Member Info for goldgnome

The Bank of England has recently concluded a review of the medium-term future of the UK financial system looking at the forces shaping the economy, what it means for finance and what it means for the Bank. If you have missed it then I strongly suggest you have a read. Its not the only story on the future of money, but there is a chorus line developing. It has some disturbing elemnts, given our last 2,000 years of history. It has some inspiring elements, as they way it has worked is very tired, opaque and prone to tamper.
There is lots of real value in the report and for those with time I would recommend a full read as the report and the sources it has drawn on are very insightful.

https://www.treasurers.org/hub/blog/future-of-finance

Digital currencies, payments, the cashless society – the world of money is changing.

https://www.treasurers.org/hub/treasurer-magazine/what-does-future-of-money-look-like

The big questions
Will we see a better structured monetary system emerge, what will it look like

What will the new role of the established banks. There is a great track record of protecting themselves at all costs, including costs to the taxpayers.

What will be the checks and balances in this system, such that politicians just can't print money adhoc, hich is what they are doing now, under the guise that there has never been a better time to do so, to get relief from the effects of the governments in trying to manage the pandemic.

Some interesting history of recent
https://www.oecd.org/futures/35391062.pdf

Everything has its own time. Everything sprouts, grows, withers, and disappears. This is the cycle of life – and the same process also applies to money and the way you obtain it.
Our perception of money – how it is earned and its value – is undergoing a major change.

https://www.weforum.org/agenda/2015/11/what-is-the-future-of-money/

"all is grist for the mill" or in other words "everything can be made useful, or be a source of profit."..even money itself,,and especially money creation and looking after OPM (Other Peoples Money)

Keep alert, wash your hands and above all dont forget to be profoundly happy and a drop of single malt does help

best from the Colonies.
the Gnome

Latest scandal? The Hotel securty contract failure (resulting in the deaths of about 700 people and the shafting of the Australian economy) which no one in the government or administration apparently authorised in Victoria, has at its heart, a contract for $30m to a firm which was not on the States registered Permissable companies for the State to do business with..gulp! Are mates, real mates, and are these the best mates rates? Laugh a minute
https://www.youtube.com/watch?v=Y3pGmtJ7Er8
Will someone please stand up and take account...

and sorry to the New Zealand passengers stranded in Melbourne due to a misunderstanding between Federal and State politicians. ...

Interesting to see that the Big Tech end of town has declared their hand and banned reporting on the misdemeanours of the Biden family

https://theconservativetreehouse.com/2020/10/14/bookmark-todays-date-big-tech-has-crossed-the-event-horizon-to-protect-joe-biden/

The people doing menial jobs and getting paid a pittance in the USA have decided its better to get paid more by the US govt to stay home and do nothing. Unfortunately the menial workers are the ones who get real things done (as opposed to the point, click + inv bankers) so a lot of businesses doing it very tough...you may expect this not to come out in the mass hsyteria brigade. Productivity down,

If Biden gets in, and there is a total Democratic sweep it would bring the biggest boost to the economy because of Biden’s plans to spend trillions on infrastructure, education and the social safety net while boosting trade and immigration. His family, friends, supporters, etc by the way will also probably do well, judging by the form emerging...but censored now...
Moody's also argued that the higher taxes proposed to fund part of these plans would not slow the economy in a meaningful way. [Moody's is full of Economists]
So we rack up more trillions of debt, and essentially the MMT is well on it sway. Just print as much money as it takes, and spend it quick on real assets as the value of the money will sink...like it did in Zimbabwe LOL (sadly still does)...https://theconversation.com/modern-monetary-theory-the-rise-of-economists-who-say-huge-government-debt-is-not-a-problem-141495

good for gold,

best
the gnome

Diggers and Dealers was a different flavour this year. No International nor Interstate guests reportedly. The big news, well best you read it yourself if interested,
https://www.australianmining.com.au/news/five-things-everyone-was-talking-about-at-diggers-and-dealers-2020/
The awards?
Rinehart’s historic win headlines Diggers and Dealers awards
Australia’s richest person Gina Rinehart has made history, becoming the first woman to take out the GJ Stokes Memorial Award at Kalgoorlie’s Diggers and Dealers mining forum.
Now boasting an estimated $21.2 billion fortune, Mrs Rinehart was born in Perth but spent a considerable amount of time as a young woman at her parents’ sheep and cattle stations in the Pilbara.
She took over the chair at her father Lang Han****’s company in 1992 following his death, subsequently forming a plan to turn the financially struggling exploration vehicle around.
Mrs Rinehart organised a state agreement to secure the Hope Downs tenements in the Pilbara, forming a joint venture with mining giant Rio Tinto in 2005 that took the project into production within two years.
She is now the primary owner of the privately-owned Roy Hill mine, a 55 million tonnes per annum operation in the Pilbara that employs more than 2,000 people.
Her selection was the sole win for the iron ore sector in a year dominated by the excitement generated by record gold prices and booming Australian gold production.
Dealer of the Year
There were few prizes for guessing the Dealer of the Year award, with Raleigh Finlayson’s Saracen Mineral Holdings and Bill Beament’s Northern Star Resources sharing the prize for their purchase of Kalgoorlie’s Super Pit gold mine.
Having brought the mine back to Australian hands for the first time in almost 20 years, the joint venture owners have been the talk of the conference since inking a $16 billion mega-merger last week that will place the Golden Mile into one company’s hands for the first since 1893?

best
the gnome

Like the bit "However, the stock later broke down following the latest announcement since it is unclear exactly when the mine shall resume operations,"

I have always wondered how closely the brokers and analysts read the announcements...

Aside my business friends in the US are near beside themselves as Biden looks like he might sneak in.

In Oz, we have entered into an effective negative interest rate, and now tipped to go lower... "The big four bank economists now all expect the cash rate to be cut to 0.10 per cent at the RBA's next meeting in November on Melbourne Cup day." Better returns betting on the nags?

There is no point in paying the bank to keep your money and/or lose the value of your hard saved money...one cannot have a serious conversation with the youth of today about saving, when you lose money (buying power) in the bank, have an uncertain future and you got use to the new whiz bang AfterPay and alike business models
https://www.nabtrade.com.au/investor/insights/latest-news/news/2020/08/the_rise_of_afterpay
Treasurer Josh Frydenberg strongly resisted suggestions to embrace so-called modern monetary theory - where governments force central banks to print money to fund fiscal expenditure...HARD TO SEE THAT THEY ARE GOING TO HAVE MUCH CHOICE...GAME SET AND MATCH, BUT OF COURSE WE WILL CALL IT SOMETHING ELSE...

CEY is a good buying opportunity for short and long term professional investors.

best
the gnome

Gold...sigh

Given recent market volatility, and considering gold has traditionally been viewed as a ‘safe-haven’ asset, we have previously written about why there are still plenty of reasons to consider an investment in gold. Gold has seen a consistent and high level of total flows this year. Investors can obtain cost-effective exposure to gold via the BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU).

even better with CEY!

best
the gnome

The positives

1. Gold
2. Limited financial liabilites (debt, royalties)
3. 10 years reserves
4. Huge social lisecense in Egypt
5. New discoveries and huge ground position in the fastest growing discovery and mining area on the planet!

relax
buy

best
the gnome

No weed, just a small dash of single malt in between printing bucket (large) load of new currency down here in Oz. Just had 2 of the premiers survive no confidence motions, Victoria's 14-day average for new cases still has to be below 5 for Melbourne to move to step three of the state government's road map for easing restrictions on October 19...but the rumours out he may have it wrong...it may in fact be 7.2...just depends on which expert you listen ... like asking 5 geologists to name the rock specimen, and getting 7 different answers.

But, always interested in what happens in the "unofficial gold mining sector"...fell over when the President of Artisinal and Small Scale Miners on one African country told me the estimated annual export of gold was about 500k ounces...and he was sure it was a lot more than that ...its not a small business ...for some...

In one country the presidents brother ran a small refinery, ... all of the registered gold buyers in the country had to sell to the "central "government" office" ... always plenty of ways to make da $

Back to the big end of town. Diggers and Dealers is buoyant but appears quiet for those not attending. Head of Fortescue said she "didn’t get" why men would cram into Kalgoorlie pubs and ogle skimpy barmaids, a popular pastime for delegates at the conference since it started in 1992. Possibly would not understand why condoms were (reportedly) in the delegates bag at one conference. Each to their own I guess? The 2017 consumption tally looked after the well-being of about 2,000 delegates tallied up the following stats: across morning and afternoon teas, lunches and dinners at the Arts Centre the consumption totalled 500kg chicken, 700kg beef, 300kg lamb, 8000 bread rolls, 400 loaves of bread, 2000kg fruit, 2000kg vegetables and 50,000 pastry items. The Aggreko-sponsored coffee machine stand went through at least 60kg of coffee beans while next door the Emeco-sponsored juice store processed 1000kg apples, 1000kg oranges and 1000kg carrots. Pitcher Partners supplied 10,000 battles of water, to try to balance out delegates’ alcohol input. This writer knows what he is talking about, the wine count cruised past 1500 bottles, before things got too much for the counter...and that did not count the extra warm up and wind down consumption in the local Pubs...The tally is going to be interesting this year as many have turned vegans apparently.

Back to the single malt, and glad to not be at Diggers this year, but it is a very buoyant affair...

Lets hope its a good day at the Office for CEY and Gold
best
the Gnome

The latest? Small scale and artisinal miners are some of the poorest and exploited on the planet. 83% of the world’s mining workforce relies on Artisinal and Small Scale Mining for their livelihood. That comes to roughly 40.5 million people...at least 30% of which being women. The number of women grows exponentially when secondary activities are factored in. It is estimated that over 150 million people are dependent on the artisanal and small-scale gold sector alone in over 80 countries. The vast majority of those who work directly and indirectly in artisanal mining, do so informally and they are amongst some of the world’s poorest. The ILO estimates that more than one million children work in mines and quarries, a reality that is often poverty driven. These people were vulnerable before COVID-19 and even more so now.
These activities, driven by pverty and aided by greed, corruption and incompetence of the ruling elites, reek unbelievable havoc on the environment, both short term and long. Politicians of all flavours are "close to the action"

Well the GOLD MEDAL went to Ghana in the last fw years, for their diabolical handling of Small Scale Mining
"The global rush to grab resources took an unexpected turn in Ghana recently. With the hike in gold prices from 2008 onwards, a large influx of foreign miners, especially from China, entered into the artisanal and small-scale mining sector (ASM), despite it being ‘reserved for Ghanaian citizens’ by law. Thus all were working on an illicit basis. An astonishing free-for-all ensued in which Ghanaian and Chinese miners engaged in contestation and conflict over access to gold, as well as collusion and collaboration, a situation described as ‘out of control’ and characterised by ‘a culture of impunity’ at its height in 2012 and 2013. Chinese miners in particular, numbering tens of thousands, introduced mechanisation and new technology, resulting in irrevocable changes to this traditional economic sector in a short space of time. Further, the intensification of mining caused incalculable environmental damage to both land and water bodies. Where was the state in this context? "

https://www.iss.nl/sites/corporate/files/48-ICAS_CP_Crawford_and_Botchwey.pdf

Guyana was close behind, with their beautiful rivers no awash with mercury...
Peru, Phillipines, Indonesia, Laos, Mali, Burkina Faso, Tanzania, Kenya, Ethopia etc etc ...
https://www.iisd.org/system/files/publications/igf-asm-global-trends.pdf

Small scale mining, gigantic environmental damage, loss of human rights (less we forget)
best
the Gnome

Well another ghost has stepped up, and admitted (or muttered) saying sweet things into a phone at the right time ...[everything is recorded these days, by someone, havent the pollies and bureaucrats had time to see the movies in the last 5 years?]

"Chris Eccles, Victorian Premier Daniel Andrews' top bureaucrat, resigns after hotel quarantine inquiry requests phone records"..and Eccles was on the line but couldn't remember, well we have heard all of the early onset of memory loss before, so I wont go there...seems to be another pandemic doing the rounds...?

A new estimate is that COVID-19 could kill 160,000 small businesses in Australia, a few more than the total persons (900) claimed to have had the Virus at the time of death in Oz...lets not do causation, as thats a bridge too far.

Half of Aussies can't identify a positive political moment in 2020, gosh!

The mass media has won the golden gong, after declarations of Australia being burnt down by raging bushfires in January, and now ripped assunder by the virus...anxiety laden tsunami's to the fore (shore, or any shore will do!)..and we will have decades of analysis and paralysis about who did what and who stood by and watched...

NSW Premier Gladys Berejiklian refuses to resign after Daryl Maguire ICAC bombshell

All go in Oz, no one has to travel to Africa to be introduced into corruption or incom!#$nce

and the good news is that the government is here to save us, and provide a away forward. Give me some truth?

I'm sick and tired of hearing things,
From uptight, short sighted, narrow minded hypocrites,
All I want is the truth,
Just gimme some truth,
I've had enough of reading things,
By neurotic, psychotic, pig headed politicians,
All I want is the truth,
Just give us the truth,
No short haired, yellow bellied, son of tricky Dicky is
Gonna mother hubbard, soft soap me with just a pocket full of oil,
Money for oil,
Money for oil.
I'm sick to death of seeing things,
By tight lipped, condescending, mommy's little chauvinists,
All I want is the truth,
Just gimme some truth,
I've had enough of watching scenes,
Of schizophrenic, egocentric, paranoia prima donnas,
All I want is the truth,
Just give us the truth,
No short haired, yellow bellied, son of tricky Dicky is
Gonna…

Well anoher breathless weekend in Oz. Virus this and Virus that, and a bit of MandA wafting through the rafters.

Still trying to find out who was responsible for making the decision to employ the private security firm in Victoria..won't someone int the government stand up (Ans: NO!), and what happened to the concept of leaders taking responsibility? As Henry Ergas commented" the cruellest thing one can do to Daniel Andrews’s explanation of Victoria’s strategy for dealing with COVID-19 is to read it a second time. After all, given the costs that are being inflicted on Victorians and on the country as a whole, one might assume, on a first reading, that a cogent justification for the strategy lay hidden in the explanatory material "..no such luck, like looking for the person who made the catastrophic decision on security. The virus has accounted for 890 of the 92,000 deaths since the virus hit the shores of Oz, and apparently there are less than 50 people in hospital on the day the Liberal Govt announced the "justifiable" worst budget in terms of short and long term debt in the history of the country...I can see a banket ban on getting out of bed looming fast in Victoria.

Great to see the MandA action in Oz, and the Golden Mile now is under one owner, for another decade or 5, until the walls of the pits fall in. The cutbacks must be unimaginable, and not sure how the city of Kalgoorlie is going to survive the next cutback...?

Diggers and Deales kicks off in the mighty Kalgoorlie, and it will be interesting to see the evidence for social distancing. Laptop dancing has been banned (at least in public places) but still the crowds throng...and no spare rooms! Expecting to hear more on the MandA front, there are no great greenfields discoveries. Bellvue Gold is going from strength to millions of ounces of high grade, so everyone is watching the action there. Benz Mining in Quebec is roaring ahead as well, and the use of DHTEM is allowing these companies to be far more effective in their exploration.

Finally the ghost of Ghandi flickers..."To everyone in Melbourne, the lockdown and the restrictions can end with us. It doesn't have to be violent. We all must engage in an act of mass civil disobedience. Open all businesses, have a picnic outside, enjoy yourselves at beaches and parks. "

https://twitter.com/search?q=%23melbournelockdown&src=trend_click&vertical=trends

Good luck to us all, and go Gold!
as the printing presses are going into overdrive for the forseeable future!!!
the gnome

You can do a lot with lots of smal trades. At least one ehtity ended up in jail for this in Australia. Fairly easy to see if you have the full record of the entities, and beneficial ownership. Beneficial ownership is a major issue in Oz, and globally.

best
the gnome

If I were La Mancha I would not put all my eggs in one basket, regardless of the "quality" of the basket. Nothing specially good about Endeavour, as remarked on before.

best
the Gnome

Exactly ...

Tier ONE discoveries and assets in gold is tough...the discovery record in the last 20 years is appalling and it will not get any better....

Look at the new merger in OZ

the Gnome

directors buys ...

Chairman James Rutherford seems confident the company - which has had major operational issues in the past – will get beyond this, buying 100,000 shares after the guidance cut, at 152p apiece. So does finance chief Ross Jerrard, who bought 15,000 shares at 148p. Mr Rutherford – also an Anglo American (AAL) and Anglo Pacific Group (APF) director – is in his first year in the top board seat....

not a bad showing

best
the gnome

Well its on in OZ, and do the politicians ever lov giving away othr peoples money and future, and on the way becoming immensely popular. There's money for everyone, come one come all.
A day after the budget forecast gross debt to hit $1.7 trillion by the end of the decade, Labor leader Anthony Albanese promised $500 million for the first instalment of a larger social housing policy he will take to the next election.
Spotted as a menas to writing blank cheques, Prime Minister Scott Morrison said the recession should not be treated as a "blank cheque'' and that any new spending should be designed to be turned off as soon as possible.
"Every single dollar in this budget has been carefully considered,'' he said.
Regardless of the debt and deficit, all three major ratings agencies reaffirmed Australia's AAA credit rating, and support among economists and business was strong for a budget that contained $98 billion in new measures, including $74 billion devoted to jobs, in a bid to create 950,000 positions.

I expect the US will be watching this, and they will offer their own US sized super-sized relief package, especially in an election year. Just how much, and where this pushes the total debt of the US who knows...just keep kicking the can down the road..have they got a choice?

Scene set for gold
best
the Gnome

Depends if Joseph is in the top 20 shareholders, if so at least in Oz thy are required to inform the market of sales.

They havent lost any of the mine, read what they say. Production has been delayed is all that has happened, and by good mangement a potentially dangerous event has been avoided.

The sweet shop, well there is going to be so many of those...the latest brief...

The Brief

In this special budget night edition, the federal government has unleashed a TSUNAMI OF CASH (AND SWEETS) in the hope that spending and hiring by business will pull the country out of a crisis like no other. Here's all the key stories.

Top stories
$100b cash splash to save economy Almost $50 billion in tax relief for businesses and low-and-middle-income earners is at the heart of $98 billion in new measures designed to return the economy to health and create 950,000 jobs over the next four years.

Massive $27b tax break for 99pc of businesses More than 99 per cent of businesses will get access to a massive new investment allowance, dubbed "a game changer" for the economic recovery by Treasurer Josh Frydenberg.

Dud super funds face fresh crackdown Superannuation funds face an annual performance test, public ranking by the Tax Office and the loss of an easy source of new members under a trio of shock budget measures designed to weed out bad eggs.


The $4b JobMaker prioritises teens and 20s, over 30s The government's new $4 billion wage subsidy will offer double the handout to businesses that employ people in their teens and 20s over those in their 30s as part of a bid to get almost half a million unemployed back into work

Backflip on R&D gives industry $2b boost The government has abandoned $1.8 billion worth of research and development cuts stalled in the Parliament in an effort to boost advanced manufacturing in the wake of the coronavirus recession.

What it means for you
Income tax cuts on the way within weeks Middle income earners could receive a tax cut within weeks after the government brought forward tax relief worth $17.8 billion to give the COVID-19 crunched economy a much needed boost.

Pensioners handed $2.6b in extra virus relief Age and disability pensioners will receive two separate one-off $250 payments to see them through to the other side of the public health crisis, while permanent pension rates will remain unchanged.

Winners and losers from budget 2020 The government has opened the cheque book to taxpayers and businesses creating a lot of winners in the middle of a global recession.

Treasury pins hopes on vaccine by late 2021 A coronavirus vaccine is not expected to be widely available until late next year under Treasury's best case scenario for recovery from the pandemic, while further lockdowns if the virus remains uncontained could drag down the economy by a further $55 billion.

Giving money away is easy, taking it back will be hard Scott Morrison has opted for the path of least resistance in a bid to get money out the door as soon as possible....


Frydenberg's offering is about forgive and forget The budget's two most important measures are the wage subsidy it offers employers who take on young workers, and an investment tax concession so exceptionally generous as to make even the most ...

For the short termers the 30 day POG graph looking good

For the longer term, 5 y graph looking on trend to clear us$2k by year end

The 50 y graph looks to correlate reasonably (its not a simple matter of comparing numbers, as there are macros settings that should be overlain) with US Govt debt, and we know which way that is going fast
https://tradingeconomics.com/united-states/government-debt-to-gdp
https://www.fnarena.com/index.php/2020/04/17/gold-closely-tracks-the-debt-to-gdp-ratio/
Hang on
the gnome

Thanks Razor,

Lack of diction is one of our least problems LOL. In fact diction went out the window some years ago, when Twitter fluttered in

best
the gnome.