Golden Phoenix Minerals (GPXM):

Risen from the Ashes Yet Again

Preface: The US and its entire system is on the brink of collapse regardless of what the “feel good” news of the moment might be–especially during the Holiday Season when we are inundated with Black Friday, Cyper Monday and Shop Till you Drop (or are run over–see www.fedupusa.com) headlines.

The unemployment rate in this country is at least double what the government is posting–closer to 20% than to 10%; in some areas 30-35%. Areas such as Detroit. Most of us are going to have to wake up to reality–especially the Middle Class. I have hopes of creating United We Will Stand, a website devoted to Americans who understand the power of numbers and critical mass.

We all need to make a living and/or invest well if we have any investing capital at all. I want you to do well because Americans are a family without a Patriarch. We need to survive and provide for our families. All signals for me point to a stock market being propped up. I am going to start mentioning a few high risk-high reward junior mining stocks as that was my beat back in the day. Please do your own due diligence and don’t take anyone’s word on anything–including me. God Speed.

November 2010

“The Down and Dirty”

GPXM is a stock I’m purchasing for my own portfolio. I’ve known the principals of the company for five years and believe them to be smart, savvy and a hardworking group. Their stock price is around $.13 US and with gold production beginning in the first quarter of 2011 with JV partner Scorpio Gold, and molybdenum production happening in the same time frame down in Peru, I believe that the company has huge upside potential due to its experience, business  model and management. There are 240 million shares outstanding but the company is buying back some of its common stock. They are on the lookout for additional gold properties and have a management team led by a knowledgeable ex-investment banker and a Chairman of the Board who has been at the helm during their recent two year ascent. I believe that the precious metals complex will continue to reward those companies that are led by qualified personnel, have good projects, and are in the early stages of production. GPXM has been repeatedly tested by fire and until they prove they are incompetent or lack integrity, I will continue to support them. That’s the down and dirty of it.

Introduction

When I wrote the title to this Golden Phoenix piece, I wondered if it would be misconstrued. For something to rise up from the ashes, it would intimate that historically it had to crash and burn at some point; which may be construed as a negative. It could also be construed as a positive sign of strength in overcoming some very severe obstacles if it recovered from said crashing and burning. And though Golden Phoenix has been a bit of a roller coaster ride during this period, they’ve done the one thing that many junior mining companies have not—they turned misfortune into an ally. They became better organized and constructed a firm foundation upon which to build a stable vertically integrated company even after having the carpet pulled out from under them when certain commodities took a nose dive in 2008—commodities such as molybdenum in which they were involved.

As such, Golden Phoenix (GPXM) has been an impressive company to observe over the past four or five years because of its management, perseverance, projects, resiliency, and the acquisition of their prospects (projects) for the future. I use the word impressive because there have been several times since I’ve been following it over those years that it has been on the razors edge—a roller coaster ride. It has been impressive to watch how they’ve worked with the cards that the markets have dealt them. At one point, a share was selling for a penny back in 2009 and most investors were kissing the company goodbye—but wait, not so fast! The key people had different ideas and loyal shareholders stood behind them.

And again, something inspirational has once again occurred! They’ve regrouped and created a new foundation for the company which I believe is the strongest one yet. They kicked the obsolete entities to the curb, and aggressively sought out the future. It wasn’t easy because of the people—friends were involved. But they had to reinvent themselves within the context of the commodity markets and they had to do what they had to do if the company was to survive in a state that would be acceptable to shareholders, management and directors. Its one thing to survive, and another to survive with your integrity intact and some control over your destiny moving forward.

They shuffled the pieces of the puzzle around, shook them up and down, and created a working model for a company that would be successful in the impending geopolitical financial environment that we all knew was going to be tough and ugly. This was not going to be an Ali fight when he was in his prime dancing and bobbing and smoking his opponents with those quick left jabs. No, this was going to be a Mike Tyson street brawl, with body blows galore and checking your ears between rounds; as in, are they still there? What were the alternatives? Who wanted to watch ten years and millions of dollars swirl down the drain? Tweren’t gonna happen. Besides, they had experienced similar battles in the past and lived to fight another day. They were rising from the ashes yet again. read more

The very first thing I will tell you is that you mus try and acquire some gold and silver and related items for your portfolio. Even if your portfolio is $200,  my opinion is that you have a certain portion of that in the precious metals.

We are living in a surreal country in a surreal world. There are very few people, relative to the world’s population, who understand the blatant rip-offs and frauds occurring across America. From metals to mortgages, there is widespread corruption. Think of it like this. If there is large money to be had  (and I’m not talking about a few billion here or there), you will find the sharks close by. Who are the sharks? Big Business, Banks, and Government.

For me, it began with gold and the inconsistencies in the gold market. That was ten or eleven years ago and it was when I first came in touch with Bill Murphy. Bill was trying to get the message out that the gold market was being manipulated and no one would give him the time of day. No one believed him in spite of empirical evidence to the contrary. Why?

Because gold and the suppression of it brought us too close to the root of the problem which was a US dollar that was being abused, an economy that was failing, and a population who didn’t care what the hell was going on because those were the good old days.

Moreover, while it is true that our government doesn’t look past its nose from a political perspective, it is fully capable of planning how they and their banker friends can make a ton of money ten years down the line. That is exactly what they’ve done. By design and over time, they were determined to conquer. We are now at the crossroads of history in the crosshirs of truth.

The precious metals suppression schemes are finally coming to light because of the incredible fight that has been waged for the truth from guys like Murphy and Powell (GATA: Gold Anti Trust Action committee). Now those same kind of wars, and they are wars, are being waged over the illegal foreclosures which really began as illegal loans or mortgages.  I think it should be called loan origination gate but we’ll have more on that later.

A larger dragon has emerged and that is the housing, foreclosure gate mess. While the bankers made billions of dollars in manipulating gold, they are making trillions manipulating mortgages. Metals and Mortgages are part and parcel of the same scheme. The too big to fail banks just pulled off the biggest rip-off in history.

It is now up to you and I to get off of our asses and start to learn what is occurring to this once great country of ours.
There are several places where you can get an enormous amount of quality information and be able to trust it. These names and more detailed information will be listed in the Gift to the Gold committee. It is coming.

Here are a few ideas for keeping up with what is really happening.

www.jsmineset.com
www.kingworldnews.com
www.gata.org
www.shadowstats.com (subscription)
www.lemetropolecafe.com (Murphy’s site-subscription based)
http://www.dylanratigan.com/
www.fedupusa.com
http://fedupusa.org/

These are a few sites that will get you started. I realize that everyone is beyond busy. Many are looking for jobs or second jobs and many are afraid of losing homes because they’ve lost jobs or had medical expenses.
There is a very large group of people called the boomer generation (“boomers). I want you—between 45 and 75 years of age although we welcome everyone. The boomers have worked for the last 30 years only to see the banks and the government come in and try and steal not only your stuff—but your freedom.

Remember that what is happening to your neighbor is also happening to you even though you many not believe it to be so. The only people who are immune to what is happening now are the people who created the mess—the banks and Congress.

But now they too will be taken down as Americans finally come to their senses after our government has killed the goose that laid the golden egg–The American Taxpayer. read more

 by Jim Willie CB October 27, 2010

An historically unprecedented mess has been created by compromised central bankers and inept economic advisers, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, US Dollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.The mortgage & foreclosure scandal runs so deep that ordinary observers can conclude the US financial foundation is laced with a cancer detectable by ordinary people. The metastasis is visible from the distribution of mortgage bonds into the commercial paper market, money market funds, the bank balance sheets, pension funds under management, foreign central banks, and countless financial funds across the globe. Some primary features of the cancerous tissue material are mortgage bond fraud, major securities violations, absent linkage to property title, income tax evasion, forged foreclosure documents, duplicate property linkage to single mortgage bonds, NINJA (no income, no job or assets) loans to unqualified buyers, and more. In fact, more is revealed it seems each passing week toward additional high level and systemic fraud. The world is watching. The growing international reaction will be amplified demand for Gold, from recognition that the US Dollar & US Economy have RICO racketeering components extending to Wall Street banks and Fannie Mae mortgage repositories.

The centerpiece question, when the US bond fraud is coupled with European sovereign debt distress, comes down to WHAT IS MONEY? The answer is Gold & Silver and not much of anything else. Other assets like crude oil or farmland are effective hedges against tainted money, but when they contain debt tethers, they too are vulnerable. Huge flows of funds are fleeing traditional asset groups. Some mistakenly still believe the US Treasurys to be a safe haven. A shock of cold water comes to them when that bubble goes into reverse perhaps several months later after reaching 2% yields. The big magnificent epiphany in the last couple years has been that a house is not a hard asset, but rather a debt instrument extension. Important questions have arisen as to what assets are free from counter-party debt risk. The grand demands for physical gold prove that the futures gold contracts are not money either, but tainted Wall Street and London securities contracts that keep the system going.

The big banks have been called too big to fail. What a ruse! They are too big to plow under without removal from power of the bankers themselves. They are too big to permit their balance sheets to be liquidated without a US banking system seizure together, and a 30% to 50% additional housing market price decline. They are too big to send into receivership without igniting a credit derivative sequence of explosions. They are too big to block the widespread practice of fraud and enforcement of law of regulations. However, a wondrous spectacle has begun to shine light. The mortgage & foreclosure scandal could turn out to be the big US Bank tombstone epitaph, as bank revenues from mortgages halt, as home owners refuse to make mortgage payments, as court cases unfold in full view, as class action lawsuits prove racketeering at a systemic level, as MERS and REMICs are frozen by the courts from further activity. Time will tell. Time will reveal extraordinary efforts by the US Congress to pass ex-post facto laws that legalize the bond fraud and contract violations from the past. Remember back in July 2007 when Bernanke claimed this was just a sub prime mortgage problem. The Jackass called it an absolute bond crisis.

THE GIGANTIC ACHILLES HEEL EXPOSED
Two critical elements have been identified. The MERS electronic title registry system was designed to facilitate recording of property titles as associated mortgage bonds traded freely and changed ownership hands. Unfortunately, the title database has no legal standing, as declared by several state courts, including some supreme courts. Banks or financial firms holding the mortgage notes cannot team with the title database and force eviction during the home foreclosure process. That is the first gaping flaw. The second is the REMIC funding facility. The Real Estate Mortgage Investment Conduit was designed to facilitate funding mortgages, in particular Fannie Mae mortgages. Unfortunately, the conduit funding vehicle intentionally omitted citation of the mortgage income stream owner, so as to avoid income taxes. The lack of identification means that the Fannie Mae asset backed securities might lack any legal tie to the mortgage loan income stream. read more

by Howard S. Katz

 10-11-10

The precious metals markets moved into high gear last week with silver up 4.5% and new highs in gold and the HUI.  Meanwhile the Wall Street Journal explained:

“Driving the recent spate of [currency] flows has been anticipation that the Federal Reserve will restart its efforts to stimulate growth through purchases of government debt that inject more money into the banking system – a practice known as quantitative easing or ‘QE.’”

“Easy Money Churns Emerging Markets,” by Alex Frangos, WSJ, 10-8-10, p. A-10.

Sad, sad news in the daily paper this week.  We live in a world where the leaders of our country, and every country in the world, believe that there is nothing more to the production of wealth than to simply create, out of nothing, the money which symbolizes it.  The Journal again:

“Investors who had been betting on the dollar switched their wagers in the past few weeks as they grew convinced the Fed will pump still more money into financial markets to bolster the struggling U.S. economy – essentially diluting the value of the dollar.”

“Dollar’s Fall Roils World,” by Tom Lauricella, WSJ 10-8-10, p. A-1. read more

UP 22% IN SEP

 by Howard S. Katz

 10-4-10

THE BUBBLE IN SILVER

 Silver is a friend of mine.

I can play him anytime.

 He is outperforming gold.

 Exciting story does unfold.

 And when the time comes round to sell,

 Silver will be doing well.

 I’ll call my broker with great ease

 And tell him “sell now if you please.”

 The broker, he to me will say,

 “Is this an order for the day?

 Is there a limit on the price?

 Cause that would not be very nice.”

 Now 30 years ago a raid,

 Old Bunker Hunt a corner made.

 He said, “My flag is now unfurled.

 I’ll buy all silver in the world.’

 He bought the whole world’s silverware.

 He was a bull and not a bear.

 Yes, knives and forks and silver plate,

 With destiny he had a date.

 Then Bunker Hunt, he tried to squeeze

 The shorts. He had them on their knees.

 But then the shorts struck back you know,

 And Bunker Hunt lost all his dough.

 from the One-handed Economist, 10-1-10.

 Ah, yes, the silver bubble of 1978-80 was a time to remember in financial history. Bunker Hunt, heir to the H.L. Hunt fortune, became an aggressive bull on silver and tried to engineer a silver corner. But no one has ever engineered a corner on a free market, and Bunker Hunt did not become the first. He stayed too long. He overplayed his hand. And when the bubble collapsed, he lost his daddy’s fortune.

 WHAT IS A SPECULATOR?

This article is dedicated to those who are, or would become, successful speculators. So we begin, as usual, by asking what is a speculator?

 A speculator is a person who tries to make money on his capital by buying low and selling high. This is as distinct from an investor, who tries to make money on his capital by using it to make real interest (or return on capital). The speculator lives and dies by price fluctuations. The investor is unconcerned about them. If he is in bonds, he wants the yield. If he is in stocks, he wants the earnings. If he is in real estate, he wants the rent.

Now here is the secret to successful speculation. All markets hit their lows when traders are most bearish. (A trader is either a speculator or an investor.) They hit their highs when traders are most bullish. A case of the first is the 1999 low in gold when even the gold mines were selling short on their own product. A case of the second is the Jan. 21, 1980 spike top, when gold hit $875/oz. (interday on the Comex).

 The difficulty here is that man is a social animal. He is influenced in his beliefs by the people around him. But the person who allows himself to be so influenced in the markets is a loser. He sells at the low and buys at the high.

 So the first virtue needed to be a successful speculator is an independent mind.

 The job of the speculator is to figure out when there are either over valuations or under valuations in a market, and to do this, as noted, he must go against the people around him. That is, he must figure out when the people around him are wrong.

 Here we must take a new tack. It is often stated that the man who is most successful in life is the one who has the best information. This is, unfortunately, a bad mistake. It ignores the fact that “information” comes in two types. There is concrete information, which is information about specific things, and abstract information, which is information true of things in general. For example, “The Allies defeated the Axis in World War II” is concrete information. “Man is the rational animal” is abstract information. It applies to all men and says that they have the capacity to reason.

 The difference between abstract information and concrete information is crucial. Concrete information tells us about one (or a few) specific thing(s). Abstract information tells us about all of a certain type of entity. For example, Newton’s Law says:

 Every object in a state of uniform motion tends to remain in that state of motion unless an external force is applied to it.

This is true for any object in motion. It is true for all the objects now in motion. It is true for all the objects which have been in motion. And it is true for all the objects which will be in motion in the future.

 While someone might tell you, “The car came down the road very rapidly,” this is true for only one car in a specific time and place. But Newton’s Law is true for all moving objects in all times. So abstract information is far more powerful than concrete information. Thus we have to correct the above statement. The man who is most successful in life is the one who holds his information in the most abstract form. And since the widest abstractions are those discussed in philosophy, it is to philosophy we must turn for the solution of our most important problems. read more