Those circulating dollar bills, euros, pounds, and yen are DEBTS (notes) issued by central banks to extract wealth from citizens and the economy, dilute the purchasing power of the currency, and nourish the banking cartel.
“The problem of course is once it has done this [created the ‘everything bubble’], the Fed will NEVER be able to normalize interest rates because the entire financial system is now addicted to extraordinarily low rates.”
“… a Fed President stated point blank that the Fed is aware that the entire US financial system is one gigantic leveraged bet on low interest rates…and as a result of this, the Fed is DONE with normalization.”
“Indeed, the Fed’s pro-inflation policy since Alan Greenspan’s arrival at the Eccles Building in August 1987 has been sheer folly.”
“The Warfare State will metastasize until something bigger stops it. AOC-and-MMT-style socialism plus the Green New Deal promise the same for the Welfare State.”
THE IMPLICATIONS ARE:
1) Central banks and the banking cartel are supporting the political and financial elite with debt-based currency units. The rest of us manage on our own.
2) The U.S. official national debt passed $22 trillion. Not only must debt creation increase, it must accelerate or risk a recession, depression, or revolution. Exponential increases in debt are essential until a reset occurs.
3) Fiat currency systems throughout history that depended upon the honesty and integrity of the banking cartel and government officials died from corruption, excess “printing” and devaluation of the currency. The dollar will not be an exception.
4) However, the dollar may survive many years as the elite create ever-increasing debt, or it might “reset” much sooner.
“Just as there is no tool other than QE to feign financial solvency, there is no tool to balance the balance sheet of the offending entities other than Gold.”
QUESTIONS TO ASK:
Argentina lopped 13 zeros from their currency in the past 80 years. Would it have been wise to own physical gold coins while the Argentine government and central bank debased the currency with runaway inflation?
Would you prefer to be a billionaire in Zimbabwe dollars or the owner of 10 ounces of gold?
Do you own more than one Senator on speed-dial?
The national debt has increased at almost 9% per year for over 100 years. Do you expect that trend to reverse soon? More debt = more currency in circulation = more price inflation.
Welfare lobbyists are powerful. Warfare lobbyists get what they want. The banking cartel donates to congressional and presidential elections. Will they receive financial considerations for their “donations?”
Do you own enough gold and silver that you sleep well at night knowing congress and the Deep State are promoting their agenda?
WHAT ABOUT SPECIFICS?
The official national debt, not counting unfunded liabilities, is over $22 trillion – over $150,000 per worker in the U.S. It will default or be repaid with hyper-inflated dollars. Silver and gold can’t default. They depend upon the counter-party promises of no one.
The national debt increases every year, even allowing for population changes. Divide national debt by the population (every man, woman, and child). The result is:
The Gross Domestic Product (GDP) as reported by the St. Louis Fed shows an exponential increase even when adjusted for population growth. Dollars buy less so nominal GDP increases.
But the critical observation is that GDP has grown 3.4% per year for the last decade while population adjusted national debt has grown at 7.7%.
How long can debt grow faster than the economy which supports that debt? A long time, but not forever…
Worse, the growth of population adjusted GDP from the 1960s through 1986 has slowed from 8.9% to only 3.4% per year since the 2008 financial crisis.
WHAT ABOUT THE DOW JONES INDUSTRIAL AVERAGE AND GOLD?
The DOW has increased exponentially for many decades.
And gold sold for $42.00/oz in 1971.
The DOW is near the top of its six-decade trend channel. The next major move is likely down.
Gold prices are near the center of their five-decade trend channel. Debt-based currency units will devalue further, as they have for over 100 years. When the dollar buys less, the price of gold must increase.
But gold prices will increase even more rapidly as the world realizes fiat currencies are dodgy and must decline in purchasing power. The dollar, as global reserve currency, has held up better than most, but gold will survive. The dollar will not.
Zerohedge reported that the U.S. military airlifted 50 tons of gold from Syria. Why gold, not paper currencies such as the Syrian Pounds, Iranian Rials or Russian Rubles?
Why did Iraq steal gold from Kuwait when Iraq invaded?
What happened to Libya’s gold?
What happened to the billions of Zimbabwe dollars printed by their central bank? Toilet paper?
From Thomas Sowell:
“If you have been voting for politicians who promise to give you goodies at someone else’s expense, then you have no right to complain when they take your money and give it to someone else, including themselves.”
CONCLUSIONS:
Population adjusted official national debt has exploded in the past 100+ years.
Population adjusted GDP has not kept pace with debt—a bad sign.
Worse, population adjusted GDP has fallen from 8.9%/year in the 1970s to 3.4%/year in the past decade.
Gold prices will rise as fiat currencies devalue, and as the world acknowledges $250 trillion in global debt is unpayable. The “printing game” can last longer, but the consequences will be ugly.
Have you protected your savings and retirement with something real – like silver and gold – instead of trusting devaluing fiat currency units manufactured in the trillions by corrupt central banks?
Buy silver and gold for insurance against the excessive “printing” of central banks. Miles Franklin sells silver and gold.
Call them at 1-800-822-8080 and request a shipment of fiat currency protection units (silver and gold coins). Tell them the Deviant Investor suggested it.
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
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TORONTO , March 12, 2019 /CNW/ – Anaconda Mining Inc. (“Anaconda” or the “Company”) – (ANX.TO) (ANXGF) is pleased to announce that it has entered into a $5 million term loan (the “Facility”) from the Royal Bank of Canada (“RBC”). The Facility will provide the Company with enhanced financial flexibility and allow it to complete all pre-construction activity at its 100%-owned Goldboro Gold Project in Nova Scotia (“Goldboro”) without further equity financing. In 2019, Anaconda expects to finalize a feasibility study for Goldboro and complete all work required to obtain mining permits to be shovel-ready in early 2020. The Facility was arranged with the support of Export Development Canada (“EDC”), which has issued a performance guarantee over half of the principal amount.
“The financial commitment from RBC and EDC demonstrates their confidence in the Anaconda management team, the continued cash flow generation at the Point Rousse Project, and our overall ability to advance our growth plans in Atlantic Canada . The Facility now enables us to execute on our business plan in an accelerated, focused manner, with our debt service obligations easily funded from our mine operations. This Facility, combined with our continued free cash flow generation from the Point Rousse Project, will enable us to advance the Goldboro Gold Project to a construction-decision stage in early 2020, at an exceptionally low cost of capital and without any dilution to our shareholders.”
~ Dustin Angelo , President and CEO
Terms of the Facility
The Facility is repayable monthly over a 24-month term with certain prepayment options. It is subject to an existing general security agreement with RBC and a debt service coverage ratio covenant to be measured on an annual basis, based on a ratio of a measure of earnings to interest expense and scheduled principal payments. The Facility was arranged with the support of EDC, which has issued a performance guarantee over half the principal amount. The Facility carries a fixed interest rate of 4.6% and performance guarantee fee by EDC of 1.85%, payable quarterly based on the proportional amount outstanding. The full $5 million has now been drawn and the initial monthly payment is due 30 days from drawdown.
ABOUT ANACONDA
Anaconda Mining is a TSX and OTCQX-listed gold mining, development, and exploration company, focused in the prospective Atlantic Canadian jurisdictions of Newfoundland and Nova Scotia . The Company operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland , comprised of the Stog’er Tight Mine, the Pine Cove open pit mine, the Argyle Mineral Resource, the fully-permitted Pine Cove Mill and tailings facility, deep water port, and approximately 9,150 hectares of prospective gold-bearing property. Anaconda is also developing the Goldboro Gold Project in Nova Scotia , a high-grade Mineral Resource, subject to a 2018 a preliminary economic assessment which demonstrates a strong project economics. The Company also has a wholly owned exploration company that is solely focused on early stage exploration in Newfoundland and New Brunswick .
ABOUT EDC
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, EDC equips Canadian companies with the tools they need – the trade knowledge, financing solutions, investments, insurance, and connections – to take on the world with confidence. Underlying all of EDC’s support is a commitment to sustainable and responsible business.
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking information” within the meaning of applicable Canadian and United States securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Anaconda to be materially different from those expressed or implied by such forward-looking information, including risks associated with the exploration, development and mining such as economic factors as they effect exploration, future commodity prices, changes in foreign exchange and interest rates, actual results of current production, development and exploration activities, government regulation, political or economic developments, environmental risks, permitting timelines, capital expenditures, operating or technical difficulties in connection with development activities, employee relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of resources, contests over title to properties, and changes in project parameters as plans continue to be refined as well as those risk factors discussed in Anaconda’s annual information form for the year ended December 31, 2018 , available on www.sedar.com. Although Anaconda has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Anaconda does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
VANCOUVER , March 12, 2019 /CNW/ – Pacton Gold Inc. (TSXV: PAC, OTC: PACXF) (the “Company” or “Pacton“) is pleased to announce the commencement of initial field work at Pacton’s Yandicoogina Project, where historical results from surface sampling have reported up to 199.7 g/t Au. The work program is targeting high-grade, shear-hosted gold within a number of mineralization settings and will use rock chip sampling and mapping to prioritize targets for drill testing.
Highlights:
Strike length: 4.7 km cumulative strike length of mapped anomalous quartz vein structures hosting gold mineralization.
Historical sampling results show strong gold mineralization in multiple locations:Rock chip sampling reported results of up to 199.7 g/t Au at surface (Western Australia Geological Survey).
Prioritizing targets for upcoming drill program: Results from the current program will be used to rank targets based on further exploration potential and to prioritize for drill testing planned for 2019.
Figure 1. Pacton’s Yandicoogina Project. Note: Geology, historic locations and grades were obtained from Western Australia Geological Survey archives. Grades noted in Figure 1, and historic mine production statistics of 198.8 kg from 3,232 t of ore yielding an average grade of 61.52 g/t gold do not conform to current disclosure standards, and are not to be relied upon. (CNW Group/Pacton Gold Inc.)
Dale Ginn , Executive Chairman of Pacton Gold, stated, “Pacton’s Yandicoogina projecthostshigh-gradegold bearing systems that are readily apparent and exposed at surface. It also has coarse nuggets from surface prospecting that appear to be from a vein source and have not been subjected to significant transportation. What the project lacks is any significant amount of drilling to depth. Our initial program will therefore focus on prioritizing targets for drill testing the high-grade concentrations at Yandicoogina.”
Yandicoogina Project
The Yandicoogina Gold Project is located 52 km to the south east of Marble Bar in the Pilbara Region of Western Australia . The Project covers a contiguous land holding of 164 km2 consisting of two granted exploration tenements (E45/3474 and E45/3571) and three granted mining leases located inside tenement (E45/3474).
Access to the project from Marble Bar is via the Marble Bar Road to the south east thence via station tracks which take you toward the Black Shepherd Mine.
The Project covers an extensive portion of the Warrawoona Archaean Greenstone Belt. Previous exploration activities have predominantly focused towards the greenstone portion of the project with a considerably limited effort placed on the Mt Edgar Mylonite Complex which is host to the high-grade Death Adder and Granite Prospects.
The initial work program will involve detailed geological mapping and rock chip sampling of priority defined prospects including Granite, Death Adder, Black Shepherd, Uncle Tom and Trilby. Through completing this first phase of activities a further understanding of the controls and extents of mineralisation for each of the prospects will be obtained. Prioritization, drill planning and permitting to drill will commence immediately following the completion of the initial work program.
About Pacton Gold
Pacton Gold is a Canadian exploration company with key strategic partners focused on the exploration and development of high grade conglomerate and orogenic gold properties located in the district-scale Pilbara gold rush in Western Australia and the Red Lake District, Ontario .
The technical content of this news release has been reviewed and approved by Dale Ginn , P.Geo., a director and Executive Chairman of the Company and a Qualified Person pursuant to National Instrument 43-101. The qualified person has not yet verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in the written disclosure.
On Behalf of the Board of Pacton Gold Inc.
Dale Ginn
Executive Chairman
This news release may contain or refer to forward-looking information based on current expectations, including, but not limited to the Company achieving success in exploring its properties and the impact on the Company of these events, including the effect on its share price. Forward-looking information is subject to significant risks and uncertainties, as actual results may differ materially from forecasted results. Forward-looking information is provided as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances. References to other issuers with nearby projects is for information purposes only and there are no assurances the Company will achieve similar results.
Neither TSX Venture Exchange, the Toronto Stock Exchange nor their Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Winter holes highlight the potential to expand the Triple R deposit’s high-grade core and have also delivered valuable geotechnical data TSX SYMBOL: FCU
OTCQX SYMBOL: FCUUF
FRANKFURT SYMBOL: 2FU
KELOWNA, BC , March 12, 2019 /CNW/ – FISSION URANIUM CORP. (“Fission” or “the Company“) is pleased to announce results from three holes of the Winter work program at its’ PLS property in Canada’s Athabasca Basin region. The three holes were drilled on the R780E zone with the dual-purpose of resource expansion and geotechnical testing of rock-mechanics for mine planning. All three intercepted high-grade mineralization that fit within, and expanded beyond the boundaries of the current modeled high-grade domain. Results include hole PLS19-PW-09, which intercepted a 37.5m continuous zone of strong uranium mineralization with a near-continuous 3.72 m interval of >10,000 cps and a peak of 61,115 cps. In addition, hole PLS19-PW-10 intercepted 47.5m total composite mineralization, including 3.98m of total composite >10,000 cps. With the completion of these holes, the program is now focusing on geotechnical drilling on the ring dyke and cut-off wall, as well as hydrogeology and pump testing.
Results Highlights
PLS19-PW-09 (line 735E) successfully targeted a large jog in the eastern high-grade core model where the high-grade core was interpreted to extend.
41.0m total composite mineralization over a 74m interval (between 130.0m – 204.0m), including;
4.52m total composite >10,000 cps
PLS19-PW-010 (line 990E) successfully targeted the interpreted extension of the R780E high grade core, approximately 120m east of the current high-grade resource model.
47.5m total composite mineralization over a 207.5m interval (between 108.0m – 315.5m), including;
3.98m total composite >10,000 cps
PLS19-PW-08 (line 615E) successfully targeted a low-grade gap between the middle and eastern R780E high-grade cores, with the aim to identify new high-grade mineralization outside of the current model.
71.5m total composite mineralization over a 123m interval (between 121.0m – 244.0m), including;
2.0m of total composite >10,000 cps
Ross McElroy, President, COO, and Chief Geologist for Fission, commented, “We are very pleased with the results and current progress of the winter program at PLS. These drill holes accomplished the goals set out with respect to intersecting mineralization within the modeled high-grade domain and overall look to have expanded beyond the modeled domain. These important results highlight the potential for growth as the R780E zone is further delineated.” Table 1: R780E Zone
Natural gamma radiation in drill core that is reported in this news release was measured in counts per second (cps) using a hand-held RS-121 Scintillometer manufactured by Radiation Solutions, which is capable of discriminating readings up to 65,535 cps. Natural gamma radiation in the drill hole survey that is reported in this news release was measured in counts per second (cps) using a Mount Sopris 2GHF-1000 Triple Gamma probe, which allows for more accurate measurements in high grade mineralized zones. The Triple Gamma probe is preferred in zones of high-grade mineralization. The reader is cautioned that scintillometer readings are not directly or uniformly related to uranium grades of the rock sample measured, and should be used only as a preliminary indication of the presence of radioactive materials. The degree of radioactivity within the mineralized intervals is highly variable and associated with visible pitchblende mineralization. All intersections are down-hole. All depths reported of core interval measurements including radioactivity and mineralization intervals widths are not always representative of true thickness. The orientation of the mineralized intervals tend to follow that of lithologic contacts, and generally dip steeply to the south. Within the Triple R deposit, individual zone wireframe models constructed from assay data and used in the resource estimate indicate that all 5 zones have a complex geometry controlled by and parallel to steeply south-dipping lithological boundaries as well as a preferential sub-horizontal orientation.
Samples from the drill core will be split in half sections on site and where possible, samples will be standardized at 0.5m down-hole intervals. One-half of the split sample will be sent to SRC Geoanalytical Laboratories (an SCC ISO/IEC 17025: 2005 Accredited Facility) in Saskatoon, SK for analysis which includes U3O8 (wt %) and fire assay for gold, while the other half remains on site for reference. All analysis includes a 63 element ICP-OES, uranium by fluorimetry and boron. Further technical details PLS19-PW-08 (line 615E) PLS19-PW-08 targeted a low-grade gap between the middle and eastern R780E high-grade core models, and aimed to identify new high-grade mineralization outside of the current resource model. Moderate to strong radioactivity was intersected in the gap zone beginning at 121.0m down hole, returning a 25.5m wide main interval which included 0.7 m >10,000 counts per second (cps) on RS-121 handheld scintillometer. These results represent the strongest radioactivity on line 615E to date. Based on the current high-grade core model an interval of strong radioactivity was expected at approximately 140.0 m down hole which, as noted above, was instead intersected 19m higher up in the hole. A second zone of strong radioactivity was expected at approximately 152.0m which was successfully intersected and correlates well with the high-grade core model. PLS19-PW-09 (line 735E) PLS19-PW-09 targeted a large jog in the eastern high-grade core model where the high-grade core was interpreted to extend. A 37.5m wide zone of strong uranium mineralization was intersected, beginning at 141.0m down hole with a near continuous 3.72m interval of >10,000 cps occurring in the jog outside of the current high-grade core model. Based on the current high-grade core model the potential existed for a thin zone of strong radioactivity between 145m to 148m down hole. The hole actually intersected a 37.5m mineralized zone between 141m to 178.5m. PLS19-PW-10 (line 990E) PLS19-PW-10 targeted the interpreted extension of the R780E high-grade core approximately 120m east of the current high-grade resource. A 19m wide zone of strong uranium mineralization was intersected beginning at a depth of 172m with a total of 3.78 m >10,000 cps. No high-grade core model exists in the vicinity of PLS19-PW-10 but two vertical drill holes PLS14-180 (5.5m averaging 18.56% U3O8) and PLS14-158 (5.0m averaging 8.57% U3O8) are located approximately 4m and 8m to the east, respectively. The location of the strong radioactivity in PLS19-PW-10 correlates well with strong radioactivity in drill holes PLS14-180 and 158 and suggests potential exists to define additional high-grade domains east of the currently defined high-grade core. PLS Mineralized Trend & Triple R Deposit Summary
Uranium mineralization of the Triple R deposit at PLS occurs within the Patterson Lake Conductive Corridor and has been traced by core drilling over ~3.18km of east-west strike length in five separated mineralized “zones” which collectively make up the Triple R deposit. From west to east, these zones are: R1515W, R840W, R00E, R780E and R1620E. Through successful exploration programs completed to date, Triple R has evolved into a large, near surface, basement hosted, structurally controlled high-grade uranium deposit. The discovery hole was announced on November 05, 2012 with drill hole PLS12-022, from what is now referred to as the R00E zone.
The R1515W, R840W and R00E zones make up the western region of the Triple R deposit and are located on land, where overburden thickness is generally between 55m to 100m. R1515W is the western-most of the zones and is drill defined to ~90m in strike-length, ~68m across strike and ~220m vertical and where mineralization remains open in several directions. R840W is located ~515m to the east along strike of R1515W and has a drill defined strike length of ~430m. R00E is located ~485m to the east along strike of R840W and is drill defined to ~115m in strike length. The R780E zone and R1620E zones make up the eastern region of the Triple R deposit. Both zones are located beneath Patterson Lake where water depth is generally less than six metres and overburden thickness is generally about 50m. R780E is located ~225m to the east of R00E and has a drill defined strike length of ~945m. R1620E is located ~210m along strike to the east of R780E, and is drill defined to ~185m in strike length.
Mineralization along the Patterson Lake Corridor trend remains prospective along strike in both the western and eastern directions. Basement rocks within the mineralized trend are identified primarily as mafic volcanic rocks with varying degrees of alteration. Mineralization is both located within and associated with mafic volcanic intrusives with varying degrees of silicification, metasomatic mineral assemblages and hydrothermal graphite. The graphitic sequences are associated with the PL-3B basement Electro-Magnetic (EM) conductor. Patterson Lake South Property
The 31,039 hectare PLS project is 100% owned and operated by Fission Uranium Corp. PLS is accessible by road with primary access from all-weather Highway 955, which runs north to the former Cluff Lake mine and passes through the nearby UEX-Areva Shea Creek discoveries located 50km to the north, currently under active exploration and development.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ross McElroy, P.Geol., President and COO for Fission Uranium Corp., a qualified person. About Fission Uranium Corp.
Fission Uranium Corp. is a Canadian based resource company specializing in the strategic exploration and development of the Patterson Lake South uranium property – host to the class-leading Triple R uranium deposit – and is headquartered in Kelowna, British Columbia. Fission’s common shares are listed on the TSX Exchange under the symbol “FCU” and trade on the OTCQX marketplace in the U.S. under the symbol “FCUUF.” ON BEHALF OF THE BOARD “Ross McElroy” Ross McElroy, President and COO Cautionary Statement: Certain information contained in this press release constitutes “forward-looking information”, within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”, “be achieved” or “has the potential to”. Forward looking statements contained in this press release may include statements regarding the future operating or financial performance of Fission and Fission Uranium which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and the Company and Fission Uranium disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
SOURCE Fission Uranium Corp.
For further information: Investor Relations, TF: 877-868-8140, ir@fissionuranium.com, www.fissionuranium.com
If it sounds like I’m repeating myself it’s because I am – more or less. In order to get you to pay for information, or to keep you coming back to their website, the financial newsletter writers have conditioned most of us to think in the short-term. They focus on what gold, silver, the dollar or the Dow did yesterday. Sure, I read them too, to stay informed, which is a good thing. But the truth is, the proper way to approach the physical precious metals market is to focus, not on today, or yesterday, but on the big picture and the events that will ultimately move the market.
The latest rumor that is circulating from something that one of the Fed governors just said, or the latest rumor of a new trade deal between the US and China that is picked up from Trump’s Twitter account are not what will affect your portfolio over the long haul. This type of information is only important if you are a day trader and make your money by moving in and out of the market quickly. But if that’s what you do, then you are buying and selling paper contracts, not buying and selling physical gold or silver. And, you probably wouldn’t be reading this newsletter. You would be paying a hefty price for “timing” information. That is not what we do. We don’t pay much attention to yesterday’s “news.” We don’t over-react to the day-to-day “noise.” We strive to keep our focus on the trends that will actually influence the movement of the products we sell.
It simplifies things to filter out the day-to-day moves and news releases, at least those that affect physical gold and silver. The only relationship between physical gold and silver, and paper gold and silver contracts traded on the Comex is that the Comex contracts set the price of the physical metals. It should not be that way! The price of gold and silver (and the rest of the commodities that are traded on the Comex) should be priced based on their supply and demand fundamentals. Instead their price is set by banks and hedge funds that are buying and selling huge volumes on speculation, with no intent to ever deliver or take delivery on any physical metals. I am not a tin-hat conspiracy nut, but in my mind it is impossible that the precious metals market (make that all of the markets) are freely traded. There is manipulation and it starts with the Fed, the Treasury, the big banks and the hedge funds. Some of the manipulation is done for political reasons and some is done for financial gain. But the important thing to remember is that in the end, market manipulation does not work long-term. The markets we focus on like the currency markets and the bond markets, which set interest rates, are too large to control, for any length of time. That is where I set my focus.
Here is what needs to happen, short of some type of totally unexpected black swan event, to get gold and silver moving up again, and I don’t mean a small short-term move. No, I’m talking about a new primary-trend, a powerful bull market run up.
I recently read an article that talked about the huge increase in the Federal deficit since the first of the year. According to the latest Treasury Department figures, there was a 77 percent spike in the deficit over the first four months of the budget year, which was driven by falling revenue and steady growth in spending. It’s frightening if you believe that debt actually matters. By and large, the dim wits in Washington do not. Military spending and social spending are out of control.
Between the Trump tax cuts and the out-of-control Federal spending, the deficit is exploding. It looks like our national debt will grow by more than a trillion dollars this year. Numbers like this are hard to grasp, but let’s make it easy. That amounts to $3,100 per person in additional borrowed money that will never be repaid. That’s extra, in addition to the current Federal debt, which is $21 trillion and counting. That’s almost $65,000 a person, increasing by a trillion a year and the interest on this massive sum is compounding annually. Interest alone last year were $364 billion. And that is with interest rates hovering near all-time lows. You know what will happen when interest rates start to rise.
Under current law, CBO projects that net interest costs will nearly triple over the next 10 years, soaring from $315 billion in 2018 to $914 billion in 2028 and totaling $6.9 trillion over the period.
It’s pretty obvious that this trend cannot go on indefinitely. The amount of new dollars that will have to be created to service this monster is screaming at you – buy gold and silver and dump dollars.
Do you really expect Congress to agree on anything for the next two years? Do you think the Democrats will do anything to help President Trump get re-elected to a second term? How long will it be before our lenders (the foreign countries who buy our debt) demand much higher interest rates or outright cease buying our Treasuries? This is going to happen, and sooner rather than later since we have lost control of our finances. Russia and China are already selling US Treasuries. Once this happens, interest rates will rise, which will derail the economy and the stock market. Inflation will increase, as the Fed is obliged to purchase the debt in an attempt to slow down the rising interest rates and to keep the bond market from imploding.
This alone guarantees the coming bull market in gold and silver. Smart money will quickly move to safety, to avoid the risk from the falling dollar, falling stock market and falling bond markets. The number one asset, the safest asset, the only asset that is unencumbered, free and clear, is gold. Yes, “risk aversion” assets will become the “Go To” assets.
I read something every day where the author is trying to time the move, up or down, in gold and silver. It’s a waste of time.
It’s enough for us to understand what the end game is all about here, because it is not far off. Just look around you. Things are not going well and there are new fires to put out every time you turn around. Trump is not a magic-worker. In fact, he seems to be causing more disruption and instability than good. His key projects, like the wall, tariffs, disarming North Korea’s nuclear capability and reigning in Iran are not going well. They are very disruptive (which is not to say they are bad ideas). We will not, cannot grow our economy sufficiently to avoid the ultimate penalty of too much debt and money creation. If you think I am wrong in saying this, then sell your metals and put all your money in the stock market, and I wish you well.
Weak U.S. Domestic Growth Needed To Push Gold To $1,400 – Analyst
Kitco News
The U.S. dollar and U.S. interest rates remain the key headwinds to gold prices as the yellow metal tries to find momentum after dropping from last month’s 10-month high.
Although gold needs a dovish fed to push higher, Jim Iuorio, managing director at TJM Institutional Services, wrote in a commentary for the CME Group that the reason behind low interest rates will key for prices to push towards $1,400 an ounce.
“If the Fed’s change of heart is caused by problems in Asia or in Europe, the dollar could maintain its strength in a lower rate environment because its value is primarily measured against the yen and the euro,” he said.
However, if the Fed keeps interest rates low because of domestic growth concerns, which could be enough to propel gold higher.
“Additionally, if the domestic weakness appears that it may persist and require long-term central bank intervention, gold could swiftly shift to the ‘gotta have it’ asset of 2019,” he said.
Another side-effect of weak economic growth could be panic selling in equity markets, which would also benefit gold, Iuorio said.
The gold market is currently digesting a significant economic downgrade from the European Central Bank, which prompted it to loosen monetary policy.
According to the latest ECB staff projections, Eurozone gross domestic product will increase by 1.1% this year, 1.6% in 2020 and 1.5% in 2021, compared to December’s forecast of 1.7% growth in 2019, 1.7% in 2020 and 1.5% in 2021.
At the same time, the central banks sees consumer prices increasing 1.2% in 2019, 1.5% in 2020 and 1.6% in 2021, compared to the previous estimates of 1.6% inflation this year, 1.7% in 2020 and 1.8% in 2021.
April gold futures last traded at $1,286.10 an ounce, down 0.12% on the day.
Greg Hunter interviews Catherine Austin Fitts. She says the world is choking on debt-Buy Gold.
Greg Hunter
Catherine Austin Fitts – World Choking On Debt – Buy Gold
What is investment advisor and former Assistant Secretary of Housing Catherine Austin Fitts looking to put money in? She has long been lukewarm on gold, but not any longer. Fitts now says, “The world is choking on debt. . . . It’s not just peak oil, it’s peak everything. So, it is one of the reasons you see margins falling, and we tried to fight it by blowing bubbles. We are reaching the end of that sort of strategy, and it’s one of the reasons you are seeing more and more people become aware of gold and want gold. They are saying, okay, the financial asset bubble game is over, and now we want real things. . . . To me, gold was a core position, and I have always felt that gold was a core position. So, I like gold now. For many years, I said I don’t think gold is going to have a good investment run. I am changing that this year. I think gold as an investment will do reasonably well this year, and it should. . . . Basel III rules are basically making gold more attractive and focusing more on financial soundness. Yes, the central banks and banks are going to be buying, but I think as you see global investors see the extent of the lawlessness, and like the determinations in the U.S. federal credit, they are going to be looking for real assets. Gold is just going to be a place to go. . . . Away from jewelry, you’ve got about a $3 trillion gold market. So, it only takes a little bit of a pension fund or a sovereign wealth fund to increase their gold allocation to run the market up. I think there is going to be a steady drum beat of support for the price of gold for some time to come.”
David’s Commentary:
The next topic I want to touch on today is Palladium. By now everyone must be aware of the bull market in Palladium. Very few of our clients own any Palladium. I hate to chase a market on the way up, but the “fundamentals” justify owning some now. If you don’t have any, now would be a good time to add some to your portfolio.
Palladium is making new all-time highs right now. It’s pushing towards $1,500 an ounce, up from $800 back in August. That’s because there is an extreme physical supply shortage. We see that because of the lease rates in London, the backwardation, there is an extreme shortage. The problem with Palladium is that its producer is Russia. They’re not likely to supply a lot of Palladium to let the banks off the hook. And the banks are on the hook because the Palladium market is structured identically to the way it’s structured in gold and silver. If we get a real run on Palladium, which is bond to happen, and all of a sudden we get a “force majeure” and the banks say, look I know we made all these promises, but we just don’t have the metal. Palladium could be the “magic bullet” that breaks the system, that ends the whole party. If the Palladium market fails, and there is no reason to think it won’t, it is not some kind of parabolic blow-off, but it’s not. On the Comex there are only 42,000 ounces of Palladium in the vaults, both combined and eligible yet there are 4.2 million ounces of contracts. It only makes sense that the hedge funds say, hey if the Palladium market is structured that way, isn’t the gold and silver market structured the same way too? A collapse of the scam in Palladium will open a lot of eyes. Will it happen? Don’t know, but there is a point when people will figure out that the banks are between a rock and a hard place and then it’s off to the races.
In silver, JPMorgan now has this vault that has the 150-million ounces of silver. If you add up all of the silver in the Comex vaults and divide it by the open interest, which is 1.1 billion ounces, which is 130% of mine supply, against 280 million ounces of silver in the Comex vaults, you’ve got total leverage of the amount of contracts versus the silver in the vaults about four to one. In gold, if you add up all the gold between registered and eligible, and divide by the open interest, the leverage is about 5.5 to 1.
There is 2.9 million ounces of digital Palladium versus 42,000 ounces of physical Palladium in the vaults. The ratio is 68 to 1. A failure to deliver is when the music stops. That’s what we’re waiting for. When the large hedge funds and even the central banks who have loaned their gold out (like Switzerland) realize that this is all just one big scam and they say, hey, I’d like my gold now, that’s when the banks scheme can collapse. That is what happened in the 50s when the U.S. couldn’t supply the gold and in the 60s when the London Gold Pool collapsed. They couldn’t deliver. That’s the same boat the bullion banks are in now if people realize this is just one big Ponzi scheme and demand their physical metal back. The scheme of getting people to accept digital make-believe gold for the real thing will collapse. So how high could the price of gold go? No one knows how many ounces are out there, with no claim against them to be delivered so there is no way to know how high the price will go, but it will be very high
About Miles Franklin
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
We are rated A+ by the BBB with zero complaints on our record. We are recommended by many prominent newsletter writers including Doug Casey, Jim Sinclair, David Morgan, Future Money Trends and the SGT Report.
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By Jayant Bhandari / March 09, 2019 / Article Link
In the recent years investors have lost a lot of money in the resource sector. This shouldn’t have been the case had investors paid attention to the work of Bob Moriarty. Exactly when the sector was losing money, Mr. Moriarty was investing in resource stocks—of the likes of Novo Resources and Irving Resources—that made him 10 to 20 times his investment. In some cases, more.
As Warren Buffet says, “People make investing… more difficult than it should be.”
In his book, “Basic Investing in Resource Stocks—the Idiot’s Guide,” Mr. Moriarty provides a common-sense approach to investing in the resource sector.
“You will make mistakes when investing, but make sure you make new ones.”
Those who have focused their investment life in the resource sector, as I have, tend to think that it is full of idiots and liars, or those living a lifestyle using shareholder money. Mr. Moriarty thinks that other sectors are worse.
Referring to the cryptocurrency mania—which he calls “Bitcon”—about which he started writing on 321gold when it was peaking, he says that total value of Bitcon has fallen from $800 billion to $136 billion. I thought that there was a typo. Had he written “billions” instead of “millions?” But his wasn’t an error. A massive amount of money has changed hands, from gullible people to conmen or street-smart traders.
But the biggest con of all is the fiat currency system that surreptitiously steals people’s money and puts the future generation into bondage. This cannot continue. A “great reset” awaits, for there are far too many systemic risks today.
A product of the fiat currency is the derivative business, a boondoggle that poses significant systemic risks.
All debts must be paid, and the world is awash with it. There are far too many black swans for one not to come into the scene. “The Gilets Jaunes movement of France is merely the opening scene,” says Mr Moriarty. That is where protecting oneself from what is another person’s liability is important, making gold (or silver or platinum or palladium or rhodium) one of the ways to preserve one’s wealth.
In the investment space, a lot of wealth is getting destroyed, misallocated or moving into the hands of conmen, private or public, leaving gullible investors high and dry. What one must learn early on is the concept of probabilities before one starts throwing one’s dice.
One, however, cannot depend on the advice of “experts,” which reminds me of “Nobody Knows Anything,” another book by Mr. Moriarty.
Mr. Moriarty advises people to have the courage—once they have studied their homework properly—to have contrarian thinking, even if it goes completely against the emotions of the market.
There is legitimate information in the market and there is noise. Internet should have made it easier for information to flow freely. Alas, it is noise that has grown bigger than the real signal.
“Change your mind when information changes” makes common-sense, except that most people are resistant to changing their views. The end result is that 90% of investors lose money. While Mr. Moriarty advises not to be a part of that 90%, he is happy they exist, to help him make the extra money.
Read the above words of wisdom in his short and sweet book, including the description of the resource industry, and some saucy stories of his investments. Jayant Bhandari
Vancouver, British Columbia–(Newsfile Corp. – March 11, 2019) – Great Bear Resources (TSXV: GBR) (the “Company” or “Great Bear”), today reported drill results from reconnaissance drilling to the west of the Dixie Hinge Zone (“DHZ”) at its 100% owned Dixie Project in the Red Lake District of Ontario, and acquisition of new district properties covering additional gold mineralization targets.
Two exploratory drill fences were completed 150 metres and 400 metres west of the current DHZ drilling, along the D2 fold axis that is interpreted to be a significant gold control, using the recently added second drill rig as shown on Figure 1. All 5 of 5 drill holes intersected gold mineralization. Highlights include:
31.40 g/t gold over 0.70 metres within a 2.70 metre interval of 8.70 g/t gold at only 64 metres vertical depth. An image of gold within this new high-grade intercept is provided in Figure 2.
Multiple gold-bearing veins were intersected in 2 of the 5 drill holes.
The newly discovered gold veins may comprise significant strike length extensions to the DHZ vein system or may be new gold zones; further drilling is required.
The second drill rig continues to drill test new targets across the Dixie property.
Table 1: Results of reconnaissance drilling to the west of the Hinge Zone. All widths are drill indicated core length and insufficient data exists to determine true widths and vein orientations at this time.
Drill Hole
From (m)
To (m)
Width (m)
Gold (g/t)
Vertical Depth (m)
DSL-016
83.30
86.00
2.70
8.70
64
including
83.30
84.00
0.70
31.40
DSL-017
126.00
127.50
1.50
2.95
106
and
255.30
255.80
0.50
1.11
214
DSL-018
75.30
75.80
0.50
3.84
54
and
214.65
217.15
2.50
2.68
154
including
214.65
215.15
0.50
6.32
DMS-001
35.77
39.20
3.43
2.09
29
including
38.00
39.20
1.20
4.95
and including
38.00
38.70
0.70
6.67
DMS-002
47.25
50.10
2.85
2.43
43
including
47.65
48.45
0.80
4.58
Additional drilling has also been completed within the Hinge Zone, results of which have not been received at the time of this release. DHZ drill results will be released once assay results are received and processed.
Chris Taylor, President and CEO of Great Bear said, “In a district where 25 metre step-out drilling is considered aggressive, our new reconnaissance drill holes located 150 metres and 400 metres from the Hinge Zone have yet again shown the extensive footprint of gold mineralization at Dixie, and the apparent importance of major D2 fold axes as regional gold controls. We look forward to further drilling in these areas to determine if these are separate new gold discoveries, or whether the Hinge Zone extends through this entire strike length.”
The Company notes that gold-bearing veins have now been drilled over a strike length of approximately 500 metres from the easternmost Hinge Zone drill holes to the newest drilling to the west. This veining is located on the south side of an ultramafic body and fault that are sub-parallel to the regional D2 fold axis.
Figure 1: Map of reconnaissance drill holes west of the Hinge Zone, adjacent to a D2 fold axis. Drill holes DL-016, 017 and 018 are located 150 metres west of current Hinge zone drilling. Holes DMS-001 and 002 are located 400 metres west of current Hinge Zone drilling.
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The Company also notes that the next interpreted D2 fold axis to the north, also shown on Figure 1, also hosts high grade gold within a quartz feldspar porphyry dike, including 30.20 g/t gold over 0.55 metres, within a wider interval of 12.41 g/t gold over 1.5 metres in hole DL-009, which was drilled by the Company in late 2017. This second fold axis is also an exploration target for future step-out drilling.
Figure 2: Image of newly discovered high-grade gold returning 31.40 g/t gold over 0.70 metres at 64 metres depth, from reconnaissance drill hole DSL-016, located west of the DHZ.
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Great Bear is currently undertaking a fully-funded 30,000 metre, approximately 150 drill hole program that is expected to continue through 2019. A second drill rig was added to the project in February 2019 to accelerate this work and is now drilling additional gold targets.
Property Acquisitions
The Company also reports new low-cost, royalty-free property acquisitionsadding to its strategic land positions in the Red Lake District of Ontario.
The newly acquired properties will be mapped and prospected in summer 2019, with minimal impact on the Company’s current Dixie property exploration budget and program. A map of the acquired properties is provided in Figure 3.
Chris Taylor continued, “Following our recent drill success at Dixie, the total staked area within the Red Lake district increased by over 150%, constituting the area’s largest staking rush in decades. We have completed a model-driven geological review of the district using the Dixie property’s D2 fold and deep-seated structural gold controls as guides. This work suggests additional prospective areas for gold mineralization, which we have now secured, royalty free. We intend to prospect the new properties in summer 2019.”
Figure 3: Map of newly acquired and optioned properties in the Red Lake district.
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Great Bear has not completed sufficient work on the new properties to verify results from historical work.
Dedee Property
Highlights of the Dedee property include:
Covers the western strike extensions of the major regional D2 fold axial plane that is interpreted as a control of the new high-grade gold discoveries at Great Bear’s flagship Dixie property.
Two folded greenstone belts are interpreted at Dedee that mimic the geometry of the Dixie folded greenstones.
Historical drill reports of sulphides similar to the Dixie Limb Zone mineralization that were never assayed for gold.
Conductive trends similar to the Dixie Limb Zone have also been identified in historic unpublished geophysical surveys; at Dixie, these led Teck Resources to the original gold discovery of the 88-4 zone and associated gold; they are also prospective targets at Dedee.
15,300-hectare land area (153 square kilometres)
Road accessible though logging roads, approximately 20 minutes drive from Red Lake
The Dedee property was acquired in part through staking, and will be acquired in part through an inexpensive royalty-free option agreement with an arm’s length third party. Terms of the option portion of the acquisition are:
(a) $6,000 upon signing the option agreement;
(b) 15,000 shares after receiving acceptance of the Exchange for the issuance of the shares under this agreement;
(c) $10,000 on or before the date that is one year after the Effective Date;
(d) $12,000 on or before the date that is two years after the Effective Date;
(e) $16,000 on or before the date that is three years after the Effective Date; and
(f) $24,000 on or before the date that is four years after the Effective Date.
Pakwash Property
The 3,100-hectare (31 square kilometre) Pakwash property is located southeast of the Dixie property and covers portions a major regional fault structure lying along English River sediments. Historical work has identified gold lake sediment anomalies which are coincident with regional fault zones and gold-in-soil (MMI) anomalies which have not been followed up with detailed exploration.
The Pakwash property will be acquired through an inexpensive royalty-free option agreement with an arm’s length third party. Terms of the option agreement are:
(a) $10,000 upon signing the option agreement;
(b) 25,000 shares within seven (7) business days of receiving acceptance of the Exchange for the issuance of the shares under this agreement;
(c) $8,000 on or before the date that is one year after the Effective Date;
(d) $12,000 on or before the date that is two years after the Effective Date;
(e) $15,000 on or before the date that is three years after the Effective Date; and
(f) $20,000 on or before the date that is four years after the Effective Date.
Sobel Property
The 3,200-hectare (32 square kilometre) Sobel property, is located along the strike extension of the main D2 fold axial plane that is a major interpreted control of gold mineralization at the Red Lake Gold Mine, operated by Goldcorp.
The property overlies prospective Balmer Sequence rocks of the main Red Lake greenstone belt.
The Sobel property will also be acquired through an inexpensive royalty-free option agreement with an arm’s length third party. Terms of the option agreement are:
(a) $10,000 upon signing the option agreement;
(b) 30,000 shares within seven (7) business days of receiving acceptance of the Exchange for the issuance of the shares under this Agreement;
(c) $12,000 on or before the date that is one year after the Effective Date;
(d) $20,000 on or before the date that is two years after the Effective Date; and
(e) $20,000 on or before the date that is three years after the Effective Date.
The Company has elected to buy out all the outstanding royalties on the newly optioned properties for total consideration of 38,500 shares of Great Bear.
The schedule of optional payments for all of the optioned properties can be accelerated at any time at the Company’s discretion in order to achieve full ownership at an earlier date. The options may also be terminated at any time subsequent to the initial cash and share payment.
About Great Bear
Great Bear’s flagship Dixie property is located approximately 15 minutes’ drive along Highway 105 from downtown Red Lake, Ontario. The Red Lake mining district has produced over 30,000,000 ounces of gold and is one of the premier mining districts in Canada, benefitting from major active mining operations including the Red Lake Gold Mine of Goldcorp Inc., plus modern infrastructure and a skilled workforce. The Dixie property covers a drill and geophysically defined 10-kilometre gold mineralized structure similar to that hosting other producing gold mines in the district. In addition, Great Bear is also earning a 100% royalty-free interest in the West Madsen, Pakwash, Dedee and Sobel properties, which cover regionally significant gold-controlling structures and prospective geology. All of Great Bear’s Red Lake projects are accessible year-round through existing roads.
Drill core is logged and sampled in a secure core storage facility located in Red Lake Ontario. Core samples from the program are cut in half, using a diamond cutting saw, and are sent to SGS Canada Inc. in Red Lake, Ontario, and Activation Laboratories in Ancaster Ontario, both of which are accredited mineral analysis laboratories, for analysis. All samples are analysed for gold using standard Fire Assay-AA techniques. Samples returning over 3.0 g/t gold are analysed utilizing standard Fire Assay-Gravimetric methods. Selected samples with visible gold are also analyzed with a standard 1kg metallic screen fire assay. Certified gold reference standards, blanks and field duplicates are routinely inserted into the sample stream, as part of Great Bear’s quality control/quality assurance program (QAQC). No QAQC issues were noted with the results reported herein.
Mr. R. Bob Singh, P.Geo, Director and VP Exploration, and Ms. Andrea Diakow P.Geo, Exploration Manager for Great Bear are the Qualified Persons as defined by National Instrument 43-101 responsible for the accuracy of technical information contained in this news release.
For further information please contact Mr. Chris Taylor, P.Geo, President and CEO at 604-646-8354, or Mr. Knox Henderson, Investor Relations, at 604-551-2360.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This new release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements.
By Alexander Green, Chief Investment Strategist, The Oxford Club The greatest threat to this long-running bull market is not a tightening Fed, higher valuations or moderating corporate profits… It’s the growing clamor for regulatory and redistributive policies that will reduce innovation, lessen productivity and undermine the economy. Investors are famous for being worrywarts. Day after […] Read on »
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Judson Culter the CEO and Director of Rover Metals (TSX.V: ROVR | OTCQB: ROVMF) sits down with Maurice Jackson of Proven and Probable to discuss the value proposition of the Cabin Lake Property. In this interview Mr. Culter will provide important updates on the Uptown Gold Property, Cabin Lake Project, and Slemon Lake. Rover Metals is a natural resource exploration company specialized in Canadian precious metal resources (specifically gold). In this interview we will discuss the recent accomplishments of Rover Metals. Ranging from IPO and the implementation of a methodical process of building an exploration company that is positioning itself for success from land acquisitions, permit approval, OTC listing, option agreements and completed the first phase of the 2018 exploration program.
Firm Advancing Gold Exploration in the Northwest Territories Contributed Opinion
Source: Maurice Jackson for Streetwise Reports (3/10/19)
Judson Culter, CEO of Rover Metals, speaks with Maurice Jackson of Proven and Probable about historical exploration on his company’s properties, as well as current exploration plans.
Maurice Jackson: Welcome to Proven and Probable. I’m your host, Maurice Jackson, and joining us for our conversation is Judson Culter, the CEO and director of Rover Metals Corp. (ROVR:TSX.V; ROVMF:OTCQB). Mr. Culter, welcome to the show. Judson Culter: Thanks for having me, Maurice. Maurice Jackson: Glad to have you back on the program. We last spoke in January of 2018, and since then Rover Metals has completed its IPO and implemented a methodical process of building an exploration company that is positioning itself for success from land acquisitions, permit approval, OTC listing, option agreements and completed the first phase of the 2018 exploration program. But before we begin, Mr. Culter, for first time listeners, who is Rover Metals? Judson Culter: Rover Metals, we are a precious metal exploration company, specifically gold is our focus currently. We’re co-listed in the United States OTCQB: ROVMF, as well as Canada on the TSX.V ROVR. Our project portfolio is concentrated in and around Yellowknife’s Northwest Territories, one of the most mining friendly jurisdictions in Canada and for North America for that matter. I say that just because that’s where our (Canada’s) diamond mines are. That’s historically where several of our gold mines have been. It’s really the primary employer in the Northwest Territories. Outside of government, mining is it. Maurice Jackson: Why has Rover Metals received so much interest here of lately? Judson Culter: I think that’s a two pronged answer. First is just credibility. Going back to 2017 on call with you, Maurice, if one listens to that interview, we talked about how we were going to go public, and how we were going to drill our resources, and how we were going to look to add new resources in the similar area code of Yellowknife.
We’ve successfully accomplished all those tasks. I believe we have strong foundational base in our existing shareholders. We’ve got a lot of credibility with them. We get a lot of word of mouth. I think that goes a long way in a market that can be a little bit over saturated in the junior mining space with which projects or which management teams do you back. I think really that we’ve gotten recognition for that now, which is really helping to drive our current success.
The second prong answer speaks to the projects themselves. Rover has the Cabin Lake Project, which is really what the market is asking for, and that’s why we bought it. When we receive the results from our drilling, we believe we will a high-grade gold historical resource that will contain super high grades that the market wants to see as confirmation that this really could be the next gold mine in the Yellowknife, Northwest Territories.
Not to mention this project itself has all the merits a speculator wants. We have solid infrastructure, the Blue Fish Hydro Dam, roads, all the accessibility and proven area of past producers. The market is beginning to recognize the credibility of the management team and the assets. Also, the awareness that we are near drilling in the not-too-distant future has investors’ attention as well. Maurice Jackson: Justin, what is the driving thesis for Rover Metals in regards to the Kevin Lake gold project? Judson Culter: The driving thesis has not changed. It’s the same thesis as in the late 1980s. There’s a project called the Lupin Gold Mine that produced from 1983 to 2003 in the north, which is an iron formation, super high-grade gold. The thought at the time was to go and find another one, and that’s what they thought they had here. This is when Cominco and Freeport McMoRan and then Aber Resources, that’s what they thought they had here. They drove 7,500 meters of at or near-surface iron hosted high-grade gold. The only reason they stopped is because somebody found kimberlites a few years after, and the diamond boom in the Territories began.
This project just kind of sat on the back burner as a result of that. Aber Resources, the owner of the time, of course, went on to find the kimberlites. That’s some historical context on this project and why it’s just now coming back to life. Maurice Jackson: Talk to us about the business acumen here. When and how was Rover Metals able to acquire the Cabin Lake gold project in such a highly contested and sought out district? Judson Culter: It wasn’t easy; when we looked at the business case, we figured that with a little bit of just rolling up our sleeves, and getting up there, and meeting the right stakeholders, and just recognizing that this is an area that needs new mines and new projects.
I didn’t think it would be like other areas in British Columbia, for example where BC, trying to get First Nation endorsement can be very difficult. There’s so many competing industries that people can really make a way of life in a jurisdiction like British Columbia, whereas knowing a little bit about the Northwest Territories, mining is a big deal up there. People want to see projects succeed.
When we went into the Cabin Lake project, we knew we had to get a couple of things there to get permits. We knew we had to get our neighbors, Tlicho First Nations, on board. We also did our homework and knew that the Tlicho First Nations had previously worked with Fortune Minerals, as well as Nighthawk Gold. When we got to it, there was a framework in place. There was a government that had been formed.
The Tlicho government and the land use formal plan to work within, for application permits, and applications. So, once we got to it, it ended up only being four months to get it permitted. I think it seemed to keep getting easier for us, and it ended up being a decision that looks like it was the right one to make. Maurice Jackson: Regarding mineral rights in your project portfolio, are there any reversionary interests? Judson Culter: There’s a 1.5% NSR that we’ve got viable down to a half percentage point for CA$250,000 per quarter percentage. Maurice Jackson: And does Rover Metals own the mineral rights outright 100%? Judson Culter: That’s correct. Yes, not just at Cabin Lake, but at the Cabin Lake group of projects. The claims themselves are 10 kilometers apart; so there’s three of them. For the entire group of projects, yes, we have 100% mineral right interest. Maurice Jackson: Let’s fast forward to 2018 and discuss your exploration program. What were the results from that program and how has that improved the confidence in the gold project? Judson Culter: It helped us to better track the iron information. So what we did was we spent the six months from March, when we acquired the project, into October, really to digitize all the historical records. At the time in the 1980s, that was meticulously kept, and it was handwritten. We digitize seven banker boxes of data, as well as three map boxes. Then, we put that in a GPS, and tag the colors and everything else.
Then what we wanted to do to follow on with that data was to run a current, modern-day geophysical program. There were a lot of options to us to do it, but in a really economical manner, but also to do it in a very detailed type formation using a drone. Because the mineralization occurs at or near surface, as well as the iron information itself being at or near surface, it really showed up well on the magnetic survey that we flew over the property. So by interlaying the drill results, as well as the mag survey, our geologist was able to get a better interpretation of the iron formation throughout the project. Really, that really set the stage for where we are going to put the drill when we get to drilling this year in 2019.
Beyond just the iron information, what we also realized about the project is the outcropping on either side is quartz. Historically, the quartz had never been tested for mineralization. So we also did a geochemistry program in October. What that showed us is that the PPM and PPB reading of gold from the quartz outcrop area suggest that it’s also very likely to be a host for gold on this project. It’s never been tested historically. That’s the excitement of 2018 and what’s led into the 2019 drill program, which was always trying to be between March and the end of April. We’re still trying to hold on to that deadline.
We’ve got the collars is ready to go. Right now, we believe what we need to do to start drilling is conduct a small financing that we’ll probably release in the coming week or two here. Maurice Jackson: So to review the value proposition we had before. This is potentially an open-pitable, early-stage brownfield exploration gold project with historical high-grade resource next to a new cobalt-gold mine, is that correct? Judson Culter: Yes, and that’s one thing I didn’t touch on is the actual historical resource itself. That’s 85,000 ounces unconfirmed in terms of what our current standards allow us to document as a historical resource. What we’re allowed to document in press releases and everything else is 50,000 ounces of roughly 10 to 12 grams gold per ton. The rest of that 35,000 ounces was never signed off by a Qualified Person, but it is in the NORMIN database in the Northwest Territories. It’s in the areas of the Andrew zone, which we’ve documented. Rover will do the work we need to do under 43-101 standards to take that other 35,000 ounces and get it compliant.
From our side internally, we see it as an 85,000 ounce of resource of 12 grams per ton gold on average. When we talk about it publicly, we have to say, 50,000 from a historical resource perspective, but you’re absolutely right that we’re 20 kilometers away from what’s looking to be Canada’s first cobalt mine. The reason I say that is this project’s been 20 years in the making; it’s at the feasibility stage. I believe they’re really just looking to raise the capital to get to work. It’s an open-pitable cobalt mine. The good news is it’s actually a cobalt gold bismuth. So there is a gold processor that’s going to be built 20 kilometers from us. What better news can you possibly have when you’re developing an at-surface resource? Maurice Jackson: The location in of itself makes the opportunity quite interesting, but to have open pit to me is icing on the cake. Is the goal to sell the project or develop into a commercial scale mine? Judson Culter: Definitely the goal is to sell it within the next three years, and so I want to put $10 million in the ground, and let’s get this wrapped up and sold. End of story. Maurice Jackson: What can you share with us regarding the infrastructure? Judson Culter: So what you see in Yellowknife right now is what’s going to be coming in the pipeline in the next two to three years in the Pine Point Zinc mine is going back into production and that’s Osisko. Part of that is twining the costs in Taltson Hydro Dam and bringing that into Yellowknife itself, as well as Hay River. There’s going to be federal funding allocated, as well as territorial, to do an environmental study that should be announced through fairly short order this year.
After there is a federally funded environmental study to evaluate the twinning of the Taltson Hydro Dam, a successful outcome will lead into a hydro power upgrade to Yellowknife. When Yellowknife is upgraded, that will free up excess hydro power at the Snare and Strutt Lake hydro dams, located approximately 5km away from Camp Lake, one of our claims that’s part of the Cabin Lake group. That power becomes excess power. All of a sudden that frees up for the future the viability of really selling the project because now you’ve got excess power sitting right there, five kilometers away. How good is that? Maurice Jackson: Switching gears. Rover Metals’ board of directors and advisors consists of the following people: Maurice Jackson: Bios for the management time are below: Maurice Jackson: Let’s discuss some numbers. Please share your capital structure. Judson Culter: We’ve got 47 million shares out today. That’s our issued and outstanding common shares. There are warrants out there. We have 10 million warrants at $0.20 cents, and 10 million warrants at $0.25 cents. Maurice Jackson: How much cash and cash equivalents do you have? Judson Culter: Treasury is sitting today around CA$450,000. Then, there’s been some prepayments for upcoming work commitments regarding our exploration plans for this year, as well as I mentioned, we’re doing a lot of our growth in terms of our marketing and our shareholder base in the United States. I think our prepaid balance, if you were to look at that today, should be around CA$200,000, just in terms of for events, as well as I mentioned, exploration planning. If you add that back to our cash position, we’re around CA$650,000 in current assets. Maurice Jackson: What is your burn rate? Judson Culter: Our burn rate’s about CA$30,000 a month, and that just includes all in. We purposely don’t carry an office in this market. We’re a bootstrap company. We have home offices, and then we’re on the road a lot. We’ve got an exploration office that is free from our exploration partner, Aurora Geosciences. That’s really where a lot of the hard work gets done. Then, there’s just no corporate office. I don’t feel the need for that, so that helps. Maurice Jackson: How much debt do you have? Judson Culter: We have some trade payables of, I think it’s roughly CA$40,000 that we’re going to settle in shares. Outside of that, we’ve got CA$25,000 in payables on top of that, that we’re going to pay in cash. That’s just some exploration legacy from last year. Maurice Jackson: Who is financing the project, and what is their level of commitment? Judson Culter: Just sophisticated mining investors. It’s been high net worth, accredited investors to this point. That will continue until we become a $10 million market cap company plus, because we’re just still not able to access institutional funds, and that’s fine. If Rover does everything that we hope to accomplish in the next drilling phase, which we hope is in the next 60 to 90 day window here, we should be a $10 million market cap plus company; and well on our way to institutional money. Maurice Jackson: Who are the major shareholders? Judson Culter: I’m a major shareholder. I’ve been seeding Rover not just with time, but my own money; since really inception in 2014. Tookie Angus, who is an advisor, is currently our third largest shareholder. Then, it really starts to break down to smaller tranches, but there is a notable name on the list: Ashwath Mehra, the chairman of GT Gold; he’s a relatively large shareholder.
Management, including Ron Woo. Ron’s also seeded this company. I think Ron’s probably fourth largest shareholder. Keith Minty’s a large shareholder; 38% of our outstanding shares are owned by insiders, management, board. That’s a good thing because that means our shares are tied up for three years. Maurice Jackson: Judson, based on the data available, what type of value proposition do we have in comparing? Judson Culter: Well, the market price, let’s just say, I think it should be $8.5 million, just on what we set out today. That’s my personal opinion. I think later value that, that’s just the reality of reserve stocks in North America. We’re going to do what we need to do to take that historical resource and bring it up to current standards, as well as to just extend where they stopped drilling, and just show them this really is a multimillion ounce potential asset.
I think we can get there with the drill program that we’re planning. We’re planning roughly a thousand meter program. I think the value proposition is we’re in a $3.5 million market cap today. I think we’re going to take it to $10 to 15 million in the next six months. Hold me to that. Maurice Jackson: I certainly will, sir. Multi-layered question here: what is the next unanswered question for Rover Metals? When can we expect the response? How much will the response cost? What determines success? Judson Culter: That’s going to be our Q1 or Q2 exploration drill campaign. I was going to caveat that, that is subject to the future success of our financing effort (click here), which we hope to announce in roughly two weeks’ time.
That will lead into confirmation of the historical high-grade gold results, such as the open-pit economics, expand upon the known mineralization in the iron formation, as well as to prove up a larger area play and this is more Q2/Q3 work, for the Slemon Lake, and Camp Lake claims, which are located 10 kilometers northwest from Cabin Lake, and we’ll fly that with an aerial B10 survey. What that will show is that the drilling we’ve done at Cabin Lake in the iron formation really just, those other two claims, or districts, an extension of the same geology, which everything that we’ve read historically shows us it is. Maurice Jackson: Mr. Culter, please share the contact details for Rover Metals. Judson Culter: Please visit our website www.RoverMetals.com. On there, you’ll find our social media links, which are LinkedIn, Twitter, our Facebook page and CEO.ca.
Our social media channels really have daily content. We’re press releasing every couple of weeks, but a lot of our investors like really the daily updates on what’s going on in the Northwest Territory. That’s the best place to stay tuned.
You can also submit to our mailing list. We typically will do an email update every two weeks as well. If you go to the bottom of the homepage on the website, and just submit your email, that subscribes you to our email mailing list. Maurice Jackson: And last but not least, please visit our website, provenandprobable.com, for mining insights and bullion sales. You may reach us at contact@provenandprobable.com.
Judson Culter of Rover Metals, thank you for joining us today on Proven and Probable. Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
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It should come as no surprise that gold and its sibling, silver, have been pulling back recently. I have written several articles recently that built the case that for gold to move up two things need to happen. The stock market has to fall and the dollar has to fall. For a while, they both did, in unison, and gold and silver moved up nicely. But recently both the stock market and the dollar have been “goosed” up a bit and the result is some profit taking and a pull back for our favorite precious metals. Should we be concerned? I would say yes, IF things have fundamentally changed, but they have NOT. If the stock market’s strength is based primarily on a new trade deal with China, whose economy is a basket case, I expect this will fall apart. If you combine our slowing economy with the problems China is facing, there will be little to support further stock market growth. My feelings that the stock market and the dollar will turn down shortly remain intact. And when that happens, gold and silver will get back on track. You can pick them up now, at a discount, or not. Your call.
Kyle Bass, founder of Hayman Capital Management, recently spoke with Real Vision to reiterate his concerns about the Chinese economy.
Kyle Bass on China’s dwindling FX reserves:
“We think the number is closer to $2 trillion, instead of $3.2 trillion, which is dangerously below adequate levels. The broad measure of credit in China’s financial system is $48 trillion worth of RMB (Chinese Yuan). They only have $2 trillion of reserves… In their last banking crisis, which was between 1998 and 2002, the loss given defaults were 80% of loans that defaulted and at one point in time… 35% of their entire system was non-paying.”
“What brings this to a head is the current account. When the current account goes negative and the reserve balance is going the other way (going negative), the rubber meets the road there. As long as that balance is increasing annual along with GDP in RMB terms, they can keep going… Now their fiscal balance is… -9.5%. Their current account balance goes negative, and its a secular negativity, then they have more money leaving then coming in and they have to desperately borrow and now they’re changing their laws. They’re saying ‘You know what? Now Westerners can own more than half of our banks. Not a problem…’ Without Western capital flowing into China, China can’t hold this all together… (Chinese President Xi) has made the West think somehow his economic model is superior to that of Western capitalism and it’s all a facade. The whole thing is a mirage. The whole thing is made up with a printing press, keeping a closed capital account, and hoping the world doesn’t notice it…”
This 10:11 minute video clip is a short excerpt from a Real Vision interview. I found it interesting — and although Kyle is 100 percent correct in what he says, he is talking his book, as he’s massively short their equity market, the yuan, or both. It was posted on the soundingline.com Internet site on Monday — and I thank Brad Robertson for sending it along. Another link to it is here.
Back in 2017, we explained why the “fate of the world economy is in the hands of China’s housing bubble.” The answer was simple: for the Chinese population, and growing middle class, to keep spending vibrant and borrowing elevated, it had to feel comfortable and confident that its wealth would keep rising. However, unlike the U.S. where the stock market is the ultimate barometer of the confidence boosting “wealth effect”, in China it has always been about housing as three quarters of Chinese household assets are parked in real estate, compared to only 28% in the U.S., with the remainder invested in financial assets.
“Property accounts for roughly 70 per cent of urban Chinese families’ total assets – a home is both wealth and status. People don’t want prices to increase too fast, but they don’t want them to fall too quickly either,” said Shao Yu, chief economist at Oriental Securities. “People are so used to rising prices that it never occurred to them that they can fall too. We shouldn’t add to this illusion,” Shao added, echoing Ben Bernanke circa 2005.
The bottom line is that just like true price discovery for U.S. capital markets is prohibited (and sees Fed intervention any time there is an even modest, 10-20% drop in asset prices) or else the risk of an all out panic is all too real, in China true price discovery is also not permitted, however when it comes to the country’s all important, and wealth effect boosting, real estate.
Which is a problem, because whereas China suddenly appears to be suffering from all the conventional signs of deflation in the auto retail sector, where as we noted previously, neither lower prices nor easier loans have managed to put a dent the ongoing demand plunge…
… the same ominous price cuts – which are clearly meant to boost flagging demand — are starting to emerge in China’s housing sector.
Case in point, according to China’s Paper, Hui Ka Yan, the Chairman of Evergrande, China’s biggest property developer, and China’s second richest person announced it must ramp up home sales and to do that it would sell all its properties at a 10% discount after its home sales tumbled in January amid a cooling market.
Now that Evergrande is rushing to slash prices, it appears that runaway home prices are no longer a concern for Beijing, and in fact, a far greater concern is how Beijing may intervene to prevent what could soon be a price plunge spiral; many have already speculated that Beijing will have no choice but to bar Evergrande’s sales. If it doesn’t, or if homeowners have already figured out that their home prices are floating in the sky on a bubbly foundation that has now burst, the knock on effect could be devastating as instead of an asset, China’s most popular and aspirational “wealth effect” product could turn into a liability overnight.
If that happens, no amount of intervention by Beijing could stop the avalanche of selling that would ensue, not to mention the deflationary shock wave that a hard landing – i.e. crash – in China’s housing market would launch across the entire world…
No surprises here. This long but worthwhile chart-filled news story was posted on theZero Hedge website at 6:56 p.m. EST yesterday evening — and another link to it ishere. Another ZH article about China showed up on their website at 10:35 p.m. last night — and it’s headlined “Deflationary Red Alert: Chinese Car Dealers Are Slashing Prices, and It’s Not Helping“.
China’s auto industry remains in collapse but what is even more concerning is that new incentives and lower rates are failing to bring rural buyers into showrooms.
As usual, Ed Steer sheds light on the daily manipulation of all the market.
It was the second day in a row where the powers-that-be were very active in the Dow — and the precious metals. The Dow was turned higher around 1:10 p.m. EST — and the precious metals ran into more of Ted’s “night moves” in the thinly-traded afternoon trading session in the Far East. It was all down hill for them from there going into the afternoon gold fix in London…with the exception being palladium, where it ran into ‘something’ a few minutes before noon in New York.
Quoting Bill King from his King Report for today…”stocks tanked on Monday despite the WSJ story that many operators believe was another leak from Team Mnuchin. Perhaps, enough is enough with the U.S.-China trade deal hope and hype stories. They not only appear regularly, but seem to be released quite often on Sunday night near the time when the equity futures begin trading. Please note that over the past few weeks, when stocks are down sharply in the morning, someone appeared at midday or the early afternoon and forced ESHs higher.”
And as reader Mark Barooshian said in an e-mail to me yesterday…”Is this orchestrated sell-off over in the metals?… Why is it always baby steps up — and freight train on the way down?” The answer to the first question is…I don’t know, nor does anyone else. The answer to the second is that it’s what ‘da boyz’ do to maximize their profits…trapping as many Managed Money longs on the losing side as possible.
“There are no markets anymore…only interventions.”
David’s Commentary:
And here are reasons why I believe the recent dollar strength is about to come to an end. A little political pressure goes a long way.
President Donald Trump said Saturday that the U.S. dollar is too strong and took a swipe at Federal Reserve Chairman Jerome Powell as someone who “likes raising interest rates.”
The dollar was quoted lower against the euro and the yen in early Asia-Pacific trading hours on Monday after Trump’s comments.
The U.S. economy is doing well despite the actions of the central bank, Trump said during a wide-ranging speech at the Conservative Political Action Conference in National Harbor, Maryland.
“I want a strong dollar but I want a dollar that does great for our country, not a dollar that’s so strong that it makes it prohibitive for us to do business with other nations and take their business,” Trump said Saturday.
He didn’t mention Powell by name, but referenced “a gentleman that likes raising interest rates in the Fed, we have a gentleman that loves quantitative tightening in the Fed, we have a gentleman that likes a very strong dollar in the Fed.”
This Bloomberg story was posted on their Internet site on Saturday morning Pacific Standard Time — and updated about twenty-six hours later. I found it embedded in a GATA dispatch — and another link to it is here.
And this too… Dollar death by a thousand cuts.
BRICS Is Creating A Common Payment System
The BRICS states (Brazil, Russia, India, China and South Africa) are working on a common payment system BRICS Pay.
The Russian Direct Investment Fund, which coordinates Moscow’s working group on financial services of the BRICS Business Council, has shared the news with Izvestia.
A probable outcome of the project is creation of an online wallet that would combine the payment systems of all BRICS members.
The common wallet will work in the same way as the existing payment services such as Apple Pay or Samsung Pay. A cloud platform created specifically for this project will connect the national payment systems of BRICS countries.
Payment itself is expected to be made via a mobile application regardless of the national currency of the buyer. Countries without membership in BRICS will also be able to use the platform. The pilot project kicks off in South Africa in early April.
This year is the first time in more than 50 years that Susan and I didn’t leave Minneapolis for at least a week or two over the winter. Our 15-year old dog can no longer travel, does not do well when left at a kennel and is way too much of a handful for our kids to manage. We feel a deep responsibility to her and it has marooned us in this unbelievable winter of snow and cold. February logged the most snow on record. Ever! We got over three feet in 28 days. And we are supposed to get more snow starting at the end of this week – five days in a row is possible. Our handyman is coming by tomorrow to shovel snow off of our flat roof. It is nearly two feet high now, before the new snow arrives. In addition to all that snow, it was accompanied by record cold, and countless days below zero. We can survive it, but what happens is that it forces you stay indoors most of the time.
I have to keep reminding myself that warmer weather is just around the corner – and so are higher prices for gold and silver. One really needs to take a longer view of both the weather and precious metals in order to survive the nasties that both can offer up.
I would like to believe that this recent pullback in gold and silver is the final “managed correction” before the big takeoff. The fundamentals that were so kind to the metals have not changed. As usual, it’s the buying and selling of future contracts by the big banks and hedge funds on Comex that move the markets in the short-term. If nothing fundamental has changed, then, like the lousy February in Minneapolis, things will soon get back to normal.
All of this harsh weather got me to thinking. How did the Indians endure Minnesota’s extreme weather? According to a recent article I read, meteorological studies suggest that from 1600 to 1850 the climate generally was colder and wetter than now. How did the half a dozen tribes that populated this area survive? They lived in houses made out of birch bark, which never molds. They would build a pit in the middle of the floor with rocks buried underneath the floor. When the rocks were heated, it would radiate the warmth throughout the house.
There were variations of houses on the reservations. The typical lodge style dwelling would be constructed with trees natural to their regions. Sharpened logs were thrust into the ground and then bent and tied similar to an upside-down basket. The framework was covered with bark, and animal skins were used to cover the door and chimney hole.
Pole wigwams in the form of teepees were also constructed. People greased themselves in oil and animal fat to protect against the sun and cold.
Native people also prepared for harsh storms by forecasting them. My wife uses the six o’clock weather report on Fox News. But for the Indians, if the wind brought clouds from the north, it meant a blizzard. Woodpeckers sharing a tree or nest meant a harsh winter was coming.
I have trouble surviving a 100-yard trek up our driveway every morning to get the paper – even dressed to the hilt in a winter parka and boots and gloves. It’s the mental part of surviving the winter that is the most difficult, just like it’s the mental part of surviving the constant take down of gold and silver. One begins to wonder, will it ever end? Yes, sunny days and warm weather will be here in a month and the gold and silver prices will rebound shortly as well. But when you are freezing your ass off, or wake up to see that gold is down $20 it is depressing.
As it so happens, I will have some extra money coming my way in a week. Like you, I ask myself, what should I do with it? That is a question that has different answers, depending on one’s age, finances and portfolio. In my case, I know this much – even though I have a large precious metals portfolio, I would still rather add to it, especially after a pull back like this one, than put it into a stretched-to-the-hilt stock market. Cash is good, but how much can you keep in cash? I think I’ll do the silver, gold and cash thing. I’ll spread it around a bit.
The five years Susan and I spent in Miami in the winter was great, at least weather wise, and I fully expect to bask in the sun of a precious metals bull market soon too. Everything cycles and the metals up-cycle is close at hand. All it will take is a dollar pullback and/or a stock market plunge, and I expect that both are coming. I wish it were here now – that would make this uncommonly harsh winter much easier to take.
My car in front of a snowdrift!
About Miles Franklin
Miles Franklin was founded in January, 1990 by David MILES Schectman. David’s son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin’s primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.
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