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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: ogi who wrote (10976)	5/10/2006 11:32:34 AM
From: E. Charters	Read Replies (1) \| Respond to of 78421

What you need to do is move your small town to Wall Street. There the steaming ferment and possibilities of metal price highs will rejuvenate and invigorate their pores with gold fever. Eventually the bright shiny lure or metal madnets will drive their eyeballs all goo-goo and they will with shaky hands and panting breath drop dollars into mighty metal miners outstretched hands. (sigh ...) It is true that the nineties was a heady time economically and had the twin hydras of economic booming helping mining investment along. The tech boom however made money specifically into mining not as easy to get as all that. From 1996 on, many grass roots gold mines were a hard sell. Gold itself was easy to poo-poo. The thing you have to look at is the experience of the crowd. Many people coming into the gold game were new investors. The boomers. And they had not been steeped in the metal jrs. traditions. The shake out in the nineties and the oil segue can easily be seen to draw their attention away. Some people are pushing real estate hard, especially out west, to chase the buck into their hands. Ontario and the US has a harder case to make concerning buy el houso so investment in equities is more "on", so to speak. I think many are using 1997 and Bre-X as a turning point, but gold price had started to drop in 1996 and many were calling for an all time low before the scandal shake out. This meant that in fact people were shorting gold and making it cheap on purpose far before it hit a lot. Thos people had to be gold traders, and I will tell you that some were headquartered in London. Shorting is a brokerage tradition. Bre-X may have burt the industry, but the tech boom sucked money away from golds. Now more money is being put in the oil boom, on mid size operators with more than a million in operating cash every quarter. This is still a junior. But it makes less available for golds per se. In the 1920's to 1970's the reason gold/metals could raise better money in Canada were manifold. 1. Gold was a relatively high price in the 1930's. Later in the 1960's copper was a relatively higher price. 2. there was no environmental moving targeting mining. gov regs were easier. 3. industrial production was favoured by the government. 4. oil plays in North America had a bad image 5. mining discoveries were often new. Some camps like Longlac and Red Lake were just being found. 6. Cobalt and Kirkland Lake had just had a huge successes economically. The Lakeshore had todays constant dollar equivalent of one billion dollars was sunk into development money. (Believe it or not, this money was over 25% sourced ostensibly from people in Northern Ontario.) Hard to believe but true. Over ten million dollars in today's capital came from one merchant in the town of KL. The majority of money came from England. 7. There was no impediment to foreign investment cash flow. A great deal of money was raised in California and New York. 8. Securities registration was simplified and lower cost, allowing the formation of a public company on a single property. 9. Lower corporate and personal taxes made wealth more available to risk capital. 10. British companies at that time could source capital easily for investment in Commonwealth countries and had home incentives to do so. In the 1950's the London Stock exchange had flow-thru tax incentives for investment in commonwealth countries. 11. Interest rates were low, favouring mining development. Development in the 1980's was squeezed off quickly by double digit inflation. 12. Metals and manufacturing were a greater portion of the economy than they are today. 13. market regulations were easier on companies, costs were lower at front end exploration relatively and admin requirements were lighter. 14. energy costs were relatively lower. 15. in the past there was no movement afoot to chase money into sectors, such as tech and biofarm. Canada had administrations that used subtle political pressures to favour certain industries and defame others. Words like sunset, smokestack, dangerous, etc. were often used to describe manufacturing and industry. Some brokerages like Midland paid their staff 1/2 commission for selling mining issues. Is this the right approach? Moss Lawson pro mining people often were encouraged to sell mining issues. So did brokerages like Doherty Roadhouse, Draper Dobie, Latimer, cripplecreekhistory.com nps.gov At the turn of the century, and before, mining was king of Colorado industries, and mining stock promoters and stockbrokers were an integral part of the process. The activities of raising capital and selling shares were often tied very closely together - sometimes performed by the same individual or firm. There were no strict regulatory rules and laws guiding the stockbroker as there are today. Many tactics were used to grab the attention of the investing public and entice them to invest in any particular promoter's properties. Much of this “publicity” and “advertising” was not only questionable in nature and fact, but also downright false. People can talk about securities regulation helping investors but in fact most of the securities laws passed have had the effect of shrinking the economy unnecessarily. Economic droughts and lack of development in Canada and Australia can be directly traced historically to passing of regulations at certain times. 1934 and 1968 were such times. 43-101 has not been said to be such a confining thing, but companies are complaining that some of its provisions and implementation are too limiting. I would like to point something out her related to metal prices. Never in my life has anybody said zinc was really high priced, or favourable in price. You always had to have 10% zinc in an underground mine in order to produce. This may have changed fundamentally finally, because of the long term lack of related mining, i.e. lead-zinc and closure of the major sources.