Member Info for booboouberbear

Another huge step for the company, if they can afford the pro-rata USD$13m per year to fund the construction of Singida by themselves than that is the wisest use of their cash. Once the upgrade at NL is done we should be looking at being close to circa 120k ounces per year.

Just a hunch, but I am expecting good news on the VAT Refund come the Q3 Update in 2 weeks’ time as the VAT monies would all but fund Singida. I don’t think that is a coincidence and has probably been haggled out of the TG as part of the deal to progress to construction.

Considering the mess the world is in I scratch my head sometimes why AUX isn’t way above $2K per ounce. It won’t be long IMO. Autumn / Winter will put the need for vast new sums of stimulus to be put in place. Whoever wins the US Election there will be a vast new stimulus programme immediately afterwards (if not before). A Biden win an a democratic sweep of Congress is probably AUX’s most bullish situation IMO.

Agree, Colonel, I would like to see it sooner rather than later, however, considering how easy it must be for EZ to fund Singida just now I wonder if the delay isn’t part of a larger negotiation with the TG?

Future royalties, taxes, VAT refunds should all be on the table before Singida is developed.

With so much VAT outstanding and to be settled you’d hope that EZ will be horse trading this refund (possibly via future tax liabilities) with the Ministry of Mining on the basis that NL will be being upgraded (more tax and royalties) and Singida will be going ahead (more tax and royalties). As I understand the Mining Act in Tanzania derogations to the absolute Royalties and Taxes paid by a company can be subject to derogation on the basis of being relaxed if the inward investment benefits justifies it.

https://www.google.com/amp/s/www.bloomberg.com/amp/news/articles/2020-09-25/ex-deutsche-bank-gold-traders-found-guilty-in-spoofing-trial

So it turns out COMEX is corrupt and the PM Market is being manipulated.

Let’s all pretend to be shocked.

Looking at the US Durable Goods numbers just out its striking how the last few weeks of data in the US and Europe (Eurozone Service numbers where pretty dire) have now gone completely limp.

The money tree in the US and Europe is about to be shook violently once more over the Autumn / Winter periods and with it gold should do handsomely when it collides with the US Election / Covid Lockdowns.

Have just reached levels not seen since 2006 and expect this to surge again in the coming months as zero percent interest rates continue to turbocharge house price mania and speculation in the US all on a day where Jobless Claims in the US actually rose!

https://tradingeconomics.com/united-states/new-home-sales

It’s not ‘normal’ house buyers causing this IMO, it is borne out of an investor class who have used this as an opportunity to speculate in the housing market, it will create a huge asset bubble beyond what the economy can afford and will lead to huge trouble. It would seem no one at the US Federal Reserve even remembers the 2007 / 2008 Crash.

All of this reinforces the idea that US Interest Rates can never go up, no matter what inflation serves up. The US Federal Reserve is now approaching 35-40% ownership of all mortgages in the United States (through various devices) on its balance sheet, any correction / mass foreclosure in house prices would batter their balance sheet (and the dollar) and crash the banking system.

The bubble must go on because there are no other options now, but what a reckoning it will be when this all unwinds.

Proving that eventually all FIAT Currencies will go to zero…

Topped up this morning, not because I think the bloodletting is done (I think it has legs yet), but because with the addition of capacity at NL and the financing at Singida due any day, this is just plain cheap.

https://www.marketwatch.com/story/the-covid-19-lockdown-is-squeezing-real-estate-from-all-sides-and-threatens-to-burst-the-housing-and-mortgage-bubble-2020-09-21

Meant to post this with it.

https://www.reuters.com/article/usa-economy/us-existing-home-sales-approach-14-year-high-prices-scale-record-peak-idUSKCN26D2MG

A 15% unemployment rate and no wage growth and house prices surge to their highest on record and sales are at their highest level in 14 years, it will of course all end in a complete mess. No different to the UK, either for that matter, just a massive bubble pumped by Central Banks that will bankrupt the financial system at any given time in the future.

The price of gold these last few days doesn’t make any sense, sometime it matches equities / dollar moves, sometimes in goes inversely to them.

Sitting here I do scratch my head as to why Gold isn’t at an all-time high going higher with what is going on in the world and Central Banks outdoing themselves to weaken their currency. But I am trying to find some rational and logic in all this to invest on and I realise that make scant difference in the markets these days where it’s just a paper speculation jamboree.

Spot on, Basscadet IMO. The senate will have time for a Supreme Court Nomination bloodbath and nothing else before the election!

As you say, we don't know what is for us, but I don’t think we will see what we saw in March IMO, not to that extent anyway, for one reason, you can expect the US Federal Reserve to hurl money at the problem should things get too bad at a moments notice, that will blunt any effects for one (and be great for Gold).

Like yourself, I don’t trade, I have a day job and can’t be bothered, but I am keeping some cash back if / when the opportunity should arise.

Autumn Reckoning?

Looks like the reality of the pickle we are all in is setting in on the markets.

Looking like an extremely nasty pullback on every asset class could be about to happen.

There will definitely be a phenomenal opportunity coming in Gold Stocks after the clear out!

Mouth watering prospects for gold. Fantastic interview.

Healthy move to be fair, rotation of Odey in to far more reputable funds will do me fine.

‘Illusionary Truth Effect’ if you have been told something your whole life is true then it must be true. That is how as I make it out the whole financial system and democratic populations works.

For example, Las Vegas is going through a housing price boom, prices rose 10% in August despite the whole of Las Vegas being shut and all casino staff, etc. temporarily laid off, how else can you explain a 10% house price rise when the economy is in ruins?

The US Federal Reserve now owns 33% of all US Mortgagees in one form or another, it’s going up by USD$80 billion per month, in a 24 months at current lick that will be north of 50%, the US Federal Reserve now owns the US Housing Market and the economy now plays no part in setting US Housing Prices.

It’s now going up based on zero percent mortgages and the mass societal belief that this is all normal and can be sustained, some idiots like you have pointed out even think the US Federal Reserve will soon ‘normalise’.

It’s all blindingly obvious as normal to these people paying 30% over the asking price for a house in a recession right up until the moment reality hits them square in the face.

As far as I can make out the US Housing Market will soon be in a bigger bubble than it was in 2006, we all know what happens given time…

Short term, who knows what corruption COMEX will throw at us.

Long term? The US Federal Reserve that has just committed to zero percent interest rates and to keep flooding the market with a newly minted (at least) USD$120 Billion per month is Treasuries and Securities for years to come.

Long Term the Greenback will sink and PM’s will fly.

What goes on when COMEX / CME comes on line in the US in the PM Markets is nothing short of criminal!

The usual selling of fluff paper on the back of weak US Data.