A forum of Gold and Silver Equities

Today ,it seems we have many experts calling for a return interest in gold and silver equities.Although gold and silver have come down some, from recent highs ,analysts believe that the spot price of both have a great future in 2012 .The equities are another story. They have been smashed on the rocks with some decent junior or intermediate producers making marginal comebacks ,but all told developers and explorers have been devastated. Here lies the the risk in stock investment when your only concern is Asset Value.I appreciate all the comments from the pro's but I wanted to reach out into the Pinnacle Community of  amateur investors and try to make some sense out of an enormous list of gold and silver  candidates that could make a lot of people here a lot wealthier in the next year,if what some  pro's say comes through for us ,which is,BUY  GOLD and SILVER equities,soon. I asked Frank Tabbert and he gave me a short list  of Golden Goliath ,Golden Predator and  Kootenay Gold. All undervalued in his opinion. If some others here at Pinnacle could put in their own companies with explanations why their  pics could make us richer,I'd like to hear .Feel free to comment on bad companies as investing is just  as much about insight into what not to invest in. I'm looking  to draw attention  to exploration companies ,developers  and smaller producers,all in  Gold and Silver Equities.

Community Talk

Re: A forum of Gold and Silver Equities

Frank- you should do a blog on what you learned from your trip to PDAC

 

 

 

 

 

There are 2 mistakes one can make along the road to truth - not going all the way; and not starting!

Re: A forum of Gold and Silver Equities

". One thing that is for sure is their resounding belief that the US does not have enough gold available to deliver Germany's request"

Even more evidence that shows what Central Banks are doing with Gold. Some have sold it and most are collecting interest. My point from the beginning . it's the biggest scam going.

cronyism in Governments worldwide has reached new levels. The bottom line is that  there are few Central Banks  in the World that want gold to go up ,with many different reasons why. How long will that last ?  I think in China's case it will be when they no longer feel a need for finding new sources of  resources that are useful to their growth and security. They are buying up resources ,either  swallowing companies whole , doing off take agreements or joint venturing. When they have their fill and their gold reserves are peaking,gold will rise. Why would they be in a hurry for the latter to happen first. ?

Re: A forum of Gold and Silver Equities

"They told me that they are also making strategic investments in beaten down gold and silver companies in politically safe jurisdictions, not by way of buying shares in the open market but by way of providing financing which appears to be lacking from the usual finance providers."

 

Absolutely !  This is why I've been saying for months now ,that carefully picking G&S equities are  a good investment ,just not in the near term.  If your buying for the future ,go for it.,imo

I prefer silver but regardless ,this is a time where the garbage  is going under and the good companies ,though they have declined are readying themselves for times when their product will be dominant. Maybe a couple years yet, but I do believe as you do that gold &silver  are a major part of the future economic picture, therefore the equities can be  huge financial gains ,down the line.

Here's the thing Frank. If G&S equities were managed by people that didn't have a GOD complex,they would be doing a lot better. they have NO money in most cases because they are greedy and self serving. They are using the very limited  cash resources of the company treasuries and paying themselves salaries that are obscene. When that's not enough ,they add options.If that's not insulting enough (since they are losing money),they go further. 

IE; Options  expire . They give themselves NEW options  with a strike price a lot less ,usually just barely above the current market price.That's almost criminal. Their poor performance and salary greed helps the stock take a nose dive  and they reward themselves with "in the money options." 

What confidence ?

Investors are ignorant to the reality.. We should not invest in  managements that believe themselves to be worth more than they are. If they set bench marks ,meet those benchmarks  and keep their salaries  at where they should be , as well as only award options @ 100% above the current share price  (day of issuance),then ...we have found a winner

So who are they ?

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I am niot sure southpen. One thing that is for sure is their rwesounding belief that the US does not have enough gold available to deliver Germany's request. They told me that they are also making strategic investments in beaten down gold and silver companies in politically safe jurisdictions, not by way of buying shares in the open market but by way of providing financing which appears to be lacking from the usual finance providers.

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Frank, What do you think a German financing firm is going to do with physical gold ?

Institutions  that can buy  physical gold in large amounts are buying .I  have not yet  disagreed with that fact.

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I was at the PDAC and was talking to some German gentlemen representing a financing firm out of Germany. They are buying up all they can while they can at thses prices. I visited the Sprott booth selling Silvers Maples and Eagles at over $33.00. that is more than 15% over the spot price.

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 Frank says; Central Banks are not sellers THEY ARE BUYERS as is China, Russia and India plus others and they are happy buying on weakness.

 

 Southpen  says;  I  don't understand your disagreement with me.  China's ,Russia's and India's Central Banks  are indeed buying gold AND want to continue to buy gold ,"cheaply"  The best way to do that  (keep the price of gold down) ,is too lend your reserves to brokers ,whom will short the market. 

My point is,this sort of thing has been going on for years and the Chinese,Indians etc  want to join the party. They can  lend (,not sell), and accumulate all at the same time. It's the biggest scam going . They even have silent and somewhat unwilling  partners. North America and Europe do not want the price of gold going up,for different reasons. They need their Fiat currencies to hold some value or nobody will buy their safe haven  treasuries,which as your aware are necessary to pay interest on the debts.

Asians are buying gold for the future.How far in advance  that future is has everything to do with other commodities ,which they need MORE than gold .

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southpen, I will reply to the p.s. first. Regarding Golden Goliath, I will meet the CEO and CFO tomorrow at the PDAC along with their guest Rompin Ronnie Hawkins, Ronnie is another story for another time.. Anyway last fall they planned a private placement but delayed it hoping markets would improve and that Agnico would report great drill results or Comstock would start drilling on their optiioned property. Comstock has their own problems and Agnico continues drilling, but not the same way a junuior would as a junior needs excitement and drills where there is a good chance of a hitting something big in a specific area while Agnico places its focus on the big picture but is not that exciting and its not in their best interest anway. They will however provide GNG with monthly progress reports which certainly wasn't the case previously.  GNG best option therefore will be going at the less risk.high potential San Martin tunnel with a less costly drill program first before Nopalera because a great drill intercept is more likely which might move the shares higher to do the next private placement to drill Nopalera, otherwise dilution as you say might/will be in the cards. Now back to gold/silver, Central Banks are not sellers THEY ARE BUYERS as is China, Russia and India plus others and they are happy buying on weakness.

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I think  you guys made some good picks. Scottie  liked Atna and Elgin. I still like both ,just not now. I believe that G&S miners will go up rapidly once  the objective of Asia is known. Asians have no  employment problems,they are still in growth mode so  gold miners would naturally be the last  mining outfits that will go up. Asians want to attach themselves to as many N.A.  resource assets as possible. Met.   Coal ,Oil ,Copper and possibly Natural Gas. (partial ownership)

. While accumulating gold is happening ,it does not mean they want gold to go up. They buy it ,hold it ,lend it  and gain more control of a  market presently fixed (shorted) by Europeans and N .Americans to protect their currencies. The Asians don't want gold to go up ,not yet. 

The time will come and I think that any surviving gold and silver miners  in N.A. will do well and if you can afford to have money sitting do nothing ,invest now ,if not ,stay tuned. I'm trying to find N.A. mineral assets that are close to production or development stage  and that are what the  Asians need to continue their modernizations.

P.S.  I find Golden Goliath  to be a very good ,very  real ,long term gold  mining asset ,but fear a consolidation will happen this year. 

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I've concluded that the Bank of Canada ,though similar to the Federal Reserve is better at  investment because it tends to stay clear of wasteful middlemen.  The Bank bailout  here in the States was actually more akin to Corporate Socialism.  I'm talking about a straight up deal. "Financing for a Stream" .No real Government involvement other than a watch group.(making sure the people are being treated fairly)

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Southpen, When I look at the short list I thought were very undervalued stocks back in 2011, I am embarassed to say both GNG and GPD aka AMB  have really hit the skids. Kootenay Silver KTN, although down somewhat has held up pretty well. One must be careful in this market to refrain from doubling up or dobling down might be the better term just because half price looks like a bargain. Along with a great resource, what the company currently has in its treasury and how many shares they have already issued is the, as the inabiluity to raise money when a dollar doesn't buy much will pummel a lot of stocks even further.It will be interesting to see the mood at the PDAC this week..

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Good idea southpen,excepting that governments prefer to bail out banks and big auto companies.

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thinker,  I'm sure  you  know  that these monster  or mega mines  like Snofield-Brucejack  of Pretium  have as their only drawback , "Financing"  Mining costs are sky rocketing  and  if a mine takes years to develop, the uncertainty is pushing prices down.  

How long will the FIAT money system throughout the World last ?

. Some believe 6 months ,others 5 years and  many believe  it will not go away at all, in  it's entirety, so  projects based  mainly on gold are actually being questioned as to their  value. ,or future value.    

KSM is the greatest resource in Canadian history  Total resource   including Reserves,M&I and Inf. is at  about 63 Moz Gold, 370Moz Silver and 26B lbs. Copper  . Seabridge  owns it 100% and has a very conservative share structure ,yet struggles to reach even 15/share.  Truly amazing.

The Canadian Government should finance both projects in a royalties only deal for gold bullion.(stream) The Canadian Gold Reserves  are low (about 3 tons )  If a Central Bank is going to devalue their currency through dilution,they could counter the damage  building gold reserves for a future currency ,which many of us believe will be partially pegged to gold. The GDP from those 2 mega mines over the years would be another windfall,imo. 

If these mines  wait for financing and neither Barrick,nor Goldcorp ,nor any of the 5 big banks come forward ,look for Asian support. Not the worst thing that could happen but in my view,not necessary

If the big U.S. Banks were readying themselves for an end to our current fiat system,Don't you think they would be buying into these mega projects ?    There seems to be  little evidence that they  are trending towards  encouragement  in  gold mine stimulation (development)

Re: A forum of Gold and Silver Equities

 It seems the more things change the more they stay the same! Several times I have thought the market is "turning positive" and yet companies with excellent resources and Mgmt. even when well financed, continue to sell off severely, the latest example PRETIUM PVG with the high grade Brucejack project. Belo Sun BSX which looked very promising 6 months ago has fallen out of bed recently, the slighest problem and investors panic and punish stocks severely very quickly.

I was quite excited by the KEEGAN / PMI merger and even that has been cancelled, at least for now. I am trying to put together a BAKERS DOZEN Precious Metals Picks for 2013 and this is increasingly a hazardous occupation as what SEEMS solid evidence on making a pick one day gets trashed the next in a totally irrational market. Emotion rules and fundamentals no longer matter.

thinker70

Re: A forum of Gold and Silver Equities


Here's another comment from Casey's ,which I happen to agree with  and have stated as much  here at Pinnacle on other forums. I agree  with buying gold & silver stocks for the long term but don't put all your cash into a sector that is constantly be hyped by pundits 

Jim Sinclair  and Doug Casey are prime examples

Doug Casey, Chairman (The Casey Report): Frankly, I don't care about short-term fluctuations in the gold market - or any market. They're random and unpredictable. It makes no sense to clutter your mind with guesses about what might happen in the next hour, day, week, or even month. If you try to trade on that basis, you'll be eaten alive by commissions, bid-ask spreads, taxes, and the vagaries of your own psychology. I'm only concerned with the long term.

As for gold, it's not a bargain at $1,600, but in light of what governments all over the world are doing - creating trillions of new currency units - it's going higher. I continue to accumulate it mainly for safety, not gain. Right now I'm especially bullish on gold-mining stocks, which offer extraordinary speculative potential.

Re: A forum of Gold and Silver Equities

A recent comment from  Casey's

I won't beat around the bush: the bear has come out of hibernation and has his claws in our favorite market sector - gold and silver - and he doesn't seem inclined to let go any time soon.

Sounds like something some of us were saying months ago

Re: A forum of Gold and Silver Equities

Atna  stays  ahead of  all the destruction in this sector but things look bleak. US Silver & Gold  is pathetic . Silver Standard is worse ,if that's possible.  Atna seems to be building a solid  group of assets  despite the gold price.  I wish they would have merged with US Silver.

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There are an incredible number of undervalued companies out there but the key metric for me is how much money they have in the kitty and what their burn rate is. An easy trap to fall into is to ass-u-me that because a stock is selling at say 50% or less below a previous high, it must be a bargain! Not necessarily it may be down for many different reasons other than a general market sell off. There may be Mgmt. problems, there may be poor drill results, there may be permitting delays, newly developed juridictional risk, strikes as recently in S. Africa, difficulty raising needed funds (my main current concern) and companies without a currently defined 43-101 resource have become highly speculative UNLESS they have a previously successful management team that has the reputation and contacts needed to attract new capital.

That being said I will list a couple of companies that I consider grossly undervalued who have good Mgmt. and are probable takeover targets; Timmins Gold TMM, Mag Silver, MAG, Balmoral BAR, Orezone Gold ORE, and 2 more speculative stocks in my portfolio for some time that I considered entering into the contest, Orbite Aluminum ORT which is building a pilot plant that will also allow them to do Rare Earth extraction and custom milling in Que. one of the best mining jurisdictions in the world that rebates 40% of exploration expenditures. Another portfolio holding that has been moving up smartly is Orocobre ORL in the lithium business and is also still "speculative" and requires your due diligence, (actually all of them do) but all have been moving in a solid uptrend.

thinker70

Re: A forum of Gold and Silver Equities

http://www.goldenpredator.com/documents/GPDNR12-27-2012-09-27.pdf.pdf

 

Golden Predator arranges USD $35,000,000 Loan Facility with RK Mine Finance; Closes Brewery Creek Acquisition

TSX: GPD

VANCOUVER, Sept. 27, 2012 /PRNewswire/ - Golden Predator Corp. (TSX:GPD) (the "Company") is pleased to announce that it has executed definitive agreements with MF Investment Holding Company 1 (Cayman) Limited ("MF Investment"), part of the Red Kite group, for a senior secured loan facility in the principle amount of USD $35,000,000 (the "Loan"). The Loan proceeds will be utilized to develop the Brewery Creek project and complete the Brewery Creek acquisition.

"We are pleased that Red Kite has appreciated the opportunities presented by our Brewery Creek project. This financing consolidates our interest in the project and ensures Brewery Creek moves forward as planned," said William M. Sheriff, Chairman and CEO.  We look forward to Brewery Creek advancing towards becoming the Yukon's next gold producer in 2014."

USD $35,000,000 Loan Facility
The Loan will be provided through three advances, the first advance of USD $10,000,000 having been provided on September 25, 2012 and two subsequent advances of USD $10,000,000 and USD $15,000,000, respectively, being made on completion of certain specified conditions including delivery of an acceptable pre-feasibility study and receipt of any required permit amendments for the Brewery Creek Project.

The first $10,000,000 of the Loan matures on July 1, 2015, the next $15,000,000 on March 31, 2016 and the final $10,000,000 matures on December 31, 2016.  The Loan bears interest payable at LIBOR plus 8% per annum, subject to a minimum interest rate of 10%.  As a condition to the second advance of the Loan, the Company has agreed to enter into an offtake agreement under which it will sell to MF Investment the first 500,000 ounces of gold produced from the Brewery Creek Project at a discount of 1.5% to the spot price.

Of the initial advance, CAD $3,205,000 was used to complete the acquisition by Golden Predator of the Brewery Creek Project from Alexco Resource Corp. ("Alexco") as more particularly described below, with the balance of the net proceeds of the Loan will be used exclusively to fund the working capital requirements of the Company related to or arising in connection with the exploration and development of the Brewery Creek Project.


Re: A forum of Gold and Silver Equities

Interesting perspective southpen, but I would counter that there are very few "PURE" gold plays while there is a huge choice of combinations from virtually equal amounts of copper, silver, and many other minor metals. If you want a really hot stock that has gone from a low of .35 to a high of $3.85 in the past year, (currently around $3.18) check out Reservoir Minerals RMC-V which was a spinoff from Reservoir Capital that is no slouch itself and has great prospects in Serbia. While they have good gold reserves, their copper resource is SPECTACULAR at over 10%, no misprint, yet copper deposits of 1% are considered excellent, which is probably WHY this small Canadian junior is backed by no less than Freeport FcMoran a reknowned world copper producer.

Regarding the outcome of the election, can't see much difference as BOTH candidates are Keynesians and controlled by the banking elite or cabal if you prefer and have no choice but to continue their "money priniting" ways, which means inflation is inevitable, the dollar will continue to decline and gold will continue to go up when measured in ANY fiat currency. Of course now that Japan and China have joined Europe and the U.S. in the race to the bottom for their respective currencies the beneficiary is bound to be gold. 

As an ATNA shareholder I concur, it is a great stock and there are many more that have a primary reserve that is mostly gold.

thinker70

Re: A forum of Gold and Silver Equities

Grant, I 'm still  skeptical of pure gold plays . I've had this argument for several months now ,that both candidates in the U.S. for President don't like gold or it's impact.Since both candidates will  be cosy with Wall St. (Romney)  or the ,Federal Reserve (Obama),I don't see a clear direction for gold like the masses do. I  don't think gold is a bad investment,I just think it's importance is limited over the next few months.  We really don't know the impact  a continuation of Obama or a Romney Presedency will bring .All we really know is the rhetoric that's been floating around for 2 years or so.

If investing in PM stocks I think  deposits or companies  with gold and something else (something important that can go up if gold mellows ) are preferable to strictly gold.I also believe that picking a stock is more important than the sector at this point. Scottie endorsed ATNA and they are clearly a stock that runs counter to my  theory of having a large (other ) mineral ,but the company is SO good,I just think he picked a winner. Always room for exceptions.

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scottie;  I've been following these polymettalic deposits where PGM's are a big part of the resource. Duluth Mining seems to be on a tear as well . They own 60% of a deposit that makes  Prophecy's seem tiny,if your looking at the Indicated stats.  I like both of them because they have the PGM's ,good resource of Gold and Duluth more particularly is a huge deposit of copper and nickel.

Going back to these polymettalic deposits,some experts , Mickey Fulp for one ,won't touch them  no matter how  great the resource is. I  know you didn't like casino because of the infrastructure needed but we really have to develop a better understanding why polymettalics costs are so much greater. Seperation of all these metals  is expensive,of course ,but if all the metal is valuable,then Why are they so difficult to become economic.?  Fulp is more a guy that's an early -intermediate exploration speculator," first "   He see's little value in these things mainly because the profit is so far off,imo.

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nice. I've had some of mine go up 30 or 40% in the past 2 months. But many are still lagging. I still think 2000 gold is needed for new highs and buyers to come back big.

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NKL has been on a tear.  Up 55% in the last week or so

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Hecla is a mess and they screwed up not upping their offer for the Galena. They claim they really don't think much of the Galena ,yet wanted the  Brownfield exploration all around it.RVM likes the Galena but not so much the exploration package ,so   I get that both would have been much stronger with US Silver assets.,both were not very convincing .Both wanted USA. I  like RVM 's future but they need a revenue producer better than Troy. They plan to build Rock Creek slowly (small mining permit ) maybe 30-40 million  to get something going .Troy will likely never produce more than 1.5 to 2  million oz /year and it's costs are sure to rise. Most of the resource is above the pillars ,so once an area is exploited ,there's no going back..Galena with it's extensive Brownfeild would of been a perfect fit.I told RVM,begged them to make a share  offer but no go... nobody wanted to compete with a cash position,( which was distorted ),from Hecla. I even asked ATNA  to look into a  merger .Anyway,only the old shareholders lose.Like I said ,a good buy,imo short term.(if silver is something you want)

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NKL and ECC showing some nice price action today.  NKL seems to be basing and ECC shows a small inverted head and shoulders pattern over last month.  Bought into a little bit of ECC today.

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@Southpen, at least you guys didnt get taken under by Hecla.  

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thanks for posting. saw write up on Novo. I am looking for producers in the 200-400 ounce category with hopes of 1 million ounces by 2015. that sort of thing. Nova gold is one I like.


I like Endeavour Mining (EDV) as a mid tier producer with signficiant production and exploration upside but have focused my investments on the junior producers.

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US Silver ;I can't trade shares. FROZEN. That's the price including RX .Pretty horrible for me and the others that  are long the stock but ...an opportunity to new people.Basically we the common shareholders lost 1/3rd of our shares to support this deal.The share structure is about the same and the company now has a much better management and a small gold /silver asset.but it cost us 1/3rd .Not happy but I do believe  at this level is a good investment for the new.