The problem GNH has is it does not have a viable deposit delineated yet and the market is not willing to give them more money right now to do that. They are just trying to stay solvent till the market turns and they can raise money again. They are in the same boat as a few hundred other junior explorers.

I sold my shares at a significant loss and moved on when their last drill results were shown to not be spectacular. And yes, I took a significant loss. You can criticize Frank for various things he did in the past but now his most important job is to conserve cash. Having to pay lawyers' fees because of a frivolous lawsuit must be quite frustrating.

Good luck to those of you holding on. If the market turns soon enough this still is a promising deposit.

Bob

Jan 17, 2013 by Keith Weiner

Germany has announced that it plans to take home all 374 tonnes of its gold stored at the Banque de France, and 300 out of 1,500 tonnes held at the Federal Reserve Bank of New York (http://www.ft.com/intl/cms/s/0/97970542-5fd2-11e2-b128-00144feab49a.html#axzz2I9UZ7iGA).

Bill Gross of PIMCO tweeted:

“Report claims Germany moving gold from NY/Paris back to Frankfurt. Central banks don’t trust each other?”

In this article, I consider some popular reactions to the news and then present my own analysis and some ideas about what I think could happen.

Declining trust is a global megatrend. It is impossible to ignore. I proposed trying to measure it as one indicator for financial Armageddon in my dissertation (http://keithweiner.posterous.com/a-free-market-for-goods-services-and-money).

I am sure distrust for the US government, or more likely, responding to the German voter’s distrust is among their concerns. But, I doubt that this is the primary motivation. The Bundesbank is not acting as if they are in any hurry, planning to have the gold moved over a period of 8 years (yes, I know, it all “fits”, the delay is because the Fed hasn’t got the gold, etc.) A lot can and will happen in 8 years (including the end of the current monetary system). The distrust theory has to answer: why would Germany leave 1,200 tonnes of gold in New York and 447 tonnes in London?

The above says 8 years but the completion date is 2020 either way. One reason given for the delay is that you can only insure 3 tonnes of gold at a time for shipment on an airplane. That is all the insurance companies are willing to insure at any one time. It still does not explain why it takes so long making one assume New York does not have it.

Bob

Your tonnes look right PC but the data I read was it was going to take 7 years to get the gold from the US. You would think it would be easier to ship the gold by air rather than by wheelbarrow and dinghy judging by the shipping times.

Bob

You are right about there being a risk of running out of cash Can'tjust read. Some companies are getting no credit for good results now. If we get "OK" results and the market is still like this then what?

I would rather swing for the fences and hope that we get some stellar results and/or the market improves in the meantime. I am more concerned about the extras they have entered into. Hiring more management seems to be top heavy. We already have Tilsley and SGS to help us find the gold. Why do we need another guru who is going to head a committee? Plus they acquired the additional claims. No mention of the cost but there has to be some. I am sure the new claims show some promise but if you do not have the money to drill what good is it?

Mind you Frank will look like a genius if the market turns real quick and they find impressive intercepts. Right now, he is looking like a gambler to me.

Bob

I am sure a lot of you have been invested in precious metals stocks for quite a while. You have seen these market highs and lows happen 2 or 3 times per year every year. The market looks like it is coming off the bottom again with the makjors leading the way. GNH has to be patient and their price will rise too. We can get much better terms for financing at that point. In the meantime we are in wait mode.

Keep in mind that the RE had excellent grade. We just need to increase the ounces to make it viable. Extorre got bought out at just under $200 per oz. Think of that.

Bob

That is a very interesting challenge Glorieux. Lets see if Mikey agrees.

Bob