Silver Falcon Mining

What we are witnessing with all the more recent hype and excitement over SFMI on the chat sites is more a growing pack mentality than a basic understanding of the real fundamentals, both of the resources in War Eagle and the underlying market dynamics that are now lancing the boil of market fraud and manipulation in the precious metals sector that has built up pressure over the last ten years. We have been launched in to a “catch-up phase” and time has now become our friend after so very long a wait.

Lest we forget the golden rule of supply and demand I thought it might be time to take a breath in order to attempt to grasp the reality of the moment…especially for those new these markets. The reasons for the stock price to be belatedly rising so quickly here are many but they all stem from the precious and rare abundance of rich grades of gold and silver vaulted in the mountain… estimated to be anywhere from 5 million to 10 million ounces and up…plus the above ground “pump-primer” 500,000 tons of rich ore (to be qualified soon). The treasures in War Eagle are no longer a secret and there are those with wealth and power who want them…and they are now willing to pay fair price for the world’s only true currencies. This is a competitive, quick-footed, global race for acquiring financial security and safe haven that can no longer be hidden or spun. It is a play-off game for titans who will not be denied their trophy, from which we can benefit…by holding a ticket to the best seats in the JPM house…in this case, the sneak preview, SFMI show.

We are now solidly inside the threshold of a new dawn for gold (and silver). See below the many reasons for seeking refuge in gold (and the best gold/silver stocks) as outlined by Jim Willie in his Hat Trick letter.

“GOLD SEEN AS ZERO RISK REFUGE

No charts are necessary. A thousand words might suffice, rather than six charts showing Gold breaking out to new highs across the world. Some major points scream to be told. Here is a list:

• Gold is rising in every single major currency
• Gold is not a hedge against price inflation, but rather against ruined monetary system
• Gold is making new highs in almost every single major currency
• Gold had consolidated in price for four months, the base for breakout
• Gold will reach $2000 in price within the next two years time
• Gold is desperately needed to anchor the failed fiat paper currency system
• Gold is planned for a component role in the new Northern Euro currency
• The sovereign debt crisis has fueled demand for Gold without the full realization that the central bank franchise system has failed along with the fiat currencies
• Quantitative Easing is monetary hyper-inflation, the fuel of the Gold rally
• Gold is urgently needed as a bank reserve to ensure proper function
• Gold contains no inherent counter-party risk
• Gold is in the midst of vast supply shortages
• The Gold Cartel is seeing defections among its allies, who are buying gold bullion after the cartel knocks down the price
• Nations are hoarding their gold mining output, the latest possibly Venezuela
• Gold is seeing panic buying in parts of Europe, like Austria
• Gold mining output is trending down for the past few years
• Gold was by far the #1 investment asset in the entire 2000-2009 decade
• The US Dow Jones Industrial Average is in multi-year decline, in Gold terms
• Gold is protected from human corruption, except in its theft and hollow replacement
• Gold market is receiving heavy scrutiny for corrupt metal exchanges
• The London Bullion Market Assn has been in default since December, bribing on delivery demands to receive cash settlement with a 25% premium paid
• The GLD gold exchange traded fund is a corrupt diversion from metal ownership
• Hong Kong is soon to offer several exchange traded funds for Gold
• Gold can and does rise in price concurrently with the USDollar
• Future payment for oil shipments will require a gold-backed currency
• New barter systems of trade will contain a gold core component
• Gold is the ultimate safe haven asset
• The USTreasury has no gold reserves, as Fort Knox is empty, since the Clinton-Rubin gang leased it and sold it all
• PIGS nations have more gold reserves than the United States
• Switzerland and Canada have almost zero gold in national reserves
• The IMF gold sales are lies, actually closed out USGovt gold short transactions from past years when the Clinton-Rubin gang leased gold for sale
• Gold leased from the Italian central bank was lost by LongTerm Capital Mgmt
• Bear Stearns was targeted for a kill, since it was long in gold, defying Wall Street
• China participates with the IMF sideshow game in order to buy its gold pledges
• If Gold were revalued at 3x to 5x the price, many national banking systems would be restored to health and solvency
• Price hyper-inflation is the likely next blemish on the US landscape, which will fuel broad public gold demand
• Any attempt by the USGovt to confiscate gold would result in a gigantic backfire, with the gold price doubling in price, and US foreign assets subjected to freezes
• Gold will reach its high range when US bankers along with London bankers face a Nuremberg style criminal trial on the global stage
• Prepare for the arrival of a small group of new Gold-backed currencies, the USDollar death knell
• As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1913, "Gold is money, and nothing else"