Beiträge von bullionbulls

  • GOLD : Märkte und Informationen



    This analysis assumes that there will be a formal default in bullion markets. In fact this is the LEAST likely way that the gold-manipulation scheme will fail. As I explained in a recent commentary, "decoupling" is a much more likely event -- for several reasons.


    And unlike a default, decoupling is not an "objective/mechanical" event. It is an event of sentiment.


    Decoupling In Precious Metals Markets
    http://www.bullionbullscanada.…n-precious-metals-markets

  • GOLD : Märkte und Informationen

    I wasn't sure whether to post this article here, on on the mining thread -- since it has more direct relevance to gold-mining investors. However; even for those not invested in these companies I thought this commentary would be of interest.

    World Gold Council Betrays Gold Investors


    When I labeled the World Gold Council as the “World Paper Council” in a recent commentary; who knew that the WGC was about to add its own exclamation point to that title? But that is precisely what this sham-organization has done.


    As a reminder (since it’s so easy to forget): the WGC is an industry trade-group representing the world’s gold-mining industry, or more specifically, most of its large gold-mining companies. In turn, these gold mining companies (and gold-mining executives) have a direct, fiduciary interest in promoting (and protecting) the interests of their shareholders.


    What this means is that while the WGC itself has no direct fiduciary duty to the shareholders of these mining companies; the WGC members do have such a legal duty. This in turn means that in order for any action (or statement) by the WGC to be legitimate it must at least be neutral toward the interests of those shareholders – and preferably in their best interests.


    This is not what we see today with the shameless pandering in which the WGC is engaged in India. Why is the WGC in India at all, engaged in openly cooperating with the Indian government about its supposed “current account deficit”? It went to the world’s largest gold market to try to trick its best customers into buying paper-called-gold instead of real gold.


    There is no possible, legitimate basis for the WGC’s recent activities in India at all. It claims it is in India to provide some short-term economic assistance to the government of India. What possible valid function could the World Gold Council (a gold-mining trade group) be performing in India – a nation without any gold-mining industry of its own? What possible expertise could it have to offer?


    Further proof of the illegitimacy of the WGC’s conduct is that this entire “issue” here is a fraud. There is no “current account deficit” in India; it is nothing but an accounting sham. For those lacking a background in economics; a current account deficit is ultimately a currency deficit. And this is what proves the issue is a fraud...


    Full commentary: http://www.bullionbullscanada.…il-betrays-gold-investors

  • Global Economic Collapse

    This series explains in detail why only a "hard" gold standard can be considered as a substitute for our present, corrupt system. Hopefully people will take the time to review the reasoning contained here.


    :)



    Building A Better Monetary System: Part I:
    http://www.bullionbullscanada.…er-monetary-system-part-i


    Building A Better Monetary System: Part II:
    http://www.bullionbullscanada.…r-monetary-system-part-ii


    Building A Better Monetary System; Part III:
    http://www.bullionbullscanada.…-monetary-system-part-iii

  • GOLD : Märkte und Informationen



    I will attempt an answer to this question.


    We all know the paper currencies can crash toward zero at any time. This means if we bet on "paper" even once and are wrong, it can be a disaster.


    But if we buy bullion too soon, the worst thing that can happen is that we pay too much for our gold and silver.


    It is clear what the prudent course of action is, in my opinion...



    Ich werde versuchen, eine Antwort auf diese Frage.


    Wir alle wissen, dass die Papier-Währungen können gegen Null jederzeit abstürzen. Dies bedeutet, wenn wir auf "Papier" noch einmal wetten und falsch sind, kann es eine Katastrophe sein.


    Aber wenn wir zu früh Goldbarren zu kaufen, ist das Schlimmste, was passieren kann, dass wir zu viel bezahlen für unsere Gold-und Silber.


    Es ist klar, was die sinnvolle Vorgehensweise, ist meiner Meinung nach ...

  • GOLD : Märkte und Informationen

    Zitat von Lexus

    Was Bullionbulls gestern schrieb ist mir vor vielen Jahren bereits sauer aufgestossen, deshalb wird diese Interessenvertretung wie viele andere von mir rigoros ignoriert. Anfangs hielt ich den Verein für in Entwicklung ( braucht noch etwas Zeit), danachb für Unfähig den Goldpreis zu beflügeln , inzwischen glaube ich an eine weitere gezielte Preisbeeinflussungsmaschinerie der Hochfinanz. Auf jeden Fall nicht der Unterstützung der Goldproduzenten verpflichtet.


    Wir alle müssen durch diese Zeit gehen der "Entdeckung". Zu einer Zeit, war ich ein Aktionär von Barrick Gold.



    :hae:

  • GOLD : Märkte und Informationen

    The World Paper Council



    Once upon a time, an entity called the “World Gold Council” was created. It was supposed to be an industry trade-group, which (like all industry trade-groups) promotes the health and growth of their industry. But that’s not how it turned out.


    To understand the World Gold Council, one need do little more than examine its history. It was created in 1987. Was this the beginning of some new, Golden Age for the gold mining industry? Hardly. In fact, it marked the early stages of the most successful era of gold price-suppression in history, and the complete destruction of the global gold-mining industry – with more than 90% of the world’s gold mines being bankrupted.


    If the World Gold Council is really an “industry trade-group”, then it was/is the most incompetent/inefficient such entity ever created. But, of course, the World Gold Council doesn’t serve “gold” or even gold-mining. It serves paper – banker-paper, to be precise.


    Like all (supposed) industry trade-groups, the WGC is officially comprised of a collection of the world’s largest gold-miners; who themselves are nothing but a herd of banker-sycophants. Lest anyone suffer from the delusion that the world’s gold miners (and the WGC) were merely “innocent bystanders” in the destruction of the global gold-mining industry, more facts are in order.


    At around the time the WGC was formed; these same large, gold-miners were in the process of enslaving themselves to the bankers by forward-selling 100’s of tons of gold which hadn’t even been dug out of the ground yet – in order to further depress prices in the sector by creating a glut of supply.


    This policy of self-destruction became institutionalized. As quickly as the sycophant-miners identified new reserves in the ground, they would forward-sell that ore to the bankers, permanently discounting their own commodity. Those readers who don’t fully comprehend this intentional suicide-spiral need to be reminded of another industry trade-group, with which we are all familiar: OPEC.


    When OPEC was created, did it immediately result in a long-term depression in the price of oil? Did it result in 90% of the world’s oil companies being bankrupted? Did OPEC members forward-sell their oil in massive quantities? No. Precisely the opposite, in every respect...


    Full commentary: http://www.bullionbullscanada.…3-the-world-paper-council

  • GOLD : Märkte und Informationen

    China’s Real Gold-Reserves At 4,000 Tonnes?



    Since the Crash of ’08 exposed the global financial system as simply one, big Ponzi-scheme ticking-down to implosion; one of the most public and emphatic economic policies of China’s government has been the rapid/relentless accumulation of more gold reserves to “back” its own monetary system.


    This economic priority has become an even greater imperative as China steadily replaces the U.S. dollar with the renminbi as the world’s new “reserve currency.” Stage I of that process has been $trillions in bilateral trade agreements and currency-swaps. Stage II was the establishment of a “reniminbi trading bloc” among seven of ten of Asia’s most-prosperous economies, where the renminbi is now the reserve currency for these nations.


    What is unclear is whether “Stage III” involves any overt action by China to spread the renminbi’s official, reserve currency status; or whether it simply involves passively waiting for the West to complete its self-destruction of the dollar-based system. What is clear is that a central part of China’s mission to have the renminbi assume the global mantle of “reserve currency” is to have massive gold reserves backing that currency...


    Full commentary: http://www.bullionbullscanada.…d-reserves-at-4000-tonnes

  • GOLD : Märkte und Informationen

    Decoupling In Precious Metals Markets



    As massive supply-deficits and vanishing inventories lead to greater and greater stress in our totally corrupted precious metals markets; these dynamics push us toward one of two potential ‘implosion’ events. One of these gruesome endings is obvious: a formal default in the gigantic “futures” markets for precious metals which now completely dominate the real, legitimate markets.


    The other path toward implosion is less-direct, less-obvious, and thus much less discussed. However, for forthcoming reasons it is also (by far) the most likely manner in which the phony/fraudulent “paper” markets for gold and silver will be discredited, and (more or less) exposed for what they really are. This Second Path is a “decoupling” between the paper prices for gold and silver and the real price for gold and silver in legitimate, “physical” markets.


    Why is this more likely? A better way to answer to that question is to itemize the list of reasons why the Establishment in general (and the Bullion Banks) in particular would want to avoid a formal default in their cherished, paper markets – at any/all costs.


    These reasons all ultimately trace back to a single theme: a formal default would expose all of the corruption and crime in these markets, and (equally important) legitimize/validate the growing Voice which has been clamoring about the blatant corruption and manipulation in the paper bullion markets. With this “clamor” having now begun to spread to the mainstream media itself; the threat to the Bullion Banks who manipulate these markets has never been greater.


    What does a formal default in these markets imply?


    To begin with, it would expose a massive campaign of lies. How many (mainstream) articles have been written claiming that precious metals markets are amply supplied with physical inventories – if not over-supplied? How many mainstream articles have been written alleging that gold and/or silver are “overvalued”? How many more descend all the way to the hyperbolic absurdity that these (grossly under-owned) assets are “in a bubble”?


    Asserting the precise opposite of reality, countless thousands of times is not “innocent mistake”; it is malicious propaganda. And it is conduct for which the banksters themselves are on the record to confessing...


    Full commentary: http://www.bullionbullscanada.…n-precious-metals-markets

  • SILBER : Märkte und Informationen

    The Silver Market: An ‘Operation’, Not A Liquidation


    Recent, previous commentaries have focused on the massive liquidation in the paper-gold market; as large investors (in large numbers) have fled that paper in favor of real metal. It has now been established that this flight out of the paper-gold market was in response to the Cyprus Steal – and at least to some extent has been a choreographed event.


    Naturally this had led to a question from readers: what about the silver market? Indeed, while the silver market has also seen the price for paper-silver plunge; there has been no corresponding liquidation of paper-silver. So what is going on here?


    Regular readers have already supplied their own answer to this question, in their mail and in their comments on our Forum: yet another “manipulation operation” in the silver market. When any market exhibits some violent move in prices for no reason; we are justified in suspecting manipulation. When any market exhibits violent price-moves for no reason on a regular basis; we are justified in concluding that manipulation is taking place.


    Such has been the case in the silver market not simply for years but for decades. The primary whistle-blower in the precious metals sector has been GATA; the Gold Anti-Trust Action Committee. However, despite its original focus on the gold market it has spent increasing time/energy focusing on the silver market – drawn by the especially blatant/egregious evidence present there.


    [Blockierte Grafik: http://www.bullionbullscanada.…to%20cover_69-468x342.png]


    [chart courtesy of Nick Laird, sharelynx.com]


    What the chart above illustrates is not a recent phenomenon, or a temporary aberration. It is a permanent, heavy-handed club; being used by the same handful of bullion-banks to perpetually beat-down the silver market.


    In both its size and its concentration; it represents a significantly more extreme position in the market than that of the Hunt Brothers – when they were convicted (in 1980) of manipulating the silver market. By itself, it is conclusive evidence of silver manipulation.


    Those readers interested in a more detailed, long-term examination of silver-manipulation can refer to an older commentary: Fifty Years Of Suppressing Silver. And for those readers interested in even more historical insights into the silver market there is The Silver Stealers; a detailed chronology of the silver market by Charles Savoie...


    Full commentary: http://www.bullionbullscanada.…eration-not-a-liquidation

  • GOLD : Märkte und Informationen




    Another smoke-screen... ;)

  • GOLD : Märkte und Informationen

    This is what has REALLY happened in the gold market. It is the only explanation consistent with the facts:



    Paper-Gold Holders Flee To Real Metal



    During the recent, massive slaughter in the (paper) gold market, investors have been bombarded with a million-and-one “explanations” by the mainstream media as to why people are “fleeing gold”. The problem is that not one of them is consistent with the known facts.


    It has been widely reported that holdings of gold-ETF’s have plunged (by the largest amounts on record). At this point analysis becomes simple: if these people were “fleeing gold” there would be massive stacks of gold piling up in warehouses – as people discarded all of this “unwanted” yellow metal.


    So, where is the gold?


    In fact, back in the real world; Comex gold inventories (the same inventories from which the ETF’s are stocked) have plummeted by the largest amounts on record. Instead of inventories increasing by the largest amounts on record (what the mainstream is expressly implying with their “fleeing gold” rhetoric), we have precisely the opposite.


    [Blockierte Grafik: http://www.bullionbullscanada.…/warehouse-deliveries.jpg]


    [chart courtesy of Nick Laird, Sharelynx.com]


    After the most-massive (paper) liquidation in the history of precious metals markets; we don’t see massive stacks of unwanted gold, only massive stacks of unwanted paper. This brings us to the important question: what has really transpired in the gold market? Just follow the numbers.


    We see (simultaneously) a massive liquidation of paper gold occurring along with a “run” on Comex gold inventories. In fact, there is only one explanation consistent with those facts: paper-gold holders have been swapping that paper for real metal. Put into market vernacular; people have been redeeming their units of paper gold – and taking delivery of physical bullion. A flight out of paper.


    Naturally, this leads to a secondary question: what could have caused the most-massive flight out of the paper-gold market since Western bankers created this gigantic (paper) market? Regular readers have already answered that question themselves: the Cyprus Steal...


    Full commentary: http://www.bullionbullscanada.…olders-flee-to-real-metal

  • GOLD : Märkte und Informationen

    CME Group Destabilizes Precious Metals Markets



    For those who don’t know it, the CME Group is the operator of the U.S.’s paper-fraud markets for commodities. The role of this crime syndicate is an important one: to keep commodity markets generally depressed, in order to hide the extreme/excessive currency dilution resulting from the out-of-control money-printing of the Western central banks.


    The currency-dilution is a matter of record: official government policy for every government on the planet – “competitive devaluation.” The consequences of our governments competing to see who can drive the value of their currency to zero the fastest are obvious and unequivocal: all prices for all hard assets should be steadily (and rapidly) rising…except for real estate.


    The reason real estate should be an exception to this price-spiral is that permanent near-zero interest rates have turned all Western real estate markets into insanely unstable “bubbles”. They have already been pumped as high as they can go.


    But commodity prices are the proverbial ‘canary in the coal mine.’ Rising prices for commodities prove the effects of the currency-dilution, and naturally must translate into significantly higher prices for consumer goods. So the U.S. banks (and market operators) permanently collude to depress commodity prices as much as possible; while at the same time the U.S. government engages in absurd lies to deny the existence of inflation. The Canary has been assassinated.


    This brings us to the CME Group: the ring-leader in this commodity-rigging. As the operator of U.S. commodity futures markets; the CME Group has a quasi-regulatory capacity to ensure the markets are operated in a legitimate manner. A primary facet of this responsibility is to set “margin requirements” for trading positions in a manner which enhances market stability.


    However, for the second time in 24 months we have this market operator engaging in precisely the opposite manner: maliciously rigging margin position requirements in order to increase the current “instability” in precious metals markets – i.e. the downward pressure in prices. The evidence is all simple arithmetic, making the proof here unequivocal...


    Full commentary: http://www.bullionbullscanada.…s-precious-metals-markets

  • P I G S = Euro in Gefahr

    No Paper Is Safe From A Bail-In: FSB



    Ever since our governments perpetrated the Cyprus Steal roughly three weeks ago (the first of their “bail-ins”), I have been exploring the ramifications of this crime. My apologies to readers for any redundancy since then; however it has been necessary to cover this subject in a methodical manner in order to precisely and conclusively illustrate that:


    -- The Cyprus Steal was a premeditated act, plotted (at least) 18 months in advance; which included warning the Big Money to move their wealth out of harm’s way


    -- Many/most other Western regimes already have their own “bail-in” rules firmly in place


    -- The entire premise of the “bail-in” (i.e. confiscating money from peoples’ accounts) is flawed and fraudulent; meaning there could never be any rational or legitimate reason for this policy – making it a simple act of theft


    Having established each of these points in previous commentaries; it’s now time to bring this analysis (in general terms) to a culmination: pointing out that the “bail-in” rules already in place do not merely contemplate stealing from bank accounts, but rather stealing any/every kind of paper asset from “the financial system more widely.”


    The language used is unequivocal, the intentions beyond doubt. Why is it so much easier in retrospect to point out a “crime” plotted (at least) 18 months in advance? Because the bankers put out “policy papers” the way most people pass wind. Few if any of us have the luxury of wading through the endless pages of these documents merely to separate “hot air” from more of their devious (and illegal) plans.


    It is now clear that the “centerpiece” of this planning is a policy paper issued by the Financial Stability Board in October 2011, entitled Key Attributes of Effective Resolution Regimes for Financial Institutions. The relevant language is spelled-out in Section 6:


    6.3 Jurisdictions should have in place privately-financed deposit insurance or…a funding mechanism for ex post recovery from the industry of the costs of providing temporary financing to facilitate the resolution of the firm. [i.e. continuing to prop-up insolvent banks]


    Obviously the only possible way in which deposit insurance could be a “mechanism for ex post recovery” is if these bankers/governments are stealing from peoples’ bank deposits. However, lest anyone holding bonds, pension funds, or other (paper) financial assets has been lulled into a false sense of security in thinking that only bank accounts are at risk, Section 6.5 should instantly torpedo that complacency:


    6.5 As a last resort [the expression the Banksters began using back in 2008 when they began all this monetary insanity]…some countries may decide to have a power to…recover any losses incurred by the state from unsecured creditors or, if necessary, the financial system more widely. [emphasis mine]


    The “financial system more widely” means any bank account, any bond, any pension, any equity; or more simply any paper one has in any financial institution. ..


    Full commentary: http://www.bullionbullscanada.…s-safe-from-a-bail-in-fsb

  • Global Economic Collapse

    The Currency War, Part I


    ...The parameters here have now been clearly outlined. The Little People (i.e. the bottom-80%) have nothing left to tax. The Fat Cats refuse to pay taxes, and have passed those instructions along to their political servants. Spending on people has (literally) been “cut to the bone”; while our corrupt governments refuse to cut their military spending or interest payments to our Financial Overlords, and corporate subsidies continue to increase.


    This has left these aforementioned morally/intellectually/economically bankrupt governments with only one option: the printing press. In Europe, in answer to the “Euro debt crisis”; we have “unlimited bond-buying” (i.e. monetization of debt). With all these nations being massive debtors; ipso facto, unlimited bond-buying means unlimited money-printing to finance those purchases...


    Full commentary: http://www.bullionbullscanada.…9-the-currency-war-part-i


    The Currency War, Part II


    ...For those readers seeking to find some distinction/demarkation point between ‘mere’ competitive devaluation and the “currency war” our governments tell us they are not planning on having; we appear to have it. Competitive devaluation represented the era where our governments drove their paper currencies to zero (in economic/mathematical terms).


    The Currency War represents the final death-throes of these paper currencies: the interval of time that elapses from the time all this paper actually became worthless, and the inevitable “crisis of confidence” when the Chumps realize that all this paper is worthless...


    Full commentary: http://www.bullionbullscanada.…-the-currency-war-part-ii

  • GOLD : Märkte und Informationen

    Paper-Gold Fraud Now Out In The Open



    ...When a media article suggests that India’s gold-deficit can be fixed by “selling paper gold” (to the Chumps), there is literally only one possible way this could ever happen: by selling paper but calling it “gold.”


    One has to wonder if this article is causing anyone to squirm at HSBC – Britain’s largest bank – and the world’s largest holder of paper gold (by an enormous margin). Informed readers know that not only does HSBC act as “custodian” for the world’s largest paper-gold fund (the SPDR Gold Trust), but it also permanently holds the largest gold short-position in the history of markets.


    Fortuitously (for HSBC) it has never been required by our pseudo-regulators to actually demonstrate it has enough gold to cover more than one of these two massive gold-obligations. Et voila! One ounce of gold becomes two ounces of “paper gold.”


    Of course as we all know thanks to Jeffrey (“100:1”) Christian, the banksters’ leveraging of their paper gold (overall) exceeds a paltry 2:1 level by many multiples. Indeed, some of the banksters have been known to sell “paper gold” and not back it with any gold at all – just ask some of the (former) disgruntled clients of Morgan Stanley...


    Full commentary: http://www.bullionbullscanada.…fraud-now-out-in-the-open

  • SILBER : Märkte und Informationen

    Silver’s Smoking Guns, Part II: Investment Paradox


    ...referring to the first installment, we learned that silver is alone among major commercial/industrial metals in that the majority of supply is produced not via “primary mining” but as a byproduct of other metals mining.


    As I also explained in that previous piece, that fact alone provides a near-conclusive argument that silver is under-produced. Unequivocal empirical evidence that silver is grossly under-produced can be found merely by looking at the total collapse in inventories. As I have frequently pointed out in previous commentaries, between 1990 – 2005 alone; silver inventories plummeted by 90%. Since 2005, inventory numbers have been falsified through a transparent, record-keeping sham, presumably to cover-up even further erosion of inventories.


    Those who have any understanding of markets will realize that this alone is further proof of the long-term/severe under-pricing of silver, since price is the only mechanism which can restore equilibrium between supply and demand...


    Full commentary: http://www.bullionbullscanada.…art-ii-investment-paradox


    Silver’s Smoking Guns, Part III: Market Paradox


    ...building and maintaining a short position which was at least an order of magnitude larger than what could possibly be justified by market conditions yields only one, possible conclusion: this blatantly manipulative short position was/is a millstone aimed at dragging down the silver market – and specifically the price of silver.


    We can support this obvious conclusion with irrefutable empirical evidence: the collapse of silver inventories. As I explained in theoretical terms in a prior commentary, excessive shorting must always result in the collapse of inventories. What appears to be (by dollar-value) the most grossly excessive/disproportionate short position in the history of commodity markets resulted in a 90% collapse in silver inventories. Case closed...


    Full commentary: http://www.bullionbullscanada.…s-part-iii-market-paradox

  • SILBER : Märkte und Informationen

    Silver’s Smoking Guns, Part I: Mining Paradox



    When a reader (and fellow silver-mining investor) recently expressed his frustrations on our Forum regarding the absurd valuations which most of these miners currently exhibit, I decided it was once again time to try to shed some light (and sanity?) on this subject.


    When I began investing in these silver miners many years ago; one of the first anomalies to which I was introduced was that the vast majority of silver produced in the world (more than 75% at that time) was produced as a “byproduct” of other mining. While I immediately recognized that this was an extremely important factoid, at that time I lacked the level of understanding necessary to glean its true significance.


    Since that time, the ramifications of these incredible parameters in silver mining are now apparent to me. Sadly, however, this important analytical point does not seem to be as apparent to others. While I’ve covered this subject matter once already in a prior commentary, the lack of general awareness in this area clearly merits repetition of this analysis.


    The basic parameters for the mining of metals on our planet are simple and clear. With nearly every commercially-produced metal on the planet, the vast majority of that metal is produced via “primary” mining – mines which “primarily” produce that particular metal. The reason for this should be obvious.


    At the large scale at which the modern, global economy operates; the need develops to secure large supplies of these metals. For purposes of both efficiency and a secure supply-chain; it is natural/preferable to seek to develop “copper mines” to meet copper demand, “zinc mines” to meet zinc demand, etc.


    We would thus expect all of these commercially/industrially consumed metals to have production models where the vast majority of supply came from primary mining, with the metal which was produced as a “byproduct” (through the primary mining of other metals) being merely incremental to supply...


    Full commentary: http://www.bullionbullscanada.…uns-part-i-mining-paradox

  • P I G S = Euro in Gefahr

    ECB Bond-Buying: The Rape of Europe Continues



    In the summer of 2011, I wrote a four-part series entitled “Economic Rape of Europe Nearly Complete”. In that extended piece; I detailed how the combination of three malevolent forces was decimating the economies of Europe one-by-one.


    Through the relentless fraud/manipulation in Euro debt markets, sadistic “austerity”, and so-called “bail-outs” which just bury these insolvent economies even deeper in debt; the Western banking cabal is systematically looting these nations.


    The manipulation of European debt markets was (is) accomplished through the fraudulent rigging of the credit default swap markets; combined with the complicity of the Big Three ratings agencies and the West’s media Oligarchs.


    The bankers manipulate credit default swap prices higher, simply by piling-on massive bets that a particular Euro-zone nation will default. The propaganda machine immediately shrieks that “risk” has now increased for this debt market, and then the accomplices in the ratings agencies comply with a ratings downgrade – immediately driving interest rates higher.


    With the massive debts being carried by these economies, any increase in interest rates automatically makes the economy significantly less solvent, turning this tag-team of fraud into a self-fulfilling prophesy. With the banksters literally capable of manipulating Euro zone interest rates to any number they desire, as a matter of simple arithmetic it is impossible to “bail out” any of these nations – by lending them more money.


    The moment more bail-out dollars are released, the banksters immediately drive interest rates even higher. Thus all the bail-out dollars are siphoned-out of the economy in the form of higher interest payments to the Bond Parasites, meaning all that each “bail out” accomplishes is to pointlessly pile on more debt...


    Full commentary: http://www.bullionbullscanada.…-rape-of-europe-continues

  • Mining Companies: Why Smaller Is Better

    Mining Companies: Why Smaller Is Better



    Having invested in mining companies for quite a few years now; one of the first lessons I learned was to never touch the large-cap miners. However, before I explain my own reasoning, I want to quote a Bloomberg article from this morning which attempted to cover the same subject:


    New Gold Inc. (HGD) Executive Chairman Randall Oliphaunt, who helped build Barrick Gold Corp. into the world’s largest producer of the precious metal, says he prefers running a smaller gold miner than a big one.


    Companies that produce fewer than 2 million ounces annually have more opportunities to increase output, said Oliphaunt, who was chief executive officer of Toronto-based Barrick from 1999 to 2003 and joined Vancouver-based New Gold six years later. It’s “very challenging” to expand a large, established gold company, he said…


    The problem with this Bloomberg article is that while it goes to great lengths to document the fact that large-cap gold miners are gross under-achievers while the junior and mid-cap gold miners have provided very attractive rates of return, it never explains why.


    Why do smaller gold miners “have more opportunities to increase output”? Why is it “very challenging” for the senior gold miners to grow? It’s very simple: because large-cap gold miners (and large mining companies, in general) have the world’s most-idiotic business model.


    All large-cap mining companies have a very simple “rule” they live by: they only want to develop/produce large mining projects. Let’s assume that it is not purely the egos of the suit-stuffers who run these companies which prevents them from getting involved in smaller projects. Why are most large-cap mining companies not interested in developing smaller mining projects – no matter how high the profit margins will be?...


    Full commentary: http://www.bullionbullscanada.…ies-why-smaller-is-better