Re: Back at tricky point again: BKM8572
in response to
by
posted on
Nov 19, 2008 05:29PM
Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta
DK:
Thanks for the encouraging words. You are right. I am a listener of Don Coxe. And yes, he is saying that gold, silver, oil and virtually all commodites have to go up and their equites as well.
Another analyst I pay attention to, Stephen Leeb, Ph.D, is saying the same thing.
Frankly, excuse my conspiratorial bent, but I feel a lot of what we are seeing with respect to commodites, is in fact manipulation. Such has been effectively demonstrared with respect to gold and silver. Both are depressed in the paper market and yet in the physical commodity market are trading at a 40% premum in the case of silver and an 8 to 10% premium in the case of gold, to the prices in the paper markets. In the case of gold and silver, the blame for the manipulation has been convincinly traced to three very large banks, now a part of the "bail out" enterprise of our highest monetary and banking authorities. Between these three banks, they were holding shorts equivalent to 80% of the above ground silver inventory. Thus effectively, in part, the long investors in these commodities are paying the price tag for our massive bail out plans. I would not be amazed to learn that similar statistical make believe is taking place to a likely lesser degree with oil.
It was Don Coxe two weeks ago in his Friday broadcast, that gave evidence that world oil consumption was not down year over year, due to increased consumption by the developing world.
Is it not interesting. The Olympics and Special Olympics ended in Beijing, the US crashed, the commodites market crashed and Chinese consumption nearly stopped all in a one week period. And yet, world oil consumption has not come down. Only the cost.
This too will end. It is my hope that when it does, Connacher is still left standing. Meanwhile, when it is all done, we will have shortages of natural resources due to the closures of previously unprofitable operations. Then we will see the mother of all shortages in virtually all commodities.
Forgive my rant everyone.
Brian