Oldtent Archives 2007 - 2008

Heck if it was easy everyone would do it….SIM[Slobbering Inflation Monger

Having a hard time logging in tonight,,

I wanna be a slobbering inflation monger..el dente..just for goldrunner
Looks like our stuff is crawling up a ladder undetected tonight….just perfect..many pundits are reading each other and going on and on about ohhhh never below 840 bla bla bla…keep it up boyz…see ya on the other side of a thousand

Easy Ed Wener from New Zealand…

Hi Bill:
The Juniors got another terrific boost today with Goldcorp’s offer to take over Gold Eagle Mines. There are several aspects of this takeover that are worth considering.

a) Agnico Eagle made a $50m strategic investment in Gold Eagle only a month ago. They purchased 5.5m shares (plus a half warrant) at $9.05/share so assuming today’s takeover succeeds Agnico stands to make a quick $26m profit which is triple what they earned last quarter. If Agnico takes the profit and runs they will have over $75m to make another “strategic” investment. Got to be good for a junior.

b) Goldcorp obviously reacted very quickly to Agnico Eagle’s move into their home turf at Red Lake. Gold Eagle has not yet done enough drilling to actually state a defined resource but its property is right next to Goldcorp’s and despite the lack of a defined resource Goldcorp was sufficiently confident in their own models that they think there is a lot of Gold there.

c) This offer combined with the Kinross offer for Aurelian and PanAmerican’s statement that they plan to make a purchase later this year is the start of a trend. Those shareholders of Aurelian and Gold Eagle should soon have some money to put into the shares of other worthy juniors. Many of the Juniors are in no position to raise the capital to build amine given the present market and the belief among many that Gold has peaked. It is worth repeating a comment Goldcorp’s CEO Kevin McArthur made today that he expects $1500 Gold which he calls “the new $500 Gold”. When this bull market began 7 years ago $500 Gold was the target many thought Gold miners needed in order to become profitable again.
Here we are at $900 Gold and the CEO of arguably the most profitable Gold miner is saying he’s looking for $1500. Wow!

Cheers from Auckland Ed Wener

I’m red faced, been out in the sun working hard, I’m flat footed but I’m no toad kisser slap… slap.

“…as you circle over us in Victoria on your way back to Honolulu, send us a vibe and we will return it.”

That will be midmorning Tuesday.  Meanwhile, you can send a vibe to the corporate money gods on Monday to open uncle Scrooge’s vault, and perhaps I will be back soon!

GDX chart is Number 1 right now…thanks for the link

At interesting feature on Stockcharts that I hadn’t spotted before - Ticker Cloud. Link may not work for those that don’t have a subs. The 200 stocks most commonly charted in recent 15 mins are displayed, with the most popular being in the largest font. Presently GDX and QID (ultra short QQQ) are the most popular. DIA (diamonds ) are third.

http://stockcharts.com/charts/tickercloud.html

 So - gold has a certain popularity, even if current price and related stocks suggest otherwise. Of course it could be shorts who are doing all the charting   : - (

“IMO, you are both making a grave error when you are speaking in absolute terms about both money and credit in terms of money supply. “

While I do think the Federal Reserve needed to take extraordinary steps; I think down the road, in retrospect, they will be seen to be highly inflationary. Of course, I agree it would have been best if the whole mess had not been allowed to happen - but once it did, drastic measures were required.

Scroll down to “New facilities” in this link:

en.wikipedia.org/wiki/Federal_Reserve

aurum

Thanks for the update on the clinic

Winedoc

The housing market debacle is deflationary - yet it is the outcome a very inflationary bubble in housing prices. Many homes more than doubled in the last few years, so even with say a 20% loss they are still much higher than a few years ago. With a 50% loss they are back to where they were a few years ago.

Nonetheless, the real point IMO is that we are very early in the inflationary rise - where some things are still deflationary (in particular goods from China that are being sold very cheaply to keep their factories going) and other things (as say raw materials) are inflationary. So this is currently a struggle between those forces. I think the winner will be determined by this:

Years from now, when no one will argue about whether we are in an inflationary period, I think we will be able to look back to the creation of money and credit by our government, and others, in response to various crises and inabilities to balance budgets as the cause of the hyper-inflation that then exits.

aurum

IMO, you are both making a grave error when you are speaking in absolute terms about both money and credit in terms of money supply.  

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I don’t believe once ‘credit’ is created in the fiat system that it never disappears.

by LP. @ 19:42 pm.

In the fiat system the way ‘money’ disappears is by people paying off debt or not being able to pay off debt by defaulting apart from actual banknotes being destroyed or lost.