Glencoe had bought the majority of shares which gave small shareholders like me no option, they acquired my shares because I had no say in whether I wanted to keep them or not, and the mine was reopened a few years later and no doubt is still generating plenty of cash for them now.
Yep, I was simply commenting on your comment re shareholders having no say - it is the minority shareholders (and often it affects them more). What was the mine?
The trouble with that, other than the high risk, is what use will it be to you in that case? Noone will buy it from you except the government at their price, so you cannot use it for 15 to 40 years while it gathers dust. The whole purpose of having it is to have a negotiable asset when currencies collapse - but the instant you try and sell even an ounce you are in trouble..perhaps deep trouble.
Just too many of our company directors and most shareholders (traders) are focused on quick profits and let long term assets slip through their fingers for bargain prices. The large companies that have that long term view just swallow them up. They probably have a number of the projects in the pipeline at any one time so can afford to wait for the right time to develop them.I think it was Glencore that bought the company out and shareholders never had a say, I never would have sold the shares if I had a choice. Capitalist Bastards
Yes, motivations can be different. But often the major holders have done more homework (eg might know that in the longer term the company does not have the assets to develop further or might even have a cash-flow crisis looming, which can be alleviated by a takeover by a better cashed up company. Conversely, the company doing the takeover would not do it if they did not think it was to their (and therefore as a consequence other shareholders) advantage). For example when a commodity price is crashing, the present company may know it cannot ride out the storm despite having major ore reserves for the long-term, whereas a better cashed-up company sees it can do so, so can take it over as a long-term asset. It is difficult to see why any company would purposely takeover a company so as to be at a disadvantage (and this would apply to all shareholders). Companies simply often get it wrong....
I can't remember the name of the mine but the shares were Minara Resources and they were taken in a"compulsory acquisition" by Glencore Investments
87 years is a really short time compared to the thousands of years gold has been treasured and prized not only for money value.
I will buy it from him for $100 an ounce more than the government will pay him, and one day when it is reversed my black market acquired investment will see my boys or their boys wealthy.
If it was Murrin Murrin I would be crying. Now supplies 13% of world cobalt, the largest production outside the DRC! Prior to that DRC produced 94% of world cobalt I think and the rest of the world only 6% (Australia almost nil).
The slight problem being perhaps 10 years in gaol (it was illegal to buy, one could only sell and only to the government at the government price - and it was a criminal offence NOT to sell). One could risk hiding it away but the situation did not change for at least 13 years (40 years in the USA), by which time the emergency was past. In the USA it was a crime under the "Dealing with the enemy act", so a bit ominous. Ultimately in the USA the penalty was confiscation of the gold without any compensation, a fine equal to double the value of the confiscated gold, and gaol time - quite a lot to lose!
It was Murrin Murrin and at the time of the takeover it was very profitable, I was really peeved off as I thought the price I was paid for my shares was well below their actual value which has proved to be true.
Or Rhodium AUD$21,000 per oz
And American dollars
Most of the platinum group metals are very valuable. But beware - 42 years ago my chemist better half had a research job of finding a USE for rhodium - because no one would buy it. It was used to plate fountain-pen nibs and the cheapest jewellery that you would buy at Coles.
A bit irrelevant - one of the world's tiniest economies (can hardly compare with the USA - you would not have personally noticed the collapse of its currency). Zimbabweans will not be using those coins to buy their groceries. Zimbabwe actually got on top of inflation by changing to the US dollar in 2009 (that great fiat currency) and only lost control when they returned to their own currency in June 2019.
Gold has continuously been hoarded, bought and sold even when it was illegal to do so just like alcohol during prohibition, drugs now and firearms since 1996. Many are prepared to take that risk. To confiscate it first they need to know you have it and secondly where you hide it.
