Welcome to the Crystallex HUB on AGORACOM
Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America
Message: Our only hope
With Hugo's latest stunt of robbing profit from our operating contract by changing the law, you would think that he will definately award the permit before the arbitration deadline in order to avoid the humungous loss to Vz that arbitration will bring (assuming KRY doesn't go bankrupt in the process). What if gold goes to $31,000.00 per ounce? That would still provide us with some walking around money....even with their F'd up exchange rate. Don't get me wrong....I'm sure Hugo will figure out another way to steal any potential profit if gold really took off to the lofty heights tha some predict (see below).....but happily....he'll probably be assasinated first. Hell...Hugo put the ASS in assassinate. Perhaps exterminate would be a more appropriate word for this cock-a-roacha. In any event...I'm holding till the fat lady sings. I don't believe anything I see or hear with this stock.
By the by...why wouldn't Hugo let KRY build the mine before changing the law. Wouldn't that make more sense if this is all part of his plan?
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Posted: May 06 2009 By: Jim Sinclair Post Edited: May 6, 2009 at 2:18 pm
Filed under: In The News
Dear Friends,
As Armstrong says, "It Is Only Time."
Gold is headed into multiple four figures. When that will happen is only a short time away.
This winter is going to be unbearable to many.
The Gold War: China and the U.S. Treasury Market
"Who will win the Gold War? The simplest answer also holds the most truth. Over the past five thousand years, the winners are those who are holding the gold at the war’s end."
May 06, 2009
NEW YORK CITY, FEBRUARY 11, 2009 - Luo Ping, director-general at the China Banking Regulatory Commission, gave what may be a landmark quote in the years to come ahead. Besides chastising the United States for its "laissez-faire capitalism" - at which point I distinctly remember choking on my breakfast of delicious jiaozi (I was in Shanghai eating Chinese dumplings) since Ping obviously understands that corporate cronyism is NOT laissez-faire capitalism as fellow columnist Steven McDuffie recently reminds - in retrospect another part of his speech may prove to be the most prophetic. From Reuters:
Except for US Treasuries, what can you hold? Gold? You don’t hold Japanese government bonds or UK bonds. US Treasuries are the safe haven. For everyone, including China, it is the only option.
As I related in "China Nearly Doubles its Official Gold Reserves", China revised its official gold holding from 600 tons in 2003 to 1,054 tons last month. However, the very fact that China reported no increase for 6 years and then suddenly doubled should prove one thing - the Chinese are abiding by the IMF Articles of Agreement only as it pleases them. For instance, the state-owned banks can hold as much gold as they wish without reporting, although this gold is de facto the Chinese government’s. Please understand that subtlety, not brazen statements like Bush’s sad "Mission Accomplished" ceremony or Obama’s 100 Days congratulation party, is the Chinese way.
"US Treasuries are the safe haven… the only option."
Really? Although March and April data are not available, you could have fooled me! For perspective, the size of the US Treasury market was $10,700,000,000,000 in December 2008. Of this, $727 billion, or 6.8%, belongs to China, and close to one-third is foreign-owned. (Although some would argue that the $4.8 Trillion owned by the Federal Reserve is foreign-owned as well, in actuality this interest is mostly returned to the Treasury as described here "The Federal Reserve - A Good Company to Work For?.") See the chart below (source www.treas.gov).
Jim Sinclair’s Commentary
In case you missed this the first time it was posted, please do not miss it this time. What allowed me to call $900 in the early 1970s was pure math.
Here is another exercise of similar character.
Mises’ Equation = Gold Price $6,000 - $31,000?
"Thorsten Polleit, Honorary Professor at Frankfurt School of Finance and Management, did some calculations for this and found (as of March ’09):
- backing all of M1 with gold. M1 divided by gold oz. results in $6000 per oz.
- backing M2 with gold and you get $31,000 per oz.
- backing Euro M3 and gold is E26,000"
Does Mises’ Equation Give a Basis for Gold Price?
May 03, 2009
Assuming you agree to a strict Austrian approach to life and love, Mises advocated sound monetary policy by returning to a gold standard and developed this equation for a “regression” to a properly backed currency called the gold cover ratio:
GCR = (C+D+T+S+L) / G
Where C is cash, D is demand deposits, T time deposits, S savings, and L banks long term liabilities. And our favorite variable G is oz of gold at Fort Knox.
Thorsten Polleit, Honorary Professor at Frankfurt School of Finance and Management, did some calculations for this and found (as of March ’09):
backing all of M1 with gold. M1 divided by gold oz. results in $6000 per oz.
backing M2 with gold and you get $31,000 per oz.
backing Euro M3 and gold is E26,000
But the real impact of Mises’ work is not in what the price of gold should or could be but rather the conclusion that no matter what the government does (e.g. quantitative easing, free running printing presses, artificially low interest rates, stimulus packages, bank bailouts, TARP, TALF, etc, etc) we still get a serious erosion if not all out loss of the exchange value of fiat money.
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