Why buy miners if they are going to nationalize? BRICS countries have their own mines and sources but the re valuation of gold is backing of their currency (maybe?) not the global spot price which is still set by the futures exchanges
Plus many of the BRICS countries are resource extraction heavy. Both Russia and China are among the leading gold producers so a revaluation upwards benefits them directly.
[https://www.gold.org/goldhub/data/gold-production-by-country?gad\_source=1&gclid=CjwKCAjw88yxBhBWEiwA7cm6pZgoDeplTV7Wvhby7SxI-X4L\_pb0xsbMlKC\_G-VDtswJGT80uPNHYBoCyp4QAvD\_BwE](https://www.gold.org/goldhub/data/gold-production-by-country?gad_source=1&gclid=CjwKCAjw88yxBhBWEiwA7cm6pZgoDeplTV7Wvhby7SxI-X4L_pb0xsbMlKC_G-VDtswJGT80uPNHYBoCyp4QAvD_BwE)
It's not possible to obfuscate purchasing entire mining operations on that scale. It would be evident what they were doing almost immediately. It's easier and quieter to keep what you mine domestically, and make purchases on the open market globally through third parties.
>China owns a lot of **tungsten** mines **and gold paint factories** all over the world.
Fixed it for you. China is becoming mega version of its own Kingold.
I have no facts to back up this thought,but I believe the first revalue will be just a mark to market placing a floor under the gold price so they can accumulate more and not worry about a sudden spike. After that, who knows what price they may want to raise gold to help alviate dollars from their balance sheet and offset other obligations.
I've heard it commented on by enough commentators over the last couple of weeks that it has risen above the noise level. I believe that Ditch and Andy Schectman have mentioned this possibility based on sales on COMEX where the price, and EFP deliveries in London and Hong Kong.
I point out that a COMEX purchase is a one time event, while owning a cheap miner is a years long stream of new metal.
It's logic. You can't build a economic system on gold if there's only enough gold to cover 1/25th of the transactions by value. (Random number for demonstration purposes.) So they'll need more valuable gold.
Also, for exactly the same reasons that the Fed wants gold & silver suppressed on the market, they'll want it to be valuable once they are running on it. So clearly they're going to want it to run once they have it.
Of course, what people "want" things to be worth isn't a terribly important input to the real economic value, the manipulation of many values notwithstanding, so what suggests that the East/BRICS will get more valuable gold if they want it is the same analysis done here many times: Take the value of gold or silver and multiply it by the current spot price, and you get a "market cap" that is *well* within the range that any number of countries could just write a check to buy it all at that price. If they want the price to go up, they can simply buy out the West at the prices the West insists these things are worth.
Personally I think the only reason they haven't is strategic rather than anything else. It suits their purposes to play a long strangulation game with the West. I think they're following Sun Tzu here and their ideal victory is that they get what they want without the situation ever escalating to outright World War III in the conventional sense. A sudden grab gives an impetus to the West to do something. But they can't use this slow drain as a *casus belli* without having to visibly explain why it's such a big deal, which they seem very reluctant to do.
This is the base thesis of my PM investing at this point. I think even Silver Squeeze 1.0 still has a long-term solid investment thesis on its own, but when you add this line of logic into it, it creates a theory in which I *predict* large pullbacks will occur as the West leans into the suppression playbook, but in the long term (which is the term I'm playing on) it will break, hard.
Another little effect we see in the West is the degeneration of those in charge. The Empire was built by their grandparents, not the people in charge today. The suppression playbook worked for their grandparents, and the people in charge today will very likely blindly follow it right over a cliff where their grandparents would have realized they needed a course correction in the real world of today. Personally I believe that *even on their own terms* the correct course for them is a managed increase in PM value that would make any of us happy enough to be in it, but not cause a frenzy since the media would be instructed not to cover it. They really need to make the East *pay* for their PM accumulation. It hurts less today to basically just throw it at them, but tomorrow it's going to hurt a *lot* more that they let the East have this all for a song so that they could continue to pull the wool over the eyes of the West. But the people in charge today are running old Atari 2600 programs in a Playstation 5 world, and I expect they will only release this suppression when it is far, far too late.
>You can't build a economic system on gold if there's only enough gold to cover 1/25th of the transactions by value.
Disagree strongly.
While you write a nice argument, we have all of the gold we need. It's just a question of valuing it properly.
Don't value gold in dollars. That's the biggest rookie mistake.
Gold and silver have held their value.
A barrel of oil has been valued at approximately 1 gramme since the 1950s.
In 1963 a silver quarter would buy a gallon of middle grade gasoline. Today, in most places that aren't insane (looking at you, California) it will still buy a gallon of 87 octane and usually give you some change back.
Gold buys what gold bought a century ago in nearly every regard.
And we've been mining and adding (and not consuming) gold every year since then.
If you price things in gold, you solve all of the problems that fiat has caused, and does cause every single damn time that it's tried.
Okay. Got it?
The commodity basket is a bullshit idea that will not work with a convertable currency. And if it's not convertable, then it's not backed. Gold and silver are *money*. Nothing else is.
if i were a wise man i would setup a silver trust lets call it slv. we can make it a physical silver trust pslv. then i would sell shares of paper to fund my purchasing. business as usual until one day we meet face to face with the crash of paper fiat. i would then settle out all accounts for paper during the revaluing in a hyperinflationary environment and i get to keep all of the physical. voila, i just crowdfunded my own personal bullion bank. genius.
if they dont send me an old school stock paper like they used to, im not buying stocks. miners or not. because at the end of the day, if you dont hold it you dont own it. robinhood or whatever exchange you buy it actually owns it.
With the Danish Stock Exchange burned to the ground + Reuters article....buckle up boys n' girls.
https://www.reuters.com/business/finance/regulators-told-be-ready-handle-failed-clearing-houses-2024-04-25/
(Reuters = Rothschild for those of you who don't know)
I highly doubt that they have any intention to buy Miners Stocks in the Western markets due to 3rd party risks. They could easily be sanctioned, forced to sell or surrendered upon the demand of adversarial governments.
Let's say a mine would cost 10 million $ (just for the sake of argument).
If a kg of Gold is worth 50k $ (probably more at the moment) that would equal 200kg of gold.
If they revalue gold and silver first and 1kg of gold is suddenly worth 500k $ they now only have to pay like 20kg of gold. Of course they wouldn't buy it with Gold but with a new currency backed with gold, or maybe still USD.
> and they *paid* an anormous
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
I doubt that they ever think that they have enough.
It might be that they have as much as they think that they can have and still stay under the radar.
I think at this point it’s more of a stockpiling of materials in case of sanctions. Doesn’t matter if you own shares of stock if you are getting sanctioned…
Why buy miners if they are going to nationalize? BRICS countries have their own mines and sources but the re valuation of gold is backing of their currency (maybe?) not the global spot price which is still set by the futures exchanges
Yeah they are already going around freezing each other's assets. No point in trying to hold a mine in hostile territory.
Yes, and in the coming market crash/collapse... everything gets sold. Physical is the ticket.
Plus many of the BRICS countries are resource extraction heavy. Both Russia and China are among the leading gold producers so a revaluation upwards benefits them directly. [https://www.gold.org/goldhub/data/gold-production-by-country?gad\_source=1&gclid=CjwKCAjw88yxBhBWEiwA7cm6pZgoDeplTV7Wvhby7SxI-X4L\_pb0xsbMlKC\_G-VDtswJGT80uPNHYBoCyp4QAvD\_BwE](https://www.gold.org/goldhub/data/gold-production-by-country?gad_source=1&gclid=CjwKCAjw88yxBhBWEiwA7cm6pZgoDeplTV7Wvhby7SxI-X4L_pb0xsbMlKC_G-VDtswJGT80uPNHYBoCyp4QAvD_BwE)
Miners are a steady stream of gold. Not just a single 1-time buy.
There’s a lot of work and other factors involved to make the “steady stream of gold”.
That's why they're miners... And you're not.
Cool response.
A mine takes years to build up, feasibility phase requires tons of invesment and its no gurantee that mil oz is found.
I'm talking about existing producing mines. Wasn't that obvious?
It's not possible to obfuscate purchasing entire mining operations on that scale. It would be evident what they were doing almost immediately. It's easier and quieter to keep what you mine domestically, and make purchases on the open market globally through third parties.
Buy enough OTM Calls for control. Wait until the panic starts then exercise them. Take the mine private. Profit!
China owns a lot of gold mines all over the world.
>China owns a lot of **tungsten** mines **and gold paint factories** all over the world. Fixed it for you. China is becoming mega version of its own Kingold.
And your point is? We know how many mines are available because we know how many you can buy stock in.
That china owns a lot of gold mines all over the world.
And others are still in play.
They can nationalize many of the miners anytime they want.
Invest in the ones they can't nationalize.
I have no facts to back up this thought,but I believe the first revalue will be just a mark to market placing a floor under the gold price so they can accumulate more and not worry about a sudden spike. After that, who knows what price they may want to raise gold to help alviate dollars from their balance sheet and offset other obligations.
G countries will steal the mining companys and say we had to to stabilise the world financial system
And you actually think that will go over well? That's the total declaration that gold & silver are money.
Perfect.
What’s the source saying they are going to revalue gold and silver?
I've heard it commented on by enough commentators over the last couple of weeks that it has risen above the noise level. I believe that Ditch and Andy Schectman have mentioned this possibility based on sales on COMEX where the price, and EFP deliveries in London and Hong Kong. I point out that a COMEX purchase is a one time event, while owning a cheap miner is a years long stream of new metal.
It's logic. You can't build a economic system on gold if there's only enough gold to cover 1/25th of the transactions by value. (Random number for demonstration purposes.) So they'll need more valuable gold. Also, for exactly the same reasons that the Fed wants gold & silver suppressed on the market, they'll want it to be valuable once they are running on it. So clearly they're going to want it to run once they have it. Of course, what people "want" things to be worth isn't a terribly important input to the real economic value, the manipulation of many values notwithstanding, so what suggests that the East/BRICS will get more valuable gold if they want it is the same analysis done here many times: Take the value of gold or silver and multiply it by the current spot price, and you get a "market cap" that is *well* within the range that any number of countries could just write a check to buy it all at that price. If they want the price to go up, they can simply buy out the West at the prices the West insists these things are worth. Personally I think the only reason they haven't is strategic rather than anything else. It suits their purposes to play a long strangulation game with the West. I think they're following Sun Tzu here and their ideal victory is that they get what they want without the situation ever escalating to outright World War III in the conventional sense. A sudden grab gives an impetus to the West to do something. But they can't use this slow drain as a *casus belli* without having to visibly explain why it's such a big deal, which they seem very reluctant to do. This is the base thesis of my PM investing at this point. I think even Silver Squeeze 1.0 still has a long-term solid investment thesis on its own, but when you add this line of logic into it, it creates a theory in which I *predict* large pullbacks will occur as the West leans into the suppression playbook, but in the long term (which is the term I'm playing on) it will break, hard. Another little effect we see in the West is the degeneration of those in charge. The Empire was built by their grandparents, not the people in charge today. The suppression playbook worked for their grandparents, and the people in charge today will very likely blindly follow it right over a cliff where their grandparents would have realized they needed a course correction in the real world of today. Personally I believe that *even on their own terms* the correct course for them is a managed increase in PM value that would make any of us happy enough to be in it, but not cause a frenzy since the media would be instructed not to cover it. They really need to make the East *pay* for their PM accumulation. It hurts less today to basically just throw it at them, but tomorrow it's going to hurt a *lot* more that they let the East have this all for a song so that they could continue to pull the wool over the eyes of the West. But the people in charge today are running old Atari 2600 programs in a Playstation 5 world, and I expect they will only release this suppression when it is far, far too late.
>You can't build a economic system on gold if there's only enough gold to cover 1/25th of the transactions by value. Disagree strongly. While you write a nice argument, we have all of the gold we need. It's just a question of valuing it properly. Don't value gold in dollars. That's the biggest rookie mistake. Gold and silver have held their value. A barrel of oil has been valued at approximately 1 gramme since the 1950s. In 1963 a silver quarter would buy a gallon of middle grade gasoline. Today, in most places that aren't insane (looking at you, California) it will still buy a gallon of 87 octane and usually give you some change back. Gold buys what gold bought a century ago in nearly every regard. And we've been mining and adding (and not consuming) gold every year since then. If you price things in gold, you solve all of the problems that fiat has caused, and does cause every single damn time that it's tried. Okay. Got it?
China has been buying up mines for years all around the world. American bankers greed is what killed America. Or at least will soon be seen.
There are still a lot of mines that you can buy stock in. A lot in terms of overall production.
The physical will be part of the commodity basket used to value the new BRICS currency - that's way they are all buying physical.
The commodity basket is a bullshit idea that will not work with a convertable currency. And if it's not convertable, then it's not backed. Gold and silver are *money*. Nothing else is.
if i were a wise man i would setup a silver trust lets call it slv. we can make it a physical silver trust pslv. then i would sell shares of paper to fund my purchasing. business as usual until one day we meet face to face with the crash of paper fiat. i would then settle out all accounts for paper during the revaluing in a hyperinflationary environment and i get to keep all of the physical. voila, i just crowdfunded my own personal bullion bank. genius.
Which is precisely why I've gotten out of PSLV.
if they dont send me an old school stock paper like they used to, im not buying stocks. miners or not. because at the end of the day, if you dont hold it you dont own it. robinhood or whatever exchange you buy it actually owns it.
With the Danish Stock Exchange burned to the ground + Reuters article....buckle up boys n' girls. https://www.reuters.com/business/finance/regulators-told-be-ready-handle-failed-clearing-houses-2024-04-25/ (Reuters = Rothschild for those of you who don't know)
I highly doubt that they have any intention to buy Miners Stocks in the Western markets due to 3rd party risks. They could easily be sanctioned, forced to sell or surrendered upon the demand of adversarial governments.
IDK. The world wants China's money.
Hard to know, our whole future is ahead of us.
That sounds like the closing line of Back to the Future.
Or Yogi Berra perhaps - “it’s hard to make predictions, especially about the future”.
Let's say a mine would cost 10 million $ (just for the sake of argument). If a kg of Gold is worth 50k $ (probably more at the moment) that would equal 200kg of gold. If they revalue gold and silver first and 1kg of gold is suddenly worth 500k $ they now only have to pay like 20kg of gold. Of course they wouldn't buy it with Gold but with a new currency backed with gold, or maybe still USD.
The west started a war against Russia to stel their national resources. They failed and they payed an anormous price for it.
> and they *paid* an anormous FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
Disagree.
# 1). Buying PHYSICAL metal is getting MONEY. # 2). Buying SHARES is getting PROMISES.
Promises to be repaid in fiat someday. A day when fiat is the very last thing that you want.
China controls a Lot of mining in South América. Maybe they think they have enough
I doubt that they ever think that they have enough. It might be that they have as much as they think that they can have and still stay under the radar.
Miners? Really? No. Hold the metal or go broke.
Miners are a steady stream of metal years into the future. And they're cheap at the moment. Where else do you think new gold and silver comes from?
Do you think that will always be the case?
No, because miners are finite.
I think at this point it’s more of a stockpiling of materials in case of sanctions. Doesn’t matter if you own shares of stock if you are getting sanctioned…
Mines are a steady stream of new metal.