Junior Gold Stocks - Peons Screwed

How did it happen? The price of gold started out at $35/oz and peaked recently at $1900. It’s the biggest explosion of top line revenue I have ever seen. Gold stock prices should have gone into orbit. Why has the opposite come to pass?

 

The answer: The bonanza was totally ripped off by Wall Street mega-thieves born out of the collapse of integrity in the Free World.

 

Mega-thieves scored their first huge win by spawning a Worldwide oil crisis. Then it was on to rape the planet with unlimited ongoing derivatives leverage and the subprime paper fraud. The resulting collapse of the U.S. dollar caused the price of gold to soar.

 

We peons put up the cash to find our gold deposits. Here is how the mega-thieves easily relieved us of our winnings:

1. Unlimited stolen oil/subprime capital is used to expand (dilute) 5 million share junior gold companies to 250 million share companies.
2. When mines start up, ore grades are cut to a point where companies operate at break-even. No earnings.
3. When there are earnings, price earnings multiples are collapsed.
4. Operating companies sell high yield debentures, and attendant interest charges chew up earnings.
5. Gold Loans are secured from revenue top skimmers – crippling future earnings potential.

 But this is only the beginning of the giant gold rip-off. Mandela’s South Africa is predictably heading for anarchy along with the rest of the liberated African continent. In the chaos, giant gold mines are shutting down one after another. They will never reopen. More upside price pressure for the yellow metal.

 

Good news for gold investors? I’m afraid not. As gold launches into its next upward trajectory, gold ownership will be declared to be a crime and the circle of unlimited greed will have reached its zenith.

 

I was a player in junior gold mining exploration until I realized that there was no way I could win even if I found a mine. To use Ayn Rand’s words “I shrugged” and walked away decades ago – as did many others among the best and brightest in the business.

 

We peons found and developed the resources that made the gears turn on our small planet. The thieves produce nothing. No gold. No energy and no food. Yes, we peons can be robbed, but when it happens, our collective exit forces the world to grind to a halt. Everybody loses. No exceptions.

 

The greedy thieves cannot eat the money they have stolen from us, and they too will freeze in the dark.