I don’t hold shares in KRM; however, I do watch them closely unfortunately I picked the wrong horse for an Indonesian Gold play in IAU now mired in problems, so I took a small loss on the chin.
I posted a similar comment on the Gold thread and thought readers here may also be interested if they have not already seen this item.
A company merger / supply deal linked below caught my eye and stories like this one can only assist the Gold mining sector as a whole IMHO!
“South Korea's Samsung Construction & Trading (C&T) will provide small British miner Cluff Gold with funding in return for access to its gold supply under an initial $20 million partnership deal between the two companies.”
In return, Samsung C&T, a much larger company valued at $9 billion, will have access to a supply of gold bullion at a 2.25 percent discount to the price of the metal on the day prior to delivery, Cluff Gold said.
It makes good sense to me as a producer for companies to guarantee supplies of critical resources (Gold less 2.25%) used in the production of their goods and an excellent way to spend your record profits. It’s also great to see a company taking a longer term view.
It certainly looks like the boys in New York are serious about the $1,780.00 and $35.00 line in the sand and courtesy of Uncle Bens there is not going to be any shortage of freshly printed dollars to handle the job. Dodgy job numbers or not.
However, once the election is over and the debt ceiling is breached once again around the beginning of December these same boys may find they have their work cut out for them.
Maybe Samsung are taking the view I heard Marc Faber use recently when asked in these turbulent times where does one put his money.
He answered it’s as easy as A B C D.
Anything
Bernanke
Can’t
Destroy
Personally I think that just about says it all and it would appear that more and more people are recognising the negative effects of Q E to Infinity and Beyond!
Cheers to all and very best regards: Andy
KRM Price at posting:
$1.18 Sentiment: None Disclosure: Not Held
