Further "Food for Thought"To me the large Mining COs have too much of a comparative advantage.
It is obvious, to me anyways----because their ACTIONS speak Louder than their words.
They "speaketh with forked tongue"!
Sure, as Gamblor well said, they do what they see is best for them.
They argue that the Price of Gold, at $ 1,600, is too high and unsustainable.
They may be absolutely correct.
But were they not saying the same thing when the POG hit say $ 700, and then $ 800, whatless $ 1,000?
Yes, I am aware that they do discount the current POG. But by how much?
I'll bet you though that when they go to sell the gold they mine, they do so at the highest price they can get for
it----AND----that they certainly are not complaining about it.
You pick a figure for the PriceS of Gold.
Let's say if the POG they get has risen from say $ 1,000 to $ 1,250----then basically they add 25 % in
profit to their bottom line.
If the POG, say even this year, so far, 6 months! has risen, what?---18%? This also just fattens their bottom line.
The BIG BANKS certainly seem to agree with ME!
Think NOT?
Let's take ABX as a prime example. Remember? Just go back a few News Releases and LOOK at the
amount of money ABX got lent by the BANKS---AND---the SUPER DUPER ridiculous LOW interest
rates ABX got---AND----the various terms and length of the LOANS ABX got.
Are the BANKS just plain outright STUPID? I think NOT.
ALSO----
If the Major Mining Companies REALLY thought that the POG was a way OVERPRICED right NOW----
and that there was going to be a severe and long term correction and reduction in the POG-----
What do YOU think the likes of ABX would do?
They would be out there furiously HEDGING their FUTURE PRODUCTION at the highest price they
could get----and for the best terms and lengths possible!!!!
They AREN'T DOING THIS ARE THEY?
OR have I just missed some News Releases somehow???!!??
Certainly, THEY HAVE DONE THIS IN THE PAST----BIG TIME!!! It was WIDESPREAD PRACTICE!
In FACT they openly BRAGGED about it and how smart they were---and their resultsnt bottom lines.
OR is everyone here TOO YOUNG to remember this widespread PHENOMINALLY?
Then, when the POG started to increase, from $300 and up, they hesitated at first, but when the POG
just kept climbing higher and higher and higher---the trend became obvious----who cried foul?
Then at some point these mining companies changed their minds and UNhedged their positions,
at a HUGE COST and had to write-off the LOSS accordingly. Mind you, this was termed a "ONE TIME"
loss, and was done in one year, so that in previous years' reporting periods, the loss wouldn't keep
showing up every year-----an extraordinary item, is a good accounting phrase. And the loss amounts,
in Canada, could be "carried back" I believe 5 years, against the profits amased then. Yes the
financial statements were re filed/restated, which it can be argued sort of "hid" the amount of the LOSSES.
Are they trying to make back that money, their mistakes, at the cost of the junior exploration firms? Maybee.
And when they do buy out a junior---they cry see!!!!----we paid a 40% premium,or whatever, over the
junior's current share price!!! What they were so generous they overpaid? I don't think so!!!
Collusion, if there is such a thing, sure seems to work in their favour----an oligopoly perhaps?
The financial institutions too MAY be in on this----it works in their favour to keep the valuation POGIG
rigid and fixed. Do they not get their financing of the juniors at a lower price---AND---more and cheaper
warrants with a longer expiry date? They wouldn't do that WOULD THEY? It would be to their
advantage to do so------WOULD IT NOT??? They accunulate so many shares---they can't dump all of them
on the open market, as the share price of the junior would sink like a ROCK.
No, I think that after a point, by definition and by common sense, they are forced in effect to wait for the
BIG BUYOUT----at the biggest PREMIUM POSSIBLE!!!! It is the best plan to make a "killing" and a
big HOME RUN. They certainly have the pockets, for such a plan.
To keep the POGIG as low as possible, is good for these institutions too---so that they can accumulate
the shares of a WINNER, like TRR, as cheaply as possible. Do YOU really think "they" CARE about the
little guy like us? OR----do "they" do what's best for THEM?
I know, you probably think I'm CRAZY, and TOTALLY OUT TO LUNCH!!!!!
Come to think of it, I am getting rather hungry.
Sorry for my "RANT", but U gotta wonder at times.
BARN BREATH