Oldtent Archives 2009

somebody please set me straight. i though scotiabank owned mocatta metals.

rno

the period from 1974 to 1976 or 1977, and I remember doing well selling the holdings at what I thought then was a respectable capital gain from the purchase price. But we blew it because we prematurely ended the opportunity for the potential future capital gains that awaited us then. I dont have the transaction records now from that trading period, so cannot quote buy/sell prices, but with a fading memory of those days it is evident that we sold Bankeno much too early compared to what we could have realized as capital gains between 1974 and 1979/80.

Lesson learned. We will now hang onto PM equities we now own, to avoid repetition of the misjudgement exercised in 1944-1977. And we will hang on to what we now hold despite PMFEVER’s ambiguous forecasts about large cap and lesser cap PM equities in the weeks and months ahead. Plus we now hold some physical silver and gold which we did not in our late-1970’s portfolio.

Thanks for your 22:05. Equiz.

Let me give all you fellow gold and silver investors and people reading this essay who are thinking about buying some gold and silver shares a few of the many examples of the kind of gains that were made in the last gold and silver bull market a generation ago (before cell phones, the internet, and p4 computers) so you can have an example of the kind of gains we may see in the new gold and silver bull in the 21st century.

Lion Mines – 1975 price $.07 / 1980 price $380 YES that’s right it’s not a misprint you could of bought 1000 shares of lion mines in 1975 for around $50 dollars at 7 cents per share and held on for 5 years riding the wild gold and silver bull until 1980 where you then sold those same shares for $380 each for a total profit of around $380,000. Not bad hey!!!!! This is only one of many more examples.
Bankeno
1975 price $1.25 / 1980 price $430

Wharf Resources
1975 price $.40 / 1980 price $560

Steep Rock
1975 price $.93 / 1980 price $440

Mineral Resources
1975 price $.60 / 1980 price $415

Azure Resources
1975 price $.05 / 1980 price $109

These are only a handful of gold and silver stocks that participated in what I consider one of the biggest financial opportunities in the history of human civilization. I don’t know of any other time except maybe the .com bubble where in only a 5 year time span you could have tuned so little into so much wealth.

Imagine buying in 1975 a handful of gold and silver stocks for under a dollar and selling them in 5 years for $100, $200, or even $500 per share as gold fever ripped through Wall Street.

This is a great example of the kind of investing philosophy that Dr. Marc Faber talks about where to be a great investor you only need to make a few good investment decisions in your whole life to be successful.
www.edwardgofsky.com/essays/Dec-03_FMU_new.htm

http://www.technicalwatch.com/bpi/goldbpi.htm

http://news.yahoo.com/s/ap/20091001/ap_on_go_su_co/us_supreme_court_guns

They do it in one state others will follow.

tinyurl.com/y9upt9p

between 1976 and 1980 a lot of gold stocks went from pennies to 300$, 400$ per share and I think it will happen again in the next 2-3 years. I believe in David Nichols’ theory that gold is in the middle of its parabolic growth curve and the uptrend is just starting to accelerate. This is not the time to sell your gold or gold stocks. Here is the link on how high the gold stocks went in the 1970s:

http://www.edwardgofsky.com/essays/Dec-03_FMU_new.htm

http://stlouis.bizjournals.com/stlouis/stories/2009/09/28/daily53.html?ana=from_rss

My latest gut feeling is that PM stocks are going to go up in the period from now until Christmas because of what the price of gold is going to do in the period between now and Christmas (that’s Christmas 2009 I am referring to). I notice that you cover your bum by being specific about it, by being able to say you were referring to large caps versus the smaller PM stocks when you made your comments on 30 sept 2009. I am referring to yours comments that say “we are entering the last run of this particular time period. After this move is over, we will fall sharply in the larger cap PM stocks back down to ….” Then you say “I still expect the smaller PM stocks with great reserves to outperform for many months….” That is great help for someone now trying to decide if they should dip a toe into the current PM equity market ! Cheers. Equiz.

Yessir…..79-80 was the time to hang onto the physical and shun gold stocks. Was just a  working smuck/student back then…..but I did keep up with what was goin’ on in the pm markets. Even bought my first coins then…..although not enough to call myself a gold investor. I credit my interest in the pm markets to a guy I lived with at A&M during the mid 70’s. Always had his nose in the Wall Street Journal and every other biz publication of the era. I was the only kid who didn’t laugh at him when he kept saying gold’s day in the sun was soon to come.

All the best.——-aggie.

“Methylcobalamin & Diabetic Neuropathy”, also
“Nerve regeneration with Methylcobalamin” abstracts infor. here:
www.lef.org/prod_hp/abstracts/php-ab420.html#3

Product infor. here:
www.lef.org/Vitamins-Supplements/Item00537/Methylcobalamin.html

Note: COMMON vitamin B12 is CYANOcobalamin, and does NOT have this effect on nerves.
The ‘methyl’ type is destroyed by digestion, so cannot be swallowed. It must be absorbed sublingually, under the tongue, from a lozenge.

www.financialsense.com/editorials/engdahl/2009/0928.html

Not sure what you are talking about, but I expect we are now entering the “last run” of this particular time period  After this move is over, we will fall sharply in the larger cap PM stocks back down to where we were several weeks back.   This is why sometime, ago, I had suggested a “higher trading range” after this coming top.  The PM sector bottomed last Oct.  I suspect much of the rest of the commodity complex is due to play “catch-up”, or is that ketchup?  I still expct the smaller PM stocks with great reserves to outperform for many months as the price of Gold stays relatively high.  We shall see………….

Samb, did you see oil, today?   This is what I have been looking for in the oil/ gas sector.  Many/ most of the  O/G sector stocks are sitting at break-out points, IMO.  Watch them go over the next 3 to 8 weeks.  “Up the down staircase” refers to the “down, staricase” during the deflation scare of 2008.  Many stocks have already jumped into the elevator, and are pushing the numbers for higher floors.  For many, it appears to me that the floors can be found in the last 2 weeks of Sept 08, and the 1st week in Oct.   Going up?

We are finally learning to read a few signs, like what we see. The waiting game started today, and not a bad start.

Gee that is what got me into the geologist business in the first place - that was the examples I was given as a kid , when the geologist drove up to the rig in a new red Cadillac convertable with a young blonde that waited for him as he gave a case of scotch to the tool pusher, did five minutes of hard work looking at a well log and then drove off into the night or on other occassions a high stakes poker game in the dog house shack with some investors waiting to get a look at a core or well log. Right then I decided I wanted some of that! It was more fun than I imagined. Deadeye

(Aggie you 13:07) Ideed physical gold is hard to beat. Back in late 1979 and Jan. 1980 the gold price ran off and left gold stock prices in the dust.

(Wanka) A driver? yes all but a slave driver - I still relate to being a lowly abused employee in my youth - so I was never hard on employees but I didn’t have to be as they were the best of the best - they must have been to keep me out of trouble and in a lucky groove year after year. I used to talk a little about flying on GE - flying to Oshkosh Wis. and your Key country in my Piper Super Cub and almost daily in the oil patch. I may pick out one of my hair raising/ death defying flying experiences to write about when I get time. Deadeye

“Hey, GR - jump the gun a tad on this “walk up the down staircase?””

 No, I’d say it is right on time.  Of course, one must understand what “up the down staircase” refers to………..

” Frostbite @ 17:27 pm.
One point in history is always true …even the masters realized they do not control the future. I sincerely hope the honorable of the present stand up and soon.”

Either the honorable stand and deliver very soon, and correct the problems. OR…
the Current Powers That Be continue with thier decieving ways and run this Country into the ground. And we start over again.

One will be a little less painful, but I think either solution will set us once again on the right path.

I doubt even the most ardent Goldbug can yet understand how Precious those ounces may be, especially if choice number two is allowed to be the ‘End Game’.

Good to see you, Best, Farmboy

The Supply of Oxen at the IMF

Antal E. Fekete
Professor of Money and Banking
San Francisco School of Economics

Snip:

“It is abundantly clear that the IMF and its puppet-masters behind the screen want to hurt the gold bugs, and hurt them badly. As paper currencies without exceptions are engaged in a game of “all fall down”, and do it impulsively and competitively, gold is the only money that stands up. It must be clubbed down, or else.

That has been the rule of the game ever since president Nixon on the advice of Milton Friedman “made the gold markets free” in 1971. In the beginning it was US Treasury gold that was auctioned off in order to club down the rising gold price. But then the managers of the paper dollar found it cheaper to auction off other people’s gold for that purpose through arm-twisting tactics. The selling of paper gold through futures markets and the leasing of gold through bullion bank intermediaries has been thoroughly discredited. Only fools believe that those outstanding forward contracts will be settled in specie.

Holders of paper gold will be lucky if their contracts will be settled in paper. The market is crying for physical gold. Nothing less will pacify it. By now the US Treasury has run out of arms to twist, after it has twisted the arms of smaller countries holding gold such as Belgium, the Netherlands, and Switzerland making them to sell their gold reserve. The recalcitrant Congressmen who had blocked the IMF gold sales in the past have been bought off. The IMF gold is now ripe for the picking. Not to see the life-and-death struggle of the managers of global paper money fighting gold — the stern taskmaster of all banks, real or virtual, and of all governments — is tantamount to turning a blind eye to reality.”

news.goldseek.com/GoldSeek/1254317890.php

Comment: “life and death struggle….turning a blind eye to reality”, terms that describe the current ‘Gold War’ IMHO. With the IMF gold sales imminent, the Cabal is using up the last of its weapons against rising gold prices. I am not so sure they have much left to throw at the Goldbugs before sounding Full Retreat.

I have had nothing but the best of service from the foreign exchange/bullion desk at ScotiaBank in Toronto (44 King Street West).

Different times I’ve dropped in for bullion purchases when visiting the city with some spare change.

Now, the reception desk at my local branch………”deer in the headlights”………. I’d rather them not know anyway.

Winedoc

Gold will reach US$5,000 on faltering dollar, says Peter Schiff

Snip:

“Speaking in a recent interview with CNBC Schiff said: “I don’t know when [the dollar] is going to strengthen,” Schiff told CNBC. “The dollar isn’t the new yen, it’s unfortunately the new peso.”

Schiff expects the Fed will soon have to take tough decisions of either having to supply the carry traders with an endless amount of cheap dollars or put a halt to the carry trade and aggressively raise interest rates that could “bring on a much more severe recession than anything we’ve experienced so far.”
Schiff added that we’re still early in this bull market on gold.”

www.bi-me.com/main.php?id=40697&t=1&c=33&cg=4&mset=

I’m pretty sure that the home delivery aspect is a brand new policy for Bank of Nova Scotia. We purchased some silver bars way back at the head office in downtown Toronto. The teller didn’t have a clue how to do the transaction. We had to hang around for a long time while they dug it out of some obscure place. My own experience allows me to observe that we’ve gone from being customers with a strange request to (unlikely) customers who can get home delivery of precious metals. I certainly don’t recall being able to pay for the precious by credit card anywhere at all.

I take this to mean that the main use of gold and silver will be investment demand going forward and not jewellery. Scotia would not be offering it if people weren’t interested in buying physical. We have the Chinese “put” and now we have a Canadian “put” on gold. I just hope I don’t develop sudden cravings for metal when you can buy it like pizza.