This is an excerpt from this week's Got Gold Report:
There are no better hard assets than the two most popular precious metals, gold and silver. Both have been relied upon as a store of value for at least four millennia. Neither can be printed by fiat.
Unfortunately, at present there is not enough of the real metal to spread among all the individuals that want to own it. How do we know that? Because of all the “out of stock” notices on even the largest bullion outlets in the U.S., the U.K. and in Europe. We know it because of the historic, extremely high premiums over the current spot pricing which all bullion items command right now whenever a bullion dealer does manage to obtain some inventory.
While the margin masters, liquidating yesterday’s major traders in the paper-futures markets and opportunistic short sellers have temporarily managed to skew the benchmark spot prices for both gold and silver to unreasonably low levels (relative to the actual intense demand in physical bullion markets), large and small holders of precious metals apparently sense that the spot prices are artificially low. They aren’t selling. At least they aren’t selling in large enough volume to lower the currently sky-high premiums for gold and silver or to put real metal into the inventories of bullion dealers.
What spectacular irony. At the very time when investors want to buy physical gold and silver the most, the paper-contract markets (which affect the spot or cash market benchmarks) are being sold down to such ridiculously low levels that few want to sell any real physical metal unless they just have to or are forced to. Meanwhile, the divergence in pricing between the physical bullion markets and what is still called “spot” that this report mentioned last time grows even wider.
http://www.resourceinvestor.com/pebble.asp?relid=46957
Physical gold is in great demand and the price to acquire it is surely going higher - a lot higher. Century is not some junior exploration company looking for gold, they already have proven deposits - 1.3 million ounces in reserves and almost 5 million ounces in total. It's a given that with higher prices and the ongoing modelling work that the 3 million ounces of inferred ounces will be converted into M&I resources and P&P reserves.
Selling shares for 2 cents will prove to be irrational IMO whether CMM acquires financing or not. There will be demand for those ounces.
1 comment:
Any word on what is going on with Blair Franklin?
nino
BLAINE, WA, Jul 23, 2008 (Canada NewsWire via COMTEX) -- Century Mining Corporation (CMM: TSX-V) announced today that it has initiated a strategic review process in response to recent difficulties the Company has encountered in its efforts to secure financing. This review process was initiated as a result of Century's evaluation of severe equity market conditions and the current valuation of the Company.
The Board of Directors has therefore engaged Blair Franklin Capital Partners as financial advisors, to identify alternatives available to Century that will enhance shareholder value.
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