By Kishori Krishnan
Don’t forget - this has also been a particularly good year to be a mining investment banker. According to the Toronto Stock Exchange, as of September 30, miners had raised $17-billion on the TSX and TSX Venture.

In comparison, they raised just $3.9-billion as of September 2008.

When commodity prices began recovering early this year, metals producers wasted no time pumping out equity and debt deals.

There have been 264 financings, the majority by gold companies.

Shouldn’t that be enough to stop you in your tracks?

Gold buyers are currently split between investors that believe a horrible deflation is coming and that money will be wiped out.

Other, smarter investors correctly understand that trillions of new dollars and foreign currencies have been flooding world economies to bail out institutions. All of which would lead to inflation.

Both sides have great conviction.

But capitalism with a paper money system and a central bank manipulating interest rates, and creating money and credit out of thin air are equally bad signs.

Thankfully, the business of swindling by means of fradulent enterprise, and bogus companies purporting to have been organized to work opulent gold or silver mines, is not now so profitable as it was six months ago.

Corporate financial statements and resource reports need to be signed off by a Qualified Person as defined by NI 43-101.

But how many gold companies are actually toeing this line?

Keep watching this space!

Courtesy: www.goldinvestingnews.com

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