Quote Originally Posted by gunDriller View Post
it will take a while to figure out the mathematics of this suppression.

how do you model a rigged market ? is the model useful or is it a circle jerk ?


it's wierd watching the disconnect (between paper & physical) grow.

personally, i like the response of small scale miners to these artificially low prices. their gold and/or silver in the ground is money in the bank. mining it is an arduous process that involves sweating, breathing dust, etc.

if they feel that they are being inadequately compensated, they will just go fishing.

when Gold was $1900, they hustled - cause they only got paid for physical.


have one friend who usually runs a dredge in the summer. not this summer though. the metal in his claim isn't going anywhere. he will probably enjoy the downtime.

meanwhile over at Barrick, crazed managers are running around trying to figure out how to make money.

i think i prefer the business model of the independent miners.


also, in the long run, i think the Indian and Chinese currencies benefit the most from this situation. because the people there are loading up on the Phys.
I fear that I know how these miners will "make money" and scrape together enough cash to survive. The banksters will tender an offer, to buy future production at (albeit artificially suppressed)today's spot price plus a "generous premium." The miners will have two choices: take the (rotten corrupt) deal and hedge production, or go out of business. If they go bankrupt the banksters will buy them up for pennies. Talk about "an offer they can't refuse." JPM makes Don Corleone look like a piker. What a screwed up world it is.