Thursday, 26 January 2012

Junior Gold Explorers - The Safest Ownership of Gold

Consider the write down of excess debt by devaluation of currencies, all currencies.
Devaluation against what if all currencies are to be devalued?
Against gold held by central banks and old money which needs to begin to move again.

Consider a point when the Gold price has advanced substantially in nominal terms.

Consider government actions to tax "windfall" profits on nominal gains made by the evil speculators and hoarders of the relic.
Tax the hoarders who took metal cheaply from the hands of the Cash for Gold party-goers and stuffers of broken gold into envelopes while gold prices bubbled.
Before they doubled.

Tax Owners of metals.

Tax producers of metal to maintain enough incentive for investment into production to earn at "utility" returns levels. (Jim Sinclair sees the gold stocks as the utilities of the future).
But tax the excess profits.
Pay off the deficit with the ill gotten gains of a lucky industry.

Then tax gold explorers?
Or promote exploration everywhere to encourage mine development and increase taxable production levels for governments.
To mine and print new money.
To tax ill gotten gains.
To recapitalise the banks with gold.

Explore, drill, discover your money supply.

In the meantime - bloody risky.

Please note - English irony; I think there's some truth in the above, but having endured 2011, junior gold miners felt anything but safe ....

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