you have to wonder where the real silver will come from. The simple fact is that without the massive naked short position on the COMEX, the price of silver would be sharply higher. This is so basic, I hesitate to point it out. Yet, so many, like mining company management, pretend not to make the connection. Please take the time to pass on my suggestion to the mining companies.
Lately, I've noticed a curious trend developing in the establishment silver research and analytical community. More analysts are commenting on the COT position on silver, and are commenting on the absolutely huge size of the total commitment, but instead of focussing on the obvious, namely the uneconomic short side of that position, they are talking only about the long side. I don't know whether to find this humorous or disingenuous. While it's true that the tech funds who currently populate the long side of COMEX silver are subject to sell at certain price points that can cause a temporary price decline, what the establishment analysts seem desperate to avoid is the basic difference between a long and a short.
Buying something, anything, or going long, is a very natural and everyday occurrence for just about everyone on the face of the earth. Selling short anything, that is, selling something that you don't own, but you sell anyway, is a very unique transaction. Most people in world will never do it in their lifetime. I know selling short is an integral aspect of commodity futures trading, but when an extraordinary level of both buying (longs) and selling short exists to the point where more is bought and sold short of a commodity than exists in the world, looking only at the long side is nuts. A twelve year-old should be able to tell you the short side is the problem. All longs have to do is write out a check to take delivery if they so choose. Shorts may have to scrape up material that doesn't exist, a distinctly more difficult exercise. And on top of everything else, you must remember that the longs are basically many in number and unrelated, while the naked shorts are a concentrated few who seem to read off the same play book. Which side do you think should be looked at?
I know many are concerned with the lack of action or response, so far, from the CFTC, NYMEX/COMEX, and NY Attorney General Eliot Spitzer, and I have been urged to take further action. I understand the frustration that many feel (I feel it too) about the lack of regulatory action to what is, in essence, a crime in progress. Here's my perspective. First, be sure to distinguish between the three. The CFTC and the NYMEX are the regulators of record here and their track record in the long term is deplorable. Even though preventing manipulation is their number one responsibility, they have basically looked the other way for the entire life of the manipulation. Eliot Spitzer is not the principal regulator in COMEX silver matters. He is the last resort. In addition, Spitzer's record is spotless when it comes to representing the public's interest. Unlike the other two. Spitzer has accomplished much in silver already. I believe his awareness of the problem will prevent a delivery default and arbitrary rule changes, designed to punish legitimate COMEX silver longs.
I would ask you to look at a chart on silver, and plot the price change since Eliot Spitzer had been notified of the COMEX silver manipulation (end of September). If you feel it's just a coincidence that the price appears to have broken its decades' long manipulative pattern, and that Spitzer has been doing nothing, I would suggest you think about it some more. In addition, I have recently uncovered what I feel is new uncontrovertible evidence that proves that the large concentrated commercial shorts, most probably AIG, have manipulated the price of silver. I'll have more in a future commentary.
-- Posted 16 March, 2004
silver takes series of big punches from shorts, but comes back swinging in the later rounds to close at 7.03. if this is the best that the the shorts can deliver (pun intended), then who should we fear? well see monday morning of course, we arent out of the march contract yet, but we got our first weekly close over 7$ in a looooooooooong time.
hi ho hi ho
its off to work we go
jon
thanks for posting the GATA thing - and YES! this is BIG news! it cannot be maintained any longer (if it could have in the past) that the public no longer trusts them and that they have not been notified of the silver manipulation. the fire under their seats might have changed things for the better if you are a silver (or gold) investor.
as for whether im bullish or not, my prediction for 50 oz silver is in early 2006 - not the final high for the bull market run. remember at POS 50$US there will be a LOT of mining companies searching for silver and those that produce it will be marked to market a lot more than now - try 20 times or more. (wow!- do i hear greed sneaking up behind me?)
here's puplava from aforementioned link:
"A second factor that will influence this new bull market in the precious metals is that supply is far more limited at a time that markets are far more integrated and larger in scope and size. This means that demand factors could send prices to levels never seen or dreamed before. Silver prices above $150 an ounce and gold prices of $3,000-$5,000 are not out of line. This may seem unrealistic to many, but I strongly believe that this is where we are headed. Silver stockpiles are dwindling each year. The U.S. government's stockpile of 2 billion ounces is gone. Dealer inventories are minimal and it is getting harder and harder to acquire or take delivery on large orders of silver."
let me just say this: i think puplava is not as bullish as me - here is why - IF he is right about 3g-5g for gold (lets take 4g's as his prediction) then i think that silver will hit 400$US/ounce. i believe that silver will once again trade in a 10/1 ratio - its natural ratio in the earth (i believe). but im not as bullish as hommell - he thinks the ratio will be 1/1 - i think he is dreamin - at 1/1 ill trade my silver for gold - wouldnt you? wouldnt everybody else? ill start trading my silver for gold at 5/1 - and i think there are a lot like me - so this factor will limit the upside (downside) ratio of silver to gold.
i do think we will see 3000$ gold - because russell thinks so (gold to dow 1/1 at 3000) and i value his judgement over most other people
hi ho hi ho
its off to work we go
jon
ps POS hit 7.202 before the open in the NY crimex
well OK, i exagerate sometimes. can i help it if silver over 7$US will make others - even those that are bearish - to buy some silver and silver shares? will that not profit me? should i not be excited about this? wellllllll, anyway, remember when silver broke five then it was tested (severely) and finally it held as a floor, then six was the floor, now seven is the floor? well MAYBE this is a breakout, only time will tell! after all its only 2% above resistance at 7.15 NY crimex close
gotta go
jon
silver out of the chute like a rocket this morning - now at 7.02 $US - 9:45AM EST.
hi ho hi ho
its too the moon we go
jon
dunno really, but it might be because the market is beginning to realize the economics of the thing. lets see: 1.8 million ounces a year at 3.50 cash cost - 7$ silver yields 3.50/ounce profit gives 6.3 million$US profit each year (8.4million$C). market cap of 18 million $C. this is a 2.14 price earnings ratio. and IF SILVER MOVES UP this only gets better. in addition they hired the mexican field manager from PAAS - a really top guy imho. they are looking for other acquisitions - the deal really could get better from here too. more projects means shared costs - at least administrative and managerial that is.
remember that puplava, murphy and king were all predicting 30$ silver by end of 2005 - what do the economics look like then? even with 5$ cash costs we have 25$US/ounce profit - or 45million $US/year - the company should be worth at least a pe of 5-10 so 225 -450 $US market cap - and i expect that the $C=$US by end of 2005 so we could have a 25 banger from here.
dunno myself, but thats why i bought it
hi ho hi ho
its off to work we go
jon
"I'm insanely bearish on precious metals".... so what do you like? i like oil and gas too, but i think it is a matter of timing. isnt everything? as i see it (valutrader taught me always to have a plan and revise it constantly) the scenario is as follows: silver to bust up during april as the may delivery becomes increasingly unlikely. after silver melts up and gold follows (ive been saying that for 5 years now). the investment community can no longer ignore the pms and institutional money comes pouring into the sector. the next phase of the pm bull begins, but as silver gets to the overhead resistance of 50 (and gold to 850), supply pours into the market (india in the case of silver) and the metals and mining stocks take a big hit. as i see it this top is in the late winter 2006 and the correction begins in the spring of 2006. silver corrects to fibonacci support with a retracement of 33%-50% (50-5=45) or 27.50$ to 35.00$. the stocks take an even bigger hit - how big, i wont even begin to guess. my plan is to take profits in early 2006 and reinvest at least 1/2-2/3 of the money in other sectors - oil and gas being the prime candidates.
i think that when the third phase begins the public will rush aboard - probably sometime between 2008-2010. the parabolic action will really be intense then! but many countries (usa among them) will nationalize the mines to protect their currencies among other motives (greed, nationalism) this will cause panic in the mining stocks - you wont want to have a bunch of them towards the middle to end of the third phase. this will probably occur around 2011-2013. nine years is not really that far away!
hi ho hi ho
its off to work we go
jon
(so why am i sitting here at my computer?)
what are they gonna do? send over the internet police and arrest me? ha! ive done very well with my silvers - ive been in them all (except some of the newer juniors) at some time or another - except SIL - never owned a single share. lost big time on SSC - that was a long time ago - so i guess i paid my dues. i remember last year at the montreal investment conference - everybody asked whadya like? (meaning gold, diamonds, PGMs, base metals etc) when i said silver they either sniffed or outright laughed. now who is laughing? you aint seen nothin yet in siver! - the fun is just beginning! - didnt puplava's site say that the chinese had just about locked up 2005 production? ha! where's the crimex gonna get silver to deliver? rumors say that the european funds are gonna take delivery in may - sell in may and then go away? not this year!
hi ho hi ho
its off to work we go
jon
i like KGI a lot too, i just dont know what to sell to buy it. i also like that they have so much property in canadas silver valley - thats gotta be a plus too! NPG has really impressed me too - the management has started two companies, bema and eldorado - both hotshots. i got a lot at .50 and averaged up at .80. if this amador hits then watch out - the sky is the limit! the downside is protected by their purchasing of mines that they plan on managing for better returns - as well as other elephant gold exploration properties.
hi ho hi ho
its off to work we go
jon
ive got no problem with differences of opinion - play the long or the short side - i couldnt care unless you do it with my portfolio! seriously tho, what do you guys think about silver? (sorry if youve discussed this - i just found this board i havent been lurking)
isnt anybody excited about this? appears that most people, even on some SI silver boards are ho hum.
on financial sence they were predicting 30$US silver by end of 2005. take FR.v for example. 1.8million ounce/year. 10 million shares for 1.80$C. costs of 3.50$US/ounce - lets say that they rise to 5$US/ounce by end of 2005. thats 25$US/ounce profit * 1.8million ounces = 45 million$US profit/year * 10 times earnings gives us a company value of 450 million$US - currently at 18million$C. i am assuming that the $C=$US by end of 2005, and if so then thats a 25bagger from here.
hi ho hi ho
its off to work we go
jon
WOW! a chat board that i can really use! ive been lurking on SD, SDII, precious and base metal investing, ride the tiger and others, no i can post! anyway, ive been long on silver now for about 5years, i have PAA.wt, TM, FR, FSR, NPG, GNG, MMG,and SPM as well as AGI for 25% gold/75%silver - 100%pms. (is NPG a gold or a silver - well i guess drilling will tell no?). anyway, i think that the best returns will be seen in those companies that will soon start production - TM, FR, NPG, AGI and SPM. ive been tempted to sell the PAA.wt several times then they get a real rocket shot so i just keep them - i figure from here they are 2xthe %increase in PAA. i just know that as soon as i sell GNG they will explode so i hang on.
hi ho hi ho
its off to work we go
jon
ps the twelve dwarfs were miners. i only have 8, plus PAA. hmmmmmmmmm
no one has mentioned FR.v: how about that spike yesterday on no news? whats up? is it jason hommel on silver juniors with cash flow? btw congrats on MGM - good call!
hi ho hi ho
its off to work we go
jon
whats wrong with a low budget company? thats how i run my business. if i didnt watch my pennies, i wouldnt be here chatting on this internet board, watching silver rocket up (couldnt resist the illustion) but rather fighting traffic in some ol commute to some ol grind to pay some ol bills no?
remember its NOT
i owe i owe
its off to work i go
but rather lets focus on who runs this FIX company? what are their reputations? what is their experience? i dont want to buy moose poop in moose pasture do you? unless it has mucho oro (plata) under it as well. the safest and best bets are made with those that have experience and a GOOD track record. remember sinclair says that all the scam artists of the '96 juniors boom are back in business scamming somebody. i dont want it to be me. as far as im concerned in real estate its location location location in mining exploration its not people, property and phinancing but rather people, people, people - good people will find good property and phinancing. no?
hi ho hi ho
its off to work we go
jon
here is a message from SI Silver prices:
To:jim watson who started this subject
From: The Vet Friday, Feb 27, 2004 7:53 PM
Respond to of 6629
Are the shorts on COMEX just a little too short?
At the close today Mar OI was 7747 contracts of which 1933 (9.665 m oz) have asked for delivery.... so far...
COMEX has 53 million ounces registered and 70 million ounces eligible...
IF, all of the 7747 open March contracts demanded delivery of silver that's a cool 38.735 million ounces out of the registered category... Doesn't leave much for May does it?
..............................................................
my critique is first that according to dave morgan (silver-investor.com), open interest refers to both longs and shorts - so the total that could demand delivery in march is about 19 million ounces - still a large problem for the shorts - given that the crimex had difficulty with CEF's 5 million ounce delivery.
secondly i think that dave morgan would have reported that 1933 contracts are demanding delivery - i would suspect that he would have access to this data no? or at least would know how to correctly interpret it, but does this writer? he got the open interest wrong no?
finally bill murphy of GATA says that he knows FOR SURE that a large european investor (or fund) intends to take delivery of a LOT of silver in may. this could get real interesting real fast.
silverbullets bust goldenchains
jon
i called tumi TM.v yesterday and found out that there has been a large seller dumping his shares on the market. the company found out who he was and called him to let him know that the company has a buyer that will take all his shares in one purchase - so we should see this price weakness stop come monday, if the price of silver will cooperate. thats why tumi went down when other silvers rise.
anyone going to the pdac?
hi ho hi ho
its off to work we go
jon
there have been numerous rumors regarding little availability of physical silver on the world markets lately. the limit up on numerous silver future contracts last wednesday nite on the tocom is more evidence that is just what might be taking place. dont know about george soros but there are also rumors of large european and asian investors/speculators looking to take delivery of comex silver and buy whatever physical silver is available in large quantities. rumors also have it that a large silver company (apex?) is seeking to contract for the purchase of physical bullion from silver producers. this would certainly see a surge of the silver price and hence economic viability of the SIL silver hoard. i just wonder why they havent thought of it before now? i have been predicting for years (yahoo SSRI and SSC boards) that the silver bullet would burst the golden chains. is now the time? dunno, but it could be.
hi ho hi ho
its off to work we go
jon
ps i found out the 12 dwarfs were diamond miners - at least in the version that i saw.
great to hear that you like silver too! i am also a gold investor - i really like AGI.v - 30% of my portfolio. they will soon have an AMEX listing and will become a producer in 1st half 2005. has anyone checked them out lately? they have a board here on ihub with lots of good information.
hi ho hi ho
its off to work we go
jon
From the AGI board:
For further information on Zihlmann, see his web site at www.pzim.com. Anyways, he suggests the updated feasibility study, which should be ready in the next 5 weeks, will incorporate the information gained from the recently completed undergroud drilling (re: more extensive oxidation within the Mulatos deposit). (IMO it will really add to the resources and the overall life of the mine). Further, he states that AGI is reasonably priced at current prices, especially in light of fewer than 60 million shares o/s. Also, he reminds us that AGI has been consolidating the SHARP ADVANCE from $ 1 - $ 3, which occurred during Jul - Nov 03. He concluded that a breakout ABOVE $ 3 is imminent and the next step TOWARDS $ 5, is in the making.
He is the 2nd analyst to reach this conclusion ($ 5 target) in the past 2 weeks (McFarlane Gordon was the 1st).
Nevada Pacific Welcomes Michael Beley to the Board of Directors
Tuesday, February 24
--------------------------------------------------------------------------------
Nevada Pacific Gold Ltd. (CDNX Symbol NPG) is pleased to announce that Mr. Michael J. Beley B.Sc. has agreed to serve as a director of the Company. Mr. Beley has more than 35 years experience in the mining industry. He has been involved in all aspects of management, exploration, development and mining and his experience will greatly assist in the growth of Nevada Pacific Gold Ltd.
Mr. Beley is a past president of the British Columbia & Yukon Chamber of Mines and is also a director of Energold Mining Ltd. Since 2001 he has been involved as a founder, Director and VP Corporate Development with Polaris Minerals Corporation, an industrial minerals group.
His career began in British Columbia as a geologist with Phelps Dodge and in the early 1970's assumed the management of Manex Mining Ltd., a Smither's based mining and exploration Service Company. In 1976 he, together with Richard Barclay, co-founded Bema Industries Ltd., a private exploration and consulting firm serving as Bema's first President. Mr. Beley was also involved in co-founding Bema Gold Corporation and it's predecessor companies serving as a Director and Vice President until 1992.
Together with several of Nevada Pacific's Board members, Mr. Beley co-founded Eldorado Gold Corporation. He served as Director and Executive Vice President of Corporate Development from 1991 to 1998. He was involved in implementing the strategic plan that spearheaded Eldorado's growth, which during this period became an international, intermediate-sized gold organization with operations in the Americas and Europe.
" I and my fellow Directors welcome Michael Beley to the Nevada Pacific Gold's Board of Directors. During Michael's tenure with Eldorado and Bema, many of his fellow Directors had the pleasure of working alongside him in many capacities. We are pleased he will be joining our Board of Directors as together we will have the opportunity to once again, develop a substantial mining organization," commented Rick Barclay, CEO and Director.
The Board of Nevada Pacific Gold would also like to report that Mr. Ed Flood has resigned as a director of the Company in order to pursue other interests. The Board would like to thank Mr. Flood for his many contributions on behalf of the Company during this two year term and wish him health, happiness and success in his future endeavours.
analysis out on NPG.v
http://www.nevadapacificgold.com/i/pdf/NPG_GNL_2_042.pdf
i couldnt copy the report because its a pdf - does anybody know how?
here is an interview with NPG president Hottman:
SOURCE: COMPANY IN PROFILE
INTERVIEWEE: DAVID HOTTMAN, Chairman and Co-founder
COMPANY: Nevada Pacific Gold Ltd.
REFERENCE: Canada's Business Report
LENGTH: 05:05 min.
DATE: February 19, 2004
INTRO: Going straight to the top for some straight talk, this is Company in Profile on Canada's Business Report.
GRAHAM: Our Company in Profile for this edition of Canada's Business Report is Vancouver headquartered Nevada Pacific Gold Limited. It's a timely check on Nevada Pacific Gold because earlier this month they concluded a deal that takes the company beyond the bounds of exploration activity and into the business of actual mining. To talk about this and other developments we're joined by David Hottman; he's Chairman and Co-founder Nevada Pacific Gold.
Mr. Hottman, welcome to the program.
HOTTMAN: Well, thank you for having me on Mr. Graham.
GRAHAM: Tell us about this deal with Queen Stake Resources in Mexico, what have you bought down there?
HOTTMAN: Well Rob, we've bought a producing gold mine called the Majestral mine, and we're quite excited about the exploration potential at the mine site. However, we do produce gold and silver bars every week now, which is a big change for our company, and we've got about an eight-year mine life in front of us right now prior to expanding of the resources. So, it's quite an exciting development for the company, and it's a fairly low cost producer as well, costing us only about 250 dollars an ounce, US dollars, to produce an ounce of gold, and it's trading at well over 400 dollars, as you know.
GRAHAM: And, I understand that the company is eyeballing perhaps a similar acquisition in California. You're also looking at buying a working mine there, is that correct?
HOTTMAN: Yes, we're looking at another acquisition. We are in the due diligence stage right now of that acquisition, and so we'll have to wait and see how that transpires, but we're certainly not afraid of mining. We actually love cash flow, just like everybody does in this world. We like to make money every single week.
GRAHAM: Yeah. What can you tell us about this pending deal in California, keeping in mind that I know that you are perhaps are limited as to what you can say, but is this going to be an underground mine, open pit mine, and how big of a producer will you become?
HOTTMAN: Well actually, that's a very good point. I forgot to address that. They're both open pit style mines, however the exploration potential on both of them, or both of them do have gold mineralization that is higher grade, and would be extracted with underground mining methods, so, and that's part of where the expansion potential could be for both of these assets.
GRAHAM: Why have you taken the company from being an exploration firm to also being a gold company that is a producer, a miner, explain the strategy?
HOTTMAN: Well, the strategy here is that we have to sell a small amount of the company every time we go to the market to raise money to continue to explore, and with the cash flow now it is generated internally, so we have less dilution of our shareholders' interest. And secondarily, the, the real wealth is created in the mining business in exploration. If you have a, kind of a spectrum so to speak that on one end is exploitation of minerals that have been found, it's not necessarily boring, but it's certainly not going to create a lot of wealth. On the other end of the spectrum is a little bit riskier, and that's the exploration side, where a million dollar expenditure could be worth a billion dollars of material in the ground.
GRAHAM: Right. So, right now you've got a steady stream of revenue coming in the door, and that will fund your exploration activities elsewhere in Nevada where you've got a holding of properties. You don't have to go to the market any more then?
HOTTMAN: That's correct. We always, in this business you always need money. We probably would never have to, or wouldn't need to; you never can tell. When somebody offers you money, I think in any business, the best thing to do is just to take it, and so I can't guarantee that we won't go to the market, but this certainly, this cash flow that we're generating now is starting to pick up steam, and will be quite substantial throughout the year.
GRAHAM: Okay, we've got about thirty seconds left, very, very quick comment on your property in Nevada and how high will gold go?
HOTTMAN: The property in, the properties in Nevada consist of about seventy square miles. We're actually; we have one joint venture with Placerdome at the moment. We have had joint ventures with Newmont and others. We are going to be drilling five of these projects this year. It's going to be a very exciting year, and I think we're, we'll see the price of gold over the next couple of years in the 5 to 700 dollar range, and that's not lunatic stuff, it's just pendulum swing hard, and we saw it quite low in the last few years.
GRAHAM: Okay, Mr. Hottman, we'll have to leave it there. We have run out of time, but thanks very much for speaking with us.
HOTTMAN: You have a great day Mr. Graham.
GRAHAM: Okay, thank you very much. That is David Hottman, the President and Chief Executive Officer and Co-founder of Nevada Pacific Gold Limited. Nevada Pacific Gold's stock trades on the TSX Venture Exchange. The ticker symbol "NPG".
well, i just bought some more FR.v on this last dip (already in the money gg) so i guess ill put my mouth where my money is - ill pick FR.v. dunno the contest rules, but hey, what the diff? gonna see a short squeeze possibly within 60 days - rumors have it that large longs are going to demand delivery of plata from the crimex on the may contract. perhaps some small longs will demand delivery on the march contract. getcha plata mexicana ahora amigos, just like i did yesterday. shares are nice, but the real stuff, now thats something else.
hi ho hi ho
its off to work we go
jon
well i guess not! here is Ted Butler:
February 23, 2004
While I have mixed feelings on the Martha Stewart trial
(should charges have been brought in the first place?),
the government's case is centered on the principle that
lying in an investigation obstructs justice. That's an
important point in the legal process. It's probable that
the government has selected such a celebrity to try to
send a strong signal to those who may be tempted to
lie in future investigations.
It is important that no one obstructs the path to truth
and justice in any investigation. But it should work
both ways and apply to the government as well. In fact,
the government should probably be held to a higher
standard. After all, most senior officials in the
government swear an oath of office to upholding the
Constitution and truth and justice.
I believe that the Commodity Futures Trading
Commission (CFTC) is obstructing justice in its
regulation of the COMEX silver market. I don't know if
the CFTC's obstruction is based upon malfeasance
or incompetence. But that doesn't really matter. The
commission is guilty of obstruction. This is a strong
allegation, and it is one I do not make lightly.
The CFTC is openly shirking its responsibility of
preventing market manipulation in the silver market.
This is the primary reason why the CFTC and U.S.
commodity law exist. Every other responsibility is
secondary. Therefore, it is incumbent upon the CFTC
to be alert should they receive credible allegations of
a market manipulation. That is not happening, and it
is why I say that the CFTC is obstructing justice.
I have no doubt that the silver market is manipulated.
Every day more people agree. Manipulation is the No. 1
crime in any market, and preventing it is the chief
responsibility of our regulatory structure. The silver
manipulation is proved by the law of supply and
demand, which dictates that the price of a commodity
must rise if consumption is greater than production.
Silver "leasing" and the largest uneconomic naked
short position in history are manifestations of the
manipulation, as is the depressed and controlled
price for two decades.
The CFTC (and the self-regulators at the
NYMEX/COMEX) are obstructing justice by avoiding
an open and public "trial" of the silver manipulation.
Maybe they have good answers to the simple questions
I have asked them. Maybe they have good reasons for
not adopting the solutions I have offered. But their
refusal even to discuss these substantive issues is not
comforting.
What would happen to Martha Stewart or any defendant
if no defense to government accusations was offered?
What would happen if subpoenas and trial dates were
ignored? Then why should a government, of, by, and for
the people be allowed to simply ignore and evade what
is clearly a public mandate? What happens if the public
presses the government to redress an obvious wrong
and the government refuses? What if great numbers of
concerned citizens demand the government to enforce
the law and the government looks the other way? Where
does the majority turn to seek an open and impartial
setting to judge whether their concerns are legitimate?
There are close to 3,000 names on the silver petition,
in addition to countless letters sent to the regulators
seeking a resolution of the silver manipulation. I have
not seen one comment, from anyone, suggesting that
the regulators should not address the issue. It's as if
the CFTC and the COMEX are trying to undermine
public confidence in the integrity of the silver market.
Refusing to respond quickly to legitimate questions
about obvious problems, accompanied by fair
solutions, asked by thousands of regular investors
will not foster integrity.
I would like to put something into perspective here. I
know hundreds of you have taken the time and effort
recently to write to the regulators about this matter,
and I know thousands of you have put your name and
comments on the petition. For that I thank you. What
you have done is to accelerate the timetable on what
is a certain and inevitable outcome -- the termination
of the silver manipulation. I believe we are reaching
critical mass.
When I initiated my campaign to end the silver
manipulation in 1985, it basically consisted of writing
to the CFTC and COMEX (directly and through elected
officials) concerning the outsized dealer short position.
I'd mail a letter, get an unresponsive reply a month or
two later, write back advising why the answer was
unresponsive, and initiate a new series of complaints
as new evidence arose. This went on for 12 years, as
did the silver manipulation. It was basically between
them and me, and they disregarded me. There was
nothing I could do about it except start all over again.
Around 1996-97, I was introduced to the Internet and
began to record my thoughts there. I still wrote to the
authorities, and the silver manipulation continued, but
others started to see what I was seeing. Others began
to speak out about the manipulation in silver. People
started to become outraged over the manipulation. I
think this makes all the difference in the world.
Regulators and government officials seem to react
only when enough folks get angry. Precisely because
so many regular people seem to be upset by this issue,
I believe the regulators will be forced to act soon. If
they don't, they will be swept up with the real
manipulators when this thing blows.
The key issue here is the excessive short position by
the dealers on the COMEX. It has been instrumental in
the 20-year silver manipulation.
Let me be clear -- without the uneconomic and outsized
naked dealer short position, the silver price would be
many times what it is. Take away that dealer naked
short position and there is no more silver manipulation.
This is a problem for the dealers -- they can't get out of
their short position. Sure, they can engineer selloffs to
cause technical fund and small speculator liquidations
(like what we've been witnessing), but they can't
completely cover their entire short position. That's
because there is no one willing to take their place on
the short side.
The dealers are stuck. They can't just cover or buy back
their shorts because that would cause the price to explode
and expose them to massive losses and a legal quagmire.
Since they can't cover, their short position remains intact,
as does the manipulation.
But time is not on the side of the dealers. The clock is
ticking against them. That's because of the real
supply/demand situation and the deficit. Sooner or later
their uneconomic short position will consume them. That's
guaranteed by the law of supply and demand.
In fact, there are two recent developments that promise to
put serious pressure on the manipulative shorts.
For one, we have recently evolved into pronounced deficits
and shortages for a good number of base metals, like copper,
nickel, lead, and steel, and a host of other commodities. The
deficits and shortages in all these commodities are as a
result of surging world demand, principally caused by strong
demand from East Asia. Prices are up sharply and inventories
are down sharply.
Like all these commodities, silver is demographically and
economically sensitive. As I've written before, if the world
economy is strongly demanding copper, lead, nickel, and
other commodities, it is impossible for silver not to also be
in strong demand. This is not good for the shorts.
The second recent development putting pressure on the
manipulative shorts is what I wrote in the body of this
article -- possible regulator involvement. Thousands of
regular investors are putting pressure on the regulators
to address their legitimate concerns.
This is a bonus particular to silver, and not any other
commodity. It has the potential to blow the market sky-high
by terminating the decades-old manipulation. In fact, I think
the regulators may be forced to give the silver issue a full
and fair trial.
That's all we want. If they can throw the book at Martha
Stewart, the government at least can look at the dealers'
silver books. Those dealers have caused a lot more
economic harm than Stewart ever did. And the CFTC has
obstructed justice a lot more as well.
latest Ted Butler
February 23, 2004
While I have mixed feelings on the Martha Stewart trial
(should charges have been brought in the first place?),
the government's case is centered on the principle that
lying in an investigation obstructs justice. That's an
important point in the legal process. It's probable that
the government has selected such a celebrity to try to
send a strong signal to those who may be tempted to
lie in future investigations.
It is important that no one obstructs the path to truth
and justice in any investigation. But it should work
both ways and apply to the government as well. In fact,
the government should probably be held to a higher
standard. After all, most senior officials in the
government swear an oath of office to upholding the
Constitution and truth and justice.
I believe that the Commodity Futures Trading
Commission (CFTC) is obstructing justice in its
regulation of the COMEX silver market. I don't know if
the CFTC's obstruction is based upon malfeasance
or incompetence. But that doesn't really matter. The
commission is guilty of obstruction. This is a strong
allegation, and it is one I do not make lightly.
The CFTC is openly shirking its responsibility of
preventing market manipulation in the silver market.
This is the primary reason why the CFTC and U.S.
commodity law exist. Every other responsibility is
secondary. Therefore, it is incumbent upon the CFTC
to be alert should they receive credible allegations of
a market manipulation. That is not happening, and it
is why I say that the CFTC is obstructing justice.
I have no doubt that the silver market is manipulated.
Every day more people agree. Manipulation is the No. 1
crime in any market, and preventing it is the chief
responsibility of our regulatory structure. The silver
manipulation is proved by the law of supply and
demand, which dictates that the price of a commodity
must rise if consumption is greater than production.
Silver "leasing" and the largest uneconomic naked
short position in history are manifestations of the
manipulation, as is the depressed and controlled
price for two decades.
The CFTC (and the self-regulators at the
NYMEX/COMEX) are obstructing justice by avoiding
an open and public "trial" of the silver manipulation.
Maybe they have good answers to the simple questions
I have asked them. Maybe they have good reasons for
not adopting the solutions I have offered. But their
refusal even to discuss these substantive issues is not
comforting.
What would happen to Martha Stewart or any defendant
if no defense to government accusations was offered?
What would happen if subpoenas and trial dates were
ignored? Then why should a government, of, by, and for
the people be allowed to simply ignore and evade what
is clearly a public mandate? What happens if the public
presses the government to redress an obvious wrong
and the government refuses? What if great numbers of
concerned citizens demand the government to enforce
the law and the government looks the other way? Where
does the majority turn to seek an open and impartial
setting to judge whether their concerns are legitimate?
There are close to 3,000 names on the silver petition,
in addition to countless letters sent to the regulators
seeking a resolution of the silver manipulation. I have
not seen one comment, from anyone, suggesting that
the regulators should not address the issue. It's as if
the CFTC and the COMEX are trying to undermine
public confidence in the integrity of the silver market.
Refusing to respond quickly to legitimate questions
about obvious problems, accompanied by fair
solutions, asked by thousands of regular investors
will not foster integrity.
I would like to put something into perspective here. I
know hundreds of you have taken the time and effort
recently to write to the regulators about this matter,
and I know thousands of you have put your name and
comments on the petition. For that I thank you. What
you have done is to accelerate the timetable on what
is a certain and inevitable outcome -- the termination
of the silver manipulation. I believe we are reaching
critical mass.
When I initiated my campaign to end the silver
manipulation in 1985, it basically consisted of writing
to the CFTC and COMEX (directly and through elected
officials) concerning the outsized dealer short position.
I'd mail a letter, get an unresponsive reply a month or
two later, write back advising why the answer was
unresponsive, and initiate a new series of complaints
as new evidence arose. This went on for 12 years, as
did the silver manipulation. It was basically between
them and me, and they disregarded me. There was
nothing I could do about it except start all over again.
Around 1996-97, I was introduced to the Internet and
began to record my thoughts there. I still wrote to the
authorities, and the silver manipulation continued, but
others started to see what I was seeing. Others began
to speak out about the manipulation in silver. People
started to become outraged over the manipulation. I
think this makes all the difference in the world.
Regulators and government officials seem to react
only when enough folks get angry. Precisely because
so many regular people seem to be upset by this issue,
I believe the regulators will be forced to act soon. If
they don't, they will be swept up with the real
manipulators when this thing blows.
The key issue here is the excessive short position by
the dealers on the COMEX. It has been instrumental in
the 20-year silver manipulation.
Let me be clear -- without the uneconomic and outsized
naked dealer short position, the silver price would be
many times what it is. Take away that dealer naked
short position and there is no more silver manipulation.
This is a problem for the dealers -- they can't get out of
their short position. Sure, they can engineer selloffs to
cause technical fund and small speculator liquidations
(like what we've been witnessing), but they can't
completely cover their entire short position. That's
because there is no one willing to take their place on
the short side.
The dealers are stuck. They can't just cover or buy back
their shorts because that would cause the price to explode
and expose them to massive losses and a legal quagmire.
Since they can't cover, their short position remains intact,
as does the manipulation.
But time is not on the side of the dealers. The clock is
ticking against them. That's because of the real
supply/demand situation and the deficit. Sooner or later
their uneconomic short position will consume them. That's
guaranteed by the law of supply and demand.
In fact, there are two recent developments that promise to
put serious pressure on the manipulative shorts.
For one, we have recently evolved into pronounced deficits
and shortages for a good number of base metals, like copper,
nickel, lead, and steel, and a host of other commodities. The
deficits and shortages in all these commodities are as a
result of surging world demand, principally caused by strong
demand from East Asia. Prices are up sharply and inventories
are down sharply.
Like all these commodities, silver is demographically and
economically sensitive. As I've written before, if the world
economy is strongly demanding copper, lead, nickel, and
other commodities, it is impossible for silver not to also be
in strong demand. This is not good for the shorts.
The second recent development putting pressure on the
manipulative shorts is what I wrote in the body of this
article -- possible regulator involvement. Thousands of
regular investors are putting pressure on the regulators
to address their legitimate concerns.
This is a bonus particular to silver, and not any other
commodity. It has the potential to blow the market sky-high
by terminating the decades-old manipulation. In fact, I think
the regulators may be forced to give the silver issue a full
and fair trial.
That's all we want. If they can throw the book at Martha
Stewart, the government at least can look at the dealers'
silver books. Those dealers have caused a lot more
economic harm than Stewart ever did. And the CFTC has
obstructed justice a lot more as well.
im very long AGI too, its my only real gold (NPG.v might be a silver yet no, with its amador canyon project?). hey i cant add, ive got 30% of portfolio in this puppy! good to hear that zihlmann likes this one so does embry. gotta get that AMEX listing and some advertizing - wouldnt hurt if someone would write it up for gold-eagle, 321gold or goldseek. the new feasibility study might get his one rockin. meanwhile, lets build the mine
hi ho hi ho
its off to work we go
jon
is SILVER banned from this board? dunno, but gata says bust silver first to bust gold - been saying that for years myself. heres bob chapman on silver (and gold):
GOLD, SILVER, PLATINUM AND PALLADIUM
In July 1992, the geniuses at the Australian Reserve Bank sold 167 tons of gold at $340 an ounce, reducing their holdings to 80 tons. At 3% interest, the $2.18 billion dollars would have earned $355 million. Had the RBA kept the reserves in gold the current valuation would be $2.19 billion, a return of $365 million. They lent the remaining 80 million tons so that is now long gone. They have not done all that badly the Brits sold theirs at $280.
Under US Commodity Law Section 6A, under excessive speculation it says, this section shall not apply to transactions made by, or on behalf of, or at the direction of, the United States, or a duly authorized agency thereof. There you have it readers, our government is free to control the silver market.
Total gold production in South Africa rose 5.8% in 2003 mainly due to an increase of 9.5% in the production of non-gold minerals.
Our sources continue to confirm a major shortage of silver. Silver coins are difficult to find in size. This is the tightest the physical market has been since 1980. Hold on to your hats silver owners.
Our "Live Free or Die" state, New Hampshire, has hatched the New Hampshire Sound Money Bill, presented to the House as HB 1342 by State Rep. Henry McElroy. The bill would enable citizens to transact with the State of New Hampshire in terms of US minted gold and silver coins. If citizens choose, they can continue to transact in Federal Reserve notes. If passed, citizens could transact business once again in gold and silver currency if they choose to and that currency would again circulate. A coin's value would be determined solely the weight of gold or silver in the coin. The Constitution says states may only use gold and silver coins, yet under the Federal Reserve Act, fiat Federal Reserve notes are now exclusively used by the states, which is being done in obvious contravention of the Constitution. Passage of this Bill would empower the people to force the state to deal in Constitutional money. If New Hampshire is successful, other states are sure to follow.
It is now becoming increasingly obvious that the losses in the silver market and the lack of physical silver to deliver against long delivery contracts are being guaranteed by the US government. We began accumulating silver coins and bullion in 1965 so we have some experience in the matter. We forecasted six years ago that above ground silver inventory would be gone by the end of 2003 and it is gone. Thus, we know there is no way the commercial shorts can deliver. This, next to the gold manipulation, could be the greatest financial fraud in history. The fraud is an official secret policy of the US government and has been in place for some time. As the largest stockbroker in gold and silver related assets from 1965 to 1989, we can say with great assurance that the game of fraud by our government will soon be over and they will be exposed for having been responsible for billions of dollars in losses by investors. This is simply because they now cannot make delivery. This fact could arise in March with contract delivery. We encourage everyone with contracts to take delivery, which will force an end to the game. Once the manipulation is exposed and contracts settled silver should jump to the $15.00 an ounce level. Not only will government have to deliver cash in lieu of silver, a major investigation will follow in Congress and by the SEC to include the brokerage cabal of J. P. Morgan Chase, Goldman Sachs, Citigroup, AIG, Deutsche Bank, etc. In addition, their cash cow will be dead. The exposure of the silver scam will break first. That will finally lead to exposure of the gold manipulation, which will bring down the US government. This will both appear in the context of a worldwide depression, which could bring anarchy to our country. That is why you should take delivery of precious metals and hide them and he prepared to defend them. Near the top, all paper positions should be sold and turned into physical positions. The silver and gold manipulations will be the greatest government scandal of all time. They will produce the greatest bull market in history. Americans will finally realize they have been naïve to have trusted their governments as their economy implodes. When the scandal is exposed, the US government will have to pay every contract in US Federal Reserve Note in cash. That cash will then enter the silver and gold markets compounding the price gains. If markets in gold and silver are closed, a black market will appear, we can assure you of that, and their prices will explode again. Citizens will begin to refuse to accept Federal Reserve Notes and only physical gold and silver coins will be the only currency for a short period of time. After that, a gold and silver-backed currency will appear and it may not be a currency sponsored by a government. Gold and silver will again be recognized as the only real money. Today's manipulation offers the investor a unique - once in a lifetime - investment opportunity. We are assured the government will fail. They have to fail. The physical silver does not exist. If most investors take delivery, the silver manipulation will be broken and defeated. The derivative Ponzi scheme will collapse. Yes, you will be paid off at higher prices with taxpayer funds, but so what. You just take the proceeds, reenter the market, and buy more silver. If there is no market, we can assure you there will be a black market. You just cannot lose. This is a lock and the moment of truth is fast approaching. Yes, the market is corrupt, but our government is totally corrupt. This is not a left or right or Republican or Democrat thing, it is an elitist thing. They control our politicians, markets, finance and economy. They are the culprits. They are the ones who we need to execute for their crimes against humanity, economic, financial, commercial and otherwise. They refuse to listen to reason, thus disaster will come to our system of government. That is just how powerful gold and silver is. Do not miss this opportunity of a lifetime. Silver and then gold are about to explode.
http://news.goldseek.com/InternationalForecaster/1077299136.php
hi ho hi ho
its off to work we go
heres bob chapman on silver: (mexico has a lot of silver no?)
GOLD, SILVER, PLATINUM AND PALLADIUM
In July 1992, the geniuses at the Australian Reserve Bank sold 167 tons of gold at $340 an ounce, reducing their holdings to 80 tons. At 3% interest, the $2.18 billion dollars would have earned $355 million. Had the RBA kept the reserves in gold the current valuation would be $2.19 billion, a return of $365 million. They lent the remaining 80 million tons so that is now long gone. They have not done all that badly the Brits sold theirs at $280.
Under US Commodity Law Section 6A, under excessive speculation it says, this section shall not apply to transactions made by, or on behalf of, or at the direction of, the United States, or a duly authorized agency thereof. There you have it readers, our government is free to control the silver market.
Total gold production in South Africa rose 5.8% in 2003 mainly due to an increase of 9.5% in the production of non-gold minerals.
Our sources continue to confirm a major shortage of silver. Silver coins are difficult to find in size. This is the tightest the physical market has been since 1980. Hold on to your hats silver owners.
Our "Live Free or Die" state, New Hampshire, has hatched the New Hampshire Sound Money Bill, presented to the House as HB 1342 by State Rep. Henry McElroy. The bill would enable citizens to transact with the State of New Hampshire in terms of US minted gold and silver coins. If citizens choose, they can continue to transact in Federal Reserve notes. If passed, citizens could transact business once again in gold and silver currency if they choose to and that currency would again circulate. A coin's value would be determined solely the weight of gold or silver in the coin. The Constitution says states may only use gold and silver coins, yet under the Federal Reserve Act, fiat Federal Reserve notes are now exclusively used by the states, which is being done in obvious contravention of the Constitution. Passage of this Bill would empower the people to force the state to deal in Constitutional money. If New Hampshire is successful, other states are sure to follow.
It is now becoming increasingly obvious that the losses in the silver market and the lack of physical silver to deliver against long delivery contracts are being guaranteed by the US government. We began accumulating silver coins and bullion in 1965 so we have some experience in the matter. We forecasted six years ago that above ground silver inventory would be gone by the end of 2003 and it is gone. Thus, we know there is no way the commercial shorts can deliver. This, next to the gold manipulation, could be the greatest financial fraud in history. The fraud is an official secret policy of the US government and has been in place for some time. As the largest stockbroker in gold and silver related assets from 1965 to 1989, we can say with great assurance that the game of fraud by our government will soon be over and they will be exposed for having been responsible for billions of dollars in losses by investors. This is simply because they now cannot make delivery. This fact could arise in March with contract delivery. We encourage everyone with contracts to take delivery, which will force an end to the game. Once the manipulation is exposed and contracts settled silver should jump to the $15.00 an ounce level. Not only will government have to deliver cash in lieu of silver, a major investigation will follow in Congress and by the SEC to include the brokerage cabal of J. P. Morgan Chase, Goldman Sachs, Citigroup, AIG, Deutsche Bank, etc. In addition, their cash cow will be dead. The exposure of the silver scam will break first. That will finally lead to exposure of the gold manipulation, which will bring down the US government. This will both appear in the context of a worldwide depression, which could bring anarchy to our country. That is why you should take delivery of precious metals and hide them and he prepared to defend them. Near the top, all paper positions should be sold and turned into physical positions. The silver and gold manipulations will be the greatest government scandal of all time. They will produce the greatest bull market in history. Americans will finally realize they have been naïve to have trusted their governments as their economy implodes. When the scandal is exposed, the US government will have to pay every contract in US Federal Reserve Note in cash. That cash will then enter the silver and gold markets compounding the price gains. If markets in gold and silver are closed, a black market will appear, we can assure you of that, and their prices will explode again. Citizens will begin to refuse to accept Federal Reserve Notes and only physical gold and silver coins will be the only currency for a short period of time. After that, a gold and silver-backed currency will appear and it may not be a currency sponsored by a government. Gold and silver will again be recognized as the only real money. Today's manipulation offers the investor a unique - once in a lifetime - investment opportunity. We are assured the government will fail. They have to fail. The physical silver does not exist. If most investors take delivery, the silver manipulation will be broken and defeated. The derivative Ponzi scheme will collapse. Yes, you will be paid off at higher prices with taxpayer funds, but so what. You just take the proceeds, reenter the market, and buy more silver. If there is no market, we can assure you there will be a black market. You just cannot lose. This is a lock and the moment of truth is fast approaching. Yes, the market is corrupt, but our government is totally corrupt. This is not a left or right or Republican or Democrat thing, it is an elitist thing. They control our politicians, markets, finance and economy. They are the culprits. They are the ones who we need to execute for their crimes against humanity, economic, financial, commercial and otherwise. They refuse to listen to reason, thus disaster will come to our system of government. That is just how powerful gold and silver is. Do not miss this opportunity of a lifetime. Silver and then gold are about to explode.
Last Friday the gold manipulators were out in force. They put heavy pressure on gold and silver shares for the third day in a row as well as the metals. As the dollar weakened taking out support, terrible consumer confidence numbers were released, followed by a horrible current account deficit bit gold and silver and the shares could not make any headway as J.P. Morgan Chase and Goldman hammered them. Never have there been such simultaneous assaults on gold and silver and the shares and at the same time manipulation of the dollar. This is the elitist mafia at their best. The good thing is they cannot keep it up forever. There is no question this is criminal fraud and we encourage you to write to the SEC, NASD, CFTC and NYC AG Eliot Spitzer. Do not let yourself and your fellow hard-money investors down. The elitists are stealing from you. A silver squeeze could be imminent on the March contract. Everyone that can should take delivery, especially because it is rumored that European and Chinese buyers intend to do so as well. The conspiracy will continue to perpetuate their illusion on the metals, our financial markets and the world economy, but in the end, they will lose and we will win.
http://news.goldseek.com/InternationalForecaster/1077299136.php
hi ho hi ho
its off to work we go
a little off topic but still relevant to mexican mining, not to mention amusing too - make sure you read the last line!
hi ho hi ho
its off to work we go!
jon
http://silverminers.com/
Wallace Street Journal
Whither the Price of Silver?
WALLACE, Idaho - Whither the price of silver? Nowhere is that question being asked with greater intensity than here in the Silver Valley, the silver capital of the world, home of the genuinely Sleepless and the greatest pile of silver on the planet.
Sitting on reserves that make Potosi and Comstock look like ma and pa operations - seriously, we've mined more than either and the old-timer geologists who really know this camp say there's at least as much still in the ground than we pulled out, another billion ounces or two - yeah, we're checking the price on an hourly basis.
Silver's vindication at $6, should it hold through the summer, sets the next level of genuinely serious resistance at $10, not $7 or $8. Should it bust $10 some time this year or next, its next stop will be $20, with not even a by-your-leave-sir at $15.
Being sleepless, we don't dare even dream of such great fortune, but that's how market psychologies seem to work. And the beauty is, we don't need it. At $6, all kinds of possibilities come alive. We've talked before about Sterling's aggressive exploration and acquisition activities in and around the Sunshine Mine. They just got a great write-up on Mineweb and when all this was in the planning stages a year ago, their quest was for $4.50 profitability. Anything above $4.50 is gravy. They've also added some great exploration and management people to their payroll.
Hecla and Coeur, so impoverished four years ago they were in danger of being kicked off the NYSE and down to the Pink Sheets when their stock prices fell under a buck and stayed there, will spend a combined $20 million or thereabouts on exploration and development at, respectively, the Lucky Friday and the Galena-Coeur complex here. We ain't had that kinda news since Jimmy Carter was president.
Let's start from the top down. Wallace Realtors Bob and Linda Davison report a mini land boom; houses that have stood vacant or at least unwanted for a decade are all of a sudden just flat gone. Commercial property in the historic districts of Wallace and Kellogg is trading at a huge premium, if you can find any of it. Why? Because folks have figured out that big things are about to happen underneath us, in these deep, rich mines.
The same can be said of the Silver Valley's silver-mining stocks. But there are still a few kittens out there standing to benefit from Coeur's, Hecla's and Sterling's exploration and development programs.
But hang with us a bit: The hard-rock mining industry in the Rocky Mountain West has had its ass kicked by a combination of depressed metal prices and aggressive social planning (the correct term for environmentalism) by the United Snakes Government. By some incredible miracle, and due to the tenacity and integrity of Western miners, a handful (actually, about three dozen) of the 130 companies that used to trade on the old Spokane Stock Exchange survived. Their properties remained permitted, legal. Many did reverse splits, some even went to Irish dividends, but they kept their noses clean. The other 100 simply died, or went into shell Never-Never Land. The rise from the ashes of the past two decades of these surviving companies is, and will continue to be, nothing short of a miracle. Many of them benefit from land positions and/or lease-exploration agreements with the majors. Let's go down the list.
Silver Buckle (SBUM: you gotta love that symbol) is a favorite trader among the Sleepless, and has an excellent land position and long-term lease arrangements with Coeur. Last trade 44 cents; it's seen six bits before. Right beside 'em is Placer Creek (PRCK).
Chester Mining (CHMN) is an old-timer, thin float (2.4 million shares) and historically a dividend payer. It's snuggled up against Sterling's Sunshine Mine. Sterling recently leased Chester's claims and picked up an option to buy up to 10 percent of Chester. Chester rode from a few pennies to $6 last year. Mineral Mountain (MMMM) and Merger Mines (MERG) also hold promise in a rising silver market.
Timberline (TBLC and formerly Silver Crystal) just finalized a 4:1 reverse stock split and put a new management team together, and is out nosing around for exploration acquisitions.
New Jersey Mining (NJMC) continues to dig at its four properties and is adding a new circuit to its mill near Kellogg to process ore from its mines this summer. They've not been the Silver Valley's most stellar price performer - they're only up 160 percent from a year ago - but their management is rock-solid.
Shoshone Silver (SHSH) has undergone recent management changes and embarked upon some aggressive exploration and acquisition activities, both here and in Canada.
The list goes on. To speculate in any of these stocks, you have to know their management and you have to have great faith in silver, which right now is trading at an inflation-adjusted 2,000-year low, up from its 5,000-year low a year ago. Helluva bull market, eh?
Kodak can crank out press releases all it wants to, but the whole silver versus digital thing in photography, the way they spin it, is a red herring. Take an ounce of silver out of traditional silver-halide film's consumption stream, and you've just lost an ounce coming back from recycling. It's a zero-sum game that in the end may benefit silver as people demand quality halide prints, not perishable ink-jet treacle, for their digital photos. And here's a little trivia for you: it takes a gigabyte of computer space to respectably store the information on a 4"-by-6" black-and-white silver halide negative.
Will things change? Sure. Profits will be taken and the market periodically will be slammed. But what I like about this bull market in silver is that there's no panic, no hysteria, no visible upside manipulation, no insider stuff, and the central banks can't screw with it because they ain't got no silver no more. Neither does the United Snakes government. Plus, CNN doesn't know about it yet. It's a market driven by fundamentals and fundament correction that is 2,000 years overdue.
If silver and silver stocks are not risky enough, and you really want to set your hair on fire, you can always buy US dollars or CDs paying negative interest rates. Now there's a truly scary thought.
David Bond
February 19, 2004
NPG.v is really on fire lately, broke out of its descending triangle. i loaded up my boys and nephews/nieces on it at 1.05 - didnt look to smart at .98 tho now it does! i didnt post the results here as it wasnt on your header, and i bought it for its amador canyon (nevada - is that close enough? spanish name!) property - results should be out soon? ive been buying companies with good management that are soon to be producers and want to become mid-tier silver and golds. AGI, NPG, TM, FR, SPM, MMG.
hi ho hi ho
its off to work we go
jon
ps (can anybody tell me if the 12dwarfs in snow white were miners? think so)
NPG.v breaks out of triangle and is up strongly again today.
wonder if something else is up or is it just the majestral aquisition?
jon
scorpio has news out:
http://scorpiomining.com.gosynapse.com/default.asp?c=1330&newscode=NRFeb19
NEW UNDERGROUND WORKINGS ADVANCE AT SCORPIO'S NUESTRA SENORA SILVER PROJECT
2/19/2004
Scorpio Mining Corporation's Chairman and CEO, Peter J. Hawley, is pleased to announce that work continues ahead of schedule and under budget at the Nuestra Senora Silver Project near Cosala, Mexico. New underground access workings at the Candelaria Mine have advanced 37 metres on the 0-Level to the area where the new decline ramp will turn downward. Slabbing at the turn is complete and final dressing, to stabilize the work area, is underway. The first crosscut to mineralization is planned at the minus 7.5-metre level. This crosscut could reach and develop resources by the end of the first quarter of 2004. All necessary equipment and surface facilities are in place to support the rapid advance of the underground workings. The current on-site personnel, with contractors, are approximately 35.
Funding for the start-up at the Candelaria Mine was provided by the $5.25 million financing of October 2003. Scorpio is presently in talks with the European investment community to secure additional long-term financing for on-site mill construction and for an aggressive mine- and surface-exploration program, which could add significantly to the known Nuestra Senora resources.
Scorpio Mining Corporation is a publicly traded Canadian exploration and mining development company with properties in Canada and Mexico. The Nuestra Senora Silver Project, located about 10 kilometres southeast of Cosala, Sinaloa, Mexico, comprises four silver-zinc-copper-lead-gold deposits. Known as the Nuestra Senora, Candelaria, Santo Domingo and Santa Teresa, the deposits were developed and exploited from 1954 to 1965 by the American Smelting and Refining Company (ASARCO). During its tenure, ASARCO produced approximately 1.5 million tonnes from the Nuestra Senora operations.
The Candelaria Mine is the first to be developed by Scorpio. The goal of the start-up operation is three fold: 1. Development and production of the near-at-hand resources of the Candelaria. 2. The exploration for further Candelaria resources so that the mine can operate continuously as other deposits are developed. 3. The completion of a feasibility study for a larger Nuestra Senora operation.
ON BEHALF OF THE BOARD OF DIRECTORS
Peter J. Hawley
Chairman, CEO, Scorpio Mining Corporation
OFFICERS AND BOARD MEMBERS PETER HAWLEY, PGeo, WILLIAM H. BIRD, PGeo, ROBERT B. BLAKESTAD, LG, & TRACY D. HURLEY, PGeo, SERVE THE COMPANY AS QUALIFIED PERSONS. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT THE RESPONSIBILITY FOR THE ADEQUACY OR
hi ho hi ho its off to work we go
does anybody remember? were the 12 dwarfs miners?
silver perhaps?
jon
TM.v appears to have broken out of its triangle:
and silver might be breaking out of its box:
hi ho plata away!
jon
is that kimber? i dont have an opinion, i dont own any. i know of one analyst that recommends them. do you like them? or what have others said? im trying to buy those companies that are serious about becoming mid-tier silver producers. i like FM.v more all hte time
jon
is first majestic having a breakout today?
hi ho silver
jon
check out jim sinclair today on silver:
Silver
Keep in mind Kenny's position, that silver has inherent in its technical character the ability to do a moon launch on the upside that will occur (when it does) all at once. I haven't been totally comfortable with the fundamental supply and demand equation popularly spread within the metals community. The best recommendation I can make regarding silver shares is that the promoters behind them would make Barnum and Bailey jealous. Step right up folks, and see the four-headed, sword-swallowing, half-lady, half-alligator. But believe it or not, if you recognize the fact that hype is hype, it is positive off their price.
Silver might be setting up for Kenny's launch in a few weeks, or tomorrow. Now, if the purists on TA will please cut me some slack here, I see a large triangle in construction within a box. The lower level of the box sits at $6.094 with the topside at $6.7110. I see 7 points on the bottom side of the box and 4 on the top, making the bottom much stronger to hold silver, and the top much weaker to contain an upside breakout -- indicating to me the odds of an upside break-out in time. I see the triangle as the dominant formation. I have defined that as A.B.C.D. on the topside and E.F. on the bottom side. Keep your sight on this chart by printing it out and updating it daily, assuming you have no others means of making a chart. It will not be a waste of your time. Silver will go, and go big, thanks, I think, to the likes of Mr. Barnum and Mr. Bailey.
the charts didnt post. to see his ta work go here:
http://www.jsmineset.com/home.asp
jon