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Is China Gold's First Overseas Purchase A Harbinger Of A Gold Miner Roll Up?
Gold has retraced over 60% of its September swing high to low - rallying almost 12% off late September lows. Whether by cause or effect, it seems our stimulus-driven, vendor-financing, USD-heavy, mercantilist neighbors across the Pacific have decided the time is right to BTFDs in gold and gold miners as today's South China Morning Post notes "China Gold to buy Central Asia mine". Jery Xie Quan, VP of China Gold, further noted that was also negotiating potential mine acquisitions in Canada and Mongolia, which are either in advanced development or close to starting production. Are the Chinese using their excess USD to purchase gold-producing assets? Who knows but it may help explain the relatively strong performance of the EUR against the USD as the former region deteriorate fast.
China Gold to buy Central Asia mine
Foreign development arm of nation's No 2 producer to acquire gold and copper facility within weeks
Eric Ng in Tianjin
Updated on Nov 08, 2011
China Gold International Resources Corp, the overseas development arm of state-owned China National Gold Group, the nation's second-largest gold producer, expects to complete its first foreign mine acquisition as early as the end of next month.
The target mine in Central Asia produced mainly gold, with copper as a secondary product, said vice-president Jerry Xie Quan of the Hong Kong and Toronto-listed firm.
"It is a relatively large-sized project," Xie said at the sidelines of the China Mining Congress. "We expect to see results from the acquisition effort before year-end."
China Gold would consider financing the acquisition through bank loans and convertible bonds, he said. The company had net cash of US$76 million at the end of June.
China Gold has two gold mines on the mainland, one in Inner Mongolia and another in Tibet.
Together they produced 55,259 ounces (about 1.57 tonnes) of bullion in the first half, about 10 per cent of the output of its parent. Neither the company nor its parent firm has overseas projects.
Xie said China Gold was also negotiating potential mine acquisitions in Canada and Mongolia, which are either in advanced development or close to starting production.
The firm was known as Jinshan Gold Mines. China National Gold bought a 42 per cent stake in the firm in 2008 and renamed it China Gold International Resources.
Mainland gold miners have been stepping up efforts to develop domestic mines and acquire resources overseas to meet surging demand. China is the world's largest gold producer.
JPMorgan commodities analyst Michael Jansen said retail bullion demand from China and India together amounted to 2,000 tonnes a year, about 85 per cent of the world's annual mined supply.
He forecast bullion prices to average US$1,869 an ounce next year, up 10.2 per cent from US$1,696 this year, on the back of strong investor and end-users' demand.
Exceptionally low interest rates in developed countries that are suffering from high sovereign debt levels have also lowered the opportunity cost of holding gold and gold-backed investment products, which do not pay interest.
Also supporting prices is buying by central banks, especially those in China, Central Asia, Russia, Southeast Asia and Latin America. Central banks as a group, traditionally net gold sellers, had turned net buyers in recent years, Jansen said.
On the supply side, he said large producers were struggling to find enough new resources to replace growing production. Many were acquiring new development projects from exploration firms to speed up reserve replenishment.
In the first nine months of this year, global mergers and acquisitions in the gold sector amounted to US$28 billion. Jansen expected the full-year figure to exceed last year's US$33 billion.
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Yes, they are Buyers of Size.
This is also part of the rationale behind opening the Pan Asia Gold Exchange.
Well lets see. You're China. You can either bailout fiscally hopeless Euro countries that will eventually default anyway, or you can buy gold which does not rely on the promises of an Italian philanderer with a penchant for teen girls. WWMD (What would Mao do?)
Eric King Interviews Rick Rule on Miner potential - http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/11/3_Rick_Rule.html
gonna be hard to protect long gold supply lines for China
China is mopping up gold wherever it can. Diversification of sources is why they are buying foreign miners...
Many of the 'surplus-positive' countries are doing the same.
http://seekingalpha.com/article/305766-following-the-big-money-to-gold
Red, Mao would corner the market in teenage girls, then worry about Au.
what would mao do?
well, probably exterminate all those pesky commoners and pull out any of their remaining gold teeth. then, and only then, he'd consider actually buying some.
that's why you don't see many WWMD bracelets or pendants around much.
ahhh confucius say " golden shower on rubber paper.
china will continue to bail out europe. its a huge market for them. china diversifies.
Mao would cut a deal to get in on the teen girl action - but Mao's dead and not running China.
China will talk one thing and do another = they'll talk up the $US while endeavoring to convert the ultimately worthless paper into hard assets behind the scenes. Expect China to be cutting more dealss on mining and energy concerns - while buying up arable land all over the world. China is plsying for the long term while the West is simply kicking the can down the road a month at a time. The next World War has already been won - the West just doesn't know it yet.
Damn, China sure gets a lot of credit for being brilliant planners...even more than the Japanese were afforded in the late 1980's. China's "recent" history, as in the last 2500 years, does not demonstrate either the brilliance nor foresight which they so quickly garner today.
China is quickly exhausting, or polluting, most of its domestic resources. It might be striking deals around the world to exploit other's resources, but that does not guarantee they will get to use them all. Nationalism---others, not China's---has a way of rearing its ugly head despite signed "agreements".
Case in point: China's 'bestest' neighbor---Burma---has for the last few years been a mere vassal state of the Middle Kingdom. Chinese interests, both private and SOEs, gained control of virtually all of Burma's vast natural resources, including gold and silver, 85% of the world's remaining tropical hardwoods, jade (a Chinese favorite), gas and oil, lead, copper, chromate, antimony, tin, molydenum, iron ore, nickel and rare earths. China also has built, or began construction on, a dozen hydroelectric dams that are all geared toward 100% export of the generated power to China (plus are being constructed using 100% imported Chinese labor).
The most controversial of these dams was under construction at a place called Myitsone in Burma's northeastern Kachin State, a once beautiful spot that holds great cultural significance for the local people. The 450 foot damn, at the confluence of two rivers that join to form the Irrawaddy River, was to supply power to Yunnan. Twenty thousand laborers were brought in to do the work. The indigenous population, the Kachin people, took exception and became fed up that China---with the help of the Myanmar Government---had not only taken over all the resources of Kachin State, but had decimated the environment via open pit mining and chemical leaching (cyanide and mercury) in the mining processes. The Kachin people, or rather the Kachin Independence Army (KIA) revolted. For history buffs, the Kachin fought with the Chindits and Merrill's Marauders against the Japanese in WWII and are sometimes credited with inventing guerilla warfare. (see the Frank Sinatra, Steve McQueen, Gina Lollobrigida film "Never So Few")
The KIA rebellion has led to an ongoing war and the stoppage of construction on the Myitsone Dam. China has been supplying the Myanmar Government with funds and weapons to take on the Kachin, and recent reports are that China has also provided---and the Myanmar Army has used---poison gas against the Kachin. Without going into too much detail on Burmese politics, the Myanmar Government decided to permanently halt the Myitsone construction as a bone tossed to the KIA. An outraged China has demanded $600 million in compensation from the Myanmar Government.
To make matters worse (for the Chinese), the Myanmar Government announced last week that it would not renew large scale gold and silver mining licenses, and instead merely allow locals to pan on their own. Licenses are normally renewed each year, so 2012 the large scale mining ends. It is still unclear if this will apply to the Chinese SOEs or if it is merely aimed at the few Sino-Burmese "domestic" companies who have a handful of licenses.
I suspect the Chinese experience in Burma will be repeated in a host of countries around the world, leaving China with "long term plans" but worthless contracts.
Wait wait - are you saying gold has no counter-party risk? I must think on this.
This feels like a piece of history in the making...like Bre-X. I know that warms the heart.
I've been waiting for this! Just need to access my MF Global account and go long some more mining stocks.
Fuck you Turd and your shity blog. You allow bashing others people work on your own site. Anyone who go to your site with a bright chart or prediction is been bashing for your team of cock sukers. Shame on you.
BTFD!
What fucking dip?
Any price below $5,000 Gold and $300 Silver.
Ha ha ha!
Okay, then. I'll offer you ALL of my gold and silver for $3,000 & $100 an ounce respectively right now. Do we have a deal?
Not when they still have both on Clearance Sale.
i really don't mind people junking me but this is pretty ridiculous. who wouldn't sell all their gold for 3k right now? and silver for 100? you can take the cash, turn right around and buy almost 2x more than what you owned! some zhers are irrationally attached to their pm's.
I'll take you up on that when the lower priced inventory is cleared out.
Will you take a check drawn on a Greek bank ? Monedas 2011 Jes tryin' to hep !
I sell you half of my gold and silver at 4000 and 250 respectively, deal?
Why would I do that when I can buy it at the current ridiculously low prices. I would suggest you buy more as well.
i can appreciate your enthusiasm because i agree that gold and silver are cheap right now compared to where they'll be in a year or two but i've been in this game long enough to know that it's not over. in the last 6 or 7 months alone we've seen what TPTB can do when they get desperate enough. they will raid the PM market again because they won't be able to justify printing money if gold and silver go up too high. just be patient. there's another dip coming.
oh, i bought more. a lot more. when gold dipped to $1,620 and silver was at $29 just weeks ago. for now, i'll just watch them do what they do and stay ready to buy if gold dips back below $1,700 & silver $32. but then again, i'm already pretty well-stacked, so i'm not sweating.
Trendline is moving higher.
sure it is. but didn't they lower all margins over the weekend?
you know ben is dying to print. but he can't print if gold is above $1,700. that's just my opinion though.
Okay, now you're making sense.
Why only half? Doesn't that disprove your original point of the comment? It's like you're saying, I call your bluff (please don't call mine)
BTF....Dick ? Troll talk ? Monedas 2011 Comedy Jihad Building Bridges With My Humour
Chinee think long term. Maybe AVL, too?
BTFD Bitchez...
If I had a spare trillion or so I would... lol
BTFD, bitchez.
The bitchez missed the dip. Now they will have to wait for the main course.
Totally OT, does Access Denied to a user's profile signify the user is no longer with us?
http://www.zerohedge.com/users/libertarians-prosperity
Has another Sock Puppet left the building ?
It surely does.
I guess we wait and see if it a temp or a perm.
It'll be back, with a different name, but it'll be back.
Then we will kill it again.
It'll be back, with a different name, but it'll be back.
Then we will kill it again.
It rubs the lotion on its skin, or else it gets the hose again.
not sure, myself, fuu
i tried some diff usernames in your link and got 'access denied' for them all, but the link(s) seemed to work
maybe, but that oil price looks tasty. Locked in China blowup. !00% on the cards now.
HUI just crossed the 600 barrier again...Smack down to 500 or breakthrough above 650...Robot Trader? Do you have an answer!
jeopardy theme music
I love the randomness of you guys out there...Where's my drink!
Trader Dan's commentary here [Gold Seeker Closing Report: Gold and Silver Gain Almost 2.5%] had this HUI chart which has the resistance and support levels around 600
HUI.BiCheZ!
I'm sure he will . . . the day after tomorrow.
HAHAHAHAHA..................
Gold over $1,800, Germany being told to stump up its gold, Italy being told to sell its gold to pare debt, Indian gold buying off the chart, now China gold buying off the chart.
My number 1 stock holding, CDE, reports blowout earnings, but is still not getting the love. http://finance.yahoo.com/q?s=cde&ql=1
My favorite online gold/silver dealer http://gainesvillecoins.com getting me to buy a few more coins.
I'm worried about deflation, but I'm trusting the world's policy makers to do all the wrong things.
Go helicopter Ben. I'm trusting that you will do QE3.
Inflation or deflation, the same gold coin buys the same number of loaves of bread.
In theory...
FRNs? Not so much.
With hyperinflation, the same gold coin will be able to buy many times the loaves of bread because the purchasing power that used to be in fiat will transfer to other things, mainly gold and silver.
On what timeline, though? Hyper events don't last very long, historically.
Well when it's the reserve currencie.....
Prices should have gone down over the last 100 years, not up. Technological improvements increase productivity and which allows us to make more good and with a greater supply of goods, prices fall. The reason that prices have risen, not fallen, is because of the amount of currency that has been printed. Back in the day, I oz. of gold used to be $20 (or to put it more accurately, $1 was defined as 1/20 oz. of gold), and is now $1,800, which shows you how much the world so far realizes that the government has counterfeited and the world is not even close to pricing gold high enough by taking into account all of the counterfeit money that has been printed (by counterfeit I mean anything that isn't fully backed by gold or silver). Much, much more purchasing power will soon be transferred from fiat and into gold / silver. After hyperinflation, the dollar as we know it will not exist and gold / silver will be tremendously valuable. The process of again taking the value out of gold and silver will take a significant amount of time (decades) because in order to do so, government would need to again fool the world into believing their counterfeit money is fully backed by gold / silver and then depreciate the currency.
Not so sure about that. Isn't that the point, you maintain your purchasing power? An ounce of silver bought you a tank of gas in 1980, pretty well does the same now, discounting market manipulation of course.
Sure, if you pick to specific points, 1980 when it was going crazy to now, when it's at the very beginning of a tremendous rise..there about the same. But silver will soon have the purchasing power that $1,000 purchases today. And as recent as 1964, dimes, quarters, halves, and dollars were 90% silver. The difference between silver then and what it will soon be signifies how much dollar holders have been taxed through inflation (although it's not exactly a fair comparison because the lower silver prices also discouraged silver mining). A better comparison would be gold when the dollar was defined at 1/20 oz. = $1 to the soon to be price of at least $10,000 because gold is mined at a much slower rate.
You know...The miners "should" be much higher I totally agree...They're trading like Gold's at $1100 and Silver's at $20 or so...NEM at all time high....Many juniors are below their 2002-2003 lows for the multidecade...What gives...Hanging on to some but won't buy anymore til' I see some fire under their asses!!
I agree with your post, juniors are underperforming. Question is are they on sale because of the turbulent economy or are they going lower? Silver miners may be the best performing stocks next year, or not. Seems the sweet spot is in the producers right now. That is where I am going to focus.
I've always thought that the juniors would go stratospheric...Timing is the issue...I suppose when most of us give up on them is when they take off...It's always the case...
Ya...The majors are looking fairly positive but everytime the HUI makes a new high, they get bloodied for 15%-20% down like clockwork...Something's gotta give here sooner or later...
I like the Canadian silver juniors the most...I know I'm not the only one...
I buy juniors for the pain and degredation they give me, I like that sort of stuff.
Thanks for the chuckle, I am there with ya big guy
gaimesville offers the best price but their delivery takes too long. i dont like the 16 business day wait
if you got paper toilet then call Tulving
Well, one things for certain, the price action of the normal price suppression scheme has changed. We established a rock hard support floor at $1600 after a massive probe down to $1534. Then we created another at $1700. That didn't happen by accident. The longs have a lot of scars now and they smell blood in the water. More importantly, they are not all retail Americans. They know where this is headed and they are getting increasingly hard to panic.
Yes, TPTB can still drive down prices like they always could, but they can't drive them as far, and they can't keep them down as long. Diminishing returns.
WWMD...?
I suppose it would depend on who he owed the wealth to.
Perhaps let them starve? 70M...
Fortunately for them they are evidently not currently in the debtors position...
Interesting times imo...
Why aren't the Chinese buying U.S NG assets? That seems like the best bang for the buck.
COAL
They are also parked between Russia, the Swing Producer, and Iran. They have plenty of energy coming on-line.
Yup, coal is exported, and some LNG now. Don't you just love increasing energy prices in the U.S. and we are exporting some domestics? Oh, and running the printing presses to fund foreign wars for oil and gold confiscation. Sorry Saddam and the Colonel.
When they own gold and gold mines out their ears they can buy as much nat gas as they want, the price won't even matter.
Natural Gas is a pain in the ass to transport and store. Coal is not. That's why they open a new coal fired power plant every other day.
I was trying to say nat gas is irrelevant but yeah, thanks, I concur.
John's Long Silver, this is why America is fucked, and China isn't concerning energy. They, and for that matter Europe, have their energy literally on-line. America needs it's transported over seas. This is a major reason the dollar will fail as the reserve currencie in the next year or two.
LJS, makes one wonder if that rail traffic increase is coal bound for Chineeland.
If not for Coal transportation this nations rail lines would be shutdown as would all domestic coal production. Obama said he would bankrupt coal and he's almost done it.
Yes. Funny how these power guys in the East are huge ODummer puppets.
I call bullshit..... Not on the rails relying on coal, but on Obama "bankrupting" them, that statement is complete utter horseshit...
If you keep spouting this shit, you will only confirm that you are a Koch-sucker....
Eat your Bullshit. In his own words.
http://www.youtube.com/watch?v=9wzNUZVv0A0
Yep, Jan. 2008... now that is really relevant... Wasn't Gitmo going to be closed? Wasn't there going to be a public option?
I also like how this "surfaced" in Nov '08, 3 days before the election... You gotta do better than that...
There is evidence that this is faked by the way... do your due dilligence..
Also, I sure as hell hope you don't live downwind of a coal fired power plant...
Hell, I did I little digging... You are a fucking shill and hack....
Came across the following:
Flakmeister,
What Obama said in plan English is that if someone wants to build a new coal fired power plant that his carbon tax policy would bankrupt them. Here is the audio
http://newsbusters.org/blogs/p-j-gladnick/2008/11/02/hidden-audio-obama-...
Now granted he did not say he would bankrupt the coal industry but if no new coal plants are built the old ones are shut down or just die off then isn't the industry all but done?
Though the way things have gone his carbon tax policy never saw the light of day through legislation but just give the EPA time and they will take care of it through regulation.
First off, do you think that burning coal is a good thing?
Do you think that we should be building new coal plants?
Are you aware that the most of the coal burned for electricity in this country has marginally greater energy density that dried oak?
Now politicians say all kinds of silly things, and I note that the quote you dug up is from *before* the '08 election. Given the number of things that Obama has not delivered on or downright sold out his constituents to the PTB, why should I even believe that the quote was nothing but pandering to the Greens....
You both have great points.
Obama is a dumbass.
AND
Coal is not a great source of energy, and it is dirty.
+1
Obama, like the other politicians in the WWE, lie to rally their base.
If his base wants no lobbyists in his administration... there will be "no lobbyists in my administration."
If his base wants to bury the coal industry... Obama will oblige, by making it affordable for his friends like Buffett and Burlington Northern Santa Fe Corp.
C'mon fellas.
Like guinness, brilliant. While western central banks encourage the sale of leased gold to support the fiat illusion, china quietly takes it off their hands at lower prices.
And when the dust settles ...we will find that China, Russia, Asia, and a few other people have all the gold....while we fat cats in the Western world have gold paper...
The difficulty is that gold is only a store of value. It is not a creator of same. Profitable energy use is what creates value. i.e. Brains. I expect that once the dust settles the US of A will come out on top. If it stops hobbling its brains.
Precious metal trades for energy, so it is energy by default. Oil may be the life blood of the economy, but monie makes the world go round. Gold is monie, and monie is the heart that pumps the blood. You can have blood and not be alive, but without a heart, you are dead.
Dude, printing money out of thin air to fund illegal and immoral wars is not a strategy. I would like to know how the U.S. will end up on top in that scenario.
Say what you will; China, Venezuela and Germany are all sharp cats.
China accumulating gold with 2 billions hands
Hugo demanding his gold back from London
Germany flipping Euroland the bird when asked for a "loan" of its gold.
Got Gold?
They're just old traditionalists.
I would like to point out here that Bernanke, despite what he says he thinks of gold, "has" 14k tonnes at his disposal. The Fed is not sweating higher gold prices, unless they have it all on line, and by judging from the price, they don't.
When gold is at $5k, then maybe they have leveraged their gold at 100 to 1. As of now it is most likely around 20 to 1. My guess is as good as anyone's, though.
The Fed's books are public record, by the way.....
Saddam and the Colonel wanted to go off the USD standard and it did not end well for them. Although I definitely applaud Hugo for wanting his gold, I worry that it ends similarly for him.
Turns out those USeless TBonds are a gold mine!
Only when TMV has a 13 handle.
Just in time for my new app BarterCalcPro with BullionVault login!!!
:-)
China... buying... so much gold...set course for dollar collapse... warp 8.
Brilliant!
The difference between Ben and Bre-X....one throws money from helicopters...the other, geologists....
Sticking to my $5000 Gold and $200 Silver prog. as well...
its the chinese put. it never went away...........
China has been divesting of US dollars for awhile now....buying up commodity based enterprises and resources. Stuff that they know will be worth a shitload when the commodity bull runs hard again. The US printing presses are gonna be useless one of these days.
They were investing in Libya too...I wonder how pissed they are that that didn't work out.
Look at LSG on the AMEX...
I can see Chinese troop transports headed to the once land o' the obese and the home of the Krispy Kreme. They gonna collect on their debt holdings one way or the other. Remember these relative days of peace when that happens. #OWS will seem like the Sunday funny pages then. Got lead?
Highly unlikely...
War will destabolze the dollar, because first the US will have the dollar dumped and then they won't be able to mitagate their oil supply problems. But at the same time states like China will not be able to pay out their military because they are so heavily invested in dollars. War will bring peace, which is why it won't happen. Everyone will play this game as long as possible, which means until oil production just flat out smacks the shit out of everyone.
Don't forget that China's purchases of Treasuries is slowing down, but foolish US is still paying them interest on previous purchases. The interest handed over to China is equivalent of their annual military budget. China is also buying gold with their foreign currency reserves. China can pay their slave-labor soldiers when the time comes.
Or maybe the Chinese soldiers will come wearing blue helmets at the invitation of Obama and not a single shot will be fired by active duty guys who are told to stand down.
Got minuteman lead?
Yeah, I have to agree... Highly unlikely indeed. In fact, not even possible at this point. 50 years from now? Not even likely then... I submit that we will find a peaceful way to resolve this (and in fact, Freegold is the answer).
so far in the history,we have seen, america has not solved any issue without force.
Yes, I agree, we should remove ourselves from the world stage and leave you to your own devices... No problem there. I have never wanted a single drop of American blood spilt for anyone in the ROW. You are not worthy...
I am very willing to support the chinese in this endeavor.
The gold juniors are underperforming, because they are not assuming their role as dividend growth stocks. The devaluation of the U.S. dollar during the depression against a fixed gold price provided the immense leverage to the gold price necessary to accomplish this.
If you look at the rise of the gold price not so much as a rise of gold, but a devaluation of the dollar, then you can view contemporaneous junior miners in the same light.
These junior miners are largely at the mercy of price arbitrage in the intermarkets, where millions of shares in a junior mining company can first be sold into the market without first owing a single share and then parrying the money into rising price trends, such as long term U.S. bonds, (or perhaps Canadian banking stocks) which provide a yield once you buy in quantity at the margin.
Remember, most gold stocks are traded on exchanges in Canada, the U.K., and Australia, where naked shorting is the rule and banking stocks are benefitting from a housing asset-price bubble never seen before.
http://www.oilngold.com/analysis/research/interim-peak-in-bonds-coincides-with-rebound-in-mining-stocks-2011101219542/
Question...Can companies that trade on both the TSX (or Venture exchange) and on the USOTC be shorted? In other words, can shares bought on the OTC be shorted by somehow transferring them for holding in Canada and then shorted in Canada...I've always wondered this...Suggestions! or Ideas?
No, you would have to short the American exchange listed pink sheet stock.
The way its done in Canada, is that millions of shares are first sold into the markets without owning any, raising cash for a bet elsewhere.
Since 1997 gold mining juniors that have survived the Bre-X scandal have consolidated properties and implemented production. My assumption is that any gold mining shares in existance since 1997 make a speculative bet on the collapse of the housing/banking sector bubble in Canada.
I thought you coulden't short the OTC here in the US??
If you can obtain enough pink sheet listed stock for the purposes of shorting, then you can short it. But the volumes are drastically lower than on Canadian exchanges.
If you want too short Canadian mining stocks, then you have to use somebody like PennTrade in the U.S., that deals on Canadian exchanges.
FranSix...Thanx a million...very very helpful...
Robotrader caused this with his world famous quote. "It only costs $5.00 to dig it up out of the ground" Plus, modern western diet is rotting Chinese teeth. Y'know how many tons per year go into Chinese dental work alone? A SHITLOAD!
I thought that was "Methman," Robo woulden't say something like that....Or would he?
Michelle Obama wouldn't squat to pick up a $5 bill with her sticky lips ! She'd have her Secret Service man stoop and fetch it ! Monedas 2011 Comedy Jihad Strategic Humour Reserve
At last, I've finally figured out exactly what DSK was saying just before this pic was snapped:
http://jessescrossroadscafe.blogspot.com/2011/05/caption-this.html
For 15 Trillion of debt....has Obamy bought one share of a gold mine for the US taxpayers ? His nappy head is so far up his black ass he can pick it with his toothbrush ! On the Stupidity Spectrum....he is slightly to the left of the original OJ Simpson jury ! Monedas 2011 Comedy Jihad Fatwa Troll Magnet
Why the fuck would bambi buy shares in gold mines? Once all this shakes out, and gold is valued at its proper price, watch every Gold Mine world wide be nationalised by governments. Once gold is money, not a commodity, its production will NEVER be allowed to be in private hands. I own lots of gold stocks, the trigger to sell is not price based. I will sell the moment I think governments are beginning to wake up, and i'm petrified they have already woken up, and will nationalise before we get to take our profits. Seriously contemplating if I should just sell now, take some losses, and buy physical.
Rhetorical Dittoes ! They're not talkin' confiscation and nationalization....yet....but it's comin' ! The stockholder is the last to get paid....the chump ! Pay yourself first with physical ! Monedas 2011 Comedy Jihad Bullion Bull
Well China can consider using the USD settling all trade during the rest of the century, or continue on regional trade arrangements.
Or, China can minimally enhance its own currency with reserves that at least match those of the US of A. China needs over 260,000,000 ounces in today's prices to eclipse Amerika (If there is un-pledged gold reserves still in Fort Knox.)
If your are going to keep your Four Modernizations you are going to need more Gold.
If China really thinks that it is going to be treated as an equal by the US and Europe, well time to negotiate those XDR terms like the Opium Wars.
Maybe China will buy all the Government Cheese, but sheesh ... What a waste of an Imperial Century.
With over $3 trillion in reserves, somehow I don't think China enabling the continued deployment of more US Carrier Strike Groups around the world is really in China's interest. Likewise, "saving" Europe so China can sell more rubber dog shit to wacky Italian parliamentarians that will stop paying on its China-owned bonds is not much of a over-the-horizon foreign policy. What is the China Party School debating these days? More ghost cities?
Let the Chinese overpay for Canadian and Assie mining rights and miners, but at least those assets aren't on the glide path for 50% haircuts on a planet that will have 15 billion on it in less than 90 years.
The United Mine Workers' International Solidarity Safety Committee wants to know if Chinese gold mines are likely to have as much methane gas as China's coal mines......they aren't going to say diddly squat about it......they just want to look concerned ! Job one is re-elect Obama with his steel trap intellect ! Monedas 2011 Comedy Jihad Equal Opportunity Offender
The chinese are smart, they understand that whoever holds all the physical assets will win the 21st Century.
If you want to be on the winning team, Read:
http://www.amazon.com/Simple-Wealth-Mr-Andrew-Costello/dp/1463523017/ref
Sure, they may win in the long run and america may become some old memory of an old world built on military and covert operations to prop up an empire of consumers: but we've given them the poison of our nihilistic culture. This generation of chinese may be hard-working folk, but after there's no more "goliath" to go up against, successive generations of chinese will grow fat and content and dull and worthless--just as we are now.
Whoever "wants it more" will always rise to the top, but understand this: the spoils always make us rotten. We all sink--it's only human nature.
And even at that--I think ol' "Ronald McDonald" will be the greatest mass-murderer in human history by the end of this century. How many money-hungering assholes can drive people to willingly kill themselves slowly? Your good ol' communistic dictators don't have anything on our americans who have a love for profit. If you want do buy into the "overpopulation" bullshit, then no problem: just give the world mcdonalds and the rest of fast food arsenal. Why bomb the hell out of peoples and make them hate you over generations when you can turn their entire culture to meaningless shit while you destroy their health and ecosystem? They'll line up to kill themselves whether they know they're doing it or not.
And what we'll have--even at the demise of America and western society--is the suicide of meaningful society and culture.
And what will be left is nothing but what's profitable. Profit becomes meaning and culture becomes profit. The only way to stop such a cycle is to break it. We have to break ourselves.
Fuck JP Morgan Chase & Co.
Only them? Fuck a lot of things, man.
BOOM...
http://policyandmore.blogspot.com/2011/11/leaders-songs.html
I'm in the Yukon and the Chinese are certainly developing a presence here in the mining sector. Wouldn't be surprised if their potential gold mine aquisitions are in the neighbourhood. If I was them (ahem) the commodities I'd be most interested in are the ones with purely intrinsic value. The fact that gold is money is what bothers me about it. I understand its value to the bit players to protect themselves from the bizarro world of fiat, but shit we eat,shit we build with and shit we burn should have always been the focus. We need sound money, but why not a lead, iron, oil, grain backed dollar? It seems like a medium of exchange backed by little or no real world usefulness is just a medium for my government, my bank, my local demigod to fuck me in the ass.
China gold international is their vehicle for exploration projects. CGG in toronto.