DITCHING BEFORE THE FISCAL CLIFF

From Peter Schiff: Turn on the TV and this is what you'll hear: The US budget is heading for a fiscal cliff. If a deal isn't reaching in Congress by the end of this year, a combination of automatic tax hikes and budget cuts will sink America into economic depression. There is no escape. Of course, my readers know that the fiscal cliff is merely an example of the piper having to be paid. The problem isn't the bill, but that we ran it up so high in the first place. Any deal to avoid the cliff by borrowing even more money may allow the piper to keep playing a while longer, but when the music finally stops, the next fiscal cliff will be that much larger. My readers also know that there are several ways for investors to avoid the cliff altogether. Perhaps the most secure is buying precious metals. However, given what we know, it may seem confusing that the spot prices of gold and silver have been moving sideways. However, these headline prices have largely concealed a more important indicator: physical bullion sales are booming.

An Under-the-Radar Rally The figures are astounding. For US Gold Eagle coins, mint sales are up some 150% from the QE3 announcement on September 13th. Despite what the spot prices show, there has been a tremendous surge in people buying physical gold. But why hasn't this translated into higher spot prices? It seems clear that the spot prices of both gold and silver are being driven right now by a large pool of institutional capital moving into and out of instruments like commodity ETFs. The movements have been predictable: When there is a sign of a deal coming out of Washington, the spot prices move up. If negotiations are faltering, there is instead a major selloff. Physical bullion investors are a different breed. We are in this market for the long haul. When I increase my physical gold and silver holdings, I do it because I see the long-term fundamental picture for the US getting worse. Getting a Read on the Bullion Bull While the ETF speculators are trying to anticipate the market's - and each other's - immediate reaction to whatever 11th hour deal is struck, I believe physical bullion investors are sending a clear signal: this whole debate is out of order. A J.P. Morgan study concluded that 82% of the hit to GDP if we go over the fiscal cliff would be related to tax increases, not spending cuts. And if the legislators reach a deal? It will only result in more tax increases and much fewer spending cuts. These guys just don't get it. Looking back to the debt ceiling debate of August 2011, we saw big movements into physical gold there as well. What investors are concluding as they hear these grand debates is that whatever the result, the budget, the dollar, and the taxpayer will lose. They are deciding to get off this runaway train. Because the real fiscal cliff isn't coming on December 31st - it is coming when there is a global flight from the US dollar.

The Real Fiscal Cliff The Democrats are complaining that the fiscal cliff imposes too steep demands on those who receive entitlements. Republicans are trying to protect the military budget. What no one seems to want to address is what happens as foreign creditors increasingly decide to stop financing this bonanza. To a large extent, this is already happening. China has already become a net-seller of Treasuries and is diverting more of its reserves into gold. The Chinese government recently approved banks holding gold as a reserve asset and made it easier for banks to trade gold amongst themselves. While Japan and other Keynes-drunk governments have filled some of the gap with increased purchases, a supermajority of new issues are being bought directly by the Fed. That was the idea behind QE3 Plus, as described in last month's commentary. Because of the acute trauma in Europe and certain institutional mandates to hold Treasuries, much of this new inflation is being absorbed. This has caused what may be the most dangerous of situations. It has allowed the inflationists to paint people like me as the boy who cried wolf. It seems to them that no matter how irresponsible Congress and the Fed are, we are immune from economic consequences. In reality, all this money printing is like pulling back a spring. Pent up inflationary forces are building, and when they are unleashed, the debate will be over faster than they can say "oops." The Only Way to Win Is Not to Play Those buying into physical gold and silver see this inevitability and are getting prepared. We believe there is no sense playing Russian roulette with our savings. Every time Washington raises that debt ceiling or announces another stimulus, it's like one more click of the trigger. When the global markets finally wrap their heads around the scale of US insolvency, the response will be as fierce as it is rapid. In such a once-in-a-century scenario, physical gold and silver are among the few assets without counterparty risk. From the looks of the physical bullion sales charts, I'm not the only investor who has figured this out.

Gold And The Fiscal Cliff

As we roll into December, the clock is ticking on the time bomb that is the fiscal cliff. For the most part, markets seem confident that Congress will either reach an agreement or come up with some kind of measure to buy them more time to debate. But recent talks seem to be going nowhere, and many investors are starting to get worried. One of the most talked about assets in relation to the cliff is gold. Some feel as if the precious metal will soar to new highs in the coming weeks, while others think that the commodity will fall along with everything else. Either way, it appears as though the yellow metal will be a pivotal point to watch in the coming weeks. View the rest of the article here.

Bracing for the Extinction of 500 Juniors or an Entire Institution?

Seriously scary for anyone invested in the gold junior market. I just am not entirely sure as to where to go from here. As always as an investor in these speculative plays you have to know who you are investing in but this could really be ugly for many of these plays. There just is not enough money going into them, and there is no doubt many will disappear. Read the whole article here

Goldman Calls The End Of The Great Gold Bull Market

When you are a Goldbug like me this is music to your ears. You know the big boys are under a lot of pressure to keep the gold prices in check when they come out with statements like this. Won't last for long. View the full article here:

The world's commodity supercycle is far from dead

Studies by the World Bank covering two centuries of data sketch a pattern of 10-year supercycles, followed by a slide for the next 20 years or so as excess investment leads to a flood of supply. The long bear market can be cruel for those hanging onto to resource stocks, convinced that the rebound must be nigh.

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Global Gold Mines and Deposits Ranking 2012

Very interesting report

Intro:

Following on the success of last year’s report we have decided to make the ranking of the world’s gold deposits an annual endeavor highlighting trends in future mine supply, depletion, discoveries, and in-situ grades.
As far as we know, there has not been a similar effort to compile a comprehensive database of the world’s gold mines and deposits. Nevertheless, we rose to the laborious challenge as we knew that the industry reliance on risk capital via public markets presented an opportunity to data mine regulatory filings which would result in a high quality database.
With this research our goal was to provide quantitative answers to some of the questions we kept asking ourselves as investors in the space. Questions such as:
How many ounces of in-situ gold exist?
How many gold mines exist in Canada?
How rare is a 1.0 million ounce undeveloped deposit?
The report answers these questions and more while providing insight into the scarcity of mines & deposits. Additionally, having a granular view of the supply mix is useful as it allows market participants to ascertain the long-term supply and demand fundamentals of the metal.
We have made some important changes this year to the methodology of the database adding grade, tonnage, and government owned mines/deposits. We also partnered with Visual Capitalists, an investor website that provides rich visual content, to assist in visualizing the data we compiled. The report is free for usage and distribution with acknowledgment of the author.

Summary of Findings:

Total Mines & Deposits in over 1 million ounces in-situ: 439
Total In-Situ Ounces: 3,015,542,164      Total Tonnage & Grade of Database: 113.9 Billion Tonnes @ .82 g/t
Total In-Situ Ounces & Avg. Grade Producing Mines: 1,556,265,676 oz.  @ 1.06 g/t
Total In-Situ Ounces & Avg. Grade Undeveloped Deposits: 1,459,276,488 oz. @ .66 g/t

Global In-SITU Ranking

Mines & Deposits over 3 million Oz: 228                                        Mines & Deposits over 5 million Oz: 148
Mines & Deposits over 10 million Oz: 74                                        Mines & Deposits over 20 million Oz: 33
Producing Mines over 3 Million Oz: 120                                         Undeveloped Deposits over 3 Million Oz: 108
Producing Mines over 5 million Oz: 82                                            Undeveloped Deposits over 5 million Oz: 66
Producing  Mines over 10 million Oz: 43                                         Undeveloped Deposits over 10 million Oz: 31


You can see the full report here

GOLD BULLION DEVELOPMENT - GBB.V - GOLD MINERALIZATION AT DEPTH REPORTED

Preliminary Results from the Deep Hole Program Confirms Extension of Gold Mineralization 800 Metres Down Plunge and 900 Metres Vertical Depth

11 minutes ago - ACQUIREMEDIA

VANCOUVER, July 9, 2012 /PRNewswire/ - Gold Bullion Development Corp. (TSX-V: GBB) (OTCPINK: GBBFF) (the "Company" or "Gold Bullion") is pleased to announce preliminary drill results from holes and wedge holes located to the north of the existing mineralized area of the Granada Gold Property. The subject property is located along the prolific Cadillac trend in North-western Quebec, 5 km south of the city of Rouyn-Noranda.

Frank Basa, Gold Bullion's CEO, is very encouraged by results that consistently demonstrate the presence of widespread significant gold on the Granada property. Hole DUP-12-02 intercepted 4.15 grams Au per tonne over a 3 metre core length at 615 metres and 4.58 grams per tonne Au over 3 metres at 995 metres depth.

The drill plan initially called for three deep holes with one wedge in each hole and commenced with hole DUP-12-03. Due to excessive deviation, this hole was subsequently abandoned at the 400-metre level.  Hole DUP-12-03A, located 400 metres NNE (12 degrees North) of hole GR-11-390 was drilled just 25 metres to the west of DUP-12-03 and down to a depth of 1,323 metres. Three wedge holes W1, W2 and W3 were put into DUP-12-03A.

Hole DUP-12-02, located 830 metres NNE (24 degrees North) of hole GR-11-390, was drilled down to 1,593 metres with one wedge hole added, W1.

Due to the success of DUP-12-03A, DUP-12-02 and the associated wedges, (observation of visible gold and typical alteration zones) and in conjunction with the observation of visible gold in the western extension holes GR-11-375 and GR-11-363 in the backlog program, the drill was reassigned to the western extension to further evaluate near surface mineralization and hole DUP-12-01 drilling was temporarily put on hold.

The following table contains the highlights of the preliminary results. These additional gold fire assay results continue to demonstrate low grade, high tonnage, near surface intersections while also confirming specific high-grade zones at depth with thickness and grade suitable for underground mining.

Gold Bullion Granada
Highlight of partial results
Hole	From (m)	To (m)	Length(m)	Au g/t
DUP-12-02	607.50	610.50	3.00	4.15
including	607.50	609.00	1.50	8.23
DUP-12-02	992.50	995.50	3.00	4.58
including	992.50	994.00	1.50	9.13
DUP-12-03A	660.00	662.50	2.50	1.38
including	661.00	662.50	1.50	3.21
DUP-12-03A	906.00	909.00	3.00	2.07
including	906.00	907.50	1.50	3.58
DUP-12-03AW1	904.50	907.50	3.00	0.82
including	904.50	906.00	1.50	1.21
DUP-12-03AW2	660.00	663.00	3.00	4.12
including	661.50	663.00	1.50	8.12
DUP-12-03AW2	786.00	789.00	3.00	2.34
including	787.50	789.00	1.50	4.44
DUP-12-03AW2	814.50	817.50	3.00	2.04
including	816.00	817.50	1.50	3.13
DUP-12-03AW2	906.00	909.00	3.00	1.40
including	907.50	909.00	1.50	2.50
Â	Â	Â	Â	Â
GR-11-358	4.50	15.00	10.50	0.53
GR-11-358	149.00	339.65	190.65	0.39
including	149.00	170.00	21.00	1.19
including	149.00	150.50	1.50	6.38
including	165.50	167.00	1.50	3.86
including	237.00	246.00	9.00	0.86
including	271.50	279.00	7.50	2.61
including	328.00	339.65	11.65	0.80

Core length close to true thickness

Blanks and standards were inserted into the sequence at the QA/QC Laboratory while the 50-gram fire assay results were provided by Accurassay Laboratory prepared in Rouyn. Fire assays were conducted at their facility in Ontario.

Frank Basa, Gold Bullion's CEO, is pleased as results continue to demonstrate the presence of widespread significant gold on the Granada property in support of the hypothesis encompassing both a low grade near surface mine and a higher grade underground mine.

Claude Duplessis, Eng. is acting as the qualified person (QP) for Gold Bullion Development Corp. in compliance with National Instrument 43-101 and has reviewed the technical contents of this press release.

About Gold Bullion Development Corp.

Gold Bullion Development Corp. is a TSX Venture-listed junior natural resource company focusing on the exploration and development of its Granada Property near Rouyn-Noranda, Québec.  Additional information on the company's Granada gold property is available by visiting their website at www.GoldBullionDevelopmentCorp.com and onSEDAR.com.

"Frank J. Basa"

Frank J. Basa, P.Eng.
President and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

 

SOURCE Gold Bullion Development Corp.