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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (94648)	9/15/2012 7:25:15 PM
From: Maurice Winn	2 Recommendations Read Replies (1) \| Respond to of 217573

As predicted by me about a decade ago, with 2020 foresight, when the price of gold gets up to "OMG the US$ is in trouble level of $2000", a Moai culture of excavating dirt and rock to obtain gold would divert people from sensible efforts to atavistic Aztec ways. Pueblo people lived in huddled high rise masonry abodes to avoid the depredations of nomads dwelling horizontally. Much like Hong Kong - where stacking cement is a popular activity, to avoid the depredations of barbarian horizontal dwellers further afield. Spread out horizontal life is much more pleasant, especially near clean beaches and with wide horizons in clean air, but that would mean the barbarians could wander in to take possession of gold stashes. Now, it has come to pass. The gold culture is booming as America's and Big Ben's cultural weave unravels. With fiscal cliffs, eminent domain, entitlement entreaties, populist plundering, monetary dilution, financial relativity theory hyperdrive, Black Scholes implosion and Greek economic planning, gold culture could yet be accelerated to $10,000 propulsion power. It is probably unwise of Islamic Jihadists to think they have the free world on the run just as the free world runs out of free and starts to get angry and impoverished. While the west was wealthy and careless, the tolerance of Moslem culture and peace in our time was doable. But a lot of tolerance was used up when the Twin Towers collapsed. The Year of the Dragon is the Year of the Snapdragon. Tomorrow is another day. Something other than mobile Cyberspace and the latest iPhone might capture attention. The gold bubble is well underway with irrational exuberance like the internet bubble of late last century at the beginning of the Cyberspace era. Note that Y2K and the bust marked the beginning of Mobile Cyberspace, not the end. We will not be going back to the Aztec era. We will not live like Pueblo people. Gold has a short half-life. Mqurice

To: TobagoJack who wrote (94648)	9/17/2012 11:22:37 PM
From: Metacomet	Respond to of 217573

A worthy challenge to be sure Good luck

To: TobagoJack who wrote (94648)	9/18/2012 7:11:44 PM
From: Maurice Winn	1 Recommendation Read Replies (2) \| Respond to of 217573

Your gold project is interesting TJ and follows directly from our discussions of a decade ago and what the politicians and money producers have done since, backed by their crazed electorates. I predicted a gold culture when $2000 an ounce arrived as a result of political depredations on the stability of US$ but had hoped that they would not continue the process or even accelerate as they have done to the stage where hordes of people take fright and abandon US$ in favour of "safety" in gold and anything else. We have yet to reach the gold standard price I predicted of US$10,000 an ounce but the trend is your friend. In the mean and interesting time: <for my part i must learn the difference between 'ore' and 'oar', and study the similarities between 'gold' and 'bold'. > "bold" is a very popular word these days. Everyone seems to be wanting "bold" initiatives in this that and the other. They invariably ignore the fact that "bold" includes not just the possibility of success [which they expect as an entitlement] but of failure [which they ignore]. They should recall the old saying, "There are bold motorcyclists and old motorcyclists but there are no old, bold, motorcyclists". When yet another person wants bold action, I cringe and look for the exits. In your various learnings about the whole value chain and the difference between sulphide, oxide, sulfide, carbon dioxide, sulphur and sulfur, spare some room for my old industry which drools at the sight of your stack of trucks, excavators, crushers, pumps, cars, transporters and moving parts in general which will require large storage tanks for hydrocarbons to produce carbon dioxide by the ton via your dirty great engines. A quarry was one of my favourite sights. They work long hours and burn tanker loads of fuel and require tribological input galore. Tribology is another word you might grow to love, which oddly, is nothing to do with Aztec tribal rituals, campfire incantations or mystical imprecations to gold gods. It's about less mystical but more financial implications for oil gods with incantations replaced by oaths and curses about "greedy oil companies". It's not far from the truth that gold is actually made out of oil. While the machinery you will use is made of iron, that iron is also extracted from quarries and smelted in giant steel mills which absolutely love oil. It's a kind of transmutation of elements from the carbon dioxide in air, to cellulose, to fish, to oil, to iron, to gold. It's a kind of Maslow's hierarchy of concentration of wealth. If oil is in glut conditions, the price goes down and the cost of iron goes down and the value of gold goes down. If cellulose producers skip the fish to oil step and go straight to iron by using cellulose as fuel, the oil producers will feel left out and have to lower their prices. If CO2 supplies increase, then the cellulose producers will be happy which will put further pressure on the oil owners. By coincidence, CO2 levels are way up and increasing and cellulose is growing flat out. To cut to the chase, oil is expensive and will not be "running out" before Peak People arrives in 2037 and technological advances reduce the amount of oil people have to buy to drive their cars and airliners around. Oil prices are going to fall. Since gold is made of oil, the price of gold will also fall because gold in the long run is priced according to the cost of production and as you have gleefully pointed out, your cost of production is wayyyy lower than the current price [or even $1500 an ounce]. As you have also pointed out, the amount of gold that can be produced is small compared with the tons now on the market, so there can be a panicky spike in price as per 1979 when oil hit $40 a barrel. Oil over the next two decades fell to $10 a barrel and gold bottomed out along with oil [of course] at $280 a barrel [so to speak]. When oil zoomed back up to around $100 an ounce [x 10], it's not surprising that gold shot up to $1727 per barrel [x 7] in sympathy, which implies gold is cheap compared with oil. A hint on saving money on fuel for your dirty great trucks. If they run hot and 24 hours a day, you can burn really cheap sulphurous low cetane number fuel [if you can get it] and it won't hurt the motors [not more than the cost saving in fuel anyway] because it's only when the sulphur oxides soak into water which has condensed when the motor cools to the dew point that acids form and start wrecking the oil and dissolving the metals in the motor. Acid plants in fertilizer producers use pure sulphur to produce sulphur oxide via burning it as fuel in their turbines used to generate electricity and that sulphur oxide is used to produce sulphuric acid which is a feedstock for fertilizer. Incidentally, airliners could run on sulphur too, and pour sulphur oxides into the stratosphere which would reflect sunlight thereby avoiding global warming. Unfortunately, sulphur is heavy so there would be an issue with that as fuel in airliners. But it doesn't explode on impact. Having a short term sale horizon for your gold factory is a good idea - selling it when gold culture really gets going. $4000 an ounce or even $10000 an ounce should get you a good price for such an Aztec quarry and gold producer. Let's see how the fiscal cliff goes. You seem to have an ambulance at the bottom of the cliff. That's probably more useful than at the top because the electorate of USA seems determined to jump. Mqurice

To: TobagoJack who wrote (94648)	9/18/2012 7:22:04 PM
From: average joe	1 Recommendation Respond to of 217573

we are led by a name-brand and well-to-do geologist known by much of the mining world, and ceo-ed by a honest expert miner, a rare combo i am to understand. Here is a very well-to-do geologist that helped raise $22 million for a gold mine. royalcrowngoldreserve.com Thanks to having a very well-to-do lawyer the principles will be in court for the next several decades. Law firms seem to have class-action targets on backs It appears law firms are wearing class-action targets on their backs over tax and securities advice. McMillan has become the latest big-name law firm hit with a class action. It was sued by an investor in March over the tax advice the firm issued involving the Royal Crown Gold Reserve Inc. Investor Melvin Schneider wants to represent between 250 and 300 investors in a suit against Royal Crown, its promoters and McMillan over the tax shelter. Royal Crown's mandate was to purchase gold properties in Canada and develop them into profitable businesses. It had claims in British Columbia. The lawsuit alleges that a tax opinion offered by Mc-Millan partner Michael Friedman determined that the "amounts paid by investors to acquire a legal and beneficial ownership of a mining claim should constitute a Canadian Development Expense for the purpose of s. 66.2 of the [Income] Tax Act." mcmillan.ca According to the lawsuit, investors would buy four units in a cell of land for $100,000. The claim alleges that under the offering memorandum, investors would put up $20,000 and provide a promissory note for $80,000. They would then pay $3,200 in interest on the note, which would be tax deductible, and receive a $3,000 royalty payment. The claim alleges that over three years, the scheme provided investors with returns of 39.23%, 92.78%, and 34.02%. However, the Canada Revenue Agency later rejected the proposed tax deductions because Royal Crown had not obtained a tax shelter number, the development expense was "inflated, unreasonable and unsupportable" and the promissory note was a contingent liability. It reassessed investors and charged them penalties and interest. The lawsuit accuses McMillan of negligence, alleging it "provided the tax opinions to the promoters which were a necessary prerequisite for the promotion and sale of the units as a tax deductible investments. "McMillan knew or ought to have known that their opinions would be used in this fashion." Dan MacDonald, head of McMillan's litigation department, said "McMillan believes that the claim against it is without merit and intends to take all appropriate steps in defence of the claim." The McMillan suit comes after WeirFoulds and its partner WayneT. Egan saw an action against them certified in a case involving a takeover bid circular. Fraser Milner Casgrain has also been named in a case that was certified involving the firm's tax advice involving a charity gift-giving scheme and the Banyan Tree Foundation. According to a recent decision of the Divisional Court, the "Canada Revenue Agency determined that the gift program was a sham" and those who contributed "have been or will be reassessed and required to pay taxes and interest on arrears arising from the reassessment." Cassels Brock & Blackwell and its partner Lorne Saltman have been sued in a class action over a timeshare program operated and promoted by the Athletic Trust of Canada, which was supposed to support amateur athletes and reduce the tax burden of those who contributed. The CRA denied the majority of tax credits claimed, prompting the lawsuit. The various lawsuits must still be proved and no courts have found wrongdoing by any of the firms involved. The lawsuits parallel those that auditors face from irate investors when stocks sink. Reynold Robertson, the Saskatchewan lawyer who sued McMillan, said "in the past, firms didn't give as much attention giving out written opinions about these tax shelters. Some cases are a minefield and you have to be careful what you're saying about your opinions." He added that "law firms have to be pretty careful about what use is going to be made of their opinions." nationalpost.com