Back in its infancy of this gold
bull run seven or eight years ago, the HUI gold index was something like 45,
and gold nuts were screaming for their friends and families to buy-in. Few
did. It was considered impolite at the time, and besides momentum hadn't
taken hold. Investors didn't peer over the edge of the box they were living
in. Earlier this year the HUI went over 500. Rudimentary math says
that's a 10X gain. The HUI is now back down to 250. Ouch! Junior miners down
even more. Why?
Let's answer this question in
this manner. Everything, and I do mean everything is going down. Banks aren't
lending even to the best of borrowers. Currencies around the world are
plunging. For me and others the last refuge is still gold. Since the beginning
of recorded history, citizens have always sought the safety of gold in
But, we now suspect we have
another party interested in accumulating control over gold. Bankers.
As we've said many times
previously there are only three methods to acquire gold: (A) by Conquest (B)
by Confiscation, or (C) by Purchase. Since we know our government, as are
others, now managed by a financial cartel, by controlling the resources of
gold they can tighten their grip on their tenant governments, hence the
There would be no disagreement
that the world's major industries have all become centralized in the hands of
a few mega corporations. From oil, food, and diamonds to real estate to, yes,
even funeral homes. Not too long ago there were dozens of computer
manufacturers. Ditto for autos and oil companies. Entrepreneurs contemplating
a new company startup must navigate a minefield of regulatory and financial
potholes. In short, they must be connected.
These requirements for doing business are not embedded in free markets. America used to be free of these strangling accoutrements. That's why Americans had always
been creative not only in business, but the arts, inventiveness, and yes,
Here's what I'm getting at. With
bank lending pretty much in a deep freeze lock-down how can JP Morgan and Morgan Stanley extend credit to Barrick? Barrick's never
been a lovechild of gold bugs because of its forward selling of its gold
production which, naturally, deprived investors from benefiting from a rising
gold price while capping gold's rise. Back when the HUI was going for 45,
Barrick (ABX) was sitting at 15. Today it's 26 after hitting 54 earlier.
That's horrible. If Barrick should fail who would benefit? Could shareholder
value be wiped out as with Fannie and Freddie with asset remnants going to
the banks? A bank owning your mortgaged home is one thing, but having
control of the world's mines is another! Would JPM and Morgan end up 'owning'
Barrick, or a Newmont? Would the banking cartel utilize Barrick as a conduit to
grab the world's gold and silver resources? If you control the printing
presses you can buy anything. You can run them somewhat slower if you're the
only one on the block to buy up distressed property!
Twenty-first century alchemists
are on the roam, and this time they may succeed in turning paper into gold.
Think about it.
This article is brought to you by
the Charleston Voice E-mail List. To subscribe FREE to the distribution list,
please send an email to the author with “SUBSCRIBE' in the subject