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MOL.TO up 53% on heavy volume .... everything´s bouncing back sooner or later nowadays!
Gordon Brown a contrarian indicator for the gold price?
He’s campaigning for IMF gold sales
All the hot air emanating from the participants of the just concluded G20 Summit in London has, with the help of the breathless press, made its way into our neighborhood and lifted the Gordon Brown Alert wind sock atop the Casey Research headquarters.
A little background: Gordon Brown, Britain’s prime minister, became infamous for his, let’s say, slightly off judgment when he was still serving as Chancellor of the Exchequer. Between 1999 and 2002, Brown managed to sell 400 tons or 60% of the country’s gold at the very bottom of gold’s 20-year bear market. The average price per ounce achieved at the 17 gold auctions was $275 – costing British taxpayers around $2.96 billion. This stroke of genius earned the chancellor such sterling titles as “Sold The Gold Brown” and “Bottom Brown,” among others that don’t meet our PG rating for publishing.
Incidentally, 2002 was also the breakout year for gold and the beginning of our current bull market for the metal.
A similar event in the bluster-sphere had the Alert sock flopping around again in early 2005. In February of that year, Brown was making the rounds on the press release circuit calling for a “revaluation” of the IMF’s gold – that’s code for “sell the barbarous relic.”
Gold was selling for around $415/oz at the time – and within months, the second leg of gold’s bull run began. On May 11, 2006, gold peaked at an intraday high of $725 and remained in the $600 to $700 range for over a year in a consolidation that led to another sharp advance.
In January 2007, the IMF’s gold was again in the spotlight. A committee was formed to advise the IMF Executive Board how to solve the organization’s funding needs, and selling some of the IMF’s gold was part of the committee’s recommendations.
And we had something to say about it.
The following is from an article titled “About Those Proposed IMF Gold Sales” by BIG GOLD editor Doug Hornig, with an introductory comment by Casey Research Chairman Doug Casey:
As you have probably heard by now, a blue-ribbon panel recently advised the IMF to sell gold as a way of trying to clean up its finances.
The news initially spooked some weaker holders and hedge fund managers, most of whom are clueless about the overarching trends driving gold. However, as Doug Hornig makes clear in the following report, the proposed IMF sales represent much ado about nothing… other than perhaps creating a buying opportunity, that is.
Doug Casey
Doug Hornig concluded his article with:
Even if a sale does come about, will it matter?
Many feel that the IMF’s actions are not liable to have much impact on gold, arguing that the distortions of the CBGA, even at maximum 500-ton strength, have already been fully factored into the current price and its trend line.
This is not to say that there couldn’t be a short-term downdraught. Sure there could be, especially as the IMF sales are formally announced. Some holders of gold, maybe a significant number, can be expected to sell into the news.
But with countries such as China, Russia and the nations of the Middle East itching to add to their reserves, even a large dump of physical metal onto the market is certain to be absorbed in short order.
Nor will countries be the only buyers. Beverly Hills investments manager Kenneth Gerbino wrote in 2005 about a similar IMF sales speculation, saying that any additional supply “would surely be snapped up by the bullion banks and mining companies that are ‘short’ somewhere between 10,000 and 12,000 tonnes, according to some very savvy analysts.” There’s no reason to think that’s changed much in the interim.
Gerbino could have been writing about the IMF when he concluded, “Central bankers will most likely continue, as usual, to scare the price of gold down from time to time by statements of gold sales. But they are all too keenly aware of the growing number of people who realize that the gold, not paper and ink, is the real stable monetary element.”
Finally, it is important to keep the relatively miniscule amount of gold sales we are talking about in perspective. In an era where over $1 trillion in derivatives trade globally each day, $6.6 billion in sales is just not that much money when compared to potential investor demand once the U.S. dollar goes into the free fall that Doug Casey, among others, now believe is imminent.
In other words, if IMF sales do happen, and if they depress gold’s price, that’s a buying opportunity… for bullion and especially for the high-quality junior exploration stocks that pack the most punch in a rising gold market.
This insight is as valid today as it was in 2007, to which we’ll add that gold embarked on its third major up-leg of this bull market the following August, exploding from $650 to $1,000 in just seven months.
Fast forward to April 2009, and Goldfinger Brown is at it again, campaigning for IMF gold sales. What does it mean? Will he prove once again to be a contrarian indicator? We don’t know. But it doesn’t take a two-by-four to get our attention. In the meantime, we’ll keep an eye on the old Alert sock.
BTO.TO : Let`s A Go Go Go !!! :))
AGT: Really great to see this
BTO.TO: That is precisely what I signaled in my previous e-mail. With even large cap stocks like AUY having gone up
200% or more since Nov. lows, BTO (.30 low in Nov.) should be good for 90 cents or 1 buck in the next few weeks. By that time they might be engaged in their next oportunistic cheap adquisition and might not be worth selling once again.
I´ve sold about 40% of my original position so far but wont sell anymore unless it takes a buck very fast here..
Thanks. Great post indeed.
I´m slowly building a huge position in DXO since Feb. based on Groppe analysis. Doing fine so far. Have to respect these old guys who have been around long enough... ( Coxe,Groppe,Faber..)
This is a rule of thumb to me when it comes to wisdom. the older the better
Quick note on BGLPF/BTO.TO.
BTO has barely doubled from its November lows while many of the juniors have all TRIPLED or way more...
Ok, they diluted the share count X 1.28, but in the process have become a producer with great assets bought at incredibly cheap price.
I am missing something or this is due to go up way more ST ( as it has lagged many other Jrs )?? As GoldenKnight suggests some of these Jrs might have some life on them left...I think BTO is one of them.
Has been very strong as of late. Cl001 mentioned they might have another buy out lined up just right after the CSM adqusition.
I have been selling roughly 30% off my large position these last days forcing myself into take profits (came from CSM mostly bought at 30s and 40s).
But I keep repeating myself profit taking is only good, but in the back of my mind I know I am blowing it as usual
What´s not to like with BTO? Great proven management with great assets, cash in the bank and very low valuation. Great LT hold if one can stomach the ups and downs.
Thus I dont see why so many sold out completely and so fast of this here.
Comments anyone?
Canada closed as well
HGU: looks like you are not going to make it...at least today
Bought some HGU.TO for a turnaournd the next few days. Hope it works
Yes what a gift! I wanted to add more APG.TO on weakness and just did it now. I think gold bottoms right here... (at least for today!)
Just one important thing not mentioned on that post.... Albeit this article came on Marc Faber´s email, the author it is NOT him.... but:
Prepared by Michael J. Ballanger
B.Sc., B.A.
Investment Advisor
Union Securities Ltd.
Office: (416) 775 5119
Fax: (416) 777 1276
mjballanger@union-securities.com
CDE:cll001 What supreme court decision are you refering to??
Very good article on gold price supression...
http://www.marketskeptics.com/2009/04/did-ecb-save-comex-from-gold-default.html
Did the ECB Save COMEX from Gold Default?
by: Avery Goodman April 02, 2009
On Tuesday morning, gold derivatives dealers, who had sold short in the face of a fast rising gold price [evidence of either unbelievable stupidity or gold market manipulation], faced a serious predicament. Some 27,000 + contracts, representing about 15% of the April COMEX gold futures contracts remained open. Technically, short sellers are required to give “notice” of delivery to long buyers. However, in reality, buyers are the ones who control the amount of gold to be delivered. They “demand” delivery of physical gold by holding futures contracts past the expiration date. This time, long buyers were demanding in droves.
In normal times, very few people do this. Only about 1% or less of gold contracts must be delivered. The lack of delivery demand allows the casino-like world of paper gold futures contracts to operate. Very few short sellers actually expect or intend to deliver real gold. They are, mostly, merely playing with paper. It was amazing, therefore, when March 30, 2009 came and passed, and so many people stood for delivery, refusing to part with their long gold futures positions.
On Tuesday, March 31st, Deutsche Bank (DB) amazed everyone even more, by delivering a massive 850,000 ounces, or 850 contracts worth of the yellow metal. By the close of business, even after this massive delivery, about 15,050 April contracts, or 1.5 million ounces, still remained to be delivered. Most of these, of course, are unlikely to be the obligations of Deutsche Bank. But, the fact that this particular bank turned out to be one of the biggest short sellers of gold, is a surprise [if I was a German citizen, I would be furious. Deutsche Bank short selling of gold has helped the dollar at the expense of EU gold. For a nation that experienced hyperinflation eighty years ago, this should be ABSOLUTELY UNFORGIVABLE.]. Most people presumed that the big COMEX gold short sellers are HSBC (HBC) and/or JP Morgan Chase (JPM). That may be true [I expect the remaining positions are overwhelmingly US/UK banks (ie: JP Morgan Chase)]. However, it is abundantly clear that they are not the only game in town.
Closely connected institutions, it seems, do not have to worry about acting irresponsibly, in taking on more obligations than they can fulfill [evidence of this always irritates me]. Mysteriously, on the very same day that gold was due to be delivered to COMEX long buyers, at almost the very same moment that Deutsche Bank was giving notice of its deliveries, the ECB happened to have “sold” 35.5 tons, or a total of 1,141,351 ounces of gold, on March 31, 2009. Convenient, isn’t it? [yes, it is.] Deutsche Bank had to deliver 850,000 ounces of physical gold on that day, and miraculously, the gold appeared out of nowhere.
The announcement of the ECB sale was made, as usual, dryly, without further comment. There was little more than a notation of a sale, as if it were a meaningless blip in the daily activity of the central bank. But, it was anything but meaningless. It may have saved a major clearing member of the COMEX futures exchange from defaulting on a huge derivatives position. We don’t know who the buyer(s) was, but we don’t leave our common sense at home. The ECB simply states that 35.5 tons were sold, and doesn’t name any names. Common sense, logic and reason tells us that the buyer was Deutsche Bank, and that the European Central Bank probably saved the bank and COMEX from a huge problem [Agreed]. What about the balance, above 850,000 ounces? What will happen to that? I am willing to bet that Deutsche Bank will use it, in June, to close out remaining short positions [Agreed], or that it will be sold into the market, at an opportune time, if it hasn’t already been sold on Tuesday, to try to control the inevitable rise of the price of gold.
Circumstantial evidence has always been a powerful force in the law. It allows police, investigators, lawyers and judges to ferret out the truth. Circumstantial evidence is admissible in any court of law to prove a fact. It is used all the time, both when we initiate investigations, and once we seek indictments and convictions. We do this because we deal in a corrupt world, filled with suspicious actions and lies, and the circumstances are often suspicious enough to give rise to a strong inference that something is amiss. Most of the time, when the direct evidence is insufficient to prove a case beyond a reasonable doubt, or even by a preponderance of direct evidence, circumstantial evidence fills the void, and gives us the conviction. We even admit evidence of the circumstances to prove murder cases. In light of that, it certainly seems appropriate to use circumstantial evidence in evaluating possible regulatory violations. The size and timing of the delivery of Deutsche Bank’s COMEX obligation is suspicious, to say the least, when taken in conjunction with the size and timing of the ECB’s gold sale. It is circumstantial evidence that the gold used by Deutsche Bank to deliver and fulfill its COMEX obligations, came directly or indirectly, from the ECB.
I’d sure like to know what the ECB’s “alibi” is. If I were an investigator for the Commodities Futures Trading Commission (CFTC), assigned to determine whether or not gold short sellers are knowingly violating the 90% cover rule, I’d be questioning the hell out of the ECB staffers, as well as employees in the futures trading division of Deutsche Bank. There is certainly enough evidence to raise “reasonable suspicion”. Reasonable suspicion is all that one needs to start a criminal investigation. It should be more than sufficient to prompt the CFTC, as well as European market regulators, to start a commercial investigation of the potential violation of regulatory rules by both the ECB and one of the world’s major banking institutions. That is, of course, if and only if, the CFTC staff really wants to regulate, rather than simply position themselves for more lucrative jobs inside the industry they are supposed to be regulating, after they leave government service. [our regulatory system is filled with conflict of interests…]
It is quite important to determine whether or not Deutsche Bank was bailed out by the ECB because that will answer a lot of questions about allegations of naked short selling on the COMEX. If the ECB knew that its gold would be used as post ipso facto “cover” for uncovered shorting, staffers at the central bank might be co-conspirators. At any rate, the German bank did sell short on futures contracts without having enough vaulted gold it sold a naked short. It also means that the ECB has facilitated a major rule violation in a jurisdiction (the USA) with which Europe is supposed to have extensive joint regulatory agreements, any number of which may have been violated by this action of the ECB. At the very least, naked short selling is a blatant violation of CFTC regulations, which require 90% cover of all deliverable metals contracts. If the delivered gold came directly, or indirectly, from the ECB, it means that Deutsche Bank’s gold short contracts were “naked” at the time they were entered into [Unless the ECB, like the US, is in the business of selling call options on gold].
The 90% cover rule is very old rule, designed to prevent fraud on the futures markets. Its origin dates back into the 19th century. Farmers, in that simpler age, were complaining that big bank speculators were downwardly manipulating grain prices on the futures exchanges. Nowadays, the CFTC has a predilection toward categorizing banks as so-called “commercials” or “hedgers”, rather than as the speculators that they really are. Traditionally, only miners and gold dealers whose business involves a majority of PHYSICAL trade in gold should qualify as commercials. However, the CFTC has ignored this for a long time, and qualified numerous banks and other financial institutions, whose main gold business is derivatives, as “commercial” entities, immunizing them from position limits and other constraints. As a result, just like the farmers of the 19th century, today’s gold “cartel” conspiracy theorists revolve their theory around an allegation of downward manipulation, and heavy short selling concentration.
Manipulation can only take place when there is a disconnect between supply, demand, and trading activity on the futures exchanges. The 90% cover rule attempts to force a direct tie between the futures market and the availability of particular commodities, so that supply and demand become primary even on paper based futures markets, just as it is in trading the real commodity. Unfortunately, the modern CFTC has ignored or misinterpreted the purpose of the 90% cover rule for a very long time. This regulatory failure has allowed the current free-for-all “casino-like” atmosphere that now prevails at futures exchanges.
It would be helpful if some of my colleagues, within the public prosecutor and securities regulatory offices, in Europe, as well as the CFTC in America, filed complaints for discovery, to ferret out the truth. In the interest of transparent markets, the ECB should be forced to disclose who purchased the gold they sold in the morning of March 31, 2008 and why the sale was timed in a way that corresponded to the exact moment in time that Deutsche Bank had a desperate need for gold bullion.
Was it yet another bank bailout? Has another bank sucked up precious resources belonging, in this case, to the people of Europe? Gold is needed to bring confidence to the Euro currency, as often noted by Germany’s Bundesbank, which seems to be less kind to German banks than the ECB. Why should the ECB be permitted to sell gold to closely connected derivatives dealers, if the primary purpose is to save those dealers from the bad decisions they have made, and the end result is to reinforce moral hazard? Should banks like Deutsche Bank be allowed to take on more derivative risk than they can afford without involving publicly owned assets? Did Deutsche Bank issue naked short positions? Have innocent European citizens now had their currency placed at more risk, and some of their gold stolen from them, simply to enrich private hands? All of these questions are begging for answers. [If I was living in the EU zone, I would be complaining very loudly about this ECB gold sale.]
European regulators are quick to condemn the Federal Reserve for its incestuous relationship to client “primary dealer” banks, special treatment of favored institutions at the expense of other non-favored institutions, propensity toward injecting dollars to artificially stimulate the stock market, seemingly endless bailouts of closely connected banks, and, now, the seemingly unlimited printing of new dollars. I’ll not attempt to excuse the Fed for its failures. Indeed, I believe that it is in the best interest of the American people to close down that malevolent institution, permanently. However, if any of the questions I have posed are answered in the positive, people might begin to understand that special favors, nepotism, corruption, and a failure to properly regulate are not confined to America. The real estate bubble, for example, was allowed to become much bigger in the U.K., Ireland, Spain, and eastern Europe, than it ever was in the USA. The collapse of real estate, in those countries, is going to be more severe, even though it is more recent in origin than the pullback in the USA. America happened to be the first nation affected, but it did not cause the world economic collapse. That was caused by the joint irresponsible policies in almost every major nation in the world.
Those who rely on the good faith of Angela Merkel, to keep the Euro inviolate, certainly have a right to get answers from the ECB and from Deutsche Bank. The answers will tell us a lot about the real proclivities of the ECB. As the U.S. dollar is progressively debased, in coming years, will the Euro be any better? [good questions] Is the ECB merely a European copy of the Federal Reserve “slush fund”, utilized by well connected European banks, for the purpose of private financial gain, much as the Federal Reserve’s assets are utilized by its primary dealers? If the ECB is willing to bail out a major trading institution from the mismanagement of its derivatives operations, who could honestly claim that it would hesitate to competitively debase the Euro against the dollar? Having the answers to the questions I have posed would give everyone the knowledge needed to make important decisions. That is exactly the reason that, in all likelihood, we will never get these answers. Maybe, Europeans and others ought to be dumping Euros just as fast as they are now dumping dollars, and buy gold and silver, instead. [While I still believe the euro will hold up better than the dollar, gold will do much, MUCH better.]
Aside from the regulatory issues, if we did discover that Deutsche Bank got its gold from the ECB, one glaringly strong inference arises. When a major derivatives dealer goes begging for gold, to the ECB, it is very strong circumstantial evidence that not enough physical gold is available for purchase on the OTC wholesale market. Up until now, bearish gold commentators have steadfastly denied that wholesale gold shortages exist. Instead, they have insisted that all shortages are confined to retail forms of gold. Now, when combined with the circumstantial evidence, however, common sense tells us that they are wrong.
Decision: There is sufficient evidence for this case to go to a full scale investigation. The CFTC and similar securities regulators in Europe need to properly investigate the gold conspiracy allegations. That has never been done to date. They must determine who is buying central bank gold and whether or not it is simply being sold into the open market, or channeled into the hands of favored financial institutions who then use it to cover naked short selling. The investigation must include detailed vault audits and explore all paper trails.
Disclosure: Long on gold. [me too]
My reaction: First NYSE runs out of 1 kg gold bars, now this.
1) Gold derivatives dealers have sold short in the face of a fast rising gold price, which is not normal market behavior.
2) On Tuesday morning, March 31st, some 27,000+ contracts, representing about 15% of the April COMEX gold futures contracts remained open.
3) In normal times, very few people do this, and so it is amazing that March 30, 2009 came and passed with so many investors refusing to part with their long gold futures positions.
4) On March 31st, Deutsche Bank delivered 850,000 ounces of gold to COMEX contract holders.
On Tuesday, March 31st, Deutsche Bank (DB) amazed everyone even more, by delivering a massive 850,000 ounces, or 850 contracts worth of the yellow metal.
5) Even after Deutsche Bank’s deliveries, about 15,050 April contracts, or 1.5 million ounces, still remained to be delivered (a large portion of this likely to be JPMorgan).
6) The fact that Deutsche Bank turned out to be one of the biggest short sellers of gold, is a surprise (and should make German citizens very angry).
7) On March 31st, ECB announced it had "sold" 35.5 tons of gold (1,141,351 ounces).
Mysteriously, on the very same day that gold was due to be delivered to COMEX long buyers, at almost the very same moment that Deutsche Bank was giving notice of its deliveries, the ECB happened to have "sold" 35.5 tons, or a total of 1,141,351 ounces of gold, on March 31, 2009.
8) Deutsche Bank will probably use the remaining balance of the ECB’s sale to close out its short positions.
9) circumstantial evidence and common sense tells us that the European Central Bank sold its gold to Deutsche Bank and probably saved the bank and COMEX from default.
10) If the CFTC staff really wants to regulate, they would “be questioning the hell out of the ECB staffers, as well as employees in the futures trading division of Deutsche Bank.”
11) If the delivered gold came directly/indirectly from the ECB, it means that Deutsche Bank had a “naked” short position in COMEX gold (unless the ECB, like the US, is in the business of selling call options on gold).
12) Naked short selling is a blatant violation of CFTC regulations
13) The ECB has likely facilitated major rule violations through its gold sale.
The ECB has facilitated a major rule violation in a jurisdiction (the USA) with which Europe is supposed to have extensive joint regulatory agreements, any number of which may have been violated by this action of the ECB.
14) For a long time, the CFTC has ignored the 90% cover designed to prevent fraud on the futures markets, and has qualified numerous financial institutions, whose main gold business is derivatives trading, as "commercial" entities, immunizing them from position limits and other constraints.
15) Market manipulation can only take place when there exists a disconnect between supply, demand, and trading activity on the futures exchanges.
16) There is sufficient evidence for this case to merit a full scale investigation.
It would be helpful if some of my colleagues, within the public prosecutor and securities regulatory offices, in Europe, as well as the CFTC in America, filed complaints for discovery, to ferret out the truth.
17) There are MANY questions begging for answers, and EU citizens have a right to get those answers from the ECB and Deutsche Bank.
Why the sale was timed in a way that corresponded to the exact moment in time that Deutsche Bank had a desperate need for gold bullion?
Was it yet another bank bailout?
Has another bank sucked up precious resources belonging, in this case, to the people of Europe?
Why should the ECB be permitted to sell gold to closely connected derivatives dealers, if the primary purpose is to save those dealers from the bad decisions they have made, and the end result is to reinforce moral hazard?
Should banks like Deutsche Bank be allowed to take on more derivative risk than they can afford without involving publicly owned assets?
Did Deutsche Bank issue naked short positions?
Have innocent European citizens now had their currency placed at more risk, and some of their gold stolen from them, simply to enrich private hands?
As the U.S. dollar is progressively debased, in coming years, will the Euro be any better?
Is the ECB merely a European copy of the Federal Reserve "slush fund", utilized by well connected European banks, for the purpose of private financial gain, much as the Federal Reserve's assets are utilized by its primary dealers?
If the ECB is willing to bail out a major trading institution from the mismanagement of its derivatives operations, who could honestly claim that it would hesitate to competitively debase the Euro against the dollar?
18) Finally, the ECB sale to Deutsche Bank raises one last key point:
When a major derivatives dealer goes begging for gold, to the ECB, it is very strong circumstantial evidence that not enough physical gold is available for purchase on the OTC wholesale market.
Conclusion: The end of the COMEX is near, with default and collapse being a step away. Paper gold markets are undeniably in the process of breaking down, as I wrote last week in my entry, “something going haywire in gold markets”.
(emphasis mine) [my comment]
Currently, the majority of gold demand is still absorbed by paper gold (futures, unallocated gold, GLD, etc…). While theoretically unlimited, in reality the supply of paper gold is constrained by the limits of credulity. In other words, as short positions grow in gold derivatives relative to the underlying supply of gold, their credibility shrinks. The biggest threat to those manipulating gold is this loss of faith in their paper product.
Right now, those on the short side of gold are being overwhelmed by demand and are being forced to intervene in blatant and obvious ways to cap prices [The ECB’s gold sale and the shortage of 1kg bars on the COMEX are evidence of this happening]. Examples of this desperation and loss of control include the large increase in open interest in COMEX gold after the fed’s announced its huge balance sheet expansion and the price action in gold today. They are evidence that paper gold is in the process of breaking down.
The increasingly abnormal action in paper gold will push more and more demand into the physical market, which cannot be controlled and will drive up prices. The timing of ECB’s gold sale to Deutsche Bank is the perfect example of the desperate straits of gold shorts. If the paper gold markets were not on the verge of collapse, the ECB sale would never have been announced on the same day as Deutsche Bank’s delivery announcement. The ECB gold sale must have been thrown together in a last minute panic, resulting in the undesirable timing.
Buy physical gold. The next COMEX delivery month will probably be its last, and the collapse of gold futures would bring down the entire gold derivative market. The fed and other central banks will be powerless to stop it, as there is no one who can print gold.
pencil icon, that
Posted by Eric deCarbonnel at 12:55 PM Delicious email Print this post
Labels: Currency_Collapse Euro_Zone Gold Key_Entries Market_Skepticism Wall_Street_Meltdown
10:30
To me this is a non event. Let them sell, the Chinese will eagerly take it. These guys are jackasses, specially the Brits who sold their gold at the bottom...
Bought more AUY on the heavy cut this morning
THIS IS A COMMENT BY JOHN READE, UBS METALS STRATEGIST, and Reuters: This is potentially really bad news for gold market sentiment If the G20 agree to consider selling more than just the 403.3t of gold - as this article suggests that they will - then the full 3217t of gold will be in play. Although technically the IMF can only sell 403.3t of gold into the open market, it COULD sell the balance back to shareholders who could then in turn sell gold into the open market and give the proceeds back to the IMF. Some thoughts 1) it would most likely be done via a CBGA 3 agreement 2) it would be scaled over years 3) It would still need Congressional approval and lots of other approvals from other nations too. 3) BUT WE WOULD EXPECT THE GOLD MARKET REACTION TO ANY NEWS ABOUT MORE THAN 403.3 TONNES OF GOLD SALES TO BE EXTREMELY NEGATIVE and gold could lose 50-100/oz this afternoon The statement will be released before 15:30 UK time Reuters story follows UK TREASURY MINISTER SAYS G20 DISCUSSION ON IMF GOLD REFERS TO ADDITIONAL SALESUK MINISTER EXPECTS G20 ANNOUNCEMENT ON IMF SDR ALLOCATION TO BE "SIGNIFICANT", MORE THAN DOUBLING G20 discussing additional gold sales-UK minister LONDON, April 2 (Reuters) - Discussion at a summit of G20 world leaders about selling International Monetary Fund gold to raise extra funds refers to sales over and above existing plans, a British minister said on Thursday. "What's referred to here is in addition to what has been previously," Treasury minister Stephen Timms told reporters at the summit. A G20 source said earlier there was a reference in the summit communique to IMF gold sales but "the language had not been firmed up" and it was unclear whether it would be separate from the 400 tonnes of gold the IMF committed to sell last year as part of a broader restructuring of its income. Timms said he also expected a significant announcement on IMF Special Drawing Rights. A Russian news agency report said on Wednesday G20 leaders might approve $373 billion worth of IMF SDRs for its member countries. The move could be similar to a central bank printing money to increase the amount of cash flowing through an economy. "The communique will be seen to make announcements about ... SDRs, potentially quite a significant announcement," Timms said. "I certainly expect it to be significant, more than doubling."
Anyone has a good comparison out on Market Cap-EV / Gold Oz in the ground?
There was a good one on a LRR.TO / CSM.TO merger presentation but I dont have it anymore and its obviously not anymore on their sites.
Have been looking for another one on several junior´s websites but couldnt find one.
Please someone less dumb than me can point to one such comparison?
TIA
BTO- Anyone heard when we will receive the shares?
BTO.TO up 13%... those not having sold SMC might get lucky soon :))
RAME: What sort of short term / longer term targets here? Seems good for a buck very short term target and sky is the limit if we get oil closer to 100 than 50 later this year...
USD...
http://archive.gulfnews.com/business/Economy/10271396.html
GCC leaders approve Monetary Union as members seek to host Central Bank
By Sunil K. Vaidya, Bureau Chief
Published: December 30, 2008, 23:46
Muscat The GCC leaders put their final seal on the Gulf Monetary Union on the concluding day of the two-day 29th summit yesterday but the question of the location of the Central Bank remained unresolved.
"There are four countries staking a claim to host the GCC Central Bank," Mohammad Al Mazroui, assistant secretary-general for economic affairs, told Gulf News at the end of the summit on Tuesday.
He said the UAE, Bahrain, Qatar and Saudi Arabia were keen to host the GCC Central Bank.
He said he hoped a decision would be taken by year end.
Gold reserves
In reply to a question on gold reserves for the GCC Central Bank, Al Mazroui said "that is a matter to be pondered over later.
"We first have to decide on the location of the Central Bank, then the Central Bank and Monetary Council will have to decide on the gold reserves for the Central Bank," he said.
Oman had pulled out of the common currency in 2005 citing unpreparedness but had decided not to object to the other five members going ahead with it.
Ironically, it was during the 2001 GCC Summit in Muscat that the plan for the common GCC currency was mooted and it was given the final nod here in Oman yesterday without the participation of the hosts.
It was decided to speed up the creation of the Monetary Board to oversee technical requirements for Monetary Union. The proposed board will finalise details for setting up the Central Bank and the issuance of the single currency.
Common currency
Saudi Arabia's King Abdullah Bin Abdul Aziz proposed that the committees working on the GCC economic integration process should speed up their work and complete the whole process by September 2009 so as to benefit GCC nationals.
The leaders also reviewed the functioning of the GCC common market and adopted a document containing principles, market requirements and objectives and mechanisms for implementation.
Al Mazroui said that the common market draft proposed by the finance ministers went off smoothly and was adopted but some issues of revenue have to be sorted out as far as the Customs Union issue was concerned.
On the name for the common GCC currency he said there were some names that had come up. When pressed, he agreed that Khaleeji was ahead in the race.
Al Mazroui said that the railways project feasibility study was also given the approval along with the $7 billion (Dh25.69 billion) GCC power grid. "The power grid should be functional in the first half of 2009," he said.
He, however, added that the GCC finance ministers had shown concern about the cash flow.
Yeah. Couldnt get more bullish for us... Just relax and sit tight...
Guess what? Bennie had a bail out plan for us as well!!! lol
My advice: Stop looking at "trend lines" and start looking at the bigger picture! Glad I shorted more USD this week. Absolute toilet paper!
Gold futures rise more than 4% after Feds decide to buy Treasurys - MarketWatch, Mar 18 2009 2:35PM
Same here (IB)
Reminds me of Donald Coxe phrase: "those who know it best love it the least because they´ve been dissapointed the most"
Well, a holiday in Chiapas is truly the ultimate wet dream of all these leftist-anti globalization black feet types that ravage the
downtown streets of European capitals with their dogs and flutes and juggling stuff. I think of them every time I hear of Chiapas and thus Linear puts me off bigtime!
Linear Gold Corp. Announces $5,000,000 Financing
3:23 PM ET, March 13, 2009
HALIFAX, NOVA SCOTIA , Mar 13, 2009 (Marketwire via COMTEX) -- NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Linear Gold Corp. (LRR) ("Linear Gold" or the "Corporation") is pleased to announce that it has negotiated, subject to regulatory approval, a non-brokered private placement with Sprott Asset Management, consisting of 4,545,455 units at a price of $1.10 per unit. Each unit will consist of one common share and one-half warrant, with each whole warrant entitling the holder to purchase an additional common share at a price of $1.50 per share for a period of twenty-four months from the closing of the offering, which is anticipated to occur on or about March 19, 2009 and is subject to receipt of applicable regulatory approvals, including approval of the TSX.
The proceeds from the private placement will be used for working capital and to fund the acquisition, exploration and development of high quality gold focused assets.
Wade K. Dawe, President and Chief Executive Officer of Linear Gold Corp., states, "We are delighted to further strengthen Linear's balance sheet as the Corporation continues to review potential acquisitions, focusing on high quality, advanced gold exploration and development opportunities. Upon completion of this private placement, Linear Gold will be debt-free with approximately $30 million in cash with 32.5 million shares outstanding, positioning the Company extremely well for strategic acquisitions."
Linear Gold Corp. is actively exploring for gold and base metal deposits through joint ventures with Kinross Gold in Mexico and Everton Resources in the Dominican Republic.
Wade K. Dawe, President
This news release contains "forward-looking statements". Such forward-looking statements, especially those that address resource quantities, grades, and contained metals, are generally made on the basis of estimation and extrapolation from a limited number of drill holes and metallurgical studies. Where the company expresses or implies an expectation as to future events or results, such expectation or belief is expressed in good faith and is believed to have a reasonable basis for the statement. However, forward-looking statements are subject to risks and uncertainties which could cause actual results to differ significantly from future results expressed or implied. These risks include, but are not limited to, metal price volatility, political and operational risks in the countries where we operate, and a degree of uncertainty in connection with evaluating a deposit until the deposit has been extensively drilled on closely spaced centres.
SOURCE: Linear Gold Corp.
Linear Gold Corp.
Wade K. Dawe
President & Chief Executive Officer
(902) 422-1421
Website: www.lineargoldcorp.com
Copyright (C) 2009 Marketwire. All rights reserved.
BTO comes to mind...
You guys might like to have a look at IOX in Norway. Debt laden low cost producer as well.
It´s somehow similar to RAME ¡ ( which I bought today too) on the metrics but even cheaper.
http://www.interoil.no/
Producing north of 8000/bpd barrels in LatAm right now ( Peru and Colombia). Low Cost, profitable at USD 40 barrel
They also have a nice discovery in Ghana with Tullow Oil. And interesting acreage in Angola both onshore and offshore
At NOK 12 / share, market cap is USD 40M same as RAME, but debt much lower at 120M.
Insiders bought up too.
Absolutely beaten down.
Since the last quarter result there´s been a stubborn seller at 13 NOK. I believe once taken out, it´s off to the races.
http://norma.netfonds.no/ppaper.php?paper=IOX&exchange=OSE&depth=200
Gold Stocks
“The mining stocks, especially exploration companies, are relatively attractive, but you have to buy the ones that have a strong backer. A lot of companies will run out of money. The ones that have a strong backer will be OK.” MARC FABER
Marc Faber, the investor who advised buying gold in 2001 before it tripled, said he owns Ivanhoe Mines Ltd., NovaGold Resources Inc. and Gabriel Resources Ltd. because explorers will gain the most as bullion rallies.
Commodities will be the first assets to rally when growth returns after a credit collapse led to the worldwide recession, Faber said.
Gold explorers backed by larger miners are less expensive than bigger firms and have the financial support to stay in business should the economy worsen, he added.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
Isn´t it laughable how short-sighted where the "analysts" on AUY´s margin expansion... this goes well to show how mis-priced are many of our little gems here....
CSM / SMC has everybody else received their proxies for vote? I havent received a damn thing yet
You were expecting much more I guess, from your previous comments?
CSM: I havent yet got the proxies for vote. Was it for CSM.TO or for SMC ? What will the AMEX holders get, canadian BTO or will BTO become listed on AMEX? confused about that..
Not as bad as expected. GBG might bounce a little here?
CHE-UN.TO down to a new low to 5.16
Kozuh are you still holding?
At this level the yield is about 23%
Looks interesting but something might be rotten in Denmark the
way the stock is behaving...
Gold Resource Corporation and Hochschild Mining Strengthen Strategic Alliance
$12.99 Million Private Placement
DENVER, CO--(MARKET WIRE)--Feb 26, 2009 -- Gold Resource Corporation (GRC) (OTC BB:GORO.OB - News) (Frankfurt:GIH.F - News) is pleased to announce that Hochschild Mining (Hochschild) has exercised its option to purchase 4.33 million additional shares of GRC's restricted common stock at $3.00 per share (no warrants). The decision by Hochschild to exercise this option strengthens the strategic alliance with Gold Resource Corporation. Hochschild is a world leading precious metals producer, based in Lima, Peru and listed on the London Stock Exchange, with mining projects in five countries in the Americas including Mexico.
Funding will primarily be used for the continued construction of GRC's El Aguila Project in Oaxaca, Mexico. GRC is focused on production of its El Aguila Project's high-grade open pit at the earliest possible date, currently targeting mid-2009, subject to obtaining remaining permits, regulatory approvals, equipment deliveries and construction schedules. A portion of the additional money is targeted for accelerated development of GRC's La Arista underground vein mineralization. This could include driving a decline ramp and underground development at this high-grade polymetallic deposit. Funding will also be used to continue exploration by bringing in a new drill contractor having completed the previous contract.
This private placement of $12.99 million, following Hochschild's previous $5.01 million investment at $3.00 per share of GRC's restricted common stock (no warrants) on Dec. 10, 2008, increases Hochschild's total holding to 15% of GRC. Hochschild will appoint one new, additional director to the GRC board and for a period of two years Hochschild will be allowed to purchase shares in the open market to the extent that their total holding in GRC is not greater than 40%. If Hochschild owns 40% of GRC's shares, it is entitled to appoint a total of two out of five board nominees. After 2 years Hochschild is not precluded from purchasing additional shares in the market.
Gold Resource Corporation's president, William W. Reid stated, "We are pleased and impressed with the technical assessments, opinions and suggestions made by Hochschild's geologists and mining and milling personnel. Hochschild's professionalism and expertise confirm our belief that we have chosen the right strategic alliance partner. As a significant shareholder, Hochschild's backing, both financially and technically, strengthens Gold Resource Corporation's ability to build value for all shareholders. This alliance promotes a common goal to achieve significant production at the Aguila Project at the earliest possible date. We believe the increase of Hochschild's strategic investment in GRC further underscores the significant potential of our El Aguila Project."
Miguel Aramburú, Chief Executive Officer of Hochschild Mining plc, commented, "We are delighted to announce our increased investment in GRC which strengthens our position in a mineral rich and mining friendly region of the Americas, in line with our cluster consolidation strategy. We have been extremely impressed with the quality of GRC's assets and the speed at which the El Aguila property is being developed. We look forward to working with GRC's highly experienced management team to realise the significant potential of El Aguila as well as the other projects in their impressive pipeline."
About GRC:
Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 40,417,556 shares outstanding and no warrants. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.
About Hochschild:
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild currently operates five underground epithermal vein mines, four located in southern Peru and one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has over sixteen long-term prospects throughout the Americas. Hochschild has over forty years experience in the mining of precious metal epithermal vein deposits.
For further information please visit www.hochschildmining.com
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan," "target," "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's 10-K filed with the Securities and Exchange Commission
Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
Contact:
Contact:
Jason Reid
VP / Corporate Development
303-320-7708
Eldorado Gold Withdraws Public Offering of Common Shares-
IS THIS TOO MUCH TOO ASK FROM OTHER SUCKER JUNIORS???
Unfortunately I sold a lot of bullion ETFs earlier this month to go "all in" into gold juniors only to be remembered that gold does not dilute itself, print shares, neither does it issue warrants or fuck around with those holding it like GBG or AGT do with their shitty financings!!!
Fortunately, other holdings like SMC or GORO seem to be in another class. I specially like SMC/BTO going forward. Top notch management, cash and no need to dilute and fuck around with the common holders.
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Feb 24, 2009 -- Eldorado Gold Corporation ("Eldorado" or the "Company") (Toronto:ELD.TO - News)(AMEX:EGO - News) announced today that is has elected to withdraw its preliminary prospectus filed in connection with its previously announced public offering ("Offering"). While the Offering received strong support, the terms presented by our underwriters did not meet our minimum expectation of net proceeds without exceeding an acceptable limit of dilution. Accordingly, we are withdrawing our preliminary prospectus and will not be proceeding with the Offering and have no current intention of issuing further equity.
"As the industry's lowest cost pure gold producer, our balance sheet remains strong, with no debt and we clearly have the financial strength to meet our development goals to produce approximately 800,000 oz gold per year by 2013. To accept the offered terms of the equity issue would have resulted in an unacceptable level of dilution for our current shareholders," said Paul Wright, President and Chief Executive Officer.
CSM/SMC- Must have been some poor soul in a hurry to exit a large position. Dropped as low as a 30% discount against 1.28 X BTO !!!