Gold climbs above $1,770 as bank stimulus cheers buyers Posted on September 21, 2012 by News 21-Sep (Reuters) —
Gold rose back above $1,770 an ounce on Friday as expectations that central bank measures to stimulate growth would boost liquidity, fuel inflation and keep interest rates at rock bottom put the metal on track for a fifth straight week of gains.
A firmer tone across the financial markets also supported bullion. European shares and the euro rose, while oil rebounded from a 1- 1/2 month low, as investors moved back into markets still feeling the benefits of central bank support measures.
…”With the open-ended scheme to print as much dollars as needed until the U.S. economy recovers, gold’s uptrend has fewer barricades on the way at least to earlier highs,” Richcomm Global Services senior analyst Pradeep Unni said.
[source; News 21-Sep (Reuters) — ]
U.S. has Highest Corporate Tax Rate, Driving Businesses Abroad
Zimbabwe and Zambia have some of the lowest labor cost and make it corporate friendly ex...in comparison with US who has some of the highest labor cost and highest unfriendly corporate taxes in the world -
CALVF NAMA deposit is suitable with great weather conditons which makes its operational year around etc. with a large smelter (who looking for more ore) close to NAMA Konkola mine operation etc.
CALVF management has got the shares fast UP twice before - to $6 and to $9 - TI makes a top trend line pointing @ $12 and better :-)
history often repeat itself -
note. CALVF SPO $12 would be pretty nice for the management thee got doubly doubloons dough golden dove laying golden eggs nicely in place - :-)
CALVF Management granted share purchase options over ordinary shares of the Company ("Ordinary Shares") to its directors, officers and employees etc. options outstanding to 39,859,000 - equivalent to approximately 7.85% of Caledonia's issued share capital.
Options have been granted exercisable from September 10, 2012 at a exercisable price of $0.09 (Cdn.) per Ordinary Share.
CALVF lowest cost GOLD producer current appr. Au 50,000 ounces/year -
CALVF GOLD production total cost below $600 per ounce -
CALVF GOLD production plant only running @ half capacity -
CALVF Blanket Gold Mines starting up 3 more Gold Mines with close trucking distance from the main production plant -
CALVF holding about $20 million in cash -
CALVF NAMA Zambia 800 Sq.Km Copper & Cobalt resource may become one of the largest in the world with current ongoing drilling
CALVF Blanket's cash operating costs in the Quarter decreased to US$547 per ounce of gold produced -
- from US$648 in the preceding quarter and US$585 in the comparable quarter. The decrease in cash costs was due to the higher gold production during the Quarter and the non-recurrence of certain costs which temporarily increased the average cost per ounce in the preceding quarter.
CALVF Blanket Gold Mine production in July 2012 was 4,708 ounces.-
CALF NAMA should not be compared to Los Azures its like apple vs. oranges etc.
ex. Location of Los Azules
Los Azules is 6 km east of the Chilean-Argentine border, is accessible by road and is at an elevation of 3,500 meters above sea - level. Due to snow conditions on two mountain passes on the access road to the site, seasonal exploration typically commences in November and terminates in late April. Its high elevation and severe winter weather - very difficult ex. for open pit operation the deposit drilling goes down to 622 meters more than 160m deeper ex. than NAMA drilling and would fit an underground operation but not open pit as
CALVF NAMA deposit is suitable with great weather conditons which makes its operational year around etc. with a large smelter (who looking for more ore) close to NAMA Konkola mine operation etc.
In 1971 President Nixon closed the window that allowed U.S. dollars to be sold for gold owned by the U.S. Just before that, the price of gold was $35 an ounce. Since then gold has been called a 'barbarous relic', a term used by Keynes, the famous economist. From that time on, the world's currencies stood merely on the confidence their governments engendered and the control they exercised over international financial dealings of all kinds. That confidence lasted until 2007 when the credit crunch brought government financing on both sides of the Atlantic into question. Up until now the performance of the underlying value of currencies has hidden these questions as exchange rates are adequately 'managed' through swap arrangements to stabilize exchange rate movements to the extent that violent moves don't happen. But the real value of currencies in terms of their real solvency is now a matter of open debate. As of now, relative to the amount of gold available to markets, the price of gold is the only measure of value that currencies can be held to. We look at that and look at the conditions that are determining the value of currencies now and in the future.
The Currency Experiment When Nixon closed the 'Gold window' to European governments in 1971 he relied on the oil producers of the world to price oil in U.S. dollars only. This made the USD a necessity. Except for the few oil producers who refine their own oil, every country needs to import oil after using the U.S. dollar to buy it. This gave the U.S. the control they needed over currency markets, to ensure that the dollar became and remained the sole global reserve currency until now. A look at the euro, which -although the world's largest trading bloc- shows that if a currency is measured solely on the performance of its government and Balance of Payments, it remains vulnerable to market forces that react to that measurement. With oil in backup, that vulnerability fades. That is, until profligate printing of that government's currency becomes so obvious that it cannot be ignored. This is where the U.S. dollar is coming to now. The 'currency experiment' has persisted for 41 years, but for the last five, it has faltered and continues to do so. With the focus on the short-term, the real consequences of that experiment have been largely ignored. It's time to take a more distant view of what has happened so that we can get a balanced perspective of its cost.
Value of Paper Money - The Harsh Reality During the 42 years of the currency experiment with no gold or silver standing behind currencies we have seen the gold price multiply from $35 to $1,770. That's over 50 times in 42 years. And there's still much more to come it seems, with the assistance of governments. If one was fortunate to get out at anywhere above $800 back in the eighties and back in at $300 in the next twenty years that number goes up to 64 times $35. That's what solid long-term funds should have done, to maximize profits. (It is far better than trading and far less nerve- racking.) But don't look at that as a profit figure. That's not the point we are making here. Look at it as a statement on the failure of the currency experiment and currencies' ability to measure value. Now translate that into the value of savings over that period - a harsh reality indeed!
Pension Funds A Pension fund is measured on the money flowing in and less the money flowing out. The assets in the middle should be rising to cover the additional costs of paying pensions when the workers retire and the cost of living increases. That's why they depend on Pension Fund Managers and Pensions. If the money leaving is more than that coming in, then the fund is moving to insolvency. As Alan Greenspan pointed out so strongly, this is happening now and with 'baby boomers' retiring now, that is the current situation in most Pension Funds (such as is now reported about the Chicago Teachers). The future of such Pensioners even now as well as the Pensions of those working now looks bleak. If you strip out the causes of higher prices that are due to supply and demand factors (which usually readjust over time) then you are left with monetary inflation. A rate of monetary inflation of 2.5% has been deemed acceptable because it is manageable and gives the impression of growth. Today's quantitative easing in the U.S., Europe, Japan and China has now accelerated to a much faster pace in the hopes of stimulating faster, sustainable growth. QE1 and QE2 may have staved off a depression, but they have not translated into sustainable growth. We are all now waiting to see if QE3 will do so. We've all become aware that money printing lowers the value of a currency; however, the benefits of increased liquidity in the system -it is hoped- will compensate for that. Savers are the victims of such a policy, if they save those currencies even when growth is resuscitated. Some savvy enough may turn to currencies, which they believe will not be devalued in the same way and retain their value, i.e. Yen or Swiss Franc. But for the last year or so, both the Swiss and Japanese governments have interfered in the market place to lower the value of their currencies internationally, so they can retain their international trade competitive levels. The Yen is still being treated as a 'safe-haven' currency even though the Bank of Japan has made it clear that it will engineer a weaker Yen for a long time to come. The same is true of the Swiss Franc, both countries placing their export competitiveness above the value of their currencies. We can therefore state: The concept of a currency as a measure of value has now departed completely. Such currency market changes leave room for gold and silver to act as that measure of value, as currencies fall against them. Look again at the price of gold before 1970 and now. It translates into a 100%+ gain every single year for the last 41 years. (So much for an item you dig up, then put back in the ground.) But this is a measure of decline in currency value over that same period! The culture that precipitated this history is still in control and certainly intends to continue down that road. Some commentators believe that the gold price can triple in the next few years. That would change the rise from $35 until then to 317% per annum since before the 1970's. What will that tell you about the value of currencies the world over? And what does that point to in the future? Julian Philips
U.S. Dollar Collapses - Japan is the third largest economy in the world - Japan is mimicking Bernanke's QE decision last week to attempt to devalue their currencies to boost exports. The Japanese stimulus is massive and will now total nearly 20% of Japan's total economy. The U.S. dollar is falling as these drastic moves were much bigger than the consensus expected.
CALVF management should be encouraged by the LT TEAM shareholders to make a new buy back program of CALVF Au bargain shares :-)
CAL.TO/CALVF has some past early history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
CALVF to share buybacks is the best investment in the Gold producing industy - well, plenty of cash from the low cost CALVF Gold production is on hand -
CALVF $GOLD LT, the global financial crisis will probably push Gold thousands of dollars higher - In the shorter term - rising commodity prices are Gold's best friend - ex....
GOLD Demand $AuBull GO High agree with Maund - high risk - High REWARD -
in last 1930 depression DJIA dump did happen but GOLD stock kept its demand UP -
history often repeat itself -
GOLD PRICE WILL RISE TO MULTIPLES OF THE CURRENT PRICE - ALLOCATED GOLD SCANDAL HIT -
GOLD WILL BREAK RANKS FROM THE PAPER CLUTCHES -
PHONY PRICE DISCOVERY METHODS -
THE GOLD PRICE WILL EASE PAST THE $5000 PER OUNCE MARK -
TAKE SILVER ON A GREAT UPWARD RIDE -
THE BANKERS WILL HAVE TO REPLACE THE GOLD -
BY OPEN MARKET PURCHASES AS RESTITUTION -
The events will continue to occur in a sequence - probably managed much more than we are told - a new sheriff is in town - who stepped off jetplane - few months ago from an Eastern location - suspect the Western castle dwellers are staging - systemic collapse in order to impose - new centralized government - not be pretty, nor permit rights or liberty - be described as a debt slavery serfdom - Western strategy is backfiring - de-centralization is occurring - the exact opposite - primary secure safe haven is Gold - always has been Gold - always will be Gold - The experiment since 1971 when the Gold Standard - was unilaterally broken by the United States - is coming to a conclusion - wreckage is complete and a great tragedy - new system will emerge - LIBOR LAWSUITS - attorneys and aggrieved victims are lined up - perhaps over 900 thousand lawsuits will come - how many adjustable rate mortgages were arranged - from 2005 to 2009, with underwriting banks - serving the complaints - army of US legal beagles is on the job - lost income to the victims is obvious - lawsuits will eventually target the central banks - fraud reaches into the $trillions easily - the derivatives will be factored in - $trillions in volume times percentages skimmed illegally - mainstream press carefully avoids such topics - GOOGLE search of "municipal lawsuits LIBOR" produce >21.1 million hits - story will be gathering momentum - be in the headlines a year from now -
Demand and supply factors remain in gold’s favour.
There is strong demand from store of wealth buyers in Europe, China, the Middle East and the rest of Asia – not to mention strong demand from institutions and central banks.