Subscribe via email, get all daily posts sent to you next day (and without all the annoying ads)

8/27/11

Mercer Gold (MRGP.ob) blows up in Gordon Brent Pierce's face

This humble corner of cyberspace has always maintained that scumball scamrunner Gordon Brent Pierce was the guy behind the Mercer Gold (MRGP.ob) scam. With this legal action dated August 25th, that seeks to strip Mercer of its Guayabales property in Colombia (of behalf of the people that optioned the property to Mercer, because they've been messed around one too many times by the Brent Pierce scam) we now have more light getting shone upon him.

Here's an extract:
Headsup thanks to the commenter in this previous IKN post on MRGP, dated May 2011.

OT: Yesterday at the World Athletics Championships, Sogelau Tuvalu of Samoa runs his new personal best time

...of 15.66 seconds.


Lane seven is where the action is.

8/26/11

The Friday OT: Miki González, Danza del Agua Tusuy Puquio

Miki González is great. Born of 80s rock that was into copycatting northern styles at the time, González has never stopped growing artistically and nowadays creates beautiful original sounds using traditional music backdrops.



This is track one from his 2004 Inkaterra Café album (100% instrumental, so fear not you non-Spanish speakers) and if you like what you hear (betcha you do) click here and listen to more of the same.

PS: Special thanks to Edwin.

IKN recommends: Boiler Room

Why so? Because it's funny hardcore capitalism. Here's an example.

Lots more fun where that came from, too. Go to Boiler Room via this useful link, esteemed ladies and gentlemen readers of IKN.

Public service announcement

z

Chart of the day is...

...from a geol friend, and goes a long way in explaining why those junior mining market commentators who pretend to be geols but have no qualifications are basically full of shit.

Here's the script that accompanies the chart, received by your author this morning:

"...here is my chart of the day and an associated diversion from the markets.  It shows geochemical data from a project presented in a way to investigate alteration intensity.  Each rock type is identified by a symbol.  If the world was very simple, each rock type would plot in its own unique location but like people, rock composition is variable right from birth.  Added to this original compositional variation are analytical variation and variations from effects of hydrothermal alteration, which is the variation of interest to me.  The element concentrations reported by the lab need to be adjusted mathematically based on chemical theory (not statistics) in a manner that helps understand a geological process like alteration.  In this one, the scatter in pink and red dots shows how much alteration has modified the rock composition.  Since altered rocks are found close to ore ($$$) and unalterated ones are further away, explorers can use this alteration gradient to direct them to the deposit.  The pink diamonds started life at about (0.07, 0.7) and the red ones around (0.10, 0.10).  Alteration displaces these original compositions up to the right so using this diagram with knowledge of where each point is located in geographic space, I can define the alteration gradient.  The trick is knowing how to process the analytical data and arrange them for plotting.  In case you are interested, the trick is based on vector algebra...every mineral has a chemical formula (eg. orthoclase, a common mineral in rocks = KAlSi3O8; which shows the molar proportions of elements as one part K, one part Al, 3 parts Si, 8 parts O; or 1:1:3:8).  The molar proportions are the coefficents in a matrix and elements are the variables.  Since we have many minerals making up the rocks we sample, we have multiple equations of minerals that define a multidimensional geochemical space.  These can be solved in a manner that orients the view of space in a way that helps us understand the data.  Cool huh?"

I love geologists. DYODD, dude.

8/25/11

A video on Peru's "Law of Popular Consultation"

A really good video that explains clearly the situation now at hand with Peru's consultation law for new projects, including mining projects of course (thanks to reader J for the headsup).


You want the paydirt? Minutes 6:00 to 8:31.

Another chart with pretty coloured lines on it

Yesterday in this post we pointed to B2Gold (BTO.to) in this chart, let's check in on how that call is going:



Annoying, aren't I?

Good news for the serious type of gold longs: The Kitco indicator has just flashed the infallible "gold is bottoming" signal

In much the same way as we noted last Friday, August 19th in this post entitled "The classic and and infallible short-term gold top signal has just been triggered", you author has just gone over to the Kitco site and received the very same message as gold moves down:

Service Unavailable

 Was the reply received.


Yes indeed, the headless chicken money that moved into gold last week is now in its final exit stages. So let's just check that on the chart:

DYODD, dude.

UPDATE: Reader 'RB' sends in the following image, which is nicely meta. Thanks RB.


Coro Mining (COP.to): The San Jorge project rejected by Mendoza's parliament


It was all set to be delayed (if that makes sense) until after the election on October 23rd, but yesterday the parliament of Mendoza made a somewhat surprising decision and decided to debate and vote on whether the San Jorge copper project owned by Coro Mining (COP.to) would be given its permission to operate.

The result: The San Jorge mine has been rejected by the parliament of Mendoza. It's not going to be a good day for holders of COP.to shares, folks

UPDATE: This post went up at 07:58am, some 32 minutes before the bell. Ten minutes later the stock was halted. Just sayin'

UPDATE 2: Gawd, it took 'em long enough. Here's the NR, just released with less than 90 minutes' playtime left before the close:
Press Release Source: Coro Mining Corp. On Thursday August 25, 2011, 2:38 pm
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2011) - Coro Mining Corp. ("Coro" or the "Company") (TSX:COP - News) regrets to announce that the Provincial Legislature of Mendoza has voted against the ratification of the Company's approved Environmental Impact Declaration ("EID"), notwithstanding that the EID was conditional, inter alia, upon the Company's Argentinean subsidiary, Minera San Jorge ("MSJ"), complying with the highest standards of environmental protection, control and monitoring prior to, and during the construction and operation of the project. Over the past 3 years, Coro has strictly complied with all laws and regulations, including the 7722 law which required the ratification of the approved EID, and has made every effort to ensure that the legislators were fully informed about the project. In addition, a Mendoza court recently determined that the process which led to the approval of the EID was neither illegitimate nor arbitrary, and therefore fully complied with provincial law.
As recently as August 24th, the head of the Lower House confirmed that the ratification vote would take place after the elections scheduled for October, in order that the decision could be taken based on the merits of the project and not on a calculation of electoral advantage. Unfortunately, the vote took place in any event, without consideration of the conclusions of the legislature's commissions who have spent the last several months evaluating the EID, and more pertinently, the validity of the process which led to its approval. The decision to not ratify the EID was taken against the clearly expressed wishes of the current government, with whom the Company was in advanced discussions aimed at delivering a carried 10% interest in MSJ to the province.
Coro will now consider its alternatives to seek legal redress and compensation through the Argentinean and international courts. In particular, the 7722 law is currently subject to legal challenges of its constitutionality by Coro and several other parties. We anticipate that this lawsuit may be resolved by mid 2012 and in the event that the courts find that the law is indeed unconstitutional, the denial of legislative ratification of the Company's valid and approved EID, may be deemed to be null and void.
Finally, we wish to express our gratitude to the people of Uspallata who had supported the development of San Jorge. We sincerely regret the rejection our project by your elected representatives, especially given the rigorous review and consultation process that has taken place over the past 3 years. Coro had hoped to work with you in raising your living standards and demonstrating the economic and social benefits that San Jorge could have brought to your community; unfortunately, this opportunity has now been denied to us.
CORO MINING CORP.
Alan Stephens, President and CEO


You want an Ottotrans™ on that? Ok, here goes:

"We're screwed"


Chart of the day is...

..GLD, the gold ETF, 10 days:

Enjoying the doldrum August markets, are we?

8/24/11

Rio Alto Mining (RIO.v): Just in case you were wondering...

...why Rio Alto Mining (RIO.v) has been hanging tough and shaking off the gold price downturn today (it's actually green on the day), the likely reason is that Ian Parkinson of CIBC World Markets (along with assistant Matthew Gibson) published an opening of coverage report on the company yesterday after the bell, called RIO.v as a buy and stuck a $3.80 target on the thing. I've read the report and must say it's a very well written and strongly constructed argument too, so kudos to Parkinson.

Just so you know. DYODD dude, cos I'm long this one.

UPDATE (post closing bell): What? You'd like to read it too? Ok, here you go, download a copy and knock yourself out.

Peru passes its "Law of Popular Consultation" in a unanimous vote

As mentioned yesterday in this post, Peru's congress was due to debate its new law of popular consultation yesterday and it did just that. But even better, the law project was passed with a unanimous vote, 113 to zip. 

For those potentially affected by this law we strongly advise a good reading of its contents, found right here (this is a late stage draft and we understand that two minor changes were made afterwards, but the important content is unaltered) because there's more than meets the eye to this soon-to-be new law (once Prez Ollanta has signed it) it seems. But for those of you who can't be bothered to read a whole chunk of Spanish legalese your author will do the reading for you and write up a summary of the thing in IKN121, out next Sunday.

After all, guy's gotta have a hobby, right?

UPDATE: Final final version here

A chart with pretty coloured lines on it

Just thinking out loud here...

DYODD, dude.

UPDATE: You want to know what I think about gold right now? What he said right here, 100% agreement with the smarty charty dude.

Janice Shell of Streetsweeper: "I don't know a great deal about mining"

Here's a mail exchange that happened last week between your author and Janice Shell of Street Sweeper, co-author on yesterday's hit-piece about Gold Resource Corp (GORO) that has so far pocketed over $100,000 for the short-selling snakes in the grass at that morally defunct house of reprobates. You'll note

1) She thinks that just because i launch into junior mining stocks and shine a bit of light on the shadier practices in this sector I'm automatically the shorty's bosom buddy pally pal friend. Wrong, I'm the friend of truth, not some back-the-back moneymaking scheme run by asshole shorts who manipulate the market just as much as the bullshitting junior miner longs of this world.

2) She's happy that I pointed out a few home truths about GORO in this recent post, but "wished I'd said more". In other words she's already looking for unsubstantiated dirt. Sorry lady, it doesn't work like that, I stick to the facts (however much they might annoy longs of the stocks in question) and leave the bullshit lies for ulterior motives to sites like yours. 

3) I freely offer up opinion on her questionscall the rabid longs in GORO 'goldbug mouthbreathers' because that's what many of them are in my opinion, one that's backed up by several inane mail exchanges already (so don't bother guys and save your tinfoil rants for somebody else). 

4) She freely admits, without any sort of prompting, that she doesn't know much about mining. However that didn't stop her from writing a detailed hit piece on a mining company that her company had previously and quietly sold short. 

5) She has no qualms about putting words into my mouth, or changing previous statements she made to me (about a previous conversation on POTG.pk, a stock a willingly and loudly called a scam bacause it is a full-blooded pump'n'dump scam, period). When corrected, she just ploughs on trying to dig dirt that isn't there.


Final point before you read the mail exchange below. I've told a couple of high-up officers at GORO (names withheld) that I don't think GORO is a scam, I just think it's overvalued for what it is. I then wished them luck, told them to go out there and prove me wrong and that was that. We continue after the mail exchange, which is pasted in full, no typo corrections, no grammar polishing and nothing at all left out.

Janice Shell to me
show details Aug 16 (7 days ago)

Otto--

StreetSweeper is looking at GORO (but please don't tell anyone).  I've read what you've had to say about it, but wish you'd said more.  What do you think of it?  I agree that for now, they're a silver miner, not a gold miner.  What are the chances of that changing?

And what, of course, about Hochschild?  I gather from their most recent annual report that when they invest in a company as heavily as they did in GORO, they intend eventually either to take control, or divest entirely.  They haven't bought any stock since June 2010, which suggests they've decided on the latter.  But how would they get rid of that much stock, and to whom could they sell?  Have you heard anything?

I'd love to hear about anything else you might know.
janice

xxxxxxxxxxxx
 
otto rock to Janice
show details Aug 17 (7 days ago)

I think there's two main issues with GORO

1) No drilling program so far means that there's legitimate doubt as to what they have underground.

2) It's overvalued for what it is. I've run numbers and in an optimum situation (i.e. they find the mineral they say there is down there and keep on finding it) with Ag & Au at current prices, GORO is good for a 50c EPS. From that I'm good with a $18 share price, $20 tops. (ABX sells at 9X PE, why pay more for a pissant 450tpd miner?)

HOC.L is an extremely difficult company to read policy-wise. Difficult like Glencore is difficult. It's worthwhile to consider the long term history of HOC the company, because they made their company by buying prospective looking vein properties in Peru (well, first tin in Bolivia, but that's REALLY going back) and drifting down with no drilling done until they run out of Ag. It fits their history to invest in this minimally drilling GORO thing. But try to 2nd-guess what goes on at HOC BoD level and you'll spend days and weeks getting nowhere. Tough read, that company.

However I think HOC is now trapped in. They can't sell wholesale (to who?), they can't start selling on the open mkt cos it'd rank the stock in minutes. GORO is forced to defend its high share price and so far it's shown it can be done quite successfully. Having a bunch of mouthbreather goldbugs as your core support helps a lot too, of course. :-)
xxxxxxxxxxxxxxxxxxxxxxxx
Janice Shell to me
show details Aug 17 (7 days ago)

Thanks very much.  It's interesting that HOC doesn't thing drilling is worth the trouble, either.  GORO's attitude seems pretty much to be that they haven't done it simply because they don't feel like doing it, which is odd.  If they got round to it, presumably their financials would be more impressive to potential investors, because they could book their proven and probable reserves as assets.  But they don't care.  Over the years, they've said that to do a feasibility study would cost them about a million dollars.  Compared to what they've spent on the El Aguila project alone, that's a drop in the bucket.  So why not?  Recently they've been saying in conference calls--but NOT in their SEC filings--that they intend to do one this year.  I doubt that'll happen.  If they were serious about it, they'd have begun by now.

I don't know a great deal about mining, but I think if I were going to spend millions and millions on a mining project, I'd want to have a good idea what I could expect to find underground.  Even companies that have no intention of doing their own mining, but only want to sell their claims to the highest bidder, cough up for the NI 43-101s that will make it possible.  

What if GORO so expensive because the price of silver, not gold, is so high?  After all, they do have silver.  Much more silver, it seems, than gold.  So they benefit from the price of silver AND the enthusiasm of the goldbugs.  

You said in your blog that one of the Reids was posting at Yahoo.  Which one, and what's his alias?

Thanks again...

janice
xxxxxxxxxxxxxxxxxxxxxxxxxxx
otto rock to Janice
show details Aug 18 (6 days ago)

No, I didn't say in my blog that one of the Reids was posting at Yahoo, if i were you i'd read what I wrote again. And while we're on the subject, I remember a while back (re POTG) that you made a comment about me being such-and-such poster on such-and such board. That's not true either, because i don't post on any bullboard anywhere and rarely even visit the things.

All in all it seems to me that you're a little too quick in jumping to conclusions. That'd likely be true for mining companies especially when you say that "I don't know a great deal about mining".
xxxxxxxxxxxxxxxxxxxxxxxxxxxx
Janice Shell to me
show details Aug 18 (6 days ago)

Sorry.  When you said "managerial team" I thought you meant a Reid.  

Hey guys over at the Yahoo board, did you know that GORO management are regular readers of your posts? Hey, wouldn't it be interesting if you found out that one of the posters there was in fact part of the managerial team at GORO, too?

I was merely curious; I wouldn't write about anything I couldn't prove.  As for the IHub poster calling himself "Bruce," I asked if you were he simply because whoever he is, he seems knowledgeable about things Peruvian.  He found the Wuakakuy claim numbers, the names of the original claim holders, and a few more things.  And he offered up Luna's cellphone number.  He's obviously not a fan of POTG or Luna, and is a native English speaker.  He was a brand new poster.  So I think you can see the logic of my question.  

Did you know that now Luna wants to do a 10:1 forward split?  That would raise the outstanding to 4.5 billion shares.  He now seems to be trying to appeal to hard core penny plungers.  But he's kind of screwed things up with FINRA; it may not happen.

janice
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

otto rock to Janice
show details Aug 18 (6 days ago)

No. What you wrote was, "The penny dropped:  you must be "Bruce" on IHub."

If that's your way of asking a question, I suggest a few remedial English language classes.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Janice Shell to me
show details Aug 18 (6 days ago)

Again, I'm sorry.  Though I wouldn't be so offended.  But then people confuse me with others all the time.  

Whoever "Bruce" may be--and I do wonder--he had some interesting information.


IKN back. That's the point where I decided I was thoroughly pissed off with this Janice Shell character and didn't bother to reply. Finally, as pointed out by an industry professional and friend this morning, the brains behind The Street Sweeper, a certain Hunter Adams, has a resumé that looks like this.
 
Hunter Adams, a member of the expert advisory board for The Street Sweeper/American Fraud Fighters, understands stock manipulation firsthand.  Adams entered the securities industry 15 years ago with a focus on high-risk penny stocks.  He quickly became an expert at establishing shell corporations, executing reverse mergers and selling both equity and convertible debt in speculative small-cap companies.  His career ended in 2001, when government investigators accused him of manipulating worthless penny stocks.  He pled guilty to two conspiracy charges -- for securities fraud and money laundering -- and served time in prison for his crimes.  Years later, he pled guilty to racketeering charges, fully cooperated with the government and accepted full responsibility for his actions.  Today, he has embraced a life of reform and now hopes to help protect the public by exposing others who tread in the same murky waters he once swam in. To contact him directly, please send an email to hunter@thestreetsweeper.org.
 

My industry pal also said (and I quote), "Here’s my nomination for “Spin of the Year”. The ... bio serves as an excellent tutorial from short-promoting StreetSweeper.com for turning a thrice-convicted white collar criminal into the number two crusading do-gooder at the organization, now pledged to root out his former compatriots in stock fraud.... Now all they need to do is provide him with mask and cape, and he becomes the next American Super-Hero"

The only thing wrong with my pal's note is he doesn't click that Hunter Adams is the whole bankroll behind Street Sweeper. And let us not forget that:

* Important Disclosure: Prior to the publication of this article, TheStreetSweeper (through its members) has effected a “short sale” of 74,246 shares of GORO stock at an average price of $25.28 a share with the intent of profiting from decreases in the share price. TheStreetSweeper has also purchased 50 September 2011 $30 "put" options priced at $5.80 apiece, hedged by the sale of 50 September 2011 $25 "call" options priced at $1.15 apiece, as well. TheStreetSweeper may choose to make additional trades in GORO securities, potentially covering part or all of its short position in the stock, and will fully disclose the details of those transactions as they occur. 
Update: TheStreetSweeper covered 3,200 shares of GORO stock at a price of $23.23 a share on Aug. 23. Following that transaction, TheStreetSweeper continues to hold a short position of 71,046 shares of GORO stock at an average price of $25.28 a share.

Disclosure: no position of any sort in GORO (not short, not long) and it's going to stay that way.

Chart of the day is...

...gold, dailies

8/23/11

BREAKING! First photo of USA East Coast earthquake destruction!

Find it here

Evangelizing Lungs of the Earth

One of the benefits of running a blog about LatAm issues that's been around a while and has (for reasons not really understood by this humble scribe) built up a chunky readership, is that we get to point you away from the mediocrity and crud of IKN and toward new, quality blogs and sites. Well folks, it's time to say that new destination for Brazil enviro matters, Lungs of the Earth, is the number one best new blog I've seen in a long long time. This call is made on its last two posts which are both superb reading material.


This post is dated Saturday August 20th and is all about how wind power is competing and beating traditional electricity generation methods on a level playing field. No government subsidies, no skewing the math, Brazil's wind power generators are now in the position to compete directly against the coal burners and win contracts because of one simple fact: They're cheaper


This post is dated Monday August 22nd and covers what people do, or don't do, with all the waste generated by the enormous coconut juice industry in Rio. A fascinating look behind the scenes and at a businessperson who's trying to make the recycling of coconut husks into a profit-making sector, which also shows how local politicos and established businesses are more of a hindrance than a  help.

So make Lungs of the Earth part of your reading life, kind visitor to IKN. Not only is it written by somebody who knows what they're talking about, it's beautifully written prose as well. Top quality blog at your disposition.

Gold Resource Corp (GORO) in the Street Sweeper

This morning, a hit piece on Gold Resource Corp (GORO) appeared in Street Sweeper that along the way quotes your humble scribe. For the record I have just sent this two line mail to Janice Shell, co-author of the piece:

You did not ask for permission to quote me in your report and I did not give it to you.

I would like you to remove all links to my site and remove the quoted text immediately.

I have no wish at all to be involved with your shenanigans on Silver-With-A-Bit-Of-Gold Resource Corp (GORO), Street Sweeper, as BS is found on both sides of this stock and you're part of the problem, not part of the solution. You have until this time tomorrow, Janice.

Disclosure: No position in GORO at all. Not long, not short, not me, not family, not friends to the best of my knowledge.

A gold rant (from IKN120)

By request, here below is the rant on gold that appeared in the intro section of The IKN Weekly issue 120, out last Sunday. When not one but three readers of the Weekly write in and suggest that it go on the blog, I bow to their collective desires. Thanks people

A gold rant (feel free to roll your eyes and move to the next segment)
Seems to me that so much serious money is now taking some sort of QE3-type stimulus from the Fed as its baseline that it’s not going to make much of a splash if (sorry, when) a formal program is announced and implemented. In fact, it might just let some of the air out of the speculative b___le (hah! You nearly caught me using the B word, didn’t you) currently around gold. On that subject, here’s a muse on the current action in gold. Many months back when gold was flirting around the $1100/oz to $1200/oz level, I took time in one of the Weeklies to ask two questions and then just ploughed forward and answered them. Paraphrased somewhat, those two questions were:
1) Is gold in a bubble? Answer at that time, I don’t know
2) Even if it’s in a bubble, is the bubble about to burst? Answer at that time, NO.
That was then and looking back all 20/20 and that, I’m happy enough with that call. But this is now and here we go with the same questions, but this time answers that pertain to IKN120, dated today August 21st 2011.
1) Is gold in a bubble? Answer: YES
2) Even if it’s in a bubble, is the bubble about to burst? Answer: I don’t know.
So a couple of thoughts on those two Q&As, starting with 1). This below is the 12 month chart for GLD, the gold ETF, and before we continue you’ll hopefully note that I’m not pulling down one of those veeeeery long term gold charts that offers up a price line acceleration in the last year or so to rival the North face of the Eiger. That’s not the point, we’re basically all friends of gold here and I for one will state right now that I have absolutely zip squat nada zero intention of selling any type of bullion position (gold, silver, you name it).
With that hopefully clear, if you can look at that chart and tell me you don’t see speculative interest moving into GLD with the greatest of respect I’d suggest a trip to the optician’s. Up to perhaps end of June the price rise was healthy, with its small corrections along the way but a clear and undeniable trend-is-your-friend. But then in July things started to accelerate and now in August they’re flying.
I don’t want this kind of speculative mania in gold, for reasons that should be apparent to anyone holding the underperforming junior silver producers a few months ago when Ag the metal shot to $50/oz and then dropped. But that nice Mr. Market doesn’t give two hoots for my personal preferences (and rightly so) and today’s action in gold does indeed show signs of doing the same thing as silver did a few weeks back. And hey, let’s be clear about the potential consequences starting with how we’re all going to have to be prepared for the noise from the told-ya-so brigade that has been 100% wrong for a decade and just can’t wait to be right, if only for a few weeks. They’d be insufferable...for a short while least.
However, before we get ahead of ourselves and start predicting the end of the gold run around Tuesday lunchtime (between main course and dessert), let’s consider Q&A 2). I say that yes, gold is in a bubble right now but then again, gold can keep on keeping on in a bubble for quite a while yet. Not only that, but if we are at an end, this is the late stage of a chapter in the spec moves and we’re closing in on a parabolic blow-off top, there’s still nothing to stop gold the metal from going a lot higher in a very short space of time before the blow-off arrives. Truly, $2000/oz by the end of next week would be pretty spectacular from a market watcher’s point of view but I wouldn’t be astounded and dumbfoundedly amazed by such action either.
And now, finally, the real thing I want to say here. All the above is pretty typical “what’s gold gonna do?” type chatter and in its own way entertaining. However, gold shouldn’t be part of your financial life for the amount of dollars you make from it from one day to the next. Gold isn’t about a nominal price in US Dollars. It’s not about seeking alpha against the market (or at least it damned well shouldn’t be, which is another good reason to suppose that rampant speculation taken hold in the last two months or so). It’s not about demand, nor supply, nor anything else that affects a commodity. That’s because:
  • Gold is not a commodity, it’s an asset class. Gold isn’t silver, or a PGM, or copper, or zinc or yttrium. Gold is gold and financially speaking unlike any other metal.
  • To quote Gary Tanashian on this (because he nails it down well), gold isn’t about price, it’s about value.
  • Gold isn’t something that makes you rich, it’s something that stops you from becoming poor.
Et cetera (and at this point feel free to remember your own fave line about gold or perhaps a JP Morgan or Rob McEwen quote). Measuring the price of gold against dollars is fun, but it’s not the true measure of the stuff. To get the real handle on gold, measure it against life.

Peru's "Law of Popular Consultation" due to be debated in Congress today

Now things are beginning to settle in at the newly formed den of corruption known as Peru's national congress, it's time to get to work (or justify the congress members excessive salaries and expense accounts anyway).

Due up for debate and approval today Tuesday is the so-called "Law of Popular Consultation" that gives the right of approval to local residents about any natural resource extraction project in their regions (mining, hydrocarbons, etc). This law, based largely on the OIT169 international accord to which Peru is already a signatory but has never truly implemented, was passed during the García regime but the President refused to sign it into law. This time around, with Humala at the helm and enough cross-party agreement on this deal seemingly in place, it looks like becoming law.

Here's a quote about the deal from Gana Perú party (Ollanta's crew) spokesperson Freddy Otorola:
"We cannot govern behind people's backs and the only way to consolidate democracy is listen to the people".

Translation: If mining companies don't play nice, they're out. Sadly, the dumbass treehuggers at MiningWatch now think all their Christmasses and birthdays have come at once.


Charts of the day are...

...the five year forex charts of four South American currencies versus the U.S Dollar:

The Peruvian Nuevo Sol (PEN):


The Chilean Peso (CLP):
The Colombian Peso (COP):

The Brazilian Real (BRL):


Notice anything in common? Surely nothing to do with the fact all these are commodities/exports based countries that use standard macroeconomic theory to run their gigs...

8/22/11

Come on, own up somebody

Which one of you paid $3.19 for GPR.to at the bell this morning? C'mon...hands up...

Fortunately, such impatience only affects your own back pocket and not anyone else's. Up to you to decide whether there's a lesson for next time, meanwhile I'm going back to bed.

The Swedish Kroner and gold

Seems to me that it'd be really good to find a small gold mining company that's operating in Sweden and benefitting from the new trend in local currency, while at the same time making something like U$900/oz margin from every ounce it sells. Not only that, but if its annual gross margin added up to about half its market cap right now the stock would be a raging, no-brainer type buy, wouldn't it?


Anyone know a company like that?

Chart of the day is...

...oil, weeklies.

We also suggest that you visit market narrative more today if you need market action junkie type commentary, because your humble scribe is feeling a tad under the weather with a cold and will bed in bed as soon as a couple of trades are decided upon. Market Narrative has a better comments section, too.

Anyway, yeah, oil. Here's the weekly chart that shows Austrian economics followers as just as good at hiding facts away when they don't suit their purposes. If that's hyperinflation, I'm Chinese.

And I'm not Chinese.


8/21/11

Don Coxe CC

Reader M sends in the link to the Don Coxe Weekly call. It's right here if you'd like to enjoy Coxe's thoughts on the market, too. Thanks M

The IKN Weekly, out now


IKN120 has just been sent to subscribers.