The Rape Of The Junior Golds

Shares in Canadian junior gold mining companies continue to languish.  I predicted this in a blog published on October 16, 2012.  Not that I’m happy about it.  All hard assets are systematically raped and stolen in our new tribal world without integrity.

Mega-wealthy subprime thieves have unlimited capital with which to gain control of our junior companies.  Once in control they flush us out by driving share prices hopelessly lower through unlimited share dilution.  Many promising juniors have gone from five million share capitalization to five hundred million shares outstanding and there is no end in sight.  We cannot recover from this onslaught by the greedy.

And there is more bad news:  If gold is actually produced by a junior, the mega thieves sell themselves revenue royalties that skim the cream from real earnings and force “per ounce” gold production costs to soar.  This in turn cuts the recoverable ore reserves and slams the discounted present value of gold still in the ground.  The share price takes another hit as present value figures tank under the weight of royalty payments.

Sorry folks.  Only the mega-wealthy win and they want all of your hard assets; your house, cottage, farm and anything else they can steal from you.  This is a sewer and all honest people are caught in the vortex.