final re-cap before friday deadline

nb: Best copy and paste my post to a blank word doc, since some links are lengthy, and limited space in HC posts.

I just bPayed for the new shares, not wanting to risk any banking delays.

Arguments for taking up new shares:
-silver fundamentals indicate extremely undervalued. When illegal suppression is overwhelmed, $100+/oz is expected:
For proof (including confessions by manipulators), refer: www.members.optusnet.com.au/~sidr/proof_summary.doc
For proof of surging demand for silver, refer below Appendix.
-further recent bullish signs including negative GOFO rates, Comex inventory rapidly depleting, and J P Morgan going long after years of shorting silver. For more on GOFO & backwardation, refer www.fgmr.com/gold-backwardation-explained.html
-for a small % extra in our AYN investment $, significant dilution is avoided (for my case this was clear-cut… ie pay 10% extra, to avoid ~300% dilution.)
-the share issue first preference is to existing shareholders then institutions. Note that individuals who aren’t existing shareholders haven’t been asked. If directors were concerned about possible lack of interest in the take up of the shares, they would welcome all individuals (even if not existing shareholders).
-the restructure will reduce production costs substantially to around $15/oz (director statement at shareholder briefing – calcs were supplied – of course if you didn’t attend meeting you were disadvantaged). At current silver price and current AYN structure (ie pre-issue), AYN is likely not profitable…. hence the need to re-structure.
-the new directors have managed to secure funding, when silver has fallen and there isn't much investment $ around in poor world economic status. This indicates corporates understand the great potential for pure silver producers.
-if silver were to unlikely fall further so AYN unprofitable, the directors stated they have temporary “care and maintenance” strategy, in order to protect the silver asset until silver recovers. This is essential, since debt is the only threat to this stock.
-I understand AYN is on of only 3 pure silver plays on ASX, along with CCU and 1 other (CCU has already more than doubled off its lows, and has been subjected to much criticism). The gold & silver mining industries are fairly small in the overall economy, and don’t need much relative $ to come into skyrocket the shares.
-All the resolutions were passed easily at General Meeting, so there is much support for the issue and restructure.

Arguments against:
-share price has fallen. This is mainly due to coordinated paper attacks (naked short selling) on gold & silver led by US Fed. However there is strong evidence that this artificial suppression is unraveling, leading to much higher prices eg negative GOFO rates, Comex inventory depleting, and JP Morgan going long. For more refer below Appendix.
-the share issue should be smaller just to pay debts, and AYN should be put on Care and Maintenance until silver reaches $30+. I agree with this, in part. However this issue is the one they have chosen which is better than no issue, which wouldn’t pay off the debt & may risk liquidation. Also, at lower issue price, the future leverage is better, which may explain institutional interest at a time when low silver price and financing difficulties in current world economic climate.
-AYN don’t reply to emails. I agree they should reply. I understand much information is privileged and not to be distributed to inquisitive individual shareholders but not others (illegal), but AYN should at least reply to emails stating this. Some people may get the wrong idea, wrongly… as one HC poster has.
-The media is generally bearish on silver and gold. They mimic Wall St, who have been bullied/bribed to remain as bullish as possible about $US, and bearish about gold/silver because $US is rival currency, and a barometer for inflation. This is not isolated eg another inflation rigger is “Core CPI”, where pretty much anything that is highly inflationary is removed.

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APPENDIX: Proof of surging demand for silver:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/11_Stunning_Gold_%26_Silver_Charts_Reveal_Shocking_Global_Demand.html
“Physical demand for gold & silver coins remains strong. For the 3 months thru June, gold coin sales are 120k oz’s (46%) higher than for the 3 months leading up to the $1900 gold peak in 2011”

http://investmentwatchblog.com/chinese-silver-demand-surges-incredible-four-fold-in-just-one-year/
“Chinese Silver Demand Surges Incredible Four Fold in Just One Year”

http://moneymorning.com/2013/03/28/these-three-charts-point-to-higher-silver-prices-ahead/
“in 2012 the U.S. Mint's silver coins sales sold 33.7 million ounces of silver - more than the 33.5 million ounces produced from U.S. mining operations, according to the U.S. Geological Society.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/17_John_Embry_-_Chinese_Demand_For_Silver_Has_Exploded.html
John Embry: “Right now there is infinitely more demand than there is supply in the silver market. I was just reading a study talking about how much the Chinese demand for silver has exploded in the last ten years. Chinese demand for silver has literally skyrocketed.”

http://www.libertygoldandsilver.com/GoldandSilverBlog/?p=140
"In 2012, silver sales soared. The US Mint reported that the sale of American Eagle silver bullion coins topped off at the third highest annual total in the twenty-seven year history of the series. Just past mid-December, the US Mint told its distributors that it had “sold all remaining inventories of 2012 American Eagle Bullion Coins,” adding that “no additional coins will be struck.”

http://www.gainesvillecoins.com/news/436/silver-eagle-sales-in-september-soar-to-4.46-million-coins-sold.aspx
“A total of 4,460,500 silver eagles were sold in the month, the best September total ever (2011).”

http://goldsilverworlds.com/gold-silver-general/global-physical-gold-silver-demand-on-fire-amid-price-dro/
April 17 2013: “The demand in the physical market is unprecedented.”

http://www.mintcollc.com/wordpress/archives/2490
“the Chinese silver demand will hit 7,700 metric tonnes in 2012. Last year India’s silver demand was 4,000+ metric tonnes. We can safely assume they should have about the same figure in 2012.
This means Indian and Chinese silver demand alone will account for 50% of global silver mine supply”

http://www.financialsense.com/contributors/steve-angelo/forces-that-push-silver-over-one-hundred
“According to the data provided by the 2012 World Silver Survey, total global silver investment demand has risen from only 31.6 million oz in 2002 to a staggering 282.2 million oz in 2011.”

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For gold only (but highly linked to silver price):
http://socioecohistory.wordpress.com/2012/11/14/annual-chinese-gold-accumulation-since-2000/
http://socioecohistory.wordpress.com/2011/05/25/chinas-gold-demand-overtakes-developed-world/
http://www.proactiveinvestors.com/columns/sprott-s-thoughts/4491/the-shanghai-gold-surprise--4491.html
“While the paper gold price languishes below US$1,300 per ounce, physical demand out of China is now reaching previously unforeseen levels… According to data released by the Shanghai Gold Exchange, the amount of gold contracts settled for physical delivery on its exchange reached a staggering 1,098 metric tonnes year-to-date as of the end of June.1 This is an astoundingly large amount of physical gold. For perspective, 1,098 tonnes represents approximately 40% of the entire estimated global gold mine production in 2013. It also represents roughly 1/8th of the US Treasury’s official gold reserves, and over 100% of China’s stated official gold reserves.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/19_Maguire_-_LBMA_Now_Staring_At_Another_Gordon_Brown_Abyss.html
JP Morgan whistleblower Andrew Maguire: “The mainstream media has this myopic focus on the over 600 tons of GLD redemptions, while in reality we are witnessing massive bullion demand far in excess of these relatively small ETF redemptions. This bullion demand is actually putting enormous pressure upon immediately deliverable LBMA bullion stocks.

http://www.bloomberg.com/news/2013-07-15/gold-deliveries-from-shanghai-bourse-jump-on-physical-demand-1-.html
“Physical gold delivered to buyers by China’s largest bullion bourse in the first half of this year almost matched the entire amount taken from its vaults in 2012, and was more than double the country’s annual production.”

http://www.jsmineset.com/2013/07/22/comex-must-change-its-delivery-mechanism-soon/
“The emancipation will cause physical gold exchanges to take birth and to be the discovery mechanism for the price of gold. This is the end of the ability to use paper gold future contracts as a mechanism to make the gold price sing and dance at the will of the manipulators.”

www.fgmr.com/gold-backwardation-explained.html
“In summary, when gold backwardated in 1999 and in 2008, it marked important lows and key turning points in the gold price, which thereafter began multi-year uptrends. I expect the same outcome to be repeated now given that gold is once again in backwardation.”