This is disaster economics 101. They intend to cause huge volatility in supply. Undermining the Jr market forces anyone interested into rediculous discounting. This gives the bank absolute control. You'll have to buy some crappy venture fund and pay hefty fees. It won't matter whether they can get the rules changed to force retail out. Starving the market and attacking it with everything they have has already done the job. In addition, we are going into the dead months. It's true gold should be rising during the wedding season and with all the hording by the bank we should see it rise. However, there is a short on gold of biblical proportions. It's the like of which I have never seen before in almost 30 years. Gold Jrs are screwed. Only the very rarest will get the attention from the desperate retail.

I laughed when I read that transparent accounting of the majors would improve the Jrs as that should translate into true valuations. It would if the markets were not under attack. The majors I've talked to have not got a plan to deal with it and they are also not publically admitting what the problems are. They are not happy but think it will improve in the Fall.

If you recall my predictions 6 months ago and reiterated then you were well aware of what was coming. I'm not concerned that this will be a mine. I prefer my money not in cash because that is being eroded rapidly. Anyone who buys gas or groceries or pays a power bill knows what's up. We are better sheltered here than in a savings account.

My only real concern is raising money. I put in a call to Elmer to discuss this but I didn't have time to wait for his call back. I have a number of people who are asking me what they plan to do about it. Just look what $5 million would cost us in dilution. In very short order we are going to be at 40 cents as predicted a long time ago. I don't want to see a PP then.

I know there are some other ways to raise money. Equity is one. But I'll speak to him probably tomorrow and see what options are out there. Clearly, we and the other Jrs need a plan to counter act what's being done to the market.

Do not believe the talking heads that this will magically correct. That's not going to happen. This is a permanent structural change. The TSX is going to be wiped out completely. There's an independant broker who I talked to about this and his outfit also sees the writing on the wall. Why do you think Dwek suddenly retired/ left the space? He saw it too. I have not spoken with him but I'm pretty sure this is the case. Yeas, there is talk about replacing the TSX with an independent facility and that suddenly got their attention. Go figure. You ruin the TSX and then panic because you're going to be replaced?

Mosher has some good ideas but also needs to accept that this is deliberate and the machines have to go. Naked shorts and failure to complete have to be stopped and punished by severe penalties that are actually enforced. It's hard enough finding winners to back let alone having to face huge funds with machines bent on the disruption of the market.

The discussion tomorrow with Elmer should be illuminating. We've discussed this coming for over a year. He's been thinking about it all this time. He's a crafty old dog and been through some tough times. The bfs is what put us in these times and it was not avoidable even though it should have been. Hind sight/ blind sight? Even if they admitted it months earlier it would have been too late. So here we are. This is where the true grit people shine. If he has something worth sharing I might do a write-up. I'm also planning to speak to some of my other trusty sources and see what they plan to do. Yes, HPY can't really go any lower. It is almost all retail owned. But what does David think about the prospects of raising money? He doesn't have a patron.