Cheryl Brandon - Waterton

The following video is an interview /w Cheryl Brandon discussing mining companies and the role that Waterton plays providing access to capital.

It might give you some insight into how Waterton operates.

Fatal Assumptions

One of the fatal assumptions to be made in previous years in the gold sector was that gold miners would attract capital almost by default because gold is in a bull market. As it turns out, almost all of the capital in the markets is draining into delta hedging strategies, sapping value.

For this kind of bullish scenario to take place, you would need gold to average above the inflation-adjusted price using shadowstats prior to 1997. The lights come on once gold averages above $1800/oz.+

For commodities in general, since they are priced in currency, anything priced in currency might actually actually fall victim to inflation as returns from commodity companies fall behind inflation in a low interest rate regime, affecting their Net Present Value. (perhaps less so for commodities but certainly it will be there.)

http://youtu.be/aF7MZ1Em1uU

-F6