Virtually unknown to the general public at large, and what might seem very plain, that Eric Sprott, the retiree, is in need of a great quantity of gold. Acquiring gold from the COMEX via the futures market, which is considered a laughable fraud, you would have to wait in line with all of the other 500 ppl with their name on the same ounce only to be settled in cash. The only other option is from a mine. But the ability to acquire large amounts of gold in short order is curtailed by the twenty years or more and multiple business cycles of development that goes into seeing quantities of gold unearthed.
A great quantity of gold unearthed by kicking over a piece of pyrolized duff in Northern Ontario after a forest fire, leading to the biggest gold miner on earth over 100 years later, is not likely to occur any time soon. People no longer believe in gold, especially Canadians, and rather than having and owning a mine, they would prefer to cut corners, buying into allocated gold stored at the mint; despite the fact the gold has to come from a mine.
In order to expand a gold business heavily reliant on allocated gold deposits, you are simply going to require more than a few tonnes of gold bars on a palette squirrelled away into a vault. In order to become a global allocator of gold with a business prospect rivalling the COMEX or the LBMA, you’re going to need to be able to be audited and verify that London Good Delivery Bars are stored at the Royal Canadian Mint.
At the same time, to a certain extent, the English-speaking world would rather not bother, and the percentage of investors owning gold and related assets is minimal in comparison to the past. In fact, if there were a sudden stampede into gold-related assets, the preference would not be to own a producing gold mine, or even an exploration prospect, desiring only to flip the shares.
There is not ONE single gold mining investor that has any other desire than to be swept up in a mania and sell at the top. No gold mining speculator has a corner on morality, or is in any way sincere in their arduous dedication, while they readily dispense accusations wholesale and immediately hold out a threat of lawsuit to anyone that crosses the redoubt of their confirmation bias.
The problem with gold mining speculators is that they wax sanctimonious as they try to dissolve the irreducible stone of their own existence in the gizzard of their own idiocy.
In a disastrous financial crisis, the demand for gold will be frenzied, as years of conditioning and subsequent asset bubbles collapses, the investor crowd has learned that gold is that one true genuine exit strategy. You might see negative government bond rates, currency collapse, money printing, deflation, bank failures, stock market crashes or a drastic loss of purchasing power.
In order to anticipate the unforseeable, you would want to expand your gold business on the Eve of such a calamity. The legal basis for an expansion of allocated storage came years ago, all you would need is gold directly from mines in operation who also require capital.
via CanLII
