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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (69098)	5/12/2001 7:56:53 PM
From: lorne	Read Replies (1) \| Respond to of 116908

If You Can Only Own One Gold Stock Franco-Nevada Should Be That One Posted Thursday, May 10, 2001 at 08:03 AM EST By Kennedy Gammage The Richland Report If you can only own one gold stock, Franco-Nevada (TSE FN) should be that one, and if you can afford to own two, then the second should be Central Fund of Canada, whose assets (about 98%) consist of gold and silver bullion, stored in a Canadian bank vault, in a ratio of 50 oz. of silver per ounce of gold. No fire, theft, flood, government confiscation, and total liquidity on the American Stock Exchange. But, let's talk about FrancoNevada. Franco has just swapped its interest in the prolific Ken Snyder Mine (100% owned) for 20% of Normandy Mining ofAustralia, seventh-largest gold producer in the world, thus doubling Franco's annual gold production and returning Franco to its role as primarily a gold royalty company, retaining a 5-10% net smelter royalty on the Snyder Mine. With a huge war chest (US$602 million), Franco is looking for additional bargains with the price of gold depressed, and smaller companies being squeezed financially. Here's Franco with no debt and now production in the neighborhood of one million ounces of gold per year. We don't have the time and space to go into it here, but for about the past 15 years there has been a gigantic scheme involving central banks, hedge funds, bullion banks and investment houses, and gold dealers known as the "gold carry trade" which has caused a huge short position in gold, and kept the price down despite the normal market forces kept it down illegally, through market manipulation. It continues to this day, but one day it must end. When it does, all Hell will break loose, and it will be very, very important to own gold, both the physical (coins, not bars, and Central Fund) and stocks Franco. You see, there is probably not enough physical gold in good delivery form to pay back the central banks who have loaned out their gold, and to whom physical gold must be tendered in order to pay off the loans. Called upon to do so, borrowers maybe forced to buy gold in the open market, forcing the price up - big time! (Horrors!) tfc.com