RE:RE:Takedown!!!When has government policy done any good for the Junior mining sector??
Agreed....but I am seeing things differently. A lot of companies ...( example NGD newgold ) just offered 400,000,000 in U.S bonds....@ 7.5 % !!!
https://cbonds.com/news/item/1252995 Most Government Bonds are 10 year 1.08 to 1.85 % in Bankrupted Local Currencies. Almost all Countries are bankrupt.
Newmont, Barrick, 6+ %
https://cbonds.com/emissions/issue/56343 https://cbonds.com/emissions/issue/141883 In order to get money, Governments, ( broke as they are ) will need to keep their bonds floated..at higher interest rates. Taxpayers "pay" the bond interest to governments and in turn...pensions etc are paid.
I can think of a few other names....but my theory is this....gold has been suppressed buy a COMEX 400 to 1 exchange of paper for physical ounces. When all the majors start offering massive bond yield and this has become extremely deep in the last 6 months.
The smart money is pouring into Gold and Silver....at a record pace starting before COVID 19.
Governments can't consolidate and pay the measly bond yields they have now ? Pensions will have to sell a bond with a 1.3 % strip and run for the 6+ % yield bonds being offered by the majors...this is all going to occur quickly.
It nice to sit on both sides of the Teeter Totter ( don't exist anymore ).....
If the 20 + mid tier folks eg. NGD and majors represent 40-50 % of the outstanding Gold production.
They win in 5 ways....
- They control production!
- They can slow production supply side down as required this can fuel gold to astronomical levels.
- They get money most importantly without stock dilution but the 6-8 % yields are 7 to 20 years out.
- Comex will have to settle no one will buy the premise of the contract being issue for gold that doenst exist ( similar to interest Governments can not afford to pay )
- Stocks, Skyrocket as gold rises...and limited dilution due to the issue of bonds rather shares ( doing it this way secures a higher share price ) issuing shares will just force the dilition to keep pace with the price of gold.
This is going happen very quickly.....and if Governments raise interest rates to match the Gold companies....countries already bankrupt will become impossibly insolvent. or...as my wife would say bankupterer.
Tax rate of 115 % how ? No jobs ?
CERB ( and other government support around the world ) is the worst decision ever, but the best thing to happen to gold. Exacerbating government debt loads is a really cool way to get investment folks to finally think about how broke almost all countries are. If you can live through one more Flow through..and PRB gets to 2.50-3.00 for a flow through @ 3.40 - 4.00 and raise 50,000,000 dollars..if you can stomach that.
Truth is, with all the mucking about....Angus will become a bigger issue if Dave P and Group do not find closure for PRB.
Hmmm, lots of smart poster here....just remember one thing !
Being right is kind of like being the prettiest horse in the Glue Factory!
Find some logic and stay long...
GLTA