CAN IT REALLY BE TRUE... that the long waited for upswing in mining is really happening? Gold rush news on TV in California has all sorts of unemployed people in what some are calling GDII are heading for the hills, just as happened during the Great Depression One.
CAN IT BE TRUE that investors are beginning to recognize that the true creation of wealth in America has always been a gift from Creator. That is if it isn’t mined, harvested, pumped, gathered, landed, or produced by honest hard labor, then the value of our paper dollars, and even more frightening, electronic credits, is only worth today what Chinese Communist bankers are willing to validate as real.
Recently these Chinese bankers made headlines wondering why our internationally owned and controlled institutions were allowed to steal so much from our people? How the run up in real estate values differed in principle from Bernie Madoffs Ponzi scheme? How is it U.S. financial experts totally ignored the lesson learned from the “Asian flu” when —for a brief while in the 1980’s— downtown Tokyo real estate values, measured by the square foot, became the first of the multinational equity-based derivatives.
I can, and will, go on about cause and effect as recognized —with Wall Street slapping me across the face, and calling me stupid, multiple times— by this simple, high school dropout who only controls at the moment, three world-class mining properties. For my viewpoint from the Alaskan wilderness “sourdough,” I was going to provide a click through to an article of A Bottom Up Explanation Of How The Wall Street Mess Happened, except that with a financial memory that goes back to investing in WWII War Bonds, what I have to say is already the size of a small book.
Back to the Chinese for the moment, to make a point. Through sister publications of www.MiningMagazines.com, we have had contact, once again, with the fellow miners who could take over 5¢ Gulch in Weaverville, California, during the gold rush, and make it pay. Remember also our Chinese-Americans built our Western railroads “faster, better, cheaper,” than gangs of other economic slaves as immigrant Irish-Americans refuges, and free(?) African-Americans.
I have Chinese buyers, waiting for my Alaskan lead, zinc, copper, silver ore, for if you will look down upon a globe (remember Columbus suggested the world was not flat) it is easy to see arctic Alaska is closer to Nanking by barge, than Los Angeles (which doesn't have a smelter, anyhow). Alaska is a Pacific Rim “nation” and we are in way a lot closer to understanding the language of the large Asian stock exchange, than the NYSE, or Toronto’s TSX.
To that securities lawyer in Clearwater, Florida, who happened to have a photograph of a “friend” visiting his home village, and on the strength of this was dragging in investors to help “teach” the Chinese how to mine gold — thank you for the laugh. On the charts of the history of gold production, in 1995 China (6.2%) was about equal to Canada (6.8%) with the U.S. at (14.1%). In the years between China passed by South Africa, Australia, and in 2008 become the largest producer in the world. US output has slipped downward at about half the rate of China’s leaps and bounds upwards.
While on our lack of growth, how many American securities experts know that the Chinese, who have also become the world’s largest producer of steel (sorry about that you unemployed in Ohio) and as mines are not exportable, actually purchased, and are operating one of the “big six” iron ore properties of the Mesaba Range. Right. We didn’t need them anymore as— “Steel is a dirty industry. Let others do the grunt work. We are so smart we can live off of our ingenious American inventions, as day trading on a super computer! What is made out a steel today, anyhow? Caterpillars, used to mine iron ore— well too bad their management wasn’t bright enough (?) to compete with Asian imports.”
The most frightening thing of all to consider the situation holier than thou ecologists, and upscale stockbrokers who feel outsourcing American industry to third world countries deserves some sort of deluded respect for their Ivy League acquired intelligence, is that we are becoming a totally consumer nation, dependent on the small kindness of others. Thank you China for keeping our paper and electronic dollars afloat.
In particular, may I mention just one of the advertised “hot spots” of potential employment in America? Our government is promising a 30% growth per year in solar energy. I have been a long-time solar user and advocate of harnessing the sun. However, there are a few things you as US tax payer needs to know. Solar is Swiss technology. The largest cell manufacturers happen to be in China, and India. I have looked on the Internet for American made units, but all I seem to find are assemblers of foreign made components. Guess we aren’t smart enough to buy stock in a developing industry that couldn’t be flipped at a 20% profit by selling short.
The other part of the problem for this natural resource rich country of ours that won’t even tap the 300 year supply of clean burning natural gas in the Arctic (where we are looking competitor Russia in the eye, and they are the ones smart enough to have built a pipeline to Europe), is our independent American mining industry has been stolen away. I have for years been laboring to develop a “politically incorrect” argentifouris galena property in Alaska. Why? I don’t know. Guess I am just ignorant. In 40 years I have been so suppressed by those in financial control of exploration money, I have just barely covered $3 million in expenses and property payments to the government. What if I had invested my life’s work elsewhere?
I went hat in hand to New York investment bankers, once, and was told to fund the 1.5 million dollar diamond drill exploration hole my geologist had recommended, that they would have to raise $5 million for the under-righters, stockbrokers, lawyers, and accountants, to make it work —and even that wasn’t an exciting proposition to them. Nor was my then proven-up surface deposit 391,000 ounces of $1.60 silver (that todays spreadsheet lists as an undervalued $13.27 spot price for an ounce of silver).
Let me also explain that galena ore consists of silver (the largest source, as native silver only occurs is tiny veins) and lead, zinc, copper, commonly know as base metals. When it comes to solar energy, 95% of cells contain silver paste to make the photoelectric process work. Once scorned lead has been raising in value lately as storage batteries are needed when the sun doesn't shine. Zinc also is used in non-corrosive frames. And as the amperages are so low, copper wiring is needed.
With the above bit of “industry expert” knowledge perhaps you might be mildly interested that American silver production has not met American industrial consumption for well over 20-years. The shortfall is more than that across the world, which is why the US has been a silver exporter lately.
The British Barclays Bank ETF silver futures program is issuing paper stock certificates, against a promised reserve few believe exists, where one can speculate on the future value, for as little as 10% down. This makes me ask three simple questions.
1) Didn’t the US at one time, before Nixon, have a paper dollar backed by silver?
2) Wasn’t the Great Depression caused in part by investing on the margin?
3) And —the real big one— where is the silver for America’s ambitious answer to being dependent upon multinational oil going to come from?
The four largest COMEX traders —supposedly a system designed to smooth out the highs and lows between producer, and user— have, by some report, amassed a short position exceeding 200 million ounces. When did the futures market turn into Loss Vegas East? Even with the income derived from leasing silver reserves in-ground, the mining industry needs a stable price to build solid mining plans upon. The trip price for mining my 391,000 proven ounces of silver is $9, where ironically the total spot prices of host base metal ore containing lead, zinc, copper —though ignored by investors in love with the high heel kicking of a Wall Street chorus line — have exceeded the flash of precious metals.
The New York silk stocking boys love to laugh at those of us wearing wool. But, as no-one today is transferring hard to find physical bars at “spot value,” without a “trading premium,” we most likely will have the last laugh. My silver is secure in the banks of Bowser Creek. Where’s yours, Buddy. What would happen if everyone with a futures contract asked for payment in physical value, in hand, at the end of a contract, instead of rolling the dice once again for plastic chips, or electronic credits?
And as the part of multinational AIG that popped the pimple of an embarrassing problem was headquartered in London, including some of the “bonus boys,” wouldn’t it be a giggle if the British Government also expected us to bail out Barclays from it’s silver shortage, with even more U.S. tax dollars?
So, it would seem, I, a Scots-Irish-Native American have gone full circle from being a Cold War hero by prospecting for uranium in the Moab, Utah, rush of 1955, to serving once again on the front lines to help save our country from economic domination.
My family’s history is a long story fighting British control— Culledon, Alamance, Cowpens, Kings Mountain, Cowpens, New Orleans; dominance of the Pacific Northwest fur trade, and “ownership” of the free range of Montana; to the manipulation of Alaska oil for British Petroleum, and now London (of “prime bank scheme” fame) is doing the Chicago Futures Market one better by inventing silver ETF’s, yet another “legalized” derivative that doesn't make much sense to those of us struggling to operate within the laws of supply and demand.
The purpose of our publications, as www.WesternMiner.com (with a database of available properties) www.GoldMiningClaims.net, www.SilverMiningClaims.com, is a desire to help other small claim holders, and private operators, to rebuild what is left of the Western American mining industry, in the support of U.S. jobs, end economic stability.
It should be noted that we see coal as part of the “soft rock” oil industry, especially as some of the big, private company, owners in Kentucky and West Virginia have been shown that they too have no respect for their promised word. Unscrupulous coal mining is the source of all the “ugly” photographs and rumors that environmentalists use to smear Far West hard rock mining.
My thought is to fire anyone who has received a financial industry bonus (taxpayer, or small stockholder funded) that have helped destroy, through their personal greed, basic American industries — as the most important of all, mining.
Yes we in control of gold, and silver, do need capital to extract this wealth from the earth. Too often of late the promise of this has only been used to extract this wealth from “Investment Advisor” clients. My free advice to you is to deal direct. Go back to be basics. Just one example of this thinking can be found at: www.silverminingclaims.com/thebottomline.html.
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