Dear Friends,
Why would an organized short seller not cover in the marketplace even after having accomplished extremely low prices in Gold juniors?
The main purpose of this new multi-year attack of the entire investment group of junior exploration, development and even producing shares has as its goal "To prevent the field from obtaining financing."
The plan of the organized shorts is not to re-buy their short positions back in the marketplace but rather to by preventing the companies from normal financing do the following:
1. Force by necessity the company to do participation financing on predatory terms on extremely exciting properties.
2. Force the company by necessity to do private placements with warrants and options that favored the private placee to the degree of dilution to the present stockholder that is egregious.
3. Force by necessity the company to accept loans terms based on their property sure to result because of short timeline in the failure on the note and title on the property to pass to the hands of the private loan note placement party.
This explains the enigma of no cover.
The strategy of defense has been to determine any and all other means of financing rather than the normal chain of broker dealer networks now making more money from the perpetrators than the operating companies.
The Resolution of the $1,000,000 wager on the Gold Price at or above $1650 by January 14th 2011:
1. The primary purpose of offering this wager was to identify the central hedge fund or funds short of the gold juniors.
2. The only offer that appeared to have been real came from a TORONTO Hedge Fund, but required that I become a counter party to an Over The Counter derivative called a one touch option. Clearly I am the last person on this planet that would be involved in an Over the Counter Derivative, having argued against them since the late 90s.
3. The offer of the wager, after a few months, lapsed with time.
