 Centennial Precious Metals Gold coins & bullion since 1973 Denver, Colorado 80246-0009 We educate first-time investors! |
for quotes and purchase information.
|
ARCHIVED DISCUSSION FROM 12/30/2000
All times are U.S. Mountain Time
(Yesterday's Discussion.)
Peter Asher
(12/30/2000; 22:04:46MT - usagold.com msg#: 44729)
Xmas and the power of the Internet
A bit late on this post but just last night I finished six weeks of being "boot-footed, contracted, and chained to a remodel.
Five years ago I was reminiscing about a series of books that were extremely enlightening to me at the age of eight, that being in 1942. Published by John C. Winston Co. of Great Britain in 1935, these books were titled "The Story Book of (Wheat, Sugar, Rice, Trains, Ships, Aircraft Transportation, Food, Clothes, Houses, Coal, Oil, Iron and Steel and Gold)."
The writers were Maud and Miska Petersham, prolific illustrators of their time. Fifty-five years after reading them, I still had vivid recollections of renderings of sixteenth century miners in medieval clothing being lowered into the earth with candle in one hand and pick in the other. There was an incredible painting of an alchemist hunched over his mortar and pestle, apprentice stoking the oven, animal skulls and crocodile carcass on the shelf and all the vials and retorts.
These books served an educational function that was not found in grade school at an age when a child should become aware of his environment. I wished I had saved them for my own children and at that point had my first grandchild.
Well, Robin went the used bookstore route, whatever was findable in the ancient world of five years ago and she found one book. I figured they had just vanished into the dustbin of time and I gave up on ever recovering any more.
This Christmas morning, she handed me a good-sized cubicle gift box and inside I found layer after layer of thin, individually wrapped packages. When I got to the last one, it was unwrapped and visible and I knew what these sixteen items were.
After I dried my eyes, I asked her how on earth she was able to find almost every one that had been printed. She said, "E-bay and other auctions and half.com and search engines which cover those and also used bookstores."
When contrasted to the data access potential of a few years ago, the power of the linkage provided by the Net is truly amazing.
Peter Asher
(12/30/2000; 20:45:13MT - usagold.com msg#: 44728)
Hey CM, same to you!
Looks like we're reading over eachother's shoulder.
Peter Asher
(12/30/2000; 20:43:16MT - usagold.com msg#: 44727)
Well, we are discussing this kind of thing.
This is the world in 2015
By James Langton in New York
Global Trends
2015 - Central
Intelligence
Agency [CIA]
CIA
International
Insitute for
Strategic
Studies
THE world is on the brink of a new era that may resemble
the script of a James Bond film in which international
affairs are increasingly determined by large and powerful
organisations rather than governments, according to a study
just published by the CIA in Washington.
These could include alliances between
some of the most powerful criminal
groups such as the Mafia and Chinese
triads. Such groups, according to the
CIA, "will corrupt leaders of unstable,
economically fragile or failing states,
insinuate themselves into troubled
banks and businesses, and co-operate with insurgent
political movements to control substantial geographic
areas".
The agency adds: "Their income will come from narcotics
trafficking; aliens smuggling; trafficking in women and
children; smuggling toxic materials, hazardous wastes,
illicit arms, military technologies, and other contraband;
financial fraud; and racketeering."
The 70-page report, Global Trends 2015, will be required
reading for the new president, George W Bush, and his
senior policy advisers. It suggests that the early years of
the coming century are likely to be filled with both
potential and peril.
Compiled with help from think tanks in America and the
International Institute for Strategic Studies in London, the
report projects a future in which globalisation, whether in
the shape of the European Union, the International
Monetary Fund, giant corporations or terrorist gangs, plays
an increasing part in the lives of ordinary people.
"Governments will have less and less control over flows
of information, technology, diseases, migrants, arms, and
financial transactions, whether licit or illicit," it concludes.
In addition to confronting the growing economic and
military power of China and India and the continuing
decline of Russia, the CIA says: "Between now and 2015
terrorist tactics will become increasingly sophisticated and
designed to achieve mass casualties."
In particular it notes the growing threat of biological and
chemical weapons and "suitcase" nuclear devices against
the United States. In addition, it expects rogue states such
as Iraq and Iran to develop long range missiles in the near
future.
Iran, it says, could be testing such weapons by as early as
the coming year, and cruise missiles by 2004. Iraq could
have missiles capable of hitting America by 2015, with
both nations developing nuclear, chemical and biological
warheads.
Potential flashpoints have a familiar ring and include India
and Pakistan, China's relations with Taiwan, and the
Middle East, where the best that can be hoped for is a
"cold peace".
Elsewhere, the world population will grow by more than
one billion, to 7.2 billion, most of the increase coming in
the mega-cities of the developing world. In Europe and
Japan, an ageing population and static birthrate means that
allowing more immigration may be the only way of meeting
a chronic shortage of workers.
The gloomiest predictions are reserved for Africa, where
Aids, famine, and continuing economic and political
turmoil means that populations in many countries will
actually fall. At least three billion people will live in
regions where water is in increasingly short supply.
On the other hand, there is good news on energy supplies.
"Energy resources will be sufficient to meet demand," the
study says. The CIA report is most optimistic on the world
economy, which it says has a potential for growth not seen
since the 1960s. Computer technology represents "the most
significant global transformation since the Industrial
Revolution".
"At the same time, genetically modified crops will offer
the potential to improve nutrition among the world's one
billion malnourished people. China's economy will grow
to overtake Europe as the world's second largest but still
behind the United States. Russia's economy will contract to
barely a fifth of America's.
The study expects the European Union to narrow the
economic gap with America. It points out, however, that
"lingering labour market rigidity and state regulation" mean
that "Europe will not achieve fully the dreams of parity
with the US as a shaper of the global economic system".
The 2015 report is an update of a 1997 CIA study into the
world in 2010, which it admits failed to anticipate the
global economic crisis that occurred between 1997 and
1998 which had the hardest impact in the Far East and
Russia.
The new survey suggests a number of alternative scenarios,
none of which makes happy reading. These include a trade
war between Europe and America, and an alliance
between terrorist organisations to attack the West. Most
alarming of all, it raises the possibility of economic
stagnation, followed by America abdicating its role as the
world's policeman.
At the same time tensions begin to grow in the Far East,
where China orders Japan to dismantle its nuclear
programme, leaving, the report says, no alternative but for
"US re-engagement in Asia under adverse circumstances at
the brink of a major war".
Cavan Man
(12/30/2000; 20:41:50MT - usagold.com msg#: 44726)
Happy New Year Peter Asher
I read that article too! Did you catch the highlights of the CIA document suggesting what the next fifteen years might hold--link at Drudge? It seems the CIA share many of the same concerns that are voiced here.
There will eventually be alternative energy sources that are commercially viable because there must be. "Life finds a way". That's another reason for the ME to make their hay while the sun is still shining. Very best...CM
Peter Asher
(12/30/2000; 20:31:59MT - usagold.com msg#: 44725)
Maybe it is time to short Oil & NG (:-) ??
http://www.observer.co.uk/life/story/0,6903,416412,00.html
Read the link and say what you think!
Peter Asher
(12/30/2000; 20:21:15MT - usagold.com msg#: 44724)
Trurl:
Before they can be rescued, they must become aware that they are enduring something to be rescued from. That awareness must come first and therein lies the primary challenge.
Trurl
(12/30/2000; 19:44:45MT - usagold.com msg#: 44723)
YGM, all
YGM, your post inspires me to make these observations.
We in the west have been programmed to not even recognize gold as a store of value. Data:
When you think of a classic person who doesn't trust banks – you think of someone with dollar bills stuffed in the mattress – not even gold coins! The media has portrayed this stereotype for decades.
I showed a very smart but young Dutch guy a 10 Guilder gold coin. His question, "what is it worth now?" It turns out he was converting Guilders to Dollars. Gold value didn't even enter his thinking.
It is helpful as westerns to remember that even if we have totally abandoned gold as value, the rest of the world has not. I fear this lesson may be impressed upon us with unusual force, and soon.
I remember being told about Zulus in Africa. They walk everywhere. As was pointed out, they would rather drive a Range Rover than walk, but that isn't in their short list of options. Right now, western people have a long list of options, not just for transportation, but for everything. I wonder how well spoiled rich people cope with sudden adversity. Actually – I know. It was a full 2 two days after the Northridge earthquake in So. Calif before general news reports were made that people were complaining about the food and accomodations being provided to them.
As we begin a new age, it is well to remember who is on our side. The politicians may change; the words, the spin, the lies may be revised with a new polish, but they aren't affecting me anymore. Though Islam is not my religion or experience, I very much respect honest people wherever I find them. It takes something to remind and admit to ourselves and others that we have slipped from the best path.
I don't really see most Americans doing this, until they are subject to rather severe rehabilitation.
I will end with this question left unanswered in the first *the Matrix* movie. OK, so there are a very few people who know whats going on, and can live independantly from the machine. HOW do those few people rescue the millions who unknowingly worship the machine, and seemingly depend on the machine for their very continued existence? Any takers?
YGM
(12/30/2000; 16:51:05MT - usagold.com msg#: 44722)
Islamic Dinar Web Pages.....
http://www.murabitun.org/WITO/trading.html
Did you know that in Islamic market-places a coin of Silver buys as much Chicken today as it did 2000 yrs ago?....There are many interesting pages to read various articles on Gold, Banking, and Usury.....I had lost this site thru crashes and just now located it.....If mid-east was not the probable location of our next War Zone, I'd move!!!...YGM
Hill Billy Mitchell
(12/30/2000; 15:17:14MT - usagold.com msg#: 44721)
@ auspec - Ashcroft
Sir auspec
You are quite right about Ashcroft. A thought crossed my mind as I read your post.
The biggest mistake the democratic party made apart from losing Florida (Clinton's fault) for the way he handled the Gonzalez (sp)was the unethical, border-line illegal destruction of the Ashcroft campaign. Ashcroft and possibly also Jim Talent will hurt them much more in defeat than they would have in victory. Of course on a local basis we Missourians have to pay more, however the trade off even for us seems worth it for us.
HBM
auspec
(12/30/2000; 14:49:32MT - usagold.com msg#: 44720)
GATA & John Ashcroft
I have no idea how this GATA/Reg Howe lawsuit will play out in the end, but can't wait to watch and contribute as an "internet warrior". IMO, there will not be found a more fair and honest candidate for Atty General than JA. THEREFORE, we can expect an intense battle ahead by the GS goons to prevent Ashcroft from taking office. He will be savaged and "borked" if at all possible. Their back is getting closer and closer to the wall and there may be hell to pay, desperation time again. The Justice Dept could go from one of the most crooked in US history to one of the most honest {very hopeful on my part}. How large is this US Establishment split?? There is no denying that there are powerful "camps" lined up across from each other.
The blame game goes on, WJC's lips are moving, and he will say NOTHING in the next 21 days that cannot be interpreted so as to show his hidden motives/agenda. His last message was....."I left everything hunky- dorey so if things go wrong from here it's Bush's fault". So incredibly obvious!
We watch together........
Sierra Madre
(12/30/2000; 13:46:59MT - usagold.com msg#: 44719)
Hasta la vista, 20th Cent.! Some thoughts for kind readers. God Bless you!
"The two percent margin of error."
It is difficult for me to convey to the reader my sense of the lunacy which prevails in the world today. The "world culture" is so intoxicated with false ideas and expectations, that my thoughts will probably be rejected immediately by the great majority. So I write for a very select few, who can perhaps step outside the present world financial and economic environment and see things in the light of a very long-term perspective.
The problem with trying to go through such an exercise is that we have, not only the financial and economic environment to delude us: our whole culture is benighted. Still, I'll try to express my thoughts on the human condition at this end of year, end of decade, end of century, and end of milennium. Cast them aside, if you wish.
It seems to me – as you will note, I use terms such as "it seems to me", "it appears", "perhaps" in order to let you know that I do not presume to do more than express my thoughts, the product of my reasoning. I have lived enough to know that a man's reasoning
can be treacherous; reason can lead us into very great mistakes, unwittingly; in fact, our whole culture is a product of Reason, since the Enlightenment or the Renaissance, and this Faith in Reason, rather than simple Faith, is part of our present dilemma. Further, I think that Reason is many times an expression of character, unbeknownst to the reasoner, rather than a strict logical set of premises and conclusions. So I may be mistaken in my thinking, and excessively influenced by my Bearish character.
"It seems to me" that our whole world culture is bewitched with the idea that the human condition can be improved, and is being improved, in great strides by technology and the application of capital. Especially in the United States, masses of people have been influenced by the educators and controllers of opinion for decades, to thinking that their future will be a great deal better and more enjoyable than their past or present. To Americans, thinking this way is practically second nature, an unquestioned basis of their thinking. To some extent, this attitude toward life has extended itself around the world, and is now a part of the world culture.
However, it seems to me that in the nature of things, this optimism is mistaken.
I feel that in any normal, sound society, based on sound money – gold and silver coinage, with redeemable bills at sight by the bearer - respect for property rights, limited government and low taxes, and low and stable debt levels in every sector, true growth can only come about slowly. Note that I am describing a society or nation which does not exist anywhere on this planet, but some approximation of which did exist in previous times, in parts of the world – the 19th Century comes to mind.
In such a society, a doubling of the wealth in a period of 35 years would be an extraordinary success. To have a nation improve its real condition with regard to the natural scarcity imposed on man, by 100% in a period of 35 years, seems to me to represent a very great success.
A little calculation reveals that a doubling of material wealth in a period of 35 years, implies an improvement of only 2% (two percent) annually. Today, that is regarded as intolerably slow growth – and that in societies which are awash in debt and drowning in increases in irredeemable currency.
In fact, I don't think our world economy is actually and really growing. It is more likely, becoming smaller, dis-growing if you will.
I doubt we are actually improving the human condition, because if we hear of growth rates of 5, 6, or even 7% as a remarkably good growth, with incredible numbers from China of 8 and 9% annual growth, we must take into account other vitally important things going on: the vast increases in debt of all kinds, the increasing fragility of financial structures, the increases in money in circulation (inflation) masked by slanted statistics.
These increases in debt are making possible gigantic investment flows into projects that are going to prove fundamentally unworkable. The "Iridium" fiasco comes to mind. Debt, debt, and more debt: inexhaustible supplies of credit, the other side of debt. All this nightmare of debt in our dying 20th Century, represents malinvestment, destruction of savings, "disgrowth" eventually.
We are not growing richer, we are rapidly growing poorer. We have – Reason at work! – constructed financial systems throughout the world that interlock and this monstrous, Frankenstein machine is destroying wealth the world over. We are not getting richer! We are getting poorer, much poorer! A terrible fact, and, Dear Reader, if you turn me off at this point, I can well understand you. It is frightening to think about. And, what can we do about it? Very little, it is true. But still, the human spirit strives to understand the age in which it lives, be it Triumph or Disaster.
Sooner or later, the madness, the lunacy, of allowing debt to supplant true savings, will come to collect its bills from the human race. A great many of us will not survive, nor will some of our children and grandchildren. Someone called it "The Great Reckoning"- perhaps Lord Rees-Mogg.
Americans are enthralled with innovation, and their delight in innovating has caught on with the whole human race. Such is the power of a dominant culture. However, innovation is a dangerous thing. For many generations, for many ages past, a concern of the State was the containment of innovation. What is the revered, and now practically defunct Constitution of the United States of America? It was a project to install a new order, and to place all sorts of obstacles to innovation! "Don't meddle with the Constitution" is ingrained in many Americans, for many good reasons.
Yet, innovation in all other fields is well regarded. The Educational System of the United States was subjected to innovation, with approval and confidence of the populace, beginning in the late 19th Century and continuing on to our times. Do you approve of the results?
Innovation, change, invention – this is the essence of Americanism. And yet, change is dangerous in all aspects of human life; not only the Constitution must be preserved. Change is dangerous, I repeat. No one seems to notice this fact. The contrary attitude prevails: change is taken to mean progress, or betterment. Resistance to change is considered practically a moral fault, an unwillingness to accede to improvement.
Consider a primitive tribe in the Amazonian jungles. They survive, and have survived in the jungle for thousands of years. Why have they survived? Precisely because they did not change anything in their way of life. Experience showed the survivors, that to survive they had to do things exactly the way their parents and ancestors did things. They inherited a successful pattern of life, and carried on with it, changing nothing. Change was too dangerous! The slightest deviation from the prescribed way of doing things, immediately presented its bill for payment, payment demanded in human life.
Another society which is extremely careful in dealing with change, is that of the Amish. Reason and Intelligence are one thing; Wisdom is quite different. The Amish rules embody Wisdom.
Another society reluctant to accept change are the Jews. Walk about 47th Street in New York City and look at the men there. Their very dress tells you they do not accept change. They have survived some 30 centuries (they claim more) because of their refusal to accept change and innovation. They have 613 strict rules about everyday life, which have not changed one jot in 3,000 years.
Change is dangerous. That is why I consider a 2% annual real increase in wealth, as a measure of very great success for a society. A two percent increase in real wealth, in actual human welfare, including savings and better housing and reserves of all sorts in the face of the inherent adversity of nature, is reserved, not for the slow and lazy, but for the most industrious and daring, the most intelligent and socially cohesive societies. What a different point of view from that which prevails!
Now, if 2% (two percent) is the measure of a successful increase in human wealth over the period of a year, then that same 2% is also the measure of the margin of error, the difference between staying "even" and advancing; and of course, an error, in a society, of more that 2%, implies that conditions have become worse, that the society is poorer, that all the combined efforts of the individuals in that society were of no avail, that the year was a failure in the effort to improve the human condition.
If this 2% is the underlying measure of success or failure in an economy, which must prevail whether we recognize it or not under the mass of statistics and the drug-like effects of easy credit (debt), perhaps we can understand how we must necessarily be regressing, going backwards, becoming poorer, without our knowledge, even against what our senses appear to be telling us. How credit deludes us!
With all the enormous increase in debt at all levels, all over the world, can we possibly deceive ourselves and think that the malinvestment, the squandering of real wealth, the destruction of savings, the impoverishment of the mass of humanity, is not exceeding that very slender margin of 2% a year? Indeed, it must be, by a great margin, and year after year, with no end in sight. Our senses tell us the world is better off, but my reasoned analysis, if I am right, tells a different and grim story. We think we are better off, until reality begins to collect on us.
In one of his books, Ludwig Von Mises states (my paraphrase): "The last time the world entered into a period of capital consumption was during the Roman Empire. The mind is unequal to visualizing conditions arising from Capital Consumption in our age."
That is exactly what the world is engaged in, capital consumption. We are racing onward to our destruction. The Renaissance, the Age of Reason, Revolution, Democracy, Meliorism, Planning, Adaptation to Change, Relativism, and today, the Frankenstein monster of finance (debt) have all seduced the human race to its decimation.
The improvement of the human condition is extremely difficult to achieve; it has only occurred at rare intervals in history. To think otherwise, is to remain a child.
Who is going to survive the debacle? Impossible to know. We don't need to get hit by an asteroid. We humans have done its work.
In spite of the doubts of the future, prudence requires that from the daily product of our striving, we set apart some real savings. We all know what is going to survive the cataclysm: gold and silver. Of that there is no doubt in my mind. The question is, who will benefit from the gold you and I accumulate at this period when it is so incredibly underestimated? We cannot know. But, we must still save, either for ourselves, or for those of ours who come after, in the hopes that we can pass it on to them, who will surely face very, very difficult times.
Finally, I say to myself: Do not despair. Life is beautiful. There are many, many good people in the world. Do what you can. Look after your loved ones. Do not harm others. And remember, as Shakespeare told us four hundred years ago: "There are more things in Heaven and Earth, Horatio, than are dream't of in your philosophy."
Journeyman
(12/30/2000; 13:08:07MT - usagold.com msg#: 44718)
Federal Reserve now part of .gov -- on line at least! @ALL
http://www.bog.frb.fed.us/boarddocs/speeches/2000/20000414.htm
Hi ALL!
Click on the link in this message header, and you will get the official FED error message saying their WEB address has changed to:
http://www.federalreserve.gov/boarddocs/speeches/2000/20000414.htm
Don't believe me -- do it and see for yourself!!
The original link is honest: Look in a great metropolitan city -- one with a Federal Reserve Bank in it -- phone book under "government" and you will NOT find that FED Bank listed. It's listed in the white pages, like any private business.
Also, according to the Ninth Circuit Court of Appeals:
Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. _Lewis v. United States, 680 F.2d 1239, 1241(1982)
So with this new net listing as ".gov" is the FED just using camoflage -- or do they know something we don't?
Regards,
Journeyman
Mr Gresham
(12/30/2000; 12:32:09MT - usagold.com msg#: 44717)
Quiet
Quiet, quiet , ver-r-r-r-y quiet here. Somethin's a-gonna blow. (There, don't I sound like Wolavka?)
SHIFTY
(12/30/2000; 10:18:42MT - usagold.com msg#: 44716)
auspec
GSR
Thank you.
Lots to do today. They say we are going to get some real cold weather down here in sunny Florida. Got to bring plants into the barn and pray my orange and grapefruit trees are going to be OK. I'm not used to cold weather much any more.
Shiverin $hifty
auspec
(12/30/2000; 9:56:12MT - usagold.com msg#: 44715)
@ Hill Billy Mitchell
Thank you for Sir HBM for the history lesson regarding JFK not being "a Keyensian or an internationalist", that in itself explains a lot. I have always figured that I would, at some point, fully understand what actually happened; in the afterlife if not before. It is one of the biggest questions of our generation. The whole thing was so obviously fishy with Jack Ruby shooting Oswald, and the innumerable "loose ends" that were apparent for all to see. Society has a tendency to glorify folks much more so after their demise, thus we get the Kennedy/Lady Di phenomenon.
That is the whole issue behind George 2, he is undoubtedly an internationalist. He is also a man of credible faith, IMHO, and will thus have conflicting solutions/issues coming his way. Bless him- his strings are much tighter than ours are. Hope he cuts a few loose!
George 2's ex- business partner and campaign insider Rusty Rose would have NOTHING to do with Bill Murphy and GATA last summer. Looks like he/they may get another opportunity!
How large is the "split" among the US banking/corporate elite????? Will Goldman Sachs be cleaned up or mollified?? Are we going to have a TURF WAR?? Are we already having one--not just ANOTHER routine spat/power struggle? Stay tuned. In the mean time it's best, as usual, to do what they so desperately do not want us to do-----Give friend MK a call. Randy-there's your 1st promo of the day, on me.
Best to all!
Hill Billy Mitchell
(12/30/2000; 5:44:42MT - usagold.com msg#: 44714)
@ auspec # 44708
Sir auspec, I would like to retract my entire post # 44706.
You are not in need of a history lesson re: JFK not being a liberal. I was under the influence of way too much coffee and chocolate. JFK was plenty liberal for his day. What I should have emphasized was that he was not a Keyensian nor was he an intenationalist. (Not a healthy combination for one holding the most powerful executive position in the world, with plans of living to a ripe old age) I should also have said that he was the only Democrat in the 20th century who was not a Keyensian or an internationalist or both, Period. My comments about Truman were a bit flaky too. Without further comment I retract what I said about him. We really never did get to know the real JFK or Bobby. Had we had the opportunity we might have been disappointed. Maybe it is better to just have an empty feeling about what might have been. I think many of us are overly affected by the fact that were very young and impressionable, idealistic and comparatively innocent high schoolers at the time of the JFK/RFK/KING assinations. We never quite understood. The cloud of cover-up was also a confusing factor, an intended consequence upon us. It worked quite well, for many of us, I think, choose the 'Camelot' approach because we are in denial.
Also concerning my negative remarks about LBJ and Nixon: - I was much to kind to them.
Very respectfully,
HBM
PS: - I love to do these PS's which I learned from Journeyman.
PSS: I do not think that George II will ever be accused of not being a Keyensian or an internationalist. He should live to a ripe old age, like his father. Their lips may still be moving when they are placed in the casket. What a frightening thought.
auspec
(12/30/2000; 3:29:41MT - usagold.com msg#: 44713)
Shifty and GSR Reprices post #44709
Sir $hifty-- This repricing relates to the very typical way in which these Junior miners fund their enterprises; namely going to the public directly to raise cash. Their are Canadian exchange rules and regulations that must be adhered to in these matters.
I do not know the exact GSR scenario that caused this "repricing" to happen, but have been involved enough in similar situations to lend a hand. GSR did do a public financing on 8-24-99, in which they sold shares to certain individuals. If GSR was trading at that time for, let's say, $.60 per share in the Canadian Exchange, then these private individuals could probably have bought stock somewhere under the normal market price, maybe $.50 per share. As an incentive to help the Co raise these funds, GSR had to offer ADDITIONAL incentive, in the form of warrents, in order to entice investors to participate. Typically the warrant is good {can be exercised to buy stock} for an extended period of time, one year quite commonly, and 1&1/2 years in this GSR example. The warrants are typically priced to buy at a higher price range, they were $.70 in this case originally. The individuals that participate in the private placement often receive 1/2 "purchase warrant" for each share they bought in the deal, they may receive more. So if GSR stock is trading ABOVE $.70 during the time before they expire, the warrant holders should exercise their privelege/right to pick up stock from the company at below market value. In this case if you bought 10,000 shares you would own 5,000 warrants.
Still with me? The warrants can also be "out of the $" and expire worthless.
It can be a win/win situation for all. When/if the warrants are exercised the company receives additional funds from the holders/exercisers of the warrants. The exercisers of the warrants, again, picks up stock at below market prices. Additional leverage.
So, why would the GSR warrents be extended in the time frame in which they can be exercised {an additional 1/2 year}, as well as repriced at a lower level of exercisability {now $.52 per share instead of the original $.70 per share}? Again, I do not follow GSR, but can make some reasonable assumptions. The market price of GSR fell below the price of original deal. The company was allowed, under exchange rules, to reprice {lower the "strike" price} of the warrants for whatever nuance they fell under. By repricing, the company has a better chance of receiving this additional funding via exercise of warrants. The individuals love it because they have a better chance of using their leverage to pick up additional shares at a possible below market price.
Glad I'm not a lawyer and half way sorry I started this post, hope I am being helpful. In current market conditions for small mining companies, they really struggle to raise capital and thus survive. This provides opportunity to individuals to participate in projects with much greater leverage than is typical. Buena Fe, can you add to this technical discourse?????
Bottom line- Unless you own these warrants via private placement of 8-24-99 this does not affect you. Would appreciate a company update on GSR from anyone as have folks on other sites pleading for same. Lots of pleading going on with Junior shareholders these days {opportunity}! The only pleading I hear from the physical gold advocates is for MORE coins! State of current gold market.
MK--I hear 2001 is the year of the Golden Coin, is that so?
As for me and my house..............
Best to all
IronHead
(12/30/2000; 0:45:42MT - usagold.com msg#: 44712)
YGM - Your Goldbug's Dreamscape #44702
Sir YGM - Dang you! Here I was, feeling like ole King Tut his-self, so proud of my Christmas present to myself of two Double Eagles, a Gaudens and a Liberty; ea. in AU condition, and found over the holiday in the big city (I live in a cabin far in the woods) for about $50 over spot, ea. After looking at that picture of wealth, I've got severe gold envy!
Just kidding of course! However it illustrates a couple of points about gold ownership for us little tykes trying to follow in the footsteps of giants.With respect to Sir Auspec's post today of aquiring physical wealth over the holiday period, at a continued affordable paper price - I could not agree more!Regardless of when we individuals started this journey on the golden road, it will come to some end at some time, which will be cause for looking back and realising how truly cheap true wealth was at one time. I feel sorry for the family whom sold those Double Eagles because they were an ancient barbarous relic, which their deceased grandfather collected for a "time" he never saw. Perhaps it was their time he collected them for?
The other item your picture reminds me of, is the lasting wealth effect that gold has on cultures that far eclipse our young nation. I was reminded of similar gold emporiums I saw, when visiting Thailand prior to the Asian crash. Having friends in Thailand whom believed as their grandparents did, that gold was true wealth, maintained their stature when so many lost all in the leveraged paper markets.So it might be good, "to follow in the ancient footsteps" also
By the way, I've never visited CPM - is that picture really MK and Randy in drag? (If so, nice shop guys)
Salutations
IronHead
ViewYesterday's Discussion.
Permission to reprint is hereby granted where the USAGOLD name is cited along with our web address, mailing address and phone number. For electronic reproductions, citing the post heading and the http://www.usagold.com/cpmforum/ website address as the source is sufficient.
|
Centennial Precious Metals Gold coins & bullion since 1973 Denver, Colorado 80246-0009 We educate first-time investors! |
for quotes and purchase information.
|
