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SOME BASIC FUNDAMENTAL REASONS TO OWN GOLD


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#1 goldsmith

goldsmith

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  • Traders-Talk User
  • 49 posts

Posted 11 November 2003 - 02:24 AM

SOME BASIC FUNDAMENTAL REASONS TO OWN GOLD
& GOLDSHARES...

1. Global Currency Debasement:

The US dollar is fundamentally & technically very weak
and should fall dramatically.
However, other countries are very reluctant to see
their currencies appreciate and are resisting the
fall of the US dollar.

Thus, we are in the early stages of a massive
global currency debasement which will see tangibles,
and most particularly Gold, rise significantly
in price.

2. Investment Demand for Gold is Accelerating:

When the crowd recognizes what is unfolding,
they will seek an alternative to paper currencies
and financial assets and this will create an
enormous investment demand for Gold.

3. Alarming Financial Deterioration in the US:
In the space of two years, the federal government
budget surplus has been transformed into a large
deficit.

At the same time, the current account deficit has
reached levels which have portended currency collapse
in virtually every other instance in history.

4. Negative Real Interest Rates in Reserve Currency
(US Dollar):

To combat the deteriorating financial conditions
in the US, interest rates have been dropped to
rock bottom levels, real interest rates are now
negative and, according to statements from the Fed
spokesmen, are expected to remain so for some time.

There has been a very strong historical relationship
between negative real interest rates and stronger
Gold prices.

5. Dramatic Increases in Money Supply in the US
and Other Nations:

US authorities are terrified about the prospects
for deflation given the unprecedented debt burden
at all levels of society in the US.

Fed Governor Ben Bernanke is on record as saying
the Fed has a printing press and will use it to
combat deflation if necessary.

Other nations are following in the US’s footsteps
and global money supply is accelerating.

This is very Gold friendly.

6. Existence of a Huge and Growing Gap between
Mine Supply and Traditional Demand:

Gold mine supply is roughly 2500 tonnes per annum
and traditional demand (jewellery, industrial
users, etc.) has exceeded this by a considerable
margin for a number of years.

Some of this gap has been filled by recycled scrap
but central bank Gold has been the primary source
of above-ground supply.

7. Mine Supply is Anticipated to Decline in the
next Three to Four Years:

Even if traditional demand continues to erode due
to ongoing worldwide economic weakness, the
supply-demand imbalance is expected to persist
due to a decline in mine supply.

Mine supply will contract in the next several
years, irrespective of Gold prices, due to a
dearth of exploration in the post Bre-X era,
a shift away from high grading which was
necessary for survival in the sub-economic
Gold price environment of the past five years
and the natural exhaustion of existing mines.

8. Large Short Positions:

To fill the gap between mine supply and demand,
Central Bank Gold has been mobilized primarily
through the leasing mechanism, which facilitated
producer hedging and financial speculation.

Strong evidence suggests that between 10,000 and
16,000 tonnes (30- 50% of all Central Bank Gold)
is currently in the market.

This is owed to the Central Banks by the bullion
banks, which are the counter party in the
transactions.

9. Low Interest Rates Discourage Hedging:

Rates are low and falling?

With low rates, there isn’t sufficient contango
to create higher prices in the out years.

Thus there is little incentive to hedge and Gold
producers are not only not hedging, they are
reducing their existing hedge positions, thus
removing Gold from the market.

10. Rising Gold Prices and Low Interest Rates
Discourage Financial Speculation on the Short Side:

When Gold prices were continuously falling and
financial speculators could access Central Bank
Gold at a minimal leasing rate (0.5 - 1% per annum),
sell it and reinvest the proceeds in a high yielding
bond or Treasury bill, the trade was viewed as a
lay up.

Everyone did it and now there are numerous stale
short positions.

However, these trades now make no sense with a
rising Gold price and declining interest rates.

11. The Central Banks are Nearing an Inflection
Point when they will be Reluctant to Provide more
Gold to the Market:

The Central Banks have supplied too much already
via the leasing mechanism.

In addition, Far Eastern Central Banks who are
accumulating enormous quantities of US Dollars
are rumored to be buyers of Gold to diversify
away from the US Dollar.

12. Gold is Increasing in Popularity:

Gold is seen in a much more positive light in
countries beginning to come to the forefront on
the world scene.

Prominent developing countries such as China,
India and Russia have been accumulating Gold.

In fact, China with its 1.3 billion people recently established a National Gold Exchange and relaxed
control over the asset.

Demand in China is expected to rise sharply and
could reach 500 tonnes in the next few years.

13. Gold as Money is Gaining Credence

Islamic nations are investigating a currency
backed by Gold (the Gold Dinar), the new
President of Argentina proposed, during his
campaign, a Gold backed peso as an antidote
for the financial catastrophe which his country
has experienced and Russia is talking about
a fully convertible currency with Gold backing.

14. Rising Geopolitical Tensions

The deteriorating conditions in the Middle East,
the US occupation of Iraq, the nuclear ambitions
of North Korea and the growing conflict between
the US and China due to China’s refusal to allow
its currency to appreciate against the US dollar
headline the geopolitical issues, which could
explode at anytime.

A fearful public has a tendency to gravitate
towards Gold.

15. Limited Size of the Total Gold Market Provides
Tremendous Leverage:

All the physical Gold in existence is worth
somewhat more than $1 trillion US Dollars while
the value of all the publicly traded Gold
companies in the world is less than $100 billion
US dollars.

When the fundamentals ultimately encourage a
strong flow of capital towards Gold and
Gold equities, the trillions upon trillions
worth of fiat paper money could propel both to
unfathomably high levels...

In ANY financial market, the BIG rewards are a
consequence of two things - following a primary trend
and HAVING PATIENCE.

Just wait - and watch for $US 400."

A cheerful thought!

JB

GATA BE IN IT TO WIN IT!

CALVF has more than 250 sq.km PM prime land
within the famous Bushveld Platinum Complex
Structure the most attractive land
for Platinum exploration and its land is
less than 10% explored for Gold and less
than 1% or hasn't been explored for
Platinum...
with any modern high tech.-geol...

CALVF is debt-free and own more land in
the Bushveld Geo. Formation than most large
Platinum mining corporations
and CALVF has just started the drilling on one
Platinum target ANGLO PLAT. said is most likely
that the Ore-structure from the largest Platinum
mine in the world continue in on Caledonia's
land holdings...

Platinum $762.00/oz http://quotes.ino.co...=15&a=50&v=dmax

Got Caledonia Precious Metal Shares?

The historic investment opportunity of
a lifetime is still in play.

For investors looking to jump on board,
you have a gift.

GOT TO BE IN IT TO WIN IT! and
WE ARE GOING TO WIN IT!

The Gold chart is very constructive:

http://quotes.ino.co...=15&a=50&v=dmax

Gold stocks will shine after bullion prices hit
a seven-year-high in London...

A GOLD SHARE BUYING PANIC IS COMING...

There is no way the little Gold share market will be
able to handle this buying without the shares SOARING,

***To The Moon Alice, To The Moon!***

CALVF: Oversold / Undervalued

http://www.contraria...m/Triangles.htm

..market makers brokers/mafia-shortselling -
makes life time opportunity in...

Caledonia's Gold, Platinum, Colored Diamonds
PM Hard Asset Properties for a bargain!

http://chart.yahoo.c.../c/calvf.ob.gif

mmm-shortsold 200 mil ++ ready to explode
Note. don't let mmm pawns distort or distract
you and don't missout of CALVF...

http://www.caledoniamining.com

The US$ fiat falling off the cliff...

http://www.house.gov...03/pr073103.htm

The US$ fiat falling off the cliff...
U.S. Dollar Index (CEC)
Weekly fiat $$ Price Chart...

Dollar Index Cash (NYBOT:DXY0)...

http://quotes.ino.co...=15&a=50&v=dmax

...lower highs and lower lows...going down hill...

...the fiat US$ & Can$ will only be
worth the paper its printed on?..

http://www.house.gov/paul/

Platinum streaked to 23 year highs*^^^^^
Platinum is the front^runner to GOLD

http://quotes.ino.co...w=15&a=50&v=d12

Long Trend GOLD to the Moon/ BULL VERY STRONG^^^^^

http://quotes.ino.co..._XAUUSDO&v=dmax
you will be on a wild goose chase, if you not
catch it before take^off^^^^^

$Dollar falling off the cliff...
http://quotes.ino.co...BOT_DXY0&v=dmax
its leave-right a rock, bouncing off every ledge,
goes down bellow water\.

The BULLS Live Above 200 Day Moving Average^^^^^

http://ichart.yahoo....my&l=on&z=l&q=c

http://ichart.yahoo....my&l=on&z=l&q=l

CALVF a PM Mine Finder...
http://ichart.yahoo....1y&l=on&z=l&q=l

CALVF has also found the kimberlite pipes
with Gem Quality Diamonds!

* Protect your hard-earned wealth...

* Caledonia Mining Corporation, on the start line^^^^^
* The BULLS Live Above 200 Day Moving Average^^^^^
* CALVF, Repeat The *Mirror Reflextion of 1993 -94^^^^
http://ichart.yahoo....my&l=on&z=l&q=l

* CALVF Gold, Platinum, Diamond TEAM DD..
* Caledonia Min. Corp. has more than 250 sq.km
* PM prime land within the Bushveld Platinum
Complex DD CALVF...
* http://www.caledoniamining.com
* Imo.Tia.Pass It Along>>>

(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
Posted by beusa1 at RB.

#2 goldsmith

goldsmith

    Member

  • Traders-Talk User
  • 49 posts

Posted 13 November 2003 - 02:44 AM

Goldsmith, Earth Crash, Documenting the Collapse of a Dying Planet...

Asian Air Pollution Now Greater Than Combined Emissions of Europe and North America, Costing Billions in Deaths, Illnesses, Lost Productivity.

Pollution in Asia is steadily worsening and is directly responsible for the death of thousands in Beijing, Jakarta, Seoul, Bangkok and Manila, according to the World Bank and the Stockholm Development Institute (SDI).

SDI says that sulphur dioxide, ammonia and nitrogen oxides have been rising steadily over the past few decades and ground level ozone concentration has increased.

Air pollution in the continent has now surpassed the combined emissions in Europe and North America.

According to the Bank's 2000 Annual Review, in Manila alone more than 4,000 Filipinos die each year because of air pollution.

The mortality figure is the third highest for a city in the east Asian region after Beijing and Jakarta.

Bangkok and Seoul were ranked 4th and 5th.

Beside the deaths, 90,000 Filipinos in Manila also suffer from severe chronic bronchitis, costing the government 7 percent of its gross domestic product in terms of health costs, the Bank said, citing statistics from the World Health Organization (WHO) which did pollution and health studies in 126 countries last year.

However, the air pollution death figures in other parts of the world are even higher, says the Bank, noting that yearly, over 40,000 die in India, 6,400 in Mexico City, over 5,000 deaths in Sao Paulo and Rio de Janeiro.

As rapid urbanization associated with growth in industry and transportation systems spread in Asia, sulphur dioxide and nitrogen oxide emissions have increased dramatically.

The pollutants come from fossil fuel combustion used by energy, industry and transportation sectors all over the Asia-Pacific region.

It is aggravated by the use of low quality fuel, inefficient methods of energy production and use, poor condition of vehicles and traffic congestion, says SEI.

The damage to human health caused not only by air emissions but also solid waste and effluent, is the highest among all the costs of urban environmental degradation.

Health costs in major Asian cities now reach 15 to 18 percent of urban income, the Bank said.

As cities in developing countries are indeed becoming unhealthy places to live in, people have to contend not only with dangerous air fumes but also solid waste and effluent pollution.

These are direct factors behind water-related diseases such as diarrhea, dysentery, cholera and typhoid.

The congestion of cities will continue to be a pall over the worldwide public health scenario as rapid urbanization is projected by the Bank to continue at even faster pace in this century.
Citing the Philippines as the nation with the highest population growth rate in Southeast Asia, the Bank said Manila, Bangkok, Jakarta, 38 Chinese cities and 23 cities in India will have compounded urban problems with their growing population.
The urban population in these cities is expected to reach 2.5 billion by 2025, three times more than in 1990, the Bank added.

As a result, costs of air and water pollution in fast-urbanizing developing countries will increase its toll on government coffers.
With tens of thousands of deaths and millions of cases of moderate to severe illnesses, billions of dollars will be lost in productivity and other damages per year per city, the Bank warned.
The costs of environmental degradation will also increase due to the expenses of supplying clean water, decongesting transport, cleaning solid waste and providing a clean working atmosphere for urban workers, it predicted.

This is only an abstract. See the full article(s) at:

(03/11/2001) Earth Times: Deaths and illnesses from pollution in Asia increasing.

(NOTE: Original news source(s) will open in a new window. Link was good on date posted here, but some news sources only allow free access to articles for a week or so, then articles are removed or a charge made for access. Some sites require registration.)

http://www.eces.org/...290400302.shtml

China adding more and more factories/smokestacks every day fueled by coal...all of us don't want to die from
the cancer-pollution...

CALVF need to develop their 250sq.km. of the Rich Platinum Bushveld land as a PRIME PRIORITY...its needed for
the CLEAN-AIR FUEL-CELLS Tech...a must Highest Demand PGM...

Fuel Cells Are Here Today...

http://www.usfcc.com/products.html

http://www.internationalfuelcells.com/

Developed by General Electric but required large
amounts of a costly platinum catalyst...

http://www.lanl.gov/...s/fuelcell.html

Gold used to be higher priced than Platinum
and AU was the prime target for Eerstling.

Today Eerstling will concentrate on Gold
and Platinum as the target PM production:

Eersteling Gold Mining Company Ltd, is 96% owned by
Caledonia Mining Corporation;

* Gold Producer
* Native Gold, Au
* Eersteling Gold Mines, Pietersburg, South Africa

http://www.ne.jp/asa...lery/Gold02.htm

* Au Native Gold Ore -

One of the World Richest Platinum Mine;
Potgietersrust Platinums (PPRust) OPERATIONS;
..is on the boarder to Caledonia's Bushveld PM Prime
Properties;
the ore structure is believed to continue in on
Caledonia Properties;

* and further exploration
* on the Rooipoort property is ongoing;

The Rooipoort #1 Exploration Target;
project approximately 8 kilometres east of
Potgietersrus and about 30 km southwest
of Caledonia’s Eersteling Gold Mine in the
Limpopo Province of South Africa,
is considered to be highly prospective
for Platinum deposits.

A comprehensive desk study on Rooipoort,
based on airborne geophysics and the down dip
drilling on the adjacent farm undertaken
by Anglo Platinum has been completed.

This study has confirmed the likely presence
of both the Merensky and the UG-2 Platinum
group metals on the property.

(A confirmation by Anglo Platinum;
the largest Platinum Miner in the world
as likely, is to be 99% sure, imo)

The exploration/prospecting permit was received
during May 2003 and it is planned to carry
out ground geophysics during June.

This will likely be followed immediately
by a drilling program.

http://www.kitco.com...f/pt1825nyb.gif

Eersteling Gold Mining Company Ltd, is 96% owned by
Caledonia Mining Corporation;
* Native Gold, Au
* Eersteling Gold Mines, Pietersburg, South Africa

http://www.ne.jp/asa...lery/Gold02.htm

Caledonia Min. Corp. CALVF - Oversold / Undervalued
http://stockcharts.c....web?c=CALVF,uu[l,a]daclniay[dc][p][vc60][iUl14]&pref=G

* CALVF Gold, Platinum, Diamond TEAM DD..
* Caledonia Min. Corp. has more than 250 sq.km
* PM prime land within the Bushveld Platinum
Complex DD CALVF...
* http://www.caledoniamining.com
* Imo.Tia.Pass It Along>>>

(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
Posted by beusa.

#3 goldsmith

goldsmith

    Member

  • Traders-Talk User
  • 49 posts

Posted 13 November 2003 - 03:17 AM

We need the Fuel Cell Cars or we all die from air-pollution
if China & India getting into more gasoline-cars...

Norilsk Nickel Pursues a Palladium Fuel Cell
Bloomberg
Tuesday, Nov. 11, 2003. Page 7

Norilsk Nickel, the world's top miner of palladium,
will spend as much as $40 million per year on
research into fuel cells using palladium,
competing against plans by Johnson Matthey
and Anglo American Platinum to develop
commercially viable fuel cells.

Johannesburg-based Anglo American Platinum,
the world's top platinum miner, last year
paid ?20 million ($33 million) for 17.5 percent
of Johnson Matthey's fuel cells unit to help
boost platinum demand.

Increasingly stringent pollution laws in the U.S.
and Europe are expected to boost demand for
fuel cells.

"Our main product is palladium and we are
promoting it," Norilsk CEO Mikhail Prokhorov
told reporters in Moscow.

"Our goal is almost the opposite of Johnson Matthey's."

Precious metals such as platinum and palladium are
used as catalysts in fuel cells, a technology
being used increasingly to power cars.

Fuel cells convert natural gas into hydrogen,
which reacts with an oxidant to produce power.

The cells emit less pollution than the internal
combustion engine, which uses diesel or gasoline,
now used to power most cars and trucks.

Platinum sales outstripped demand for palladium
in the past two years, after automakers mostly
switched to platinum because Russia regularly
delayed export permits for the metals.

Those delays had helped to drive up palladium
prices to a record $1,110.50 an ounce in January 2001,
after which the metal's price plunged 70 percent.

Cars running on internal combustion engines use
platinum and palladium as catalysts to reduce
pollution.

Norilsk and the Russian Academy of Sciences agreed
to work to develop fuel cells and about 20 research
centers will be involved, Prokhorov said.

The first results of the research may be available
in about three years, the Academy of Sciences said.

"There are two pillars on which to base this program,
one is our domination of the palladium market and
the other is the strength of Russian science,"
Prokhorov said.

CALVF has more than 250 sq.km PM prime land
within the famous Bushveld Platinum Complex
Structure the most attractive land
for Platinum exploration and its land is
less than 10% explored for Gold and less
than 1% or hasn't been explored for
Platinum...
with any modern high tech.-geol...

CALVF is debt-free and own more land in
the Bushveld Geo. Formation than most large
Platinum mining corporations
and CALVF has just started the drilling on one
Platinum target ANGLO PLAT. said is most likely
that the Ore-structure from the largest Platinum
mine in the world continue in on Caledonia's
land holdings...

Platinum $762.00/oz http://quotes.ino.co...=15&a=50&v=dmax

Got Caledonia Precious Metal Shares?

The historic investment opportunity of
a lifetime is still in play.

For investors looking to jump on board,
you have a gift.

GOT TO BE IN IT TO WIN IT! and
WE ARE GOING TO WIN IT!

The Gold chart is very constructive:

http://quotes.ino.co...=15&a=50&v=dmax

Gold stocks will shine after bullion prices hit
a seven-year-high in London...

A GOLD SHARE BUYING PANIC IS COMING...

There is no way the little Gold share market will be
able to handle this buying without the shares SOARING,

***To The Moon Alice, To The Moon!***

CALVF: Oversold / Undervalued

http://www.contraria...m/Triangles.htm

..market makers brokers/mafia-shortselling -
makes life time opportunity in...

Caledonia's Gold, Platinum, Colored Diamonds
PM Hard Asset Properties for a bargain!

http://chart.yahoo.c.../c/calvf.ob.gif

mmm-shortsold 200 mil ++ ready to explode
Note. don't let mmm pawns distort or distract
you and don't missout of CALVF...

http://www.caledoniamining.com

The US$ fiat falling off the cliff...

http://www.house.gov...03/pr073103.htm

The US$ fiat falling off the cliff...
U.S. Dollar Index (CEC)
Weekly fiat $$ Price Chart...

Dollar Index Cash (NYBOT:DXY0)...

http://quotes.ino.co...=15&a=50&v=dmax

...lower highs and lower lows...going down hill...

...the fiat US$ & Can$ will only be
worth the paper its printed on?..

http://www.house.gov/paul/

Platinum streaked to 23 year highs*^^^^^
Platinum is the front^runner to GOLD

http://quotes.ino.co...w=15&a=50&v=d12

Long Trend GOLD to the Moon/ BULL VERY STRONG^^^^^

http://quotes.ino.co..._XAUUSDO&v=dmax
you will be on a wild goose chase, if you not
catch it before take^off^^^^^

$Dollar falling off the cliff...
http://quotes.ino.co...BOT_DXY0&v=dmax
its leave-right a rock, bouncing off every ledge,
goes down bellow water\.

The BULLS Live Above 200 Day Moving Average^^^^^

http://ichart.yahoo....my&l=on&z=l&q=c

http://ichart.yahoo....my&l=on&z=l&q=l

CALVF a PM Mine Finder...
http://ichart.yahoo....1y&l=on&z=l&q=l

CALVF has also found the kimberlite pipes
with Gem Quality Diamonds!

* Protect your hard-earned wealth...

* Caledonia Mining Corporation, on the start line^^^^^
* The BULLS Live Above 200 Day Moving Average^^^^^
* CALVF, Repeat The *Mirror Reflextion of 1993 -94^^^^
http://ichart.yahoo....my&l=on&z=l&q=l

* CALVF Gold, Platinum, Diamond TEAM DD..
* Caledonia Min. Corp. has more than 250 sq.km
* PM prime land within the Bushveld Platinum
Complex DD CALVF...
* http://www.caledoniamining.com
* Imo.Tia.Pass It Along>>>

(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
Posted by Wenner-Gren