Monday, March 26, 2012

CHILD'S PLAY

If only it were child's play. The casino is in a desperate position with declining volume and participation. Luring the risk on trade back in to the greatest game on earth is not such an easy task for the bankers. The pain inflicted by the bankers on the peeps last year coupled with the pain still felt from the thrashing of 08-09 has appropriately taught many retail investors to stay away from equities. Just when some damage had started to heal, last years beatdown created open wounds that will not be easily healed. Right now the liquidity drain from years of overleverage is forcing the Fed to pour in fiat to keep the entire system functioning. This will continue until the costs of essentials rising FORCES the Fed to stop the fiat printing.

Feel free to fall for the game of whether there is QE to come or not. It is a game of illusion. QE has NEVER stopped and it cannot stop......at least until the above stated costs of inflation force its downfall. There are multiple QE programs at work around the world now. So separate yourself from that disinformation. When you go back in a few years and look at the charts of PMs and the PM miner equities you will be amazed at the most recent beatdown and just how insignificant it will look.

Enjoy the game because the reality of what is happening underneath the surface of the disinformation is not nearly as pretty as the illusion of faux prosperity. Prepare. gl all

8 comments:

  1. GM all. I would appreciate comments on the new GORO divi pgm. to take them in physical...www.goldresourcecorp.com. Any takers here? I sold my GORO last year b/c my profits were large. :(. TIA.

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  2. Hey sometime I'm good at this....go Xoma go..double for sure.

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  3. That is very interesting sister...of note (at least to me) is the fact that the storage costs are not fixed but based on value? Is that normal? Also, unless you own a lot of stock, you are kind of stuck deciding to let the dividend amount grow in order to choose (chase) gold, or convert right away to get silver. Could be a crazy decision trying to figure out what to choose to invest in.

    The fist section makes it look like the storage cost is only part of calculating the conversion price but the second section shows its annual, payable quarterly. Also not mentioned are the Computershare charges...but I went through it real quickly. Still looks like it could be fun.


    What premiums and fees can I expect to pay when participating in the program?

    This program is not viewed as a revenue stream for GRC. GRC passes along only the basic costs of minting and delivery. By passing along only those basic costs GRC hopes to be competitive with its Gold and Silver Dividend Program when compared to alternative physical outlets.

    GRC’s Minting costs: Gold ounce = $30.00
    Silver ounce = $1.90
    Vaulting costs: w/ GBI = 50 basis points (0.50%) annually for gold and 60 basis points (0.60%) annually for silver and is payable on a quarterly basis
    Delivery costs: Varies depending on amount and destination of shipment.
    Transaction Fees: GBI does not charge a transaction fee to facilitate the dividend program.

    The above costs are those associated with owning physical metal and will be added to the London P.M. Fix (10:30 A.M. EST) on the dividend Record Date in order to establish the price of GRC Double Eagle one ounce rounds on the conversion date.

    How much does it cost to store my physical metals?

    GBI will charge GRC shareholders an annual fee for storage, client service, insurance, general oversight and recordkeeping of client assets. This fee is 50 basis points (0.50%) annually for gold and 60 basis points (0.60%) annually for silver and is payable on a quarterly basis.

    GBI calculates its storage fees based on the daily average value of a client’s position during the course of the month. The client only pays, for example, the fee for the metals they have in their account for that specific period. GBI will issue a quarterly invoice to shareholders for the total fees owed. Clients’ cash accounts will be automatically debited for this fee from their individual Bullion Account. In the event that a client does not have a current cash position adequate to cover the account fees they can deposit only those additional funds via wire or check necessary to cover fees. Outstanding fees will always be debited from free cash prior to a metals conversion. Funds deposited will only be used to cover fees; all money for conversion into gold and silver must come from Computershare and reflect the dividend amount.

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  4. NKTR having another good day. Affymax's drug Peginesatide (Brand name to be Omontys) got FDA approval today. NKTR will be paid royalties. The drug is used to treat anemia in chronic dialysis patients and only needs to be given once a month.

    I think NKTR's truly big day will be when the company gets bought. Who knows when that will be.

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  5. readded my Gale...and Bill Gross was just on CNBS saying Gold should be in your portfolio

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  6. Doctrader, I noticed NKTR, nice trade! AFFY has been moving up nicely for weeks..CRIS finally made a move back towards $5..lots of money rotating in and out of bio speck plays...

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  7. I'm buying ZLCS down here for 2-3 month play..volume looks like accumulation

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  8. ZGNX another possible biotech play. I bought in @2.09. Thanks for your comments on Goro Homer. Guest on the radio now saying re: Geithner's refusal to name a number. The speaker's number is $200Trillion or $1Million for every taxpayer. ::).

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