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Sprott appeals to silver miners: Start treating your metal as money
8:10p ET Wednesday, November 30, 2011
Dear Friend of GATA and Gold (and Silver):
For many years GATA has argued that the scheme to suppress the price of gold and silver has been undertaken because those precious metals are money, competing with and potentially far superior to government-issued currencies, in part because use of the monetary metals facilitates individual liberty and limited government. Unfortunately most mining companies couldn't have cared less.
But maybe they'll think about caring now that Sprott Asset Management CEO Eric Sprott and his associate, David Baker, have published their appeal, "Silver Producers: A Call to Action." After all, why should investors think of the metal as money if silver miners themselves won't?
Sprott and Baker write:
"Silver miners need to acknowledge that investors buy their shares because they believe the price of silver is going higher. We certainly do, and we are extremely active in the silver equity space. We would never buy these stocks if we didn't. Nothing would please us more than to see these companies begin to hold a portion of their cash reserves in the very metal they produce. Silver is just another form of currency today, after all, and a superior one at that.
"To take this idea further, instead of selling all their silver for cash and depositing that cash in a levered bank, silver miners should seriously consider storing a portion of their reserves in physical silver outside of the banking system. Why take on all the risks of the bank when you can hold hard cash through the very metal that you mine?
"Given the current environment, we see much greater risk holding cash in a bank than we do in holding precious metals. And it serves to remember that thanks to zero interest rates, banks don't pay their customers to take on those risks today."
The Sprott-Baker essay is posted at the Sprott Internet site here:
http://www.sprott.com/Docs/MarketsataGlance/2011/MAAG-11-11-Silver-Produ...
And at King World News here:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/30_E...
Meanwhile at King World News, money manager Rick Rule surveys today's vast credit expansion by Western central banks and marvels that Americans now are going to bail out not only their own brain-dead bankers but those of Europe too. An excerpt from the interview with Rule is posted at the King World News blog here:
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/30_R...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Golden Phoenix Completes Operating Agreement
for Santa Rosa Gold Mine in Panama
Golden Phoenix Minerals Inc. (GPXM) has entered a joint venture operating agreement with Silver Global S.A., a Panamanian corporation, governing the operational and management aspects of their new joint venture company, Golden Phoenix Panama S.A., a Panamanian corporation formed to hold and operate the Santa Rosa gold mine in Canazas, Panama, and explore the mine's adjacent property.
Golden Phoenix will be manager of the joint venture company. Silver Global will handle all social programs, political and community relations, and human resource matters for the joint venture company in Panama. Golden Phoenix and Silver Global also have agreed to work together on all future acquisitions within Panama and to bring such new opportunities to the joint venture company.
Golden Phoenix will be earning in to a 60 percent interest (and potentially an 80 percent interest) in the Santa Rosa mine. Upon signing the joint venture agreement and completing the corresponding acquisition payment, Golden Phoenix will earn an initial 15 percent interest in the joint venture company.
Tom Klein, CEO of Golden Phoenix, says the agreement "creates a solid foundation for the development and planned re-opening of Mina Santa Rosa."
For Golden Phoenix's full statement on the joint venture operating agreement, please visit:
http://goldenphoenix.us/press-release/golden-phoenix-completes-joint-ven...
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