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GREAT POST BOB
QUEENSTAKE ANNOUNCES FIRST QUARTER 2006 RESULTS CONFERENCE CALL
Denver, Colorado - May 9, 2006 - Queenstake Resources Ltd. (TSX: QRL; AMEX:QEE) will announce its first quarter 2006 results on Wednesday, May 10th and will hold a conference call hosted by President and Chief Executive Officer Dorian (Dusty) Nicol to review the quarter highlights at 1:00 p.m. Eastern Daylight Time that day.
The conference call may be accessed by telephone:
United States and Canada (Toll-Free): 1-866-672-2663
International (Toll): 1-973-582-2822
The conference call may also be accessed via the Queenstake web site at www.queenstake.com, under the Audio Webcast Link on the homepage.
A replay of this call will be available for a limited time on the Queenstake web site or by calling:
United States and Canada (Toll Free): 1-877-519-4471
International (Toll): 1-973-341-3080
Replay Pin Number: 7360912
YES JAMES
AND A GREAT DAY FOR QRL AND GOLD WE CANNOT FORGET THAT
INVEST IN THE QUEEN
http://www.northernminer.com/jrMining/pdfs/QUEENSSTEAK.pdf
INVEST IN THE QUEEN
http://www.northernminer.com/jrMining/pdfs/QUEENSSTEAK.pdf
New York Hard Assets Investment Confere
by: arthur7440
Long-Term Sentiment: Strong Buy 04/29/06 07:48 pm
Msg: 4374 of 4374
New York Hard Assets Investment Conference
May 15, 2006 to May 16, 2006
Conference Location:
New York Marriott Marquis
1535 Broadway
New York, NY 10036
Come visit us at booth #916. A presentation by Dorian (Dusty) Nicol, Queenstake's President and CEO, will be held at 8:45 a.m. on Monday, May 15th.
Find out more information about the conference at http://iiconf.com/
New York Hard Assets Investment Confere
by: arthur7440
Long-Term Sentiment: Strong Buy 04/29/06 07:48 pm
Msg: 4374 of 4374
New York Hard Assets Investment Conference
May 15, 2006 to May 16, 2006
Conference Location:
New York Marriott Marquis
1535 Broadway
New York, NY 10036
Come visit us at booth #916. A presentation by Dorian (Dusty) Nicol, Queenstake's President and CEO, will be held at 8:45 a.m. on Monday, May 15th.
Find out more information about the conference at http://iiconf.com/
European Gold Forum 2005 on Thursday, A
by: arthur7440
Long-Term Sentiment: Strong Buy 04/29/06 06:59 pm
Msg: 4373 of 4374
11:10 AM Queenstake Resources
click the icon to play archived audio:
http://events.onlinebroadcasting.com/denvergold/042606/frameset.php?file=queenst ake&co=queenstake&player=win
European Gold Forum 2005 on Thursday, A
by: arthur7440
Long-Term Sentiment: Strong Buy 04/29/06 06:59 pm
Msg: 4373 of 4374
11:10 AM Queenstake Resources
click the icon to play archived audio:
http://events.onlinebroadcasting.com/denvergold/042606/frameset.php?file=queenst ake&co=queenstake&player=win
James
it will be worth the wait,
WHY NEWMONT NEEDS QUEENSTAKE
Newmont Mining Corporation First Quarter 2006 Results
OPERATING HIGHLIGHTS
NEVADA First Quarter 2006 First Quarter 2005
Consolidated gold sales
(000 ounces) 535.0 588.6
Equity gold sales (000 ounces) 489.3 557.5
Consolidated costs applicable to
sales ($/ounce) $395 $309
In Nevada, gold ounces sold decreased 9% during the first quarter of 2006 compared with the same period in 2005, primarily as a result of a 14% decrease in mill ore grade. The decrease in mill ore grade resulted from mining lower grades at the Midas and Deep Post underground mines. Mill throughput was lower as a result of 14 days of unplanned downtime at Mill 5. Costs applicable to sales per ounce increased 28%, primarily due to a decrease in ounces produced and increased labor, diesel, cyanide and underground contract service costs, as well as a change in accounting for deferred stripping.
http://www.resourceinvestor.com/pebble.asp?relid=18996
WHY NEWMONT NEEDS QUEENSTAKE
Newmont Mining Corporation First Quarter 2006 Results
OPERATING HIGHLIGHTS
NEVADA First Quarter 2006 First Quarter 2005
Consolidated gold sales
(000 ounces) 535.0 588.6
Equity gold sales (000 ounces) 489.3 557.5
Consolidated costs applicable to
sales ($/ounce) $395 $309
In Nevada, gold ounces sold decreased 9% during the first quarter of 2006 compared with the same period in 2005, primarily as a result of a 14% decrease in mill ore grade. The decrease in mill ore grade resulted from mining lower grades at the Midas and Deep Post underground mines. Mill throughput was lower as a result of 14 days of unplanned downtime at Mill 5. Costs applicable to sales per ounce increased 28%, primarily due to a decrease in ounces produced and increased labor, diesel, cyanide and underground contract service costs, as well as a change in accounting for deferred stripping.
http://www.resourceinvestor.com/pebble.asp?relid=18996
Investment News Update
Dear Investor,
Gold’s on fire — surging nearly $43 just in the past 3 days this week ... dipping sharply today ... and getting ready for the next big surge to my target of $740! So right now, you have a nice, convenient entry point PLUS the opportunity for blow-out profit potential.
Don't miss it! We’re in the great gold price explosion I've been telling you about for so long. It's dramatic. It's gaining momentum. And it's probably going to be even
bigger than the great gold bull market of the late 1970s!
Indeed, everything I see tells me that ...
This gold boom has got very long legs ... with a huge footprint, carrying nearly all natural resources to record highs. Silver has just surged to its highest level in 25 years. Copper has jumped to the highest level in history. Oil, uranium, zinc, even tungsten are going berserk.
This boom harbors INCREDIBLE profit potential, provided you don’t wait around, and provided you make the right choices. That’s why I’m sending you this urgent flash right now.
At this critical juncture, I want to make sure you’re in the right place at the right time. And just in case you missed one or more of my recent alerts, I want to make sure you’re on board with my top picks.
I’ll give my main one to you in just a moment. But first, let me tell you why I’m so convinced this boom has such long legs and offers such huge profit potential, even if you’re just getting on board right now.
The Case for $2,000 Gold
Gold is still so grossly undervalued, it’s a joke.
In terms of today’s dollars, gold reached $2,176 in 1980.
And that was at a time when the demand for gold was far less sustainable than it is today ... and the supplies far more abundant.
In other words ...
Gold will have to nearly quadruple — to more than $2,000 an ounce — just to regain the same purchasing power it had 26 long years ago!
Look. If history teaches us anything, it’s that no record stands forever on Wall Street. And right now, the action in the market is telling me the day gold breaks its record is coming a lot sooner than most people think!
Investment News Update
Dear Investor,
Gold’s on fire — surging nearly $43 just in the past 3 days this week ... dipping sharply today ... and getting ready for the next big surge to my target of $740! So right now, you have a nice, convenient entry point PLUS the opportunity for blow-out profit potential.
Don't miss it! We’re in the great gold price explosion I've been telling you about for so long. It's dramatic. It's gaining momentum. And it's probably going to be even
bigger than the great gold bull market of the late 1970s!
Indeed, everything I see tells me that ...
This gold boom has got very long legs ... with a huge footprint, carrying nearly all natural resources to record highs. Silver has just surged to its highest level in 25 years. Copper has jumped to the highest level in history. Oil, uranium, zinc, even tungsten are going berserk.
This boom harbors INCREDIBLE profit potential, provided you don’t wait around, and provided you make the right choices. That’s why I’m sending you this urgent flash right now.
At this critical juncture, I want to make sure you’re in the right place at the right time. And just in case you missed one or more of my recent alerts, I want to make sure you’re on board with my top picks.
I’ll give my main one to you in just a moment. But first, let me tell you why I’m so convinced this boom has such long legs and offers such huge profit potential, even if you’re just getting on board right now.
The Case for $2,000 Gold
Gold is still so grossly undervalued, it’s a joke.
In terms of today’s dollars, gold reached $2,176 in 1980.
And that was at a time when the demand for gold was far less sustainable than it is today ... and the supplies far more abundant.
In other words ...
Gold will have to nearly quadruple — to more than $2,000 an ounce — just to regain the same purchasing power it had 26 long years ago!
Look. If history teaches us anything, it’s that no record stands forever on Wall Street. And right now, the action in the market is telling me the day gold breaks its record is coming a lot sooner than most people think!
Hettygreen
take a look at the info on this!
http://www.investorshub.com/boards/board.asp?board_id=5466
It should help you
UNhedged
No James
l hold QRL on TSX l average 68 cents, l donot need anymore shares as l have just under 1 ml
THEY ARE WELL WORTH READING James
http://search.messages.yahoo.com/search/messages?tag_M=qee&fname_M=txt_comment
James
l am long! l use to trade almost dayly but l am in for a 10-20 bagger
You will do just fine James
good luck and go gold $ Queenie
James444ct' l have no need to load-up l hold just under a million shares ofQRl
INTERVIEW WITH JOHN EMBRY
12:30 PM ET
Market Call with Jim O'Connell
Precious Metals (Junior Gold and Mining Companies)
John Embry, chief investment strategist, Sprott Asset Management
Duration: 57 m 32 s
Queenstake Res @ the 41 minute mark
http://www.robtv.com/shows/past_archive.tv
INTERVIEW WITH JOHN EMBRY
12:30 PM ET
Market Call with Jim O'Connell
Precious Metals (Junior Gold and Mining Companies)
John Embry, chief investment strategist, Sprott Asset Management
Duration: 57 m 32 s
Queenstake Res @ the 41 minute mark
http://www.robtv.com/shows/past_archive.tv
QRL also has a site here
http://www.investorshub.com/boards/board.asp?board_id=5466
WebBroker Select Company News Alert
========================
Queenstake Announces Closing of US$10 Million Private Placement from Newmont
prnews
DENVER, April 13 /PRNewswire-FirstCall/ -- Queenstake Resources Ltd.
(Amex: QEE; TSX: QRL) has closed its equity private placement with Newmont
Canada Limited (Newmont), a subsidiary of Newmont Mining Corporation
(NYSE: NEM; TSX: NMC), whereby Newmont purchased 28.51 million Queenstake
common shares at Cdn$0.41 per share for gross proceeds of US$10 million. With
this purchase, Newmont owns approximately 4.9% of Queenstake's basic
outstanding common shares.
As part of the private placement, Newmont received warrants that can be
exercised to acquire up to 28.51 million common shares of Queenstake at a
price of Cdn$0.55 for a four-year period, which would generate Cdn$15.7
million in cash if exercised.
In addition, affiliates of Newmont are conveying three of their Nevada
exploration properties, including the Shwin Ranch project along the
Cortez-Battle Mountain Trend, to Queenstake. Another affiliate of Newmont is
selling concentrates and ore from its Nevada operations to Queenstake for
processing at its Jerritt Canyon roasting and milling facility in Northeastern
Nevada. The contract calls for the purchase of approximately 500,000 tons of
concentrates and ore per year over two years. Ore purchases with Newmont may
continue for up to three more years if Queenstake has the spare processing
capacity.
Dorian L. (Dusty) Nicol, President and Chief Executive Officer of
Queenstake, said, "We are pleased to have closed this significant transaction.
The timely closing allows us to immediately optimize utilization of our
Jerritt Canyon milling and roasting facility. It also allows us to accelerate
exploration early in the field season."
Net proceeds from the private placement will be used to fund exploration
and for other corporate purposes. Queenstake was advised in this transaction
by Blackmont Capital Inc. and will pay advisory fees in connection with the
transaction.
The securities referenced herein have not been and will not be registered
under the United States Securities Act of 1933 and may not be offered or sold
in the United States, unless an exemption from registration is available.
After a contractual six-month holding period, the shares held by Newmont may
be freely traded in Canada.
Queenstake Resources Ltd. is a gold mining and exploration company based
in Denver, Colorado. Its principal asset is the wholly owned Jerritt Canyon
mining operations and district in Nevada. Jerritt Canyon has produced over
seven million ounces of gold from open pit and underground mines since 1981.
Current production at the property is from underground mines. The Jerritt
Canyon District comprises 119 square miles (308 square kilometers) of
geologically prospective ground and represents one of the largest contiguous
exploration properties in Nevada.
For further information call:
Wendy Yang 303-297-1557 ext. 105
800-276-6070
Email -- info@queenstake.com web -- www.queenstake.com
Cautionary Statement -- This news release contains "Forward-Looking
Statements" within the meaning of applicable Canadian securities regulations
and Section 21E of the United States Securities Exchange Act of 1934, as
amended and the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical fact, included in this
release, and Queenstake's future plans are forward-looking statements that
involve various risks and uncertainties. Such forward-looking statements
include, without limitation, estimates and projections of future gold
production, processing rates and cash operating costs. Forward-looking
statements are subject to risks, uncertainties and other factors, including
gold and other commodity price volatility, operational risks, mine
development, production and cost estimate risks and other risks which are
described in the Company's most recent Annual Information Form filed on SEDAR
(www.sedar.com) and Annual Report on Form 40-F on file with the Securities and
Exchange Commission (SEC; www.sec.gov) as well as the Company's other
regulatory filings. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.
SOURCE Queenstake Resources Ltd.
For further information: Wendy Yang of Queenstake Resources Ltd., +1-303-297-1557, ext. 105, or +1-800-276-6070, info@queenstake.com
Copyright 2002 The Globe and Mail
News Release 2006-10 April 13, 2006
Queenstake Provides First Quarter Operating Update and
Reaffirms 2006 Production Guidance
Denver, Colorado - April 13, 2006 - Queenstake Resources Ltd. (TSX:QRL, AMEX:QEE) reported that its Jerritt Canyon operations in northeastern Nevada produced 29,873 ounces of gold in the first quarter of 2006 and accumulated an estimated 22,000 ounces contained in an ore stockpile as at the end of March 2006. For the full year, the Company expects to produce between 200,000 and 220,000 ounces of gold.
During the first quarter, the mining rate and mined ore tonnage were consistent with the Company's 2006 operating plan. Extremely wet weather during the early portion of the quarter and mechanical issues at the mill, as previously announced in the Company's news release of March 30, 2006, combined to delay processing all of the ore mined in the quarter. As a result of this processing delay, production from gold ounces poured was 34% lower than the prior quarter. The mechanical issues related to the pinion gear caused temporary mill shut downs. However, the mines continued to deliver ore to an increasing stockpile, adjacent to the mill, and continued underground mine development.
The overall impact is that Jerritt Canyon expects to process the stockpiled ore (in excess of 100,000 tons containing an estimated 22,000 ounces of gold) during the remainder of 2006. For the rest of the year, it is anticipated that the mill will be running at full capacity, processing both Jerritt Canyon mined ore, and concentrates and ore purchased from Newmont's Nevada operations. (See the Company's separate news release today pertaining to closing of the Newmont private placement.) Operating costs and financial results for the first quarter of 2006 will be reported by May 15, 2006.
Total cash operating costs in the 2006 first quarter were generally in line with the operating plan. However, cash operating costs on a per ounce basis are estimated to be significantly higher than the 2005 fourth quarter's cash operating costs of $413 per ounce, primarily due to much lower gold production and the expenses related to the mechanical issues with the mill experienced in the first quarter.
Underground Operations Update
During the 2006 first quarter, the underground mines performed well, moving 326,522 tons, including 228,963 ore tons, both in line with Company's 2006 operating plan, with mined ore being accumulated in the ore stockpile. Ore tons mined increased 3% from the fourth quarter of 2005. Capitalized mine development of 2,680 feet (817 meters) was slightly ahead of the 2006 operating plan during the first quarter.
Mill Update
The mill processed 150,228 tons during the first quarter, 29% lower than the prior quarter. The average process grade was 0.25 ounce of gold per ton (opt), slightly lower than expected in the 2006 operating plan due to the delay in processing some higher grade ore, which is in the ore stockpile. The average recovery rate of 86% was 1% lower than expected in the 2006 operating plan as the mill was not operating as efficiently during the first quarter due to the mechanical and weather related factors.
During the 2006 first quarter, as previously reported, the mill had two broken pinion gears. The first was caused by a lubrication system failure and the second by rapidly accelerated wear of the new replacement pinion gear against an older, worn bull gear. After consultation with several mill and gear experts, the mill resumed operations in late March with close monitoring to avoid further issues. The long-term solution requires that the bull gear be turned over for a fresh surface to more closely match the new pinion gear, ensuring future continuous operation. The turning of the gear is being done now, during a scheduled eight- to 10-day annual mill maintenance shut down.
2006 Outlook
The Company's production estimate for 2006 is unchanged at 200,000-220,000 ounces of gold.
The second and third quarters of 2006 are expected to have significantly higher gold production than the first quarter as the mill processes the ore stockpile. Cash operating costs per ounce for the remaining quarters of the year are expected to be considerably lower than the first quarter due to increased gold production. Cash flow from operations was used in the first quarter to pay for direct mining costs of extracting and transporting the ore to the stockpile. These costs are inventoried in the stockpiled ore and recognized in cash operating costs as the ounces are produced. Accordingly, operating cash flow is expected to improve in the second and following quarters.
These quarterly fluctuations are expected to even out over the full year's production so that cash operating costs per ounce remain at an estimate within 5%, over or below $413 per ounce. The benefits of the Newmont concentrates and ore purchase contract have not yet been factored into this estimate, but as previously reported, the contract is expected to reduce the Company's cash operating costs per ounce by $15-$20 by spreading the fixed costs over gold ounces from Jerritt Canyon production and purchased ore. The Company's gold production remains unhedged to allow full benefit and exposure to the current rising spot gold price.
Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, Colorado. Its principal asset is the wholly owned Jerritt Canyon District in Nevada. Jerritt Canyon has produced over seven million ounces of gold from open pit and underground mines since 1981. Current production at the property is from underground mines. The Jerritt Canyon district comprises 119 square miles (308 square kilometers) of geologically prospective ground and represents one of the largest contiguous exploration properties in Nevada.
# # #
For further information call:
Wendy Yang 303-297-1557 ext. 105
800-276-6070
Email - info@queenstake.com web - www.queenstake.com
Cautionary Statement - This news release contains "Forward-Looking Statements" within the meaning of applicable Canadian securities law requirements and Section 21E of the United States Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this release, and Queenstake's future plans are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, (i) estimates and projections of future gold production, processing rates and cash operating costs, (ii) estimates of savings or cost reductions and (iii) estimates related to financial performance, including cash flow. Forward-looking statements are subject to risks, uncertainties and other factors, including gold and other commodity price volatility, operational risks, mine development, production and cost estimate risks and other risks which are described in the Company's most recent Annual Information Form filed on SEDAR (www.sedar.com) and Annual Report on Form 40-F on file with the Securities and Exchange Commission (SEC; www.sec.gov) as well as the Company's other regulatory filings. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This email is provided as a communication means to our shareholders and subscribers who have requested to receive this information. If you have questions or comments about this service or to unsubscribe, please contact info@queenstake.com
Gold’s New Big Dog
According to the IMF, China currently holds just 1.4% of its total foreign exchange reserves in gold. This is the lowest amongst major central banks. The average is 5% and many central banks have a lot more than that.
Now consider: If China were to boost its gold holdings just to 5%, it would need to buy the rest of this year’s total mining output!
Of course, that wouldn’t happen—not overnight, anyway.
But it is very likely to happen over time, and here’s why:
Beijing’s Big Dogs have already declared that, as the yuan rises and the value of China’s dollar-horde is forced down, China will aggressively diversify into gold.
This makes cold economic sense. Islamic nations have been doing the same since 2004, and this has been a significant force behind the resurgence of gold from $391 to $591 an ounce. Again—inflation had nothing to do with it.
So: Beijing is one big new gold buyer. Who is the other?
$831—here we come!
The second big new buyer of gold is the Chuppy: the newly-affluent Chinese yuppy.
The Chuppy has not been a gold-buyer until very recently, but a new China Strategy survey of spending habits among China’s new middle class indicated that there is a remarkable change afoot.
Our historic survey found intense conservatism among the new middle class in China. This burgeoning group will buy real estate, they will buy status symbols, but above all, they will hedge against an uncertain future.
gold to do it.
Who could blame them? This is a generation that saw their parents eat grass to survive, and experienced individual aspirations being publicly crushed into the collective mud.
Here in the U.S., we saw how the Great Depression made Gold Bugs of an entire generation. Imagine, then, the effect on today’s Chuppies of Mao’s ghastly Great Leap Forward!
Small wonder, too, that Chuppies in our survey felt extreme caution about socking their savings away in Beijing’s banks. Banks are seen by many in China as corrupt and liable to be plundered by the government.
So gold is the logical answer.
Today’s Chuppies are buying gold, but not in the form of the heavy, 24-carat jewelry favored in India. Hip new looks and lighter alloys are coveted—but the effect on gold prices is the same.
It’s a classic demand-driven boom—just as we’ve seen in so many commodities over the past 5 years.
In China's Hottest Commodities, a brand-new report I am making available to all new subscribers to China Strategy with today’s offer, I show you how to cash in on gold’s next big leg up. The report is FREE, today only, at this special link.
The Second 91% Gain
Commodity prices are 91% higher today than four years ago. Did you know? And, more to the point: Did you profit?
It’s not just gold and silver that are hitting 25-year highs, either. From aluminum to wheat, it’s a roaring, red-hot commodities bull market!
Pension funds as well as retail investors are now using commodities as a crucial way to diversify away from stocks.
So in many ways, this bull market is still young—and, indeed, prices of many mining companies are still among the best deals on The Street.
China’s juggernaut economy is the key driver behind many of these all-time highs. China bought just 5% of the world’s output of base metals in the 1980s.
Today, it buys about 25%.
That’s a huge, historic shift. You just can’t ignore it.
Artie & Friends,
I figure I'll keep communications to the "email" route, for now. I am going to find out this week whether or not I'll pursue working with MS. For now, I am still independent and can speak my mind without interference.
Van Eeden has a good basic knowledge of what is going on with the POG. He's also a very good communicator. However, I do not see any more significant damage happening to the dollar. The reason gold is going up is because the demand is going up (and should continue to do so). The "euphoria" is just coming to the attention of those who really don't understand much of anything about the markets. What is happening with gold is not directly correllated with the dollar. If it were, gold wouldn't be moving at all. As far as interest rates go, they were taken down much too low after the disaster of 9-11. The housing market is going to take a hit, but not anytime soon. Granted, new housing starts and down and bankruptcies are up. . .but one does not declare bankruptcy if they have any capital. The markets are run by people with capital, not those without capital. There is still money out there, and where to put that money is getting more and more sparse. More people WITH money are now looking at gold as a hedge against changes in currency values.
Like I said, I like Paul. But he's been on this "focus to the dollar vs. gold" issue for much too long. Anyone that has been watching the dollar knows that it has been stable for several months against other currencies. The account deficits of the US Govt are increasing, but Burnanke is pledged to printing more and more money as he raises interest rates. Inflation will be a barometer to keep an eye on, but anyone living in the US knows that the price of autbomobiles has actually tanked. One can pick up some really nice autos at 2/3 the cost it could have been a few years back. Fossil fuels are soaring. . .the price of autos goes down. Geesh, Toyota is even making a 13,000 auto that looks good, and rides good, and gets good gas mileage. If GM could figure out how to do that, they might actually survive. And this "union" BS isn't helping GM, at all.
Gold will continue to go up. I just hope that a premature parabolic move doesn't happen too soon. It is very possible this will happen. In that event, we will see a major pullback. It would be nice if the pace would slow down a bit. However, I do not think we are going to see a traditional bull market in gold. Times have changed. We have a totally different set of circumstances to monitor this time around vs. the old gold bull of 79-81. Just about everyone has a computer now, and interest rates are still minor compared to the Reagon era. This is an entirely different set of rules. . .and possibilities. The fiat system is not going to come to an end and gold is never going to be the world currency as there isn't enough gold to provide for a world currency (gold, silver and copper. . .are in demand, in many other ways). Besides, if the fiat system crashes none of us are going to need to worry about gold or anything else. The Bush Administration will make sure WWIII moves into full effect and most of us will become pieces of our environment (dashed to ashes by nuclear bombs).
Van Eeden is a little afraid of mentioning the truths. I'm surprised that some of his positions have been so short when he believes gold will continue to move. If he were that confident, he'd just hold his gold positions and stop dilly dallying around. In the bull of the late 70s and early 80s, most junior mining stocks ran up hundreds of percentage points. If he feels his philosophy is so strong. . .he doesn't need to sell any of his positions because he may be worth more than Warren Buffet if he just holds on. I think the smartest people are maintaining their positions and waiting out the storm. The question is, "What type of storm are we in for?" Answer. . .nobody really knows. It's just interesting how all these people begin coming out of the woodwork to put praise on their hypothesis before them become theories. Silence. . .may be the best "golden rule" of all. And when people are "in the know" of how things actually works, they are kept silent. The SEC makes sure of that.
Just hold your positions and enjoy the ride. The cyclical bull in gold could move faster than one is ready for but at least you are positioned. It is those that are not positioned or that are flipping money from hither to yon that are going to suffer the consequences of not being patient during the eye of the storm.
Peace,
Paul van Eeden
Thursday was an interesting day: the US dollar fell sharply against the euro and other European currencies, causing a spike in the gold price. Silver and other metals prices also benefited. US bonds fell, US stocks fell, US interest rate rose and the gold price increased. There it was: the dollar falling with rising interest rates and a rising gold price. Regular readers of these commentaries know we were waiting for this exact scenario. Under these conditions, I expect the gold price to continue to move upwards; even though it never does so in one, smooth, straight line.
What caused the drop in the dollar? US Commerce Secretary Carlos Gutierrez warned of rising protectionist sentiments in Washington while in Beijing on Thursday. Later in the day US Treasury Undersecretary Timothy Adams told a congressional committee that his department's number one priority is to get China to revalue its currency (upwards) against the dollar. Prior to this, Senators Schumer and Graham had proposed a tariff of 27.5% on all US imports from China and were going to force a Senate vote on the issue Friday. However, after returning from a trip to China, the two decided that they would, after all, not force the Senate to vote on Friday.
Anti-Chinese sentiment in America has been brewing for a while and it seems to be only a matter of time until they either enact protectionist legislation, such as tariffs, or force the Chinese and Japanese to let the dollar fall. I wrote about this before and showed that the most likely outcome would be for the Chinese and Japanese to let the dollar fall (http://www.paulvaneeden.com/displayArticle.php?articleId=109)..
The problem, of course, is the ballooning US trade deficit with China. In order to let the renminbi appreciate against the dollar, China will have to sell more of the trade dollars it receives and buy fewer US Treasuries. That also means Japan will have to buy fewer Treasuries because the yen will follow the renminbi, and so will all the other Southeast Asian currencies and probably also the European currencies. But if all these currencies appreciate against the dollar, then all foreign investments in the US will have their returns diminished. If you were not a US resident, would you invest your capital in the US knowing that its Legislature is hell-bent on devaluing the dollar? Probably not, which is why investors reacted with their pocket books this week.
The net result of reduced foreign investments coming into the US will be higher US interest rates, a lower US dollar, a falling US stock market, declining US real estate prices, rising unemployment and rising gasoline prices due to higher oil prices as a result of a weaker US dollar. And, of course, a rising gold price.
If you are interested in some of my views on gold and exploration stocks, I was interviewed on ROB TV (a national business television program in Canada) on Thursday night. Here is a link to the program: http://www.robtv.com/shows/past_archive.tv?day=thur . Scroll down to the 8PM segment, called Market Call Tonight with Howard Green.
If you want to know more about what I think, and what I buy and sell with my own capital, you could subscribe to my weekly newsletter. In it I tell subscribers what I buy and what I sell. I also try to explain my reasons. This week, as an example, I bought three stocks. Information about my newsletter and details on how to subscribe are all on my website at www.paulvaneeden.com (look under the Newsletter Section).
Paul van Eeden
Hi NYBOb
you started l great site here, my last post was one from Yahoo posted by someone else,
Artie
Re: talk on the phone
by: ecopo7 03/29/06 06:12 pm
Msg: 3244 of 3245
Yes the 4e quarter earnings she said we are working on it and it should be out 2to3 days some kind of(news brake) forgotte the terminolagie but it sounded like it some cachet to it.Made my day. If qee goes up some i may be out of the dog house for a will.
Should be anytime now.
Hi Tom and Welcome. l still post on Shouse l use Arthur7000, as l cannot post using Arthur7440, they cut me off for Spamming other B.B's about QRL
Artie
Ps Loan Tech l see your adds on TV
lot of sellers coming on at 34-35-and-36 its going to take time getting past 36 and if guy's like one of my Trading Buddie's keep trading a 100.000 shares in and out its going to take quite sometime for queenie to move up.
It looks a good one to start clean on Mark
Artie
WELCOME Members
Artie