This from professional analyst Otto, who received an email update I sent regarding the matter. The original mail to subscribers, copied below is meant more as a highlight to the risks involved in mining and their status as equities in companies, NOT safe gold. I am certainly not advocating panic, as stated. Just to make sure the record is clear. I do not see why we should not be aware of issues like this, especially given the changes at all the highest levels of government.In any case I think it is good and healthy that we have this discussion, in all its aspects.
Edit (12:08) A great 'last word' on the subject from an NFTRH subscriber:
Gary, I work for a national environmental organization and so spend a lot of time tracking HR 699 and related legislation. Frankly, something has to be done to reform current mining law because it's left - and continues to leave - a legacy of toxic devastation across the West, including in my own home state of New Mexico. But, as an economic realist and investor, I agree with you that this one goes too far. Fear not. While this bill will likely pass the House, largely intact, as it did last year, it's chances of passing the Senate are about as good as Bernie Madoff winning the Nobel Peace Prize. Harry Reid runs the show in the Senate, and his commitment to industrial-scale mining is no secret. Nothing that threatens Nevada-based mining will survive in this bill. There will be change around the edges, especially relating to scatter-shot patenting. Not that you shouldn't be mobilizing your troops. That's democracy at its best. Just letting you know what the reality is on Capitol Hill.
Best, Stephen
| gimme a break, gary. They couldn't even push thru the 8% royalty rule last year, how the hell is this law ever going to pass? I mean...seriously. This is Jxx Sxxxxxxx 'scare the sheep' fodder, not NFTRH material. |
My response:
No seriously, how do you really feel about it [Otto]?
I am not advocating getting scared. I am just advocating the realization that mining has inherent risks and gold stocks are not gold. I didn't think I had a tin foil hat on there dood. Maybe aluminum though.
I am not advocating getting scared. I am just advocating the realization that mining has inherent risks and gold stocks are not gold. I didn't think I had a tin foil hat on there dood. Maybe aluminum though.
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Original Mail:
Some subscribers may have already seen the Mining Journal article on a proposed legislation that would basically end mining as we know it in the US, if passed. If nothing else, this highlights the potential risks that owning mining firms in any country carry.
Be aware of the risks at all times.
NFTRH's X, X and X (through potential ownership of California's X) are among the smaller miners or explorers affected. X and X also have interests in the United States. X is predominantly exploring in Canada and Mexico. These are the sorts of distinctions I will be looking for.
I am not proposing panic, but am definitely proposing that investors know where their operations are located and understand that there are risks in the 'new normalcy' no matter where the location. Examples are NFTRH's X (Brazil) and X (Mexico), which certainly carry their own risks as well.
In short, even gold stocks are not gold and hence, they are not safety. They are speculations. Risk has not been the primary reason I do not usually identify NFTRH's most speculative 'little fellers'. The main reason has been their illiquidity and speculative nature. But this makes me even more firm in not highlighting certain operations.
