Alan Greenspan: Big trouble ahead and higher gold pricesOf course, Alan Greenspan was our big headliner, participat-ing in a one-on-one interview with our talented MC, Gary Alexander,

Four decades is a longtime.

Granted, I wasn’t around forthe first decade of New OrleansInvestment Conferences. But as Iperused old photos and documentsin preparation for our recently con-cluded 40th Anniversary confer-ence, it was obvious that this eventhas helped mark many of the mosttumultuous and impactful financialevents in modern American history.

The New Orleans Conference

was born thanks to theefforts of JimBlanchard and a smallnumber of dedicatedgold bugs to restore theright of gold ownershipto American citizens.

During the fight forgold legalization, Jim’sorganization wasnamed the NationalCommittee to LegalizeGold. Once the fightwas won, Jim decidedto host a conference tohelp educate Americanson how to invest ingold, and put the con-ference under the aegisof the “National Committee forMonetary Reform.”

Gold doubled in price in antici-pation of U.S. legalization, andthen lost over half its value in atwo-year slide immediately after-

ward. Then, during the advent of“stagflation,” it steadily rose froma low of $103 in September of1976, doubling, then tripling inprice. Then, in late-1979 to early-

GOLD NEWSLETTER1NOVEMBER 2014

Alan Greenspan:Big trouble ahead...

and higher gold pricesIronically, the launch of QE in Japan and Europe ignites “risk on” sentiment that sends gold tumbling through its long-held support.Meanwhile, China kicks in with red-hot physical demand that, somehow, remains unreported by the mainstream media.

Plus: The New Orleans Investment Conference was rich in opportunities and insights. But the highlight was Alan Greenspan’s surprising remarks....

By Brien Lundin

Alan Greenspan OnCentral Bank Interven-tion in Gold MarketsBy Gary Alexander

Mining Share Updates

Potpourri

INSIDE:6

922 (Continued...)

Vol. XLIII November 2014


1980, the price went parabolic,reaching its constant-dollar high of$850.

I don’t mean to bore you witha 40-year history of gold and theNew Orleans Conference, butrather to illustrate that — aspainful as the current correctionin gold may be — we’ve beenthrough all of this before.

In a moment, I’ll report on therecent, disturbing price action ingold, and try to put it into a largercontext that is being missed bymost right now.

But first...related to that largercontext...I think it’s important tocompare our current state ofaffairs with previous experience.

You see, throughout the longreign of our event as the “grand-daddy of investment confer-ences,” our attendees havereceived sound and profitableadvice during some of the mosttumultuous and uncertain timesfor our economy, the markets andthe world at large.

But I have to say that the cur-rent investing environment is per-haps the most uncertain, danger-ous and potentially profitable ofthe last four decades — outstrip-

ping even the strife-filled markets of thelate 1970s.

And that’sbecause we’re aboutto get the bill for theeconomic experimentof massive quantita-tive easing...a mone-tary inflation of thesort not undertakensince the early 1930s,and made unique andunprecedented in thiscase by the mechanicsof the modern mar-kets.

So far, the experi-ment has been largely without gainor pain. But that is about tochange.

Thus, it was perfect timing forus to welcome Dr. AlanGreenspan, the “Maestro” himself,to New Orleans to tell our atten-dees what to expect as the era ofQE winds down, for now.

Greenspan’s Shocker

You’ve probably seen someearly reporting from othersources, including CNBC, thatDr. Greenspan delivered somebig news at the New OrleansConference. That he did — andI’ll get to it in a moment — buthe wasn’t the only one to deliverreal value.

I know I’m biased, but every-one I talked with during NewOrleans 2014 agreed with myview that, in terms of content,this was one of the most valuableconferences in many years.

From start to finish, ourspeakers were hitting home runs.I have to compliment them fortheir preparation. It’s a grand tra-dition with our event that ourspeakers often save their beststrategies and tips to reveal here,

but this year was like nothingI’ve seen before. Everyonebrought their “A” game, even thepanel moderators.

Of course, Alan Greenspanwas our big headliner, participat-ing in a one-on-one interviewwith our talented MC, GaryAlexander, and then participatingin a panel discussion with PorterStansberry and Dr. Marc Faber,also moderated by Gary.

In between these two ses-sions, I also had the opportunityto have lunch with Dr. Greenspanin my suite, along with a fewother speakers.

I’ll have a full recap of theGreenspan presentations in ourNovember issue of GoldNewsletter, which will be pub-lished next week. For now, I cantell you that there were a fewvery important points that —once you combine everything hesaid in public and private andtranslate it from Greenspeak —were extremely compelling.1) We are not going to exit QEand the Fed’s zero interest ratepolicy without some sort of amajor market event. These arenot Dr. Greenspan’s exact words,of course, but after quizzing himpersonally on the subject, I assureyou he would not disagree with aword of it.

In effect, he noted that thetremendous expansion of theFed’s balance sheet is absolutelyunprecedented, actually “beyondcomprehension,” and there is noeasy path out of the predicament.He did outline one option —essentially a bookkeeping trans-fer of the Fed’s liabilities to thebalance sheets of the banks —but maintained that the marketwould still interpret this as theFed tightening monetary policy.

And any tightening of mone-tary policy would eventually

engender a very significant nega-tive reaction in the markets.2) An inflationary bonfire isjust a spark away. I was pleasedto see that Dr. Greenspan agreedwith some of the major points ofmy speech.

In particular, he agreed that theonly reason we have yet to seeinflationary pressures was becausemost of the money printed throughQE had found a home not in theeconomy, but in the banks’ $2.7trillion of excess reserves beingheld at the Fed, where they’reearning about a quarter-point ofinterest.

As I’ve been saying, oncebanks start lending these reservesinto the economy, monetary veloci-ty will spike and retail price infla-tion will take root. I comparedthese excess reserves to a hugewater balloon of liquidity over-hanging the economy, in search ofa pin. Dr. Greenspan called it “kin-dling” awaiting a “match”(increased bank lending) to igniteinto an “inflationary explosion.”

When the Maestro says that an“inflationary explosion” lies in ourfuture, it goes without saying thatwe should take heed.3) Gold is going “measurably”higher. Why? See above.

More specifically, when askedwhere the price of gold would bein a year, Dr. Greenspandemurred, noting that he wouldnever make a market prediction.However, he volunteered that hewould gladly predict where goldwould be in five years...and that itwould be “measurably” higher forthe very reasons I’ve detailedabove.4) The Fed doesn’t really con-trol interest rates.Yes, he saidthat. But he qualified it as,although the Fed sets rates overthe short-term, the massive mone-

tary liquidity overhanging theeconomy means that “once thewheels start turning, all sorts ofthings will start happening.”

In other words, the marketwill set rates as it sees fit, and theFed will lose control.

Although he didn’t express it,the comparison with the stagfla-tion of the 1970s is obvious andconcerning.5) The Fed says that total publicdebt outstanding is now $17.8trillion, but don’t believe it —the total liability is actuallyincalculably higher.

In our discussion over lunch, Inoted how many analysts erro-neously exclude Federal debt heldby the government itself, since we“owe it to ourselves” and can sim-ply forgive the debt.

I thought Dr. Greenspan wasgoing to take off on how inflation-ary such a debt write-off wouldbe, but he stunned me and the restof our party by taking a very dif-ferent tack.

He asked us if we thought theFed would allow, for example, J.P.Morgan to fail. Of course theywouldn’t, we all agreed. So, henoted, the U.S. government hasessentially guaranteed the debts ofJ.P. Morgan.

Thus, “no one has any ideawhat the Federal liability truly is,because they’ve essentially guar-anteed the liabilities of all the too-big-to-fail entities.”

So unless you were somehowable to compute the total liabilitiesof every banking, insurance orother financial institution, domes-tic and foreign, that the Fed isguaranteeing, you have no con-cept of how large the Federaldebt/liability is.

That was a truly amazing —and frightening — admission byDr. Greenspan. As was his admis-sion that the Fed really isn’t inde-pendent...his thoughts on how hemanaged to work within the polit-ical system without compromisinghis core principles...his views on


(Continued...)

gold as currency...and his predic-tion that China is converting itsforeign exchange from dollars intogold.

Of course, one of my primarygoals in getting Dr. Greenspan tospeak this year was to get his sideof the gold manipulation story. Itmay have been wishful thinking,but I held out some faint hope thathe would deliver a shocker on thesubject, perhaps finally revealingsome level of central bank involve-ment in depressing the gold price.

Unfortunately, that was not tobe the case, as the following articleby Gary Alexander describes ingreat detail. Dr. Greenspan main-tained that he had no knowledge ofany lending or sales of official U.S.gold holdings while he was inoffice, while noting that other cen-tral banks have sold gold, albeitunder the auspices of theWashington Agreement.

I should also note that, duringthe panel with Porter Stansberryand Dr. Marc Faber, Gary made afinal attempt to get some moreinsights from Dr. Greenspan,specifically regarding his commentin 1998 that “central banks standready to lease gold in increasingquantities should prices rise.”

Unfortunately, Gary accidental-ly misquoted Greenspan in askingthe question, leading to an irrele-vant reply. However, Gary hadtaken the initiative beforehand toaddress the issue privately with Dr.Greenspan, who at the time said hedid not recall the quote. However,Greenspan gave his assurances thathe would look into it and follow upwith us.

And that he did, as Gary

recounts in his accompanying arti-cle, noting that “...when I said thatcentral banks stood ready to leasegold, I was referring to those cen-tral banks which do, for example asI mentioned on Saturday, SouthAfrica. To the best of my knowl-edge, the Federal Reserve was notone of those central banks thatengaged in such a transaction.”

So, as I guess we should haveexpected, no startling admissions ofgold-manipulation guilt by AlanGreenspan.

A Stunning FallIn Gold

My initial reports on NewOrleans 2014 noted a more-positivesentiment amongst attendees.While not a buying frenzy by anymeans, there was a general sensethat — thanks to gold havingbounced three times off the seem-ingly solid $1,180 floor — thedownside was limited.

So investors were looking atnew opportunities, and buyingsome of what they saw. If only weknew what was to come.

It wasn’t long after the close ofthe conference that the gold marketstarted to slide. The first roundcame with the most recent meetingof the Federal Reserve OpenMarket Committee and its resultingpolicy statement.

I won’t go into all of the word-counting and clause-comparing thatyou’ll find ad nauseam elsewhere.Suffice to say that Janet Yellenshowed the guts to continue thetapering plan as it had been laidout, cutting off the last stub of QEthat remained.

There was a dissenter, as we’ve

come to expect. However, unlikeprevious dissents, this one camefrom a noted dove, NarayanaKocherlakota, who wanted to con-tinue QE as long as inflation pres-sures remain muted. So the impres-sion for the market was that theFOMC had switched from beingdovish with a hawkish minority, tobeing hawkish with a dovish minor-ity.

That sent the dollar soaring,and gold falling toward the low$1,200s. At that point, the majorsupport line at $1,180 became a tar-get, and the shorts got to work.

The impetus this time was thestunning move by the Bank ofJapan to turbo-charge its own QEefforts. With Europe embarking onQE and Japan launching hyper-QE,one would think that monetaryreflation of this degree would bebullish for gold.

But in today’s world, wheregold is priced by Western specula-tors without regard to underlyingsupply/demand fundamentals, onewould be wrong.

The dollar rose, even more, onthe news from Japan, and moreshorts piled onto gold to drive it,finally, through the $1,180 support.

They weren’t done. Just thisweek, in overnight trading onWednesday, November 5, some“investors” dumped $1.5 billion ingold beginning at 12:30 a.m. EST.As usual, ZeroHedge was right onthe issue:

“For the 5th day in a row,‘someone’ has decided that 0030ETwould be an appropriate time(assuming the ‘seller’ is an investorwho prefers best execution ratherthan the standard non-economical-ly-rational share-repurchaser inAmerica) to be dumping largeamounts of precious metals posi-tions via the futures market.Tonight, with over 13,000 contracts


“It wasn’t long after the close of the conferencethat the gold market started to slide.”


being flushed through Gold —amounting to over $1.5 billionnotional, gold prices tumbled $20to $1,151 (its lowest level sinceApril 2010). Silver is well through$16 and back at Feb 2010 lows.The US Dollar is also surging.

“The timing of the dump isright as Japanese trading breaksfor lunch.” (Emphasis byZeroHedge.)

The dumping drove gold downanother $25 in overnight trading.

The Great FallacyOn Gold Demand

Even before this latest assaulton gold, the big underlying — yetalmost completely unreported —story for gold had been red-hotphysical demand from Asia, espe-cially China.

If I was completely divorcedfrom the gold market emotionally,I’d find it absolutely fascinatinghow this story has not only goneunreported by the major financialmedia, but that they persist inreporting precisely the oppositepicture of demand.

You see, as I’ve been stressingin these letters and in my presenta-tions at the New OrleansConference, the vast majority ofinvestors don’t realize that Chinesegold demand this year isn’t too faroff the pace of 2013’s record-burst-ing levels.

Whereas the financial mediahas been parroting World GoldCouncil numbers showing Chinesedemand off about 50% this year,the detailed and accurate ShanghaiGold Exchange withdrawal statis-tics show that demand is only about10%-15% off of last year’s torridpace.

And now it’s accelerating. AsKoos Jansen of BullionStar.com andLawry Williams of MineWeb.com

have been dutifully reporting, overthe past three weeks as of this writ-ing, the SGE delivered 66, 51 and60 tonnes of gold in succession.

As Williams remarks, “Givenglobal mine supply is only around56 tonnes a week, that puts thelevel of Chinese demand into realperspective.”

This was the big wildcard forgold that I predicted in my speechat New Orleans 2014. If you’relooking for one factor above allothers that will drive gold higherover the months ahead, this is it.

According to Jansen, the latestreports put total SGE withdrawalsfor the year through earlyNovember at 1,607 tonnes, whichrepresents more than 70% of globalmine production being consumedby China alone.

So the pace of Chinese demandwas quickening even before themost recent plunge in the goldprice. And now it’s likely to haverisen even more.

Therefore, it’s not too far-fetched to think that demand couldaverage at least 50 tonnes a weekbetween now and the end of theyear. That level of buying wouldbring the 2014 total to around 2,044tonnes — or just about 7% behindlast year’s record total of 2,199tonnes.

Again, very few investors areaware that Chinese gold demand isrunning this hot.

Add in increasing buying fromIndia, the potential that Switzerlandwill have to buy about 300 tonnes ayear if the November 30th gold

reserves referendum passes...andthe fact that global gold productionis falling...and you see that the sup-ply/demand picture is enough of areason to consider higher goldprices as inevitable.

That does little to salve thewounds of gold bugs in the mean-time, however.

OpportunitiesAbound

— For TheCourageous

As I said, there was a bettermood amongst attendees at NewOrleans 2014, and a belief — sinceproven to be misguided — that theworst was behind us.

So where does this leave us,now that gold has continued to fall,leaving the once-solid support wellabove?

As I also noted, the fundamen-tal supply/demand picture isremarkably good. Asian demandfor gold is soaring (although thisfactor is largely unrecognized). Onthe supply side, the longer-termtrend of increasingly scarce sup-plies and higher costs continue todampen global mine output to thepoint that many claim we are at ornear “peak gold” production.

Add in the recent drop in goldand much of today’s production isnow coming at a loss, a fact thatpromises to further depress produc-tion over the longer term.

In the short term, the gold mar-ket is exceedingly short, and specu-lators will be forced to cover onany significant bullish news. The

“If you’re looking for one factor above all othersthat will drive gold higher over the months ahead,this is it.”

(Continued...)


Swiss gold referendum coming atthe end of this month could supplythat news, and bears watching overthe days ahead.

With all this said, flows fromgold ETFs continue, and we’reabout to enter the tax-loss sellingseason.

On balance, it seems that thegold market, particularly the juniorresource stocks, represent extraor-dinary values. But I’ve been sayingthat for awhile, and the bargainsjust keep getting “better.” Tax-lossselling toward the end of the yearwill undoubtedly create some moreopportunities.

If you’re like me, you’re fairlywell allocated to this sector, and itmay not be prudent to buy moreuntil we see a sustained rebound inthe metals. Some of the bargainsI’m seeing now, however, are virtu-ally irresistible, and I’m tempted toraise some cash and take advantageof them.

For those with both the cashand the courage to take advantageof the current market, there were anumber of companies participating

in New Orleans 2014 that enjoyedpositive “buzz” from speakers andattendees.

In particular, companies withproven resources that could be hadfor a fraction of what they’ll sellfor in a better market, were widelyrecommended. That list wouldinclude Almaden Minerals(AMM.TO), Columbus Gold(CGT.V), Fission Uranium(FCU.TO), GoGold Resources(GGD.TO), IDM Mining(IDM.TO), Kaminak Gold(KAM.V), Midas Gold(MAX.TO), Pershing Gold(PGLC), Romarco Minerals(R.TO) and Wellgreen Platinum(WG.V).

There were some drill-holeplays getting attention as well,including Balmoral Resources(BAR.TO), Calibre Mining(CSB.V), Lowell Copper (JDL.V)and Precipitate Gold (PRG.V).

I was pleased to see that twocompanies that I’m personallyheavily involved in as a co-founderand a director — NatcoreTechnology (NXT.V) and

Thunderstruck Resources(AWE.V) — also received a lot ofattention, and for good reasons. Asan insider in both of these compa-nies, I cannot recommend or offi-cially cover them in my publica-tions. But I do urge you to visittheir websites to see why they’regetting attention right now.

In our accompanying MiningShare Update, I’ll cover the latestdevelopments with many of ourrecommended companies. And inour annual, year-end double issuecoming next month, I’ll have morecoverage of New Orleans 2014 andthe presentations by our esteemedspeakers.

For now, stay the course. Givencurrent global demand trends, andthe economic backdrop of massiveQE from Japan and Europe, a turn-around in gold is inevitable, even ifthe timing remains in question.

At some point, the surgingphysical demand will not onlyattract notice, but will impactWestern supplies. And we willneed to be ready when that daycomes.

Alan Greenspan On Central Bank Intervention

in Gold MarketsBy Gary Alexander

For the 40th anniversary edi-tion of the New OrleansInvestment Conference,

October 22-25, 2014, conference

director Brien Lundin asked me toconduct a 50-minute interview withformer Federal Reserve ChairmanAlan Greenspan. We wanted to

cover his entire career, from hisearly years in Ayn Rand’s inner cir-cle through his 18 years at the Fed,plus his reaction to current eco-

GOLD NEWSLETTER7

nomic challenges. The vast majority of the speak-

ers and audience were very satis-fied with the results of my inter-view with Greenspan. There weremany newsworthy moments, inmy view. To me, the most news-worthy statement was Greenspan’scomparison of QE money to “kin-dling” awaiting a “match”(increased bank lending) to igniteinto an “inflationary explosion.”Brien Lundin thought that the mostimportant news story was the factthat Greenspan is predicting sometype of a major market eventresulting from the withdrawal ofQE and ZIRP. In addition,Greenspan predicted that gold willbe “measurably higher” five yearsfrom now.

All three of these statementsare newsworthy, in my view, butthere was another subject whichwas most important to a small butvocal minority in our audience,central bank gold market manipu-lation. To meet that demand, Iasked him twice in the interviewabout U.S. government interven-tion in the gold market.

Here is a summary of my firstquestion and Greenspan’s answer:

Alexander: In your memoirs,you state that “there is no supportfor a gold standard today, and I seeno likelihood of its return” but youadded the practical caveat that“monetary policy can simulate thegold standard.” You told a con-gressional committee that a fiatmoney system can be engineered“as though anchored by gold.”True enough, gold was fairly sta-ble under your watch. Gold tradedat $461 the day you became FedChairman and it was $565 whenyou stepped down, 18 years andfive months later. However, goldfell in half from $504 in late 1987to $252 in mid-1999. Some peoplethink the Fed or other central

banks were manipulating marketsto suppress the price. Was any-thing like that happening?

Greenspan: No. Other centralbanks were public sellers of goldin that era, and there was an agree-ment between those centralbankers to set a limit on theamount of gold sold per year, toprevent a collapse in the price, butthe United States abstained. Wedid not take part in those goldsales.

There was a big debate duringGerald Ford’s administration aboutwhether to sell ALL the U.S. gold.In 1976, Treasury SecretaryWilliam Simon and Fed ChairmanArthur Burns met with me andPresident Gerald Ford to discussSimon’s plan to sell off all 275million ounces of gold and investthe proceeds in interest-bearingassets. Simon (with help fromMilton Friedman) said gold servesno useful monetary purpose, butBurns and I carried the day withthe argument that gold was thenecessary ultimate crisis backstopto the dollar.

In his book, “The Map and theTerritory 2.0,” in a section called“Gold is Special” (pages 264-267),Greenspan elucidates this answerfurther, writing, “In my experi-ence, there have been several caseswhere policy makers did contem-plate selling off their gold bul-lion.”

Then, he went on to describehis 1976 encounter with Simonand Friedman over Treasury goldsales. I have interviewed both men

in the past, including three inter-views with Dr. Friedman in con-nection with the New Orleans con-ference. I also interviewed WilliamE. Simon for Jim Blanchard’sWealth Magazine. I’m not a con-frontational interviewer, so I wastaken aback when Simon gotangry with me for a question Iasked. I learned first-hand whatothers have since written about –Simon’s “forceful personality” inany policy debate.

As Secretary of the Treasury,Simon had more influence overgold sales than Greenspan, whowas then a “rookie” in government– an economic advisor to PresidentFord. To think that a soft-spokenAlan Greenspan and a softer-spo-ken Fed Chairman Arthur Burnscould win an argument against ournation’s most gifted free-marketeconomic thinker, MiltonFriedman, and a forceful Secretaryof the Treasury is proof positivethat Greenspan never compro-mised his pro-gold principles inoffice. He concluded: “In the end,Ford chose to do nothing and tothis day, the U.S. gold hoard is lit-tle changed at 261 millionounces.”

Just think what would havehappened if Friedman and Simonhad carried the day. Gold had fall-en from $192 per ounce at the startof 1975, when Americans couldfinally own gold legally, to $104 inSeptember 1976. If the Treasuryhad sold over 260 million ouncesof gold in the open market, theprice would have careened down

NOVEMBER 2014

(Continued...)

“To me, the most newsworthy statement wasGreenspan’s comparison of QE money to ‘kindling’awaiting a ‘match’ (increased bank lending) toignite into an ‘inflationary explosion.’”

to maybe $50. We would neverhave seen a bullish rise to $850 in1980, and the Treasury would betotally bankrupt in its goldreserves. Greenspan deserves creditfor avoiding that dire outcome.

One thing you will learn fromAlan Greenspan in his books and inperson is that he is a principledman. He never changed his mindabout the value of gold (“Gold isSpecial”).

I asked him early in the inter-view if he ever had to compromisehis values within government. Hesaid, “It was fascinating to me totry to implement my closely-heldvalues in the context of the politicalsystem, which has its flaws, to saythe least. I never changed my fun-damental philosophy, but I didchange how I tried to get thingsdone.”Greenspan’s SecondAnswer About Gold

Manipulation

Later in the interview, I soughta specific answer to his 1998 state-ment to Congress about gold,namely, that “central banks standready to lease gold in increasingquantities should prices rise.” Ishowed him this statement back-stage before the interview and toldhim I wanted to ask him about it. Ididn’t want to “ambush” an 88-year-old man who had spokenbefore Congress hundreds of timesand said probably millions ofwords about a variety of subjects.

At the time, he said he did notknow the full context of thoseremarks, but he assured me that hewould look up the matter and getback to me later.

Here is what I asked him, in

public, hoping to jog his memoryabout any similar kinds of incident:

Alexander: I’d like to get backto the gold price decline in the1990s to $252 per ounce in 1999,since we’ve had a lot of questionsfrom the audience about centralbank gold price manipulation.Given the fact that you have saidthe Fed didn’t SELL gold, I won-der if there was any other kind ofoperation. For example, in 1998,Frank Veneroso’s “Gold Book”said that central banks had beenLENDING their gold holdings outto the bullion banks and thosebanks would then sell the gold intothe market and investing the pro-ceeds into more speculative assets.Were you aware of any lending ofU.S. gold supplies?

Greenspan: Not to my knowl-edge, and if I didn’t know, I can’tfigure out who did!

Alexander: You also were con-nected with the Bank ofInternational Settlements (BIS) andInternational Monetary Fund(IMF). Are you aware of any ofthose units that might have donesomething like that?

Greenspan: You have tounderstand that the gold market hasa lot of lending and borrowing. Forexample, the South Africans for along period of time would sell theirgold forward, that is, right beforethey mined it, they would selloptions against it, so their netreserve balances were very muchlarger than their actual gold. Thatprocess has been going on for along time. What I’m getting at isthat gold is like any other commod-ity, with derivatives associated withgold as with any commodity butnone outside the issue of central

banks selling gold in a conservativemanner [to which he alluded in thefirst question].

Follow-up: On the Mondayafter the conference ended, Mr.Greenspan sent me a follow-upresponse, as promised: “One ofmy associates was handed the tes-timony I gave in July, 1998 rele-vant to our debate as to whetherFederal Reserve was engaged inover-the-counter derivative con-tracts on gold. I stated in 1998‘central banks stand ready to leasegold in increasing quantitiesshould prices rise.’ This source isimpeccable – me. However, whenI said that central banks stoodready to lease gold, I was referringto those central banks which do,for example as I mentioned onSaturday, South Africa. To the bestof my knowledge, the FederalReserve was not one of those cen-tral banks that engaged in such atransaction.”

Later on, in a panel, I mistak-enly brought up this subject againand misquoted Greenspan. Thatwas MY mistake, not attributableto GATA or anyone else, but thatdoes not minimize the fact thatMr. Greenspan had already givenus his best answers in the one-on-one interview earlier, as summa-rized above.

Postscript: To Alan Greenspan,Gold is Still Special

Mr. Greenspan said manyother positive things about goldin the interview, for instance:

Alexander: Why do centralbanks still hold so much gold? Dothey think gold really is money?

Greenspan: Nearly all centralbanks hold some gold. If gold isnot relevant, why would they bebuying it? If gold is a “barbarousrelic” (Keynes’ term) and it earnsno interest, why do so many cen-


“I never changed my fundamental philosophy, but Idid change how I tried to get things done.”

Almaden MineralsAAU.NYSE-A; AMM.TO

604-689-7644almadenminerals.com

Almaden Minerals has made abold move that will see it com-plete its transition from a prospectgenerator to a development-stagegold company.

The company announced ear-lier this month that it would spinoff its sprawling property portfo-lio and accompanying royaltyinterests into a separate entity.The new “spinco” will hold awealth of assets, including:

A 2% Net Smelter Return(NSR) on the Tuligtic project (thepost-transaction Almaden willretain Tuligtic)

A 1.5% NSR on its CaballoBlanco project in Mexico, whichGoldgroup is currently advancing

A 2% NSR on the exploration-stage Elk project in Canada

A royalty portfolio thatincludes 21 other properties accu-mulated during Almaden’s longhistory as a prospect generator

A property portfolio that con-sists of more than 20 projects,including the El Cobre copper-gold project in Mexico and theWillow copper-gold property inNevada

The terms of the transactioncall for existing Almaden share-holders to receive one “new”share of Almaden and a 0.6 shareof the spinco for each currentshare of Almaden held.

Given the multimillion ounce,open-pittable deposit thatAlmaden has already proved up atIxtaca (the deposit-hosting portionof Tuligtic), I think this movemakes a great deal of sense. Notonly does it free up the Almadenteam to focus on moving Ixtacaalong the development curve, butit also forces the market to assigna value to the impressive suite ofprojects and royalties that thecompany has accumulated overthe years.

The market for precious met-als is obviously shaky right now,which means buying anything inthe current environment entails acertain amount of risk. That said,Almaden has been a consistent

recommendation of this publica-tion for more than 12 yearsbecause it is extremely well man-aged and knows how to operatesuccessfully in a variety of marketconditions.

My advice: Hold onto thosespinco shares when you get them,as the new company stands to bewell-levered to a resurgence ingold and silver prices. And viewany significant weakness in thenew, development-stage Almadenthat will emerge from this transac-tion as a solid buying opportunity.Almaden Minerals Ltd.Recent Share Price: .............US$1.04Shares Outstanding:.......64.6 millionMarket Cap:............US$67.2 millionShares OutstandingFully Diluted:.................75.1 millionMarket CapFully Diluted: .........US$78.1 million

Arianne PhosphateDAN.V; DRRSF.PK

418-549-7316arianne-inc.com

A bet on the need for more

GOLD NEWSLETTERNOVEMBER 2014

tral banks own it? Gold is a cur-rency. Gold, and to a lesser extent,silver are the only major curren-cies with intrinsic value, meaningthat you don’t need a third partyto authorize or guarantee itsvalue. There is no logical reasonwhy gold mesmerizes the human

soul, but as far back in history asyou care to look, gold has alwaysbeen accepted without referenceto any other guarantee. For exam-ple, Germany could not importany goods as World War II waswinding down unless the Germanspaid in gold. My suspicion is that

China now wants to convert agood share of its $4 trillion in for-eign exchange from dollars intogold.

My conclusion is that if youwant to find anti-gold sentimentin government, you’d best lookelsewhere.

9

(Continued...)

Mining Share UpdateBy Brien Lundin

food to sustain the planet’s ever-growing population, AriannePhosphate controls the world-class Lac a Paul phosphate pro-ject in Quebec.

The company recentlyannounced an updated resourceestimate for the Paul zone, theresource-hosting portion of theproject. The zone’s measured andindicated phosphate resource nowstands at 668 million tonnes of7.01% P2O5 at a 4% P2O5 cut-off. Arianne also announced anew inferred resource on the Paul

zone consisting of 38million tonnes of6.13% P2O5 at a 4%P2O5 cut-off.

The revised esti-mate includedresources identifiedby drilling on boththe Paul zone and theWestern Extensiontarget. The winter2014 program con-sisted of 160 diamonddrill holes on the Paulzone and nine dia-mond drill holes onthe WesternExtension. The over-all program included

more than 42,000 meters of core.The new resource in the

Western Extension gives thecompany a shot of achieving itsgoal of eventually proving up 50years’ worth of resources at Laca Paul. Moreover, the near-sur-face nature of the mineralizationcould help the company toreduce the overall strip ratio ofthe deposit. Arianne recentlycompleted a 3,000-meter pro-gram on the eastern end of thePaul deposit in an attempt toextend the known mineralization

still further.The project has

available infrastruc-ture that is supportiveof development. Italso has a style ofmineralization thatshould allow it togenerate a purerphosphate productthan is typical of theworld’s phosphatedeposits. That shouldgive Arianne’s outputa distinct advantagein what is, inevitably,a commoditized mar-ket.

Of course, we’re still a longway from production at Lac aPaul, but the potential here is stillhuge and the prospects of thisproject finding its way into pro-duction are very real. The goal forinvestors, of course, is a buy-outby a larger company. Short ofsuch an offer, Arianne is not like-ly to make a lot of market-movingnews in the short term. Ourpatience is growing thin, but we’llhang around awhile longer inhopes that an offer comes. So inthe meantime, Arianne remains ahold.Arianne Phosphate Inc.Recent Share Price: ..............C$0.81Shares Outstanding: .....87.0 millionMarket Cap:..............C$70.5 millionShares OutstandingFully Diluted:................98.0 millionMarket CapFully Diluted: ...........C$79.4 millionBalmoral Resources

BAR.TO; BALMF.PK877-838-3664

balmoralresources.com Between some intriguing

assays on its Bug Lake South tar-get and the influx of funds from awarrant exercise and an impend-ing bought-deal private place-ment, Balmoral Resources hasn’tlacked for news in recent weeks.

Bug Lake South resides onthe company’s Martiniere proper-ty, part of a district-scale propertyposition that Balmoral holdsalong the Detour Gold Trend inQuebec. The six-hole program atBug Lake South yielded six hits,with every hole encounteringgold mineralization.

This target yielded impres-sively high-grade assays fromHole 147 (7.99 meters of 12.5 g/tgold, including 0.72 meters of132.5 g/t gold) and Hole 149



(7.28 meters of 5.23 g/t gold).The company has also uncovereda porphyry zone here, dubbed theHW Porphyry zone, that is openin all directions. The aforemen-tioned holes identified this targetwith 5.11 meters of 4.32 g/t gold(Hole 147) and 2.89 meters of12.3 g/t gold (Hole 149).

These holes demonstrate theoutsized potential at Bug Lake.High grades and the potential dis-covery of a new porphyry zonesuggest the presence a large,untapped gold system atMartiniere.

Thanks to a recentlyannounced bought-deal financing,Balmoral should have amplefunds to pursue further explo-ration at Martiniere and its high-potential Grasset nickel-copper-PGE project, which is also on theDetour Lake Gold Trend.

Given the recent drop in thecompany’s share price, the termsof the financing will probablyneed to be renegotiated. Theannounced deal would haveplaced 5.9 million flow-throughshares priced at C$1.70 per share.Whatever the new terms end upbeing, the company should stillbe able to raise most, if not all, ofthe C$10,030,000 proposed in theoriginal financing.

In the interim, the companywill have plenty of funding toproceed with exploration, as asingle subscriber recently exer-cised 470,588 warrants at C$0.75per warrant. That transactionresulted in a cash windfall justnorth of C$2 million forBalmoral.

The company now has a cashbalance of C$7.1 million and theopportunity to more than doublethat, if the flow-through financ-ing goes through in some form.The results at Bug Lake South are

an indicator of the potential here.This area of Canada has a longhistory of rich metals deposits.

Though not a stock to gochasing, Balmoral is definitely acompany to buy on any consider-able weakness.Balmoral Resources Ltd.Recent Share Price:...............C$1.00Shares Outstanding:....104.2 millionMarket Cap: ...........C$104.2 millionShares OutstandingFully Diluted: ..............112.4 millionMarket CapFully Diluted: .........C$112.4 million

Calibre MiningCXB.V; CXBMF.PK

604-681-9944calibremining.com

How do you get explorationdone as a junior miner thesedays? One effective way is tofollow Calibre Mining’s lead andcombine a strong property posi-tion with well-heeled joint ven-ture partners.

That’s exactly what the com-pany has done with EasternBorosi and Minnesota, two of itsmore promising gold projects inNicaragua. Both projects havegreat potential, with EasternBorosi being jointventured toIAMGOLD andMinnesota JV’d toB2Gold.

These two part-ners have allowedCalibre to makenews in the face of abloated share struc-ture and a verytough market forfinancing. Theresulting news flowfrom this strategyhas been in evidenceover the past month,with assaysannounced from

drilling Eastern Borosi and thebeginning of a drilling programat Minnesota.

At Eastern Borosi, goodresults thus far have convincedthe partners to expand the ongo-ing campaign there from 31 holesand 3,400 meters to 45 holes and5,000 meters. To date, the part-ners have completed 27 holes onthe project and received assaysfor the first 18 holes.

So far, the program has testedthe California, Vancouver andGaupinol vein systems on thisepithermal property. Highlightshave come from Hole 15 (0.5meters of 19.2 g/t gold), Hole 10(6.5 meters of 16.9 g/t gold) andHole 3 (4.8 meters of 25.7 g/tgold). Other vein systems will betested during the latter part of theprogram.

IAMGOLD can earn a 51%stake in Eastern Borosi by spend-ing $5 million on exploration andpaying Calibre $450,000 overthree years. It can up that stake to70% by spending a total of $10.9million exploring the project.

Meanwhile, drilling is now(Continued...)

underway at Minnesota, withB2Gold having already earned a51% interest and acting as opera-tor. Like IAMGOLD, B2Goldcan increase its stake to 70% byspending an additional $6 millionover three years.

The 10-to-12 hole, 1,500-meter program will follow up onintriguing channel sampling andtrenching results encountered insurface work on the northern,central and southern areas atMinnesota. Highlights from thetrenching in the project’s north-ern area have included a trench(93.5 meters of 1.65 g/t gold) thatremains open in both directions.Channel samples from its central

area have run as high as 8.0meters of 6.35 g/t gold and 9.2meters of 4.17 g/t gold.

That Calibre can advancethese projects at all in the cur-rent environment speaks vol-umes, about both their potentialand this management team’sability to find strong explorationpartners. The company alsoreceived a lot of buzz at ourrecently concluded New OrleansInvestment Conference.

Given the news that will con-

tinue to flow from itsNicaraguan asset base, Calibre isstill a strong buy.Calibre Mining Corp.Recent Share Price:...............C$0.10Shares Outstanding:....222.9 millionMarket Cap:..............C$22.3 millionShares OutstandingFully Diluted:..............248.9 millionMarket CapFully Diluted: ...........C$24.9 million

Columbus GoldCGT.V; CBGDF.PK

888-818-1364columbusgoldcorp.com

This past month, ColumbusGold announced assays from a

nearly completeddrilling program atMontagne d’Or. Italso announcedplans for an aggres-sive rotary drillingprogram on itsEastside project inNevada.

At Montagned’Or — the multi-million-ouncedeposit withinColumbus’ PaulIsnard gold projectin French Guiana —joint venture partnerNordGold is spend-ing $30 million to

earn a 50.01% interest in theproperty. The current, three-rigdrilling program is cutting holeson 50-meter spacings (and to adepth of 200 meters) in anattempt to prove up as much ofthe deposit’s inferred resource aspossible.

So far, the partners have com-pleted 20,750 meters of drilling inthis Phase II program. Given thatthe majority of the holes havereturned thick intervals of goldmineralization, prospects are

excellent for an upgradedresource when a new estimate isreleased in January.

Simultaneously, Columbus isgearing up for an ambitiousexploration program at itsEastside gold project, located nearTonopah, Nevada. The planned64,400-meter program will testfive targets, including the originaltarget identified at Eastside andfour new targets established byrecent surface work on the pro-ject. The goal is to complete aresource calculation on the pro-ject by the end of 2015.

In a vote of confidence inColumbus’ prospects, the compa-ny recently announced thatNordGold had accumulated a 9%stake in the company by buyingits shares on the open marketbetween September 2013 andAugust 2014.

Having its JV partner square-ly behind it is a good sign forColumbus. It indicatesNordGold’s belief in Montagned’Or’s potential as a gold produc-er. Between this endorsement andthe likelihood of news flow fromEastside, Columbus remains asolid bet on gold’s long-termprospects and a buy. Columbus Gold Corp.Recent Share Price:...............C$0.34Shares Outstanding:....135.8 millionMarket Cap:..............C$46.2 millionShares OutstandingFully Diluted:..............148.8 millionMarket CapFully Diluted: ...........C$50.6 million

Endeavour MiningEDV.TO; EDVMF.PK

604-685-4554endeavourmining.com

Endeavour Mining announcedproduction results for its operat-ing mines in West Africa, and, on


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balance, they were quite good.Overall, the company’s four

operating mines (Agbaou, Nzema,Youga and Tabakoto) are operat-ing smoothly. Collectively, theyhave generated 346,041 ounces ofgold in the first nine months of2014. This figure includes117,612 ounces of gold produc-tion in Q3 2014. The nine-monthtotals represent 83% ofEndeavour’s 2014 productionguidance (400,000 to 440,000ounces).

In the release on the thirdquarter production numbers, thecompany noted that Agbaou,Nzema and Youga are all ahead oftheir guidance mid-points year-to-date. Tabakoto is the one laggard.Endeavour’s management willfocus on improving Tabakoto’soutput by ramping up productionon its new Segala undergroundmine.

Per-mine contributions in Q32014 include 43,428 ounces fromAgbaou, 18,432 ounces fromYouga, 30,866 ounces fromTabakoto and 24,886 ounces fromNzema. The company expectsaggregate production to exceedthe top end of its guidance for thefull year.

Of the four operating mines,the Agbaou mine is performingparticularly strongly. Not only isits throughput running 37% high-er than planned, but the ore densi-ty and grades have been higherthan expected. As a result,Agbaou has already surpassedEndeavour’s original 2014 guid-ance of 85,000 to 95,000 goldounces.

Meanwhile, an ongoingdrilling program to expand theresources and reserves at Agbaouhas continued to bear fruit.Highlights from recent drilling on

extensions to the mine’s Northand West pits include Hole 1745(8.0 meters of 5.0 g/t gold), Hole1780 (7.2 meters of 3.0 g/t gold)and Hole 1895 (8.8 meters of 8.2g/t gold).

These latest assays are part ofa successful campaign that hasincluded 165 holes to date, 88%of which have intersected signifi-cant mineralization. Data fromthis work looks likely to prove upa substantial portion of the pitextensions’ inferred resources intothe indicated category.

The company’s financialswere announced earlier thisweek. They are indicative of thetough environmentfor gold companiesof all stripes.Revenues were$145.2 million forQ3 2014, and all-insustaining marginwas $32.1 million.Adjusted after-taxearnings were just$1.7 million.

As you can see,in spite of strongproduction numbers,Endeavour’s shareprice continues tolose the battle withthe downdraft ingold prices. The highmarginal costs of its mines makeit an excellent lever on risinggold prices, one that shoulddeliver results for shareholderswith the fortitude to weather thecurrent market environment.We’ll move it to a hold for thetime being.Endeavour Mining Corp.Recent Share Price:...............C$0.45Shares Outstanding:....413.1 millionMarket Cap: ...........C$185.9 millionShares OutstandingFully Diluted:..............438.1 million

Market CapFully Diluted: .........C$197.1 million

Excelsior MiningMIN.V; EXMGF.PK

866-683-8030excelsiormining.com

With a five-billion-pound-pluscopper resource and a potentiallylow-cost, phased approach to getit into production, ExcelsiorMining has a very attractiverisk/reward profile.

The company is currently inthe process of drilling itsGunnison copper project in south-ern Arizona to increase the confi-dence level of its North Star

deposit’s inferred resources. The13-hole, 16,890-foot program isunderway and could add signifi-cantly to the life-of-mine produc-tion plan for North Star.

In addition to this program,the company is also conducting ahydrological drilling program atGunnison. Its purpose is to assessthe company’s ability to tap thearea’s aquifer for the water need-ed to support in situ extraction of

13NOVEMBER 2014 GOLD NEWSLETTER

(Continued...)

GOLD NEWSLETTER14

the copper from the North Stardeposit.

I added Excelsior to our list acouple of months back, in part,based on the connections andtrack record of Mark Morabito,the company’s chairman. Markhas since helped the companycomplete its transaction withGreenstone Resources.

With the closing of the sec-ond tranche of financing fromGreenstone, Excelsior has nowadded US$10 million to its cof-fers. The terms of the deal calledfor the issuance of 20,580,000common shares priced at C$0.34a share in the first tranche and11,889,507 shares at C$0.34 ashare in the second tranche.Greenstone now holds 32.4 mil-lion Excelsior shares and owns28.2% of its issued and out-standing common shares.

Excelsior will use thismoney to pay for the feasibilitystudy needed to attract construc-tion financing. As I’ve said inprevious reviews, the scalablenature of the project and thepresence of a nearby processingplant make it likely that

Excelsior will beable to find thatfinancing.

In the interim,the cash injectionfrom Greenstonewill allowExcelsior to moveGunnison along thedevelopment curveand make news inthe process. If youbelieve, as I do,that strong copperdemand andrestricted coppersupplies are goingto drive priceshigher in the long

term, then an investment inExcelsior is a great way to beton that premise. It’s still a buy.Excelsior Mining Corp.Recent Share Price:...............C$0.23Shares Outstanding: ....114.8 millionMarket Cap:..............C$26.4 millionShares OutstandingFully Diluted: .............134.8 millionMarket CapFully Diluted: ...........C$31.0 million

Globex MiningGMX.TO; GLBXF.PK

819-797-5242globexmining.com

When executed well, theprospect generator model ofjunior exploration can make acompany a very attractive invest-ment.

Such is the case with GlobexMining, which appears to haveperfected this model. Thanks to astrategy that emphasizes stakingquality projects and carefullyshepherding its resources, thecompany has amassed a huge anddiverse property portfolio, pri-marily in eastern Canada.

That portfolio consists of 126properties, including 64 precious

metals properties, 44 base metalsproperties and 18 specialty met-als properties. The vast majorityof these are located in Quebec,Ontario, Nova Scotia and NewBrunswick.

Globex also boasts 39 royal-ties and five active propertyoptions that include cash andshare payments, explorationexpenditures and gross metalroyalties. The property portfolioas a whole contains 47 historicalor NI 43-101 compliantresources.

The company is a long-timeindustry player that has managedto survive and thrive in variousmarket environments. Its sharestructure (just over 40 millionshares issued and outstanding) isamazingly tight, given itslongevity. Plus, it has no debt.

Thus, Globex has the finan-cial flexibility to add to its port-folio when it comes across pro-jects that make sense. One rela-tively recent acquisition wasSanta Anna, a gold deposit locat-ed in Quebec near the town of LaSarre. Santa Anna came with amodest, non 43-101 compliantresource of 122,098 ounces (1.28million tonnes grading 2.97 g/tgold). Globex paid approximate-ly C$112,500 for the property byissuing 450,000 shares and150,000 share purchase warrants.

Globex’s property portfolio isso diverse that it is truly a bet oncommodities as a whole for thelong-term. A company with thismany irons in the fire has a lot ofways to make news and be suc-cessful. Add in its managementteam’s geologic expertise andcollective eye for quality pro-jects, and you have the recipe fora very attractive play on the met-als sector.

NOVEMBER 2014

GOLD NEWSLETTER15November 2014

It remains a good value atcurrent levels and a buy.Globex Mining Enterprises Inc.Recent Share Price:...............C$0.14Shares Outstanding:......40.8 millionMarket Cap:................C$5.7 millionShares OutstandingFully Diluted:................43.1 millionMarket CapFully Diluted: .............C$6.0 million

Inca One GoldIO.V; INCAF.PK604-568-4877incaone.com

Progress continues at IncaOne Gold’s Chala plant in Peru,the first of a planned series ofsmall processing plants that thecompany intends to operate in thecountry.

The Chala plant recentlyreceived delivery on a second 50tonne per day (tpd) ball mill that,once installed, will bring Chala’stotal milling capacity to 100 tpd.As part of the ramp-up process,the company has built the neces-sary concrete pads and beguninstalling both 50 tpd ball mills.Management expects to commis-sion the ball mills within twoweeks of completing installation.

Inca One has set up an inter-im milling circuit to process theore that is already coming intothe plant. This stockpiled materi-al will be processed once themills are operational, allowingthe company to refine its produc-tion process. Full-scale produc-tion should commence in early2015.

It’s all part of Inca One’s planto be a processor of choice forthe myriad small gold miners inPeru. The strategy is a responseto a relatively country’s recentdecision that all small minersregister with the government and

process their ore at toll mills likeChala.

To that end, Inca One recent-ly got its first big customer.Management has signed a Letterof Agreement with a govern-ment-approved mining companyto process 350 tonnes per month(tpm) of ore. That deliveryschedule will eventually ramp upto 1,000 tpm.

The company’s plan is to cutsimilar deals with a variety ofsmall miners and get the Chalaplant operating at capacity asquickly as possible. In the longterm, Inca One will both increasecapacity at Chala and look to addother small processing plantsacross the country.

I continue to like Inca One’smodel of development. Thechange in Peruvian law shouldcreate a steady mar-ket of small-scaleminers in need ofan efficient, envi-ronmentally friend-ly place to processtheir ore.

As investors,the company’sstrategy has greatmerit. It is scalable,providing a lowcapex path togrowth. It is alsotimely, as it shiftsfrom exploration tocash flow generat-ing production at atime when cashflow is increasingly important.

In the current environmentfor this sector, being a producershould help maximize the com-pany’s leverage to gold priceswhen we see a resurgence in thegold market. In the interim, itcontinues to look attractively

priced at current levels.Inca One Gold Corp.Recent Share Price:...............C$0.14Shares Outstanding:......63.9 millionMarket Cap:................C$8.9 millionShares OutstandingFully Diluted:................82.7 millionMarket CapFully Diluted: ...........C$11.6 million

Millrock ResourcesMRO.V; MLRKF.PK

877-217-8978millrockresources.com

Millrock Resources has com-pleted the private placement andshare consolidation that I report-ed on in last month’s issue.

The placement raisedC$4,045,000 in gross proceedsfor Millrock through the issuanceof 80,900,000 units priced atC$0.05. Each unit consisted of

one common Millrock share andone purchase warrant,redeemable until Oct. 21, 2016for C$0.07 and thereafter untilOct. 21, 2019 at C$0.10 a share.

With the transaction, the(Continued...)


company also rolled back itsshares outstanding on a 10:1basis. Though painful to existingshareholders, that action has gonea long way toward cleaning upMillrock’s share structure. Theconsolidation and financingshould allow it continue its exis-tence as a prospect generator forsome years to come.

As is typical of this model ofexploration, the company recent-ly found a partner to help itexplore its Rio Sonora project innorthern Mexico. The unnamedthird party has signed a letter ofintent to spend C$250,000 on ini-tial exploration at Rio Sonora inan attempt to find porphyry-stylecopper-moly deposits.

The project lies betweenCananea and La Caridad, twoMexican copper mines with along history of production. Thesemines sit along an identifiedtrend of copper-moly porphyriesthat runs, fairly uniformly, fromSacaton, Arizona south to thesetwo mines in Mexico. The part-ners will follow up on geophysi-cal work that indicates another ofthese porphyries may lie buriedunder cover at Rio Sonora.

This is just oneproperty in a largeportfolio of gold andcopper orientedproperties thatMillrock controls inAlaska, Arizona andMexico. The cashinfusion from therecent financing willprovide Millrockwith needed moneyto ply those projectswith explorationwork and ready themfor joint-venturepartnerships.

I continue to likethis company. It has

the property portfolio and themanagement team to make thingshappen, even in the current chal-lenging environment for juniorminers. With the dust now settledfrom the share consolidation, Ithink Millrock looks ripe for accu-mulation again. It’s a buy.Millrock Resources Inc.Recent Share Price: ................C$0.37Shares Outstanding: .......19.5 millionMarket Cap: .................C$7.2 millionShares OutstandingFully Diluted:..................32.6 millionMarket CapFully Diluted:..........................C$12.1

New GoldNGD.NYSE-A; NGD.TO

888-315-9715newgold.com

There’s no doubt that thesehave been difficult times for goldminers. With the yellow metal in adowndraft, lower prices havesqueezed revenues and profits atproducers like New Gold.

The company reported $169.3million in revenues for Q3 2014, a13.6% decrease from the samequarter in 2013. The bottom lineresults flowed in similar fashion,

with operating margin down 20%from $93.9 million in Q3 2013 to$75.1 million in Q3 2014. Thecompany posted a sizable net lossof $59.6 million in the most recentquarter (as compared to the $12.2million in net earnings it posted inQ3 2013).

One bright note was net cashgenerated from operations, whichincreased from $36.2 million to$58.2 million on a year-over-yearbasis. For the first nine months of2014, New Gold’s operationshave generated $198.9 million innet cash, compared to the $72.2million they generated during thesame period in 2013.

Thanks to credits from robustcopper production at its NewAfton mine, the company’s all-insustaining costs (AISC) were$848 per ounce. The companyexpects its full-year AISC to comein within guidance of $815 to$835 per ounce.

Production for Q3 2014included 93,400 ounces of gold,230,700 ounces of silver and 25.6million pounds of copper. Thegold and silver production num-bers were both down slightly fromthe comparable quarter in 2013,while the copper production wasslightly up.

The company is anticipating astrong fourth quarter, with full-year gold production of 380,000to 420,000 ounces, copper pro-duction of 92 million to 100 mil-lion pounds and silver productionof 1.35 million to 1.75 millionounces.

The silver lining for NewGold is that is has a highly prof-itable operation at New Afton thatcan help it weather the currentstorm in gold prices. It also has asizable cash cushion ($416 mil-lion) to fall back on.


The financials this quarterobviously weren’t great. Still, sig-nificant mid-tier producers likeNew Gold should be able to findtheir sea legs once gold prices sta-bilize. For the time being, we’llkeep this company as a hold onour list.New Gold Inc.Recent Share Price:..............US$3.48Shares Outstanding: .....503.6 millionMarket Cap:................US$1.8 billionShares OutstandingFully Diluted:................543.1 millionMarket CapFully Diluted:..............US$1.9 billion

SilverCrest MinesSVLC.NYSE-A; SVL.TO

866-691-1730silvercrestmines.com

SilverCrest Mines is begin-ning to reap the benefits of transi-tioning its Santa Elena mine inSonora, Mexico from an open-pitto an underground operation.

The Q3 2014 productionnumbers tell the story. Silver pro-duction is up 90% compared toQ3 2013, coming in at 385,251ounces. Silver-equivalent produc-tion also hit a record: 810,334ounces, a 26% improvement overthe same quarter last year. Goldproduction was 7,085 ounces dur-ing Q3 2014. The company com-missioned a new mill at SantaElena in this past quarter, a movethat has upped the mines averagecapacity to 2,500 tonnes per dayof ore.

Company president and COON. Eric Fier elaborated: “Our cur-rent operational focus is to opti-mize ball mill grind size in effortsto achieve throughput tonnages ator above the nameplate capacityof 3,000 tpd and manage theshort-term delays related to thefirst underground stope produc-tion.”

SilverCrest expects produc-tion to ramp up still further in thefourth quarter, allowing it to hitits revised production guidance ofbetween 3.0 million and 3.3 mil-lion silver-equivalent ounces. Atthat point, the mine should startgenerating significant free cashflow.

Meanwhile, drilling hasbegun on the Durazno target,located on Ermitano Concessionthat lies seven kilometers south ofSanta Elena. The company willply this target with roughly 2,000meters of drilling to test outcrop-ping areas of epithermal mineral-ization.

The good news from Rosariocomes in the face of a fairly steepdrop off in metals prices. Still, aswith the other primary silver pro-ducers on our list, SilverCrestremains a prime candidate todeliver leverage on spiking silverprices.

The dearth of silver-predomi-nant miners makes this companya solid addition to our portfolio.With the transition to under-ground mining at Santa Elenalooking likely increase the mine’sproduction profile in Q4 andgoing forward, the company’sgrowth story continue to looksolid.

This is a company to peckaway at if the market dampensthe share price still further, asSilverCrest is geared for arebound when the broader marketrights itself.

SilverCrest Mines Inc.Recent Share Price: ...........US$1.26Shares Outstanding: ....118.8 millionMarket Cap: .........US$149.7 millionShares OutstandingFully Diluted:..............126.7 millionMarket CapFully Diluted:.......US$159.6 million

Brief Notes...

• Adamera Minerals (ADZ.V;DDNFF.PK; C$0.04) is continu-ing its pursuit of high-grade oreto feed to a mill owned byKinross Gold in easternWashington. The mill is operatingat half capacity, with the nearbyBuckhorn mine currently provid-ing the bulk of the ore to the mill.

Buckhorn only has about ayear of mine life left, a fact whichmakes viable Adamera’s plan toquickly prove up gold deposits onits property position in the imme-diate area. The company wants tomove straight from outlining goldresources to delivering mineableore to the Kinross mill.

On the exploration front,Adamera recently announcedpromising results from shallowdrilling on its Oversight property.The nine-hole program turned upassays ranging from 0.25 to 2.5g/t gold. More importantly, theproperty appears to host the sametwo styles of mineralization thathost gold at the adjacentOverlook mine.

Adamera has always been adrill hole play, but one with apotentially quick payoff. That

“SilverCrest Mines is beginning to reap the bene-fits of transitioning its Santa Elena mine inSonora, Mexico from an open-pit to an under-ground operation.”


continues to be the case, but we’llrelegate it to a hold for now.• ATAC Resources (ATC.V;ATADF.PK; C$0.46) announcedan eye-popping assay from thelast of the holes drilled in thisyear’s program at Conrad, one ofthe key zones of mineralizationon the eastern side of ATAC’s dis-trict-scale Rackla gold project.

Hole 228 cut 40.2 meters of6.57 g/t gold. Adding to the allureof this impressive hole was Hole229 (19.2 meters of 4.21 g/t gold)and Hole 230 (42.7 meters of 3.03g/t gold). Of note, the LowerZone at Conrad remains openalong strike and at depth. Theselast three holes have extended themineralization in the Lower Zoneencountered by Hole 227 (30.8meters of 9.50 g/t gold).

As exploration at Rackla con-tinues to bear fruit, the potentialfor elephant-sized, Carlin-stylemineralization on this projectremains very real. ATAC is still abuy for those looking for nearunlimited upside in their explo-ration stories.• Avino Silver & Gold Mines(ASM.NYSE-A; ASM.V;US$1.17) has completed its

acquisition ofBralorne GoldMines.

As of Oct. 20,Avino has acquiredall the outstandingshares of Bralorne itdid not already own.The deal gives Avinoa 100% interest inthe Bralorne GoldMine in BritishColumbia. The areahas a history of goldmining, with pastproduction of 4 mil-lion ounces.

Because the areahas a history of hosting high-grade, vein-hosted mineralization,relatively little systematic explo-ration work had taken placebeyond the known veins.Bralorne rectified that situation,applying diamond drilling to thearea and establishing a small, NI43-101 compliant resource. Themine is engaged in small-scaleproduction and remains amenableto expansion through exploration.

The addition of Bralorne givesgeographic diversity to Avino’sheretofore Mexico-focused opera-tions. It fits in wellwith the small, butextremely scalableproduction modelthat the company haspursued on its Avinoproperty. The compa-ny’s share price con-tinues to look attrac-tively priced. Avinoremains a buy.• Antofagasta hasearned a 60% inter-est in AvrupaMinerals’ (AVU.V;AVPMF.PK; C$0.16)Alvalade joint ven-ture in southernPortugal.

Drilling at Alvalade hasfocused on the Sesmarias area,with recent results increasing thestrike length of the Sesmarias Westtarget. The drills will now move tothe Sesmarias East target, wherethe partners hope to encountermore examples of copper-richmassive supplied material. A newtarget basin in the Pombal area,some 15 kilometers south ofAlvalade, has also been discov-ered.

This European prospect gener-ator is doing an admirable jobmaking news in a difficult market.With joint venture partners there todo the heavy financial lifting on itsmost promising projects, Avrupashouldn’t lack for news flow anytime soon. It’s another buy.• Cayden Resources (CYD.V;CDKNF.PK; C$2.35) has receivedclearance from the Supreme Courtof British Columbia to move for-ward with its plan to be acquiredby Agnico-Eagle Mines(AEM.NYSE; US$23.23).

The court order followed anearly unanimous shareholder votein favor of the arrangement. Underthe terms of the deal, Caydenshareholders will receive a 0.09


share of Agnico Eagle, plusC$0.01, for each share of Caydenheld.

The next step in the process isfor the deal to receive Mexicananti-trust approval. Once that issettled, the companies expect thetransaction to close sometimebefore the end of 2014.• Endeavour Silver (EXK.NYSE;EDR.TO; US$2.84) recentlyannounced production results forQ3 2014.

The numbers weren’t stellar.Silver production decreased by12% to 1.63 million ounces andgold production decreased by 38%to 14,118 ounces. While the com-pany expects production toimprove in the fourth quarter, thefact remains that gold and silverprices are not trending favorablyright now.

Given the decrease in metalsproduction and the recent drop inprecious metals prices, I expectthe company’s third quarter finan-cial numbers to be down as well.

The good news is that thecompany is having successdrilling for more resources at itsSan Sebastian project in Jalisco

State, Mexico.Highlights fromrecent drilling at SanSebastian include557 g/t silver and1.47 g/t gold over11.3 meters, 1,605 g/tsilver and 2.77 g/tgold over 8.3 metersand 1,440 g/t silverand 0.97 g/t goldover 0.54 meters.With intersectionslike that, Endeavourlooks likely to add toSan Sebastian’sresource total when itproduces a newresource estimate for

the project later this quarter.With the Endeavour Silver

currently fighting fairly strongmarket headwinds, we’ll keep it ahold for now.• Fission Uranium (FCU.TO;FCUUF.PK; C$0.74) announcedmore quality assays fromPatterson Lake South, its flagshipuranium project in the AthabascaBasin.

The highlight hole from thislatest batch of assays was Hole270 (24 meters of 8.53% U3O8,including 7.5meters of 24.87%U3O8). The assaysalso managed toextend the R780Ezone laterally. Stillpending are assaysfrom the remaining40 holes drilledduring the compa-ny’s summerdrilling program.

High gradeassays like this arepar for the coursefor PLS. They bodewell for the maidenresource estimatethat Fission will

release on the project before theend of the year. For those of youwilling to wager that the upcom-ing estimate will surprise to theupside, now is the time to do so.• Chip and channel sampling onthe Pinion North Zone have con-vinced Gold Standard Ventures(GSV.NYSE-A; GSV.V;US$0.49) to add a third RC drillrig to the ongoing program at itsPinion gold project in Nevada.

The surface program yieldedsome intriguing drill targets atPinion North. Gold Standard is inthe process of drilling a 27.4-meter channel sample on the tar-get that graded 1.05 g/t gold.

Management is confident thatadditional drilling will allow thecompany to expand the mineral-ization at Pinion to the north. Thedrilling will test below the chan-nel samples with six to 10 angleholes.

Between Pinion and its nearbyRailroad project, Gold StandardVentures is pursuing elephant-sized deposits in Nevada. Thus,the upside for the companyremains as good as any companyon our list. As a first-rate discov-

(Continued...)


ery play, it remains a buy.• Great Panther Silver(GPL.NYSE-A; GPR.TO;US$0.68) achieved a record forquarterly production. The num-bers for Q3 2014 were solid, witha 13% year-over-year increase insilver equivalent production to890,641 ounces. That total wascomprised of 565,965 ounces ofsilver production and 4,200ounces of gold production.

The company also reportedsome high-grade intercepts fromthe first six holes of a drilling pro-gram on San Ignacio, a satellitemine to its flagship Guanajuatomine in Mexico. The highlightfrom this first batch of assays wasHole 120 (5.26 meters of 1,133 g/tsilver and 6.86 g/t gold). The latestresults give management confi-dence that it can add significantounces to the south of the currentresource block at San Ignacio.

Mexican silver plays like GreatPanther are a staple of our list forone simple reason: in rising silvermarkets, they provide us withexcellent leverage potential. Giventhe current market for silver,though, we’ll keep the company ahold.

• Lion One Metals(LIO.V; LOMLF.PK;C$0.23) continues tomove ahead withdevelopment atTuvatu, the compa-ny’s gold project inFiji.

The latest newscame from Fiji’sDepartment ofEnvironment, whichgave the green light toLion One’s environ-mental managementplans for the project.That approval encom-passes a potential pro-cessing plant, mine

and road construction, infrastruc-ture and water management facili-ties.

Studies are underway for sev-eral components of a potentialmine at Tuvatu. That work isexpected to be complete before theend of the year. Managementappears to be moving the projectalong briskly, which means thatgold production is likely not too farin the future. At current levels,Lion One is a solid speculation onthat possibility.• MidlandExploration (MD.V;MIDLF.PK; C$0.80)has added the Willbobproperty to its portfo-lio.

Willbob came toMidland as a result ofthe staking of 23.2square kilometers ofground along theLabrador Trough inQuebec. Surface sam-pling on this gold/PGEproperty included sam-ples grading as high at31.3 g/t gold. Previousexploration revealedseveral large surface

showings of high-grade gold.These showings are open in alldirections.

The addition of Willbobstrengthens Midland’s presence inthe area — its Pallas project liesnot too far away. Given the compa-ny’s propensity to cut joint venturedeals, it wouldn’t surprise me tosee it option Willbob as well. Theproperty’s potential gives us yetanother reason to keep thisCanada-focused prospect generatoron our list. It’s a hold for now.• Precipitate Gold (PRG.V;PREIF.PK; C$0.12) has discontin-ued pursuit of its option on theCecilia project in Sonora, Mexico.

The decision is based on thepositive drilling results on theGinger Ridge zone within its Juande Herrera gold project in theDominican Republic. The fundspreserved by walking away fromCecilia will help the companyfocus more intensively on its prop-erties in the Dominican Republic.

I am excited about the progressPrecipitate is making at GingerRidge. It confirms my faith in themanagement team that runs thiscompany. This is a group that


knows how to make news andmove projects along the explo-ration curve.

With gold and silver in the dol-drums right now, it seems that onlydrill hole plays like Precipitatehave a chance to make real head-way. So for those looking for asolid speculation amidst the broad-er carnage, Precipitate remains abuy.• Santacruz Silver Mining(SCZ.V; SZSMF.PK; C$0.40) hasreleased Q3 2014 productionresults from its Rosario silver minein San Luis Potosi, Mexico.

At 184,900 silver equivalentounces, Rosario’s production was9.9% higher than its productionlevels from the quarter previous.The silver equivalent total wasbased on 115,445 ounces of silver,94 ounces of gold, 184.9 tonnes oflead and 462.2 tonnes of zinc.

The milling circuit at Rosariohas a 300 tpd capacity, while theore production rate of the mineaveraged 380 tpd in Q3 2014. Thissituation has resulted in a stockpileof around 8,500 tonnes of ore. Thecompany is in the process ofadding a third ball mill that will

boost milling capacityto 450 tpd. Onceplanned flotation cellsare integrated into thecircuit, that rate willjump to 700 tpd.

All this bodeswell for future quar-ters of production atRosario. If prices canmake even a modestcomeback, Santacruzis the kind of margin-al silver producer thatshould provide signif-icant leverage to ris-ing gold prices. Itremains a hold for thetime being.

• Sunridge Gold (SGC.V;SGCNF.PK; C$0.12) has formedthe Asmara Mining ShareCompany (“AMSC”) with ENAM-CO, the company’s government-held partner in Eritrea.

The terms of the deal call forENAMCO to pay Sunridge $18.33million for a 30% participatinginterest in the Asmara project. Thecompany will have received $5million of that total by the end ofthis month. ENAMCO will payone-third of Asmara expendituresgoing back to July2012. Going forward,project developmentwill be financed withcosts shared accordingto a 66.7%(Sunridge)/33.3%(ENAMCO) split.

With ENAMCO’s10% free carried inter-est, ownership of theAsmara project is splitalong a 60%/40%basis, with Sunridgeowning the majorityof the project. I’mexcited about this lat-est development, as itsuggests that

Asmara’s outsized potential willbegin getting tapped in earnestnext year. On that basis, Sunridgeremains a buy.• Tower Resources (TWR.V;TWRFF.PK; C$0.03) recentlyupdated the market on the resultsof its 2014 exploration program onRabbit North, a coper-gold proper-ty in south-central BritishColumbia.

The highlight from the workwas the discovery of KV, a targetthat appears to be a porphyry-relat-ed copper-gold zone. Surface workhas outlined mineralization at KVover a 400-meter by 460-meterarea. Grab samples taken as part ofthis work grade up to 0.79% cop-per and 6.23 g/t gold.

Tower’s geologists will use thewinter to assess the data from thiscampaign and to identify drill tar-gets for a program that wouldbegin in spring 2015. While theKV discovery is exciting, the factthat the company won’t drillRabbit North until at least springmeans it will be awhile before wecan get any market-moving news.

In light of this, we’ll drop cov-(Continued...)

PotpourriMiscellaneous notes and observations

By Brien Lundin


erage for now, and look to possiblyget back in at some point in thespring, when drilling seems readyto commence.• TriMetals Mining (TMI.TO;TMIAF.PK; C$0.10) reminded themarket recently that its GoldSprings project is a large and tar-get-rich environment.

The 74 square mile propertyboundary straddles the Utah-Nevada border. Historical work atGold Springs had already yielded18 surface targets. The company isusing geophysical tools in its ongo-ing exploration of the property.That effort has identified several

additional target areasthat may warrantadditional follow up.

Rock sampling onthe newly identifiedSnow Prospect targetturned up samplesgrading as high as 3.7g/t gold and 12 g/t sil-ver. The companyplans to follow upthese good resultswith more samplingand some trenchingas well. Other sam-ples of note camefrom the White Pointand North Grey Eagle

targets.With drilling ongoing at the

resource-hosting Jumbo area andthis surface work continuing,TriMetals should keep thenewswires humming as we movetowards the close of 2014.

The surface exploration pro-gram is exposing the property’sdistrict scale potential, and theprospect of production from theJumbo and Grey Eagle targetsmakes the company look cheap atcurrent levels. Still, considering thestate of the market right now, we’llmake TriMetals a hold for the timebeing.

• True Gold Mining (TGM.V;RVREF.PK; C$0.21) has deliveredan impressive preliminary econom-ic assessment on North Kao, theblind discovery it made last yearon its Karma gold project inBurkina Faso.

The North Kao looks likely tocontribute significantly to the cashflow from the mine True Goldplans to build at Karma. Withinferred resources of 312,000ounces (9.9 million tonnes of 0.98g/t gold), North Kao is expected togenerate 118,000 ounces of goldper year over a 2.5-year mine life.

Though a small deposit, itsmodest capex and low operatingcosts will allow it to kick off$118.6 million in after-tax cashflows over that mine life. IRR is awhopping 213% and NPV after-taxis $69.6 million. This latter numberis discounted from 2022, based ona phased development plan forKarma that would see the targetdeveloped in Year 9 of operation.

All this, of course, is future ori-ented. Right now, most investorsare focusing on the unrest inBurkina Faso. I don’t pretend tohave a crystal ball in that regard, sowe’ll move True Gold to a holdwhile we wait to see how eventsunfold.

Censorship on gold?As I mentioned in my lead

article this month, I’m becomingincreasingly frustrated at how the

major financial news media ismissing the story on the massivedemand for gold in China thatemerged last year and has contin-ued virtually unabated through

this year.As long-time readers know,

I’m not a big conspiracy buff. ButI’m finding it very curious that


inattention to the subject ofChinese demand has shifted todownright misinformation. Notonly that, now some organiza-tions that you would believe to beon the gold investor’s side areactually censoring themselves onissues that could be massivelybullish for the metal.

Consider that the World GoldCouncil has, for some reason,chosen to completely ignore thegold withdrawal statistics fromthe Shanghai Gold Exchange. AsI’ve been reporting, great workby Koos Jansen ofBullionstar.com has revealed thatSGE withdrawals equal wholesaleChinese gold demand, and thesefigures show that Chinese buyinghas been totaling over 2,000tonnes annually over the past twoyears.

In contrast, the World GoldCouncil insists on using statisticsfrom the China Gold Association,which dramatically under-reportsChinese demand in its publica-tions intended for Western audi-ences. As a result, the WGCreported 2013 demand in Chinaat merely 1,066 tonnes. In con-trast, the China Gold Associationrecently admitted, in an annualreport published only inMandarin, that demand was2,200 tonnes last year.

Yet the World Gold Councilhas remained strangely silent onthis issue.

And that’s not the only one:A recent Bloomberg report on theupcoming Swiss gold referendumnoted how potentially bullish a“yes” vote on this initiativewould be. As I’ve noted, this ini-tiative would require the SwissNational Bank to hold at least20% of its assets in gold, to repa-triate all of its gold held over-seas, and to never sell any gold

reserves going forward.Passage of this referendum

would require the SNB to buyabout 1,500 tonnes of gold overthe next five years. So, as theexperts quoted by Bloombergagreed, a “yes” vote would beenormously bullish for gold.

Naturally, you would expectthe World Gold Council to com-ment upon such an event. Yet, asBloomberg was careful to note,“The World Gold Councildeclined to comment on the pend-ing initiative.”

Wow. Really? Perhaps themost important issue facing thegold market right now, one thatcould potentially spark a popularmovement in more nations torepatriate, audit and retain goldfor use as national reserves...andthe gold industry’s major associa-tion declines to comment?

Other industry associationsbeg, everyday, to get in front ofinternational media on topicsrelated to their bailiwicks. But theWGC declines the opportunity?

Chris Powell of GATA offersup one possible reason why: “Thecouncil won’t help gold if itmight offend a central bank.”

Again, I’m not a conspiracybuff. But Chris’ explanationseems logical to me.

Postscript: There’s muchmore to this issue, including howthe Wall Street Journal andReuters are reporting erroneousShanghai Gold Exchange premi-

ums to indicate slack Chinesedemand, while simultaneouslyignoring the withdrawal statisticsshowing near-record levels ofdemand.

Quite literally as I was writingthis, a great analysis by KoosJansen arrived in my inbox. I urgeyou to read it here.

China’s not the onlyone on the bidAs prices have dipped, we’ve

seen demand for gold and silversurge in a number ofplaces...including the West.

There have been reports thatinvestors have been buying silvercoins hand over fist -- particularlysilver Maple Leafs from theCanadian Mint and silverAmerican Eagles from the U.S.Mint.

In fact, as I write this, Reutersis reporting that “The U.S. Mintsaid on Wednesday it has tem-porarily sold out of its AmericanEagle silver bullion coins follow-ing ‘tremendous’ demand in thepast several weeks.”

So this buying predates themost recent downturn in gold andsilver. Imagine how strongdemand will be now that the met-als are even cheaper.

If the past is any guide, weshould also closely watch the reg-istered gold stocks cover levelson Comex. The “owners perounce” level was recently ataround 47. If Western demand

“In contrast, the World Gold Council insists onusing statistics from the China Gold Association,which dramatically under-reports Chinese demandin its publications intended for Western audiences.”

(Continued on page 25...)

https://www.bullionstar.com/blog/koos-jansen/the-mainstream-media-versus-gold/

http://www.bloomberg.com

https://www.bullionstar.com


https://secure.moneyshow.com/eshow_reg/registration.asp?sid=E3MS14&scode=037266

https://secure.moneyshow.com/eshow_reg/registration.asp?sid=E3MS14&scode=037266


continues as reported, we couldsee this level rise steeply soon.

The Republican waveOf course, the big news out-

side of the gold market has beenthe remarkable U.S. mid-termelection results, with theRepublicans regaining control ofthe Senate, extending their leadin the House, and gaining a num-ber of governorships.

Although I have more of alibertarian bent myself, I feelthat the Republican party is lean-ing more and more in my direc-tion -- thanks largely to the goodwork of Ron and Rand Paul.

There’s a good argument thatall politicians are alike, and itdoesn’t much matter which partyis in power. Related to this is thewell-found belief that gridlock isgood, as it keeps the governmentfrom meddling in the economyand our lives.

But it seems that today’s ver-sion of the Republican party ismore hands-off than previousiterations, and they may be able

to ram-rod legislation that actu-ally lessens the burdens andintrusions of government.

I know -- wishful thinking.But let’s keep hoping.

Another NewOrleans Conferencebehind usAs I mentioned in my lead

article, I think New Orleans2014 was one of our best ever.

Everything ran seamlesslyand without any major hitches(many thanks to my dedicatedand talented staff). Our speakersand MCs were also incrediblyprepared and obviously dedicat-ed to providing our attendeeswith the greatest possible value.

And our attendees wereeager, appreciative and active.

In fact, as I noted in ourClosing Panel, they exhibitedone of the traits that I admiremost in investing and life in gen-eral, and one that Jim Blanchardepitomized like no one else I’veever met: passion.

Our attendees, as we’vecome to expect, were up at 7:00a.m., listening to speakers andfuriously taking notes...and stay-ing up as late as 10:30 p.m.doing the same. That’s passionfor you, and it’s why everyonehere at Jefferson Financial worksso hard to deliver value worthyof such enthusiasm and interest.

I think we were successfulthis year. But, as always, pleasetell us any ways you think wecan do more (outside of gettingthe gold price up -- we’re work-ing on that everyday, unfortu-nately to little effect!).

©2014 Jefferson Financial, Inc. All rights reserved. Published by Jefferson Financial, Inc., 111 Veterans Memorial Boulevard, Suite 1555, Metairie, LA70005. Subscription Price: $198 per year. Foreign orders, please add $35/year for postage and handling, Canadian orders, please add $10/year. Singleissues available for $20 each. New subscribers may cancel their order anytime and receive a full refund on all unmailed issues. Make checks payable toJefferson Financial. Gold Newsletter was founded by James U. Blanchard III. Editor: Brien Lundin; Art Director: Kevin Pilet.

For subscription details, please call (800) 877-8847, or send E-Mail to [email protected]. The publisher and its affiliates, officers, directorsand owner actively trade in investments discussed in this newsletter. They may have positions in the securities recommended and may increase ordecrease such positions without notice. The publisher is not a registered investment advisor. Subscribers should not view this publication as offering per-sonalized legal, tax, accounting or investment-related advice. The news and editorial viewpoints, and other information on the investments discussedherein are obtained from sources deemed reliable, but their accuracy is not guaranteed. Authors of articles or special reports are sometimes compensat-ed for their services.

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Documents

Alan Greenspan: Big trouble ahead and higher gold pricesOf course, Alan Greenspan was our big headliner, participat-ing in a one-on-one interview with our talented MC, Gary Alexander,