from FinancialSurvivalNet
It’s official, the Financial Survival Network is moving to the Sunshine State. Something about no state income tax, lower property taxes, better weather and less stress than New York, just made it a no-brainer. So programming will be a bit erratic for a few days till we get settled in. Next, we discuss the hit tv series Person of Interest. This show is the best rendition of the surveillance state in action and how you’re never really alone. They’re watching your webcam, your email, your texting and all of your other data streams. The writing is top notch and so is the acting. Great cast and it’s never boring.
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The recording was lost but we found it, lurking in radio purgatory. Regular listener Ed Caccia and I discuss 9-11, what it means for your freedom as well as the metals and societal trends. It was a noteworthy show that we hope you enjoy.
The Corbett report was one of several internet radio shows that helped lead to me to the Financial Survival Network. James is so easy going, natural and friendly, he’s just a pleasure to talk to. We’re of similar opinion on the global financial melt down and believe that serious changes need to be implemented before it’s too late. And I get a little bit into the new book coming out in a couple of weeks and where I got my fundamental distrust of government. It’s a generational thing. Government has been lying to us all since the beginning of time. And at times like this, no truth comes out at all, just a non-stop stream of lies and distortions.
Miranda Gold Corp. (TSX-V: MAD) is a prospect generator. They’ve partnered with some big names in the business and they’re on a world wide hunt for economic deposits. This was a natural progression for Ken Cunningham. While others were out partying or racing their cars around town, Ken was content to examine rocks and looking for those with special properties. He’s still looking at rocks, but now they have special mineralization and hopefully contain vast amounts of gold. While explorers are the riskiest segment of the mining sector, when they hit, they often really pay off. And the key is seasoned management that knows where to look and what to look for, of which Ken is one of the best.
As everyone knows there’s a major drilling boom taking place. What many aren’t aware of is that much of the drilling be done is by companies under contract. Energold is one of those companies. Additionally, they also manufacture drilling equipment. So they’re the indirect beneficiaries of the natural resource scramble that is sweeping the globe. The minerals, metals and energy deposits that are being looked for are getting more and more difficult to extract, which is why company’s like Energold have a long and profitable cycle to look forward to. But as always, when you’re dealing with any company in the mining sector, do your due diligence.
Scott Drever has mining in his blood. He’s been working in the industry for 45 years. Silvercrest is an actual producer of silver and gold. In fact the name is a misnomer as half their revenue is coming from gold. They’ve got $33 million in the bank, $10 million in highly liquid inventory and much more on the way. They’re also very open to profitable acquisitions and as we know there’s no shortage of juniors that are down on their luck and unable to obtain financing for very viable and profitable projects. Therefore, Silvercrest’s prospects for growth look quite favorable. But as always, be careful when dealing with juniors. We don’t own this one yet, but we might at some point in the future.
Eurasian Minerals has got numerous projects around the globe, $34mm cash in the bank and many extremely high powered investors. They are finding and exploring viable projects which will then be sold off to major miners, bringing them cash and royalty streams. Management is highly experienced in the exploration and finance aspects of the industry and they’ve got sufficient resources to pick up projects that other juniors don’t have the cash to develop. Sounds like a wining long-term strategy in the sector. We don’t own the stock, we might at some point in the future. Do your own due diligence and be careful!
Strathmore Minerals is in an enviable position. The government wants and needs more domestic uranium production and Strathmore is sitting on a number of world class deposits. Right now domestic production is at 4 million tons. Once Strathmore’s first project comes on stream, that number will double. Strathmore also has world class partners, including Sumitomo and Korea Electric, so market vagaries are not going to stopo them from going into production. We don’t own it yet, but we might. Always do your own due diligence and be careful. Investing in junior miners can be extremely hazardous to your wealth.
Ron Hera has been coming on FSN for over a year. During that time we’ve discussed many issues and many mining stocks. Invariably his calls have been on the money and even ahead of the money. I remember one company we discussed on the show, and in just a few short months, it was acquired at a major premium over its market price. And on top of it all, Ron is just a heck of a nice guy, who is widely respected in the field. For myself, any company that I’m thinking about, I run past him first-for a candid assessment. And, if Ron says no, I don’t buy it. 
Ranting Andy Hoffman joined us for an update of the metals markets. Seems the elites have drawn a line in the sand–silver will not be permitted to cross the pivotal $35 mark without a fight. Demand is picking up for physical metal and it seems that the elite’s ability to affect reality. The manipulation of so many indexes had made them irrelevant. Now the rest of the decoupled world, the Brics in particular, are slowing down. There’s no longer any pretense that prosperity is just around the corner. So the enthusiasm for the markets continues to wane and the only real investments left are gold and silver.
Impact Silver is a producer that’s highly profitable with $23mm in the bank and lots of liquidity. What we like about them is that they actually produce metal and generate cash. And if we’re correct and metals prices continue their ascent, companies like Impact will really get a major price lift. We don’t own them and are not sure if we ever will, but see them as a viable company that’s bulding up its properties and intends to expand production over the next few years. The juniors have been a suicidal investment strategy over the past two years. Now it looks like they’re starting to rise. Perhaps Impact could have a positive impact on your portfolio.
Fortuna Silver is on track to become a world class supplier of the shiny metal and gold too. In the interests of full disclosure, I’ve owned shares in the company since 2010, and unlike many parts of my portfolio this one is up. They’ve got two mines producing now, one in Mexico and the other in Peru. They’ve got $60mm in the bank and they’re increasing production rapidly, perhaps doubling silver and gold output by 2014. The CEO is a fourth generation miner and they look like they have what it takes to become a major. In addition, with their overflowing warchest, they’re well positioned to snap up advanced explorers and undervalued resource companies around the world. This one is definitely worth watching.
Kimber Resources is an advanced explorer that has a large resource in Mexico. They’ve got excellent ore grade quality and they’ve got cash in the bank. Kimber’s got a large land package that is fully owned. Much of this it has not been adequately explored. There appears to extensive deposits around the original mine that could lead to even more eventual production. But as always, explorers, even advanced ones like Kimber are extremely risky and not for the faint of heart.
While Mickey Fulp the Mercenary Geologist may not be thrilled about what Permanent Quantitative Easing is doing to the dollar and the world economy, there is a silver lining. People who wisely invested in precious metals and mining stocks are seeing oversized returns after a year of sub par results. Mickey expects this to continue, but of course any time the government intervenes in markets there are winners and losers. Pity the poor savers and middle class workers who are seeing their futures go up in smoke.
Diana and I caught up today for our weekly repartee. We talked about a very vibrant organization known as the Students for Liberty. They’re a group of college students who’ve learned that the current economic system is rigged and that taking on more and more debt in the name of education is not necessarily a wise move. They’re extremely concerned about the national debt and whether there country will survive in its present form.
Craig Lindsay grew up in British Columbia Canada where going into mining and natural resources was the natural course of events. He went into corporate finance but has always been involved in mining ever since. He’s worked in North America and Asia and he’s assembled a world class team to develop 4 projects in Idaho. There’s vast proven resources present and now that the two year miner bear market appears to be over, the prospects for Otis are looking extremely positive.
James Corbett was attending college in Ireland when out of the blue a friend mentioned that he was going to Japan to teach English. James thought that was a great idea, and he’s never looked back. The internet started proliferating and James was becoming more and more aware of the corrupt and exploitative financial system. The more he delved into the system, the more he wanted to communicate his findings to others. He started out podcasting with an old beat up microphone and an obsolete lap-top. Now his shows and videos are seen by thousands across the globe. He’s even taken over for Bob Chapman at The International Forecaster. This is just proof of the opportunities that the internet provides to all of humanity.
QE3 is spurring a huge rush into the stock market to help insure Wall Street’s bonuses. Europe, Japan and China are joining in the fun. Infinite QE guarantees increased gold prices. Miners are also benefitting from these ceaselessirresponsible monetary moves. Increased stock market prices and perhaps even new highs in the indexes are virtually assured. Escalator Ben has dumped tons of money on the casino floor, which will result in yet more market gambling. QE1 and QE2 failed, does he really believe that QE3 can succeed? This is simply doubling down on failure, and sacrificing the world financial system in the process.
Japan starts infinite QE and the Yen goes up. The US starts QE and there won’t be any help for the economy of the dismal employment numbers. But that doesn’t stop them trying over and over again. No one gets what they want. The more you do, the more things get messed up and corrupted. All these things are unexplainable by the laws of economics, but could be indicative of the monetary end times are here. Heard about the gold plated tungsten bar found in the US. How much fake gold is really out there? Be safe. Buy one ounce coins. Fractionals can be too expensive.
Last month we talked to Arch Crawford of 
In 1934 the Pecora Commission was charged with finding out why the Crash of 1929 happened. The report could have been written today. Lack of ethics and a complete lack of integrity were the underlying causes. A complete state of lawlessness prevailed on Wall Street then as now. A substantial regulatory framework was put in place and the banksters have spent the past 80 years breaking down those safeguards. And now we’re back to square one. And JP Morgan and Goldman Sacks are still running the show. Seems that the more things change, the more they stay the same.
The Cartel is dead, long live the Cartel! Bix Weir thinks the Fed is deliberately trying to kill the dollar to stamp out the corrupt economic system that’s sucking out the world’s life force. Bill Murphy’s not so sure, but believes that the Fed has run out of options and that this might be the only way they can prevent an all out collapse. Both admit to not knowing when the bottom will drop out of the financial markets, but both are equally sure that it’s going to happen and that we’re getting closer and closer to that eventuality. Interestingly, while they both have their own take on exactly what’s happening, they agree that it’s not going to be pleasant for the average American and that living standards are bound to decline markedly.
Predicting future precious metals prices is as risky as Russian Roulette with an automatic weapon. However, Gary Wagner has a knack for doing the impossible. And now he’s calling for a long sustained price increase for gold and silver. Whether he’s right again or not will soon be known.
Jan Skoyles reviewed the latest version of Transatlantic Trends by a shadowy group known as The German Marshal Fund of The United States. (
John Burges had 18 years of Wall Street experience. Much of that involved helping resource companies obtain financing for viable projects. He came to Northern Freegold after analyzing the company and concluding that it was extremely undervalued. So far its drilling program appears to be showing world-class reserves of gold, copper and molybdenum, with some silver and tungsten thrown in too. But exploration of this huge property has hardly even begun and there could be much more lurking beneath the surface.