one eye

Four Major Developments Gold Investors Should Watch

You can add one more. Mining costs are running at $600/oz., which will cause Financial distress at the Marginal mines.

Stress Test Leaks: Endgame Emerging

I suggest that you may get a big surprise when the tests are released. You have to recall that the Results were leaked or a Trial Balloon was leaked. The parties were never identified.

Citi has agreed to sell a brokerage unit in Japan to raise $5.9 Bilion, BofA has announced they will not need an additional $10 Billion and 6 Insiders picked up an average of 18K shares at the end of April.

My guess, BAC won't be on it.

China, Iran, Nigeria, and Oil

My, my.

You've combined estimates from 18 months ago with ongoing estimates without blinking an eye.(one or the other).

You do not have a clue as to what Chinese consumption was in 2008 and The Chinese figures do not include ongoing additions to their SPR. You do not Include the Increases in consumption by Mid-Eastern countries. I have seen recent estimates that this consumption has almost doubled from 7 to 13 mil. brls daily since 2006.

Meanwhile, in addition to whatever unrest is going on, I have seen estimates of 6 million brls./day in surplus Capacity which, at least to me, Means that Opec has reduced production by 6 million brls/day. This is far above the estimated decline in Global demand.

In addition to increased usage in China, you can add Australia, Indonesia, and South Korea all of which now have Positive GDP. India can be expected to join in on the demand side as well as the UK and USA within the next 6 to 9 months.

The Chinese demand is not artificial. Even GM acknowledged a 75% increase in car sales in China. An estimated annual sales amount of 11 million of which around 8 million are New Owners. Meanwhile Chinese consumers have begun Buying Chinese, since better quality items are not being exported. Chinese consumption figures are higher than export decline figures.

All in all, Figures don't lie but using Estimated, Outdated demand figures without Including Actual Supply Cuts seems rather farfetched. The Presumption that Demand Will Not Increase outside of China is equally absurd.

Hong Kong Recalls Gold Reserves: Why No News Coverage?

It might be that the Dogs of War are about to be unleashed and the East is preparing.

UN meets later this Month inre Iran sanctions, I presume nothing will be accomplished which begs the question "when will Israel destroy Iran's Nuc aspirations"?

Its good to have backups on a just in case basis.

Groundbreaking WSJ Story on Gold

American In: If the Inflation fears are proven wrong, then Gold will not Collapse: Gold is now being promoted as an Investible Asset Class and will move according to the Whims of Analyst Buy and Sell recommendations.

Silver Will not Collapse because it Is an Industrial Metal with ties to gold.

The only real question in my mind for you is, How will the USD remain strong in the Face of the Fed/Treasury/California money printing Turbines?

The SEC apparently thinks those CA IOUs should be rated as Securities. How many other States will follow California's lead?

Positioning for When Water Runs Out: Part I

JLS: I am really excited about reading one of your articles for the first time. Not only have you been added to to my following list but In the Course of my Due Dilligence, I have found several Articles definitely worth reading by the "Motely Crew" I associate with. (including Freya, if she ever comes back)

It is really a pleasure to read Provocative Yet thoughtful Presentations. Especially after reading one of the Worst I've ever read.

Be it as it may, Corn Ethanol production is also making its presence known on the USA's water supply as is Shale Gas Extraction if the NYT is to be believed. And, of course, there is the waste of Billions of Gallons annually because of the crumbling Infrastructure under our Major cities, most of which hasn't seen construction/reconstru... since those Cities were Built.

If I hadn't zoned in on the Water headline, I would have missed your writings entirely, and If I wasn't Geared to Investigating every SA Editor's Pick, I would have missed your recommendation of GGN.

I am profoundly grateful to have found A real Gem amongst the Rubble.

Natural Gas: Long-Term Bull, Short-Term Bear (Part 2)

You have done well grasshopper.

Natural Gas is used to make fertilizer, this year there has been a decided lack of demand and subsequent increases in supply.

Homes built with Nat. Gas usage in mind have been foreclosed and are also contributing their share with no let up, so far.

Do not fall "prey" to the HeadLine numbers. That 35% increase is due soley to Shale Gas. If you strip it out, you will find no such increase.

That Article goes on to explain the costs of extraction as $4-$6. Additionally the environmental contingent is against the Method of Extraction which has made Shale Gas viable even at the higher extraction costs, they are concerned that the Water Table is becoming Polluted.

How long do you think it will take before the EPA becomes involved? The Lawsuit Contingent?

That Reserve increase is tantamount to including the Black Sands region as a viable increase to Oil Reserves, Its there.

Why Is Congress Agnostic About Natural Gas?

OG: I have "reported abuse" for days on two of MF's comments above, the first where he calls me a liar, and the 2nd, on my useless cancerous remarks.

Remember, its not a matter of what is said, its who reviews and decides whether its abusive.

eg: "one_eye: jimmy carter DID reduce foreign oil imports by 50%. it's fully documented in data. of course, you have no time for real data. another falsehood: i *never* said a transcanadian nat gas pipeline was necessary before embracing natural gas transportation. thanks alot for contributing more misinformation. you must have worked in the bush administration."

Here I'm providing "falsehoods", which I proved where True.

And here, is another Personal Attack.

"you never contribute anything positive. just a black hole of cancerous criticism in which you twist and misinterpret damn near everything i have ever written. i am however flattered that you have nothing better to do with your pathetic life than to poor over every article i've ever written in your search for some "smoking gun" to debunk natural gas transportation. YOU CAN"T DO IT!! but you simply can't come to grips with the fact that natural gas transportation IS the best solution to reducing foreign oil imports, curing the ills the US economy and equity markets are suffering, and restoring industrial might to america. too bad one_eye, the facts simply are not on your side. what you don't realize is that most people that read my articles understand this, and completely ignore your idiotic mission."

Like I said, it doesn't matter. SA is the Final authority. They think its A-Okay.

Meanwhile, after my little post to you:

DG/HTL/OG: I missed this little dig from MF:

"one_eye: you cancerous black hole of a human being"

Tell me how you would take this sort of abuse? Sep 15 01:16 PM |Report abuse| Link | Reply +10

He eliminated that quote from His Comment in His Instablog.

Why Is Congress Agnostic About Natural Gas?

CNG fleets are a good idea, CNG electric Plants are a Good Idea, CNG private paasenger cars are not viable without a Yet to be Built Pioe line for Alaskan NG which won't be Completed until 2018 at the earliest.

MF made that comment early this year, so why waste the Money?

Countering Those Anti-Peak Oil Types

Davewmart: I've already posted that particular story. Before last year's collapse Suncor was on its way to doubling production from 250K to 500k brls per day with a goal of 1 million. That's just one Company. The Chinese are investing heavily as well into the Same type of companies in Canada.

This is the Expensive, hard to extract oil which has Not Peaked. The easy stuff is long gone. There is no way one can ramp up what's needed here from what Canada has to offer. Mexico is dead meat. Venezuela is shipping Gasoline to Iran (probably Refined here) and oil to China.

We have done the worst thing, (nothing) at the best time (when Commodity prices were low), now we will Pay the Piper Again.

The Middle Eastern countries have constructed or are in the process of constructing 33 Refineries, A big Indian one will be able to refine 1 million brls a day. The world needs distillates. These refineries will be able to handle all grades.

It makes one want to Rant and Rave but Stupid is as Stupid does.

Natural Gas: America's Energy Salvation

FCG is a great tool for those seeking Appreciation in the NG world without taking the risks any one selection may entail.

Income orientated people should consider the Pipeline companies like KMP or WMZ but you expect to cover this at a later date while I include these Just in case something happens between now and then.

I have a question on Hydro though, why has it declined over the years? Is it just that overall production has increased while the sources of Hydro have remained fixed?

The BTU % generated by oil seems excessively high since only 2% of Utilities still use oil to generate electricity, what have you included to get it to that percentage?

Solar may be your Holy Grail, Mine is an Environmentally safe way to extract the Shale Gas, using water is not the answer.

Oil Sands Keep on Trucking

There was talk of Building a Nuclear Plant to provide the heat needed and one of the CanRoys was building a pilot plant which would not use NG but I didn't keep track since I didn't own it.

This is from more than a year ago, which now seems like a lifetime.
No details just a recollection, PGH might have been the CanRoy.

I still own three of them. HTE, PVX and PWE.

Gold Manipulation Redux

Why would Banks Manipulate Anything? Take last year's spike in Oil prices or this years predictions by Goldman as a Bank be considered Manipulation?

Last Year, GS had $150 oil by July. This Year its $85 by year end.
This year they have predicted Gold will rise to $1,500.

When a Company(s) gives a certain kind of Guidance which other companies reiterate, Like Morgan S. last year also, I call it Manipulation. You can call it whatever else you wish.

China Pays Too Much for Oil in Iraq at $16 a Barrel

Well put. The Chinese are doing what we should have started doing last November, or at the very least, as soon as the Stimulus Package was passed. Buying and stockpiling the Materials we will use in the 2010 Infrastrucure build.

The Chinese are keeping their own resources while gobbling up as much as they can at depressed prices. Go figure.

Positioning for When Water Runs Out: Part I

Massive flooding occurs in the Midwest periodically. None of this water is drinkable because of pesticides, fertilizers and possible contamination from broken water mains. All of it seeps back into the ground.

Currently, even the So Called "drinking water" in the various big cities is subject to contamination from various trace amounts of speed, heroin, meth, "whatever the current drug of the day is" and various and sundry Prescription Medicines all of which find their way into the system via the Toilet. These cannot be filtered out by any means of which I know about.

I imagine that in Jersey, with your close connection to New York City, this problem maybe bigger than you know about. I do know that Chicago's system was found to be so contaminated in the Past Year.

There are Legal Battles ongoing between various Western States regarding access to Water Tables and to the various rivers flowing through multiple States, Like the Colorado River.

The Chinese have more contamination than we do, but we are trying our best to catch up.