Thought for the day, If Silverado Gold can start mining, Garry will be ahead of the pack, the Jr miners. Read the story below and you will understand my thinking.

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Rick Rule interview with King World News, “The thing that’s really on my mind today is the state of the junior equity markets. John Kaiser recently published in his newsletter that some thing like 60% of the junior equities, on the TSX Exchange (in Canada), are selling at half of their 12 month highs, at less than 25 cents a share, and have less than six months of working capital in their treasury.

That’s a different way of saying that more than half of the TSX is headed for extinction if the market doesn’t change. It’s difficult for people to get their heads around the fact that they bought a stock for a dollar and it’s selling for a quarter. They don’t want to sell it until the price goes back up, but the price is not going to go back up.

The point of all of this is that the length and breadth of the TSX Venture Exchange is in extraordinarily difficult circumstances. Juxtaposed against that is the fact that the best 5% or 6% or maybe 10% of TSX Venture stocks have very bright futures, are very undervalued and can extract capital.

I’d like to share with you, Eric, an event that happened to me yesterday. In a market that is starved for cash, and extraordinarily depressed psychologically, I had to threaten legal action to get in a $30 million financing that was seriously oversubscribed.

The prospective CEO of the company, that will be the beneficiary of this offering, said to me, ‘Rick, I’m engaged in a surreal discussion. Most of my peers, in management, at TSX Venture companies, are wondering what they are going to be doing for a living in six months. And I have a $30 million financing that is so oversubscribed that the various participants are threatening litigation.’

I think this story is a metaphor for where we are with that exchange. There is sophisticated money, with good technical skills, and there are people on the exchange that have good assets that they have advanced well, and they will do extraordinarily well in the next two or three years.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/11_Rick_Rule_-_This_Can_Bring_Down_the_Entire_Financial_System.html