It's no surprise that Stephan Bogner, analyst with Rockstone Research Ltd. and CEO of Elementum International - a precious metals trading and storage firm - advises investors to hold physical metals outside the banking system, but he also advocates mining companies keeping gold on their balance sheets and forming a cartel.
In this interview with The Gold Report, Bogner discusses which exploration and development companies will be ready to produce when metals prices rise and shares his interest in the diamond, potash and uranium space.
The interview can be viewed via the following link:
ARCTIC STAR EXPLORATION CORP.AURCANA CORPORATIONBIG NORTH GRAPHITE CORP.COLUMBUS GOLD CORP.COMMERCE RESOURCES CORP.DOLLY VARDEN SILVER CORP.EQUITAS RESOURCES CORP.GOLD STANDARD VENTURES CORP.GOLDEN QUEEN MINING CO. LTD.IMPACT SILVER CORP.KLONDEX MINES LTD.LAKELAND RESOURCES INC.MAG SILVER CORP.MAWSON RESOURCES LTD.MIDAS GOLD CORP.MONUMENT MINING LTD.MUNDORO CAPITAL INC.NORD GOLD N.V.PACIFIC POTASH CORP.PASINEX RESOURCES LTD.PILOT GOLD INC.SAMA RESOURCES INC.SAN GOLD CORP.SUMATRA COPPER & GOLD PLCWESTERN POTASH CORP.ZIMTU CAPITAL CORP.
COLOSSUS MINERALS INC.EXCELLON RESOURCES INC.ORVANA MINERALS CORP.PRIMERO MINING CORP.RICHMONT MINES INC.SANTACRUZ SILVER MINING LTD.ST ANDREW GOLDFIELDS LTD.TAHOE RESOURCES INC.Excerpts:
People are increasingly looking for alternatives to banks. Independent vaults offer exactly that. Instead of holding your cash in a bank account, you can buy gold and silver and store it in an independent vault outside the banking system. My firm, Elementum International, stores precious metals in a high-security facility inside a mountain in central Switzerland. Our clients can sell the metals to us at any time if they need cash. That is banking backed by real values.
I think China will back its currency with gold or somehow utilize gold as a monetary asset once gold prices have started to rise toward $2,000/ounce ($2,000/oz) and/or once there is nothing left to purchase from a dried-up physical market. Russia may very well do so, too. There is no other solution to the growing financial excesses but inflation, so investors have got to go for gold. Follow the smart/quiet money and not the dumb/noisy money.
As soon as a company mines gold or silver, it sells it into the market and trades it for dollars. Instead, the company should use gold and silver as the functional currency for the industry. I'm certain that most companies would participate if such a system was in place. Companies should look for ways to bank their gold as cash assets or take out gold loans, not dollar loans. They should buy physical gold and silver and store it outside the banking system. When they require cash, they can sell part of their holdings.
Many exploration, development and producing companies have millions of dollars of cash in the bank. If they all bought bullion and stored it in an independent vault facility outside the banking system, that would put upward pressure on the price, which would benefit the companies.
Such a system is already in place and it is only a matter of time until mining companies will hold their cash in gold and silver. Shareholders will appreciate such prudent companies that know how to play a depressed market for the benefit of the shareholders. This also would bring a lot of credibility and investor confidence back into this dried-up market.
There are oil and potash cartels; the gold industry should come up with something similar.
To read the full interview visit the following link: