skip to main |
skip to sidebar
The bear raid on the metals is coming in as expected. This always happens when there is a dodgy Non-Farm Payrolls report, which is most of the time these days. They cannot break the trend it seems, but can make it uncomfortable to go against them in the short term, those who are not able to keep the longer term trend and overall economic landscape in mind.
As for US equities, I could not bet against broad stocks here until I see a genuine failure of a trend. The monied interests seem determined to take this tragic comedy higher, because they do not know what else to do, but to deceive and loot, and do again what has failed twice before. They may not care, as long as they end up with rents and income producing assets.
There was a double dose of Dick Grasso and David Kelly on Bloomberg this morning, extolling the virtues of Wall Street and the wonders of the economic recovery. That was painful to watch. The brood of vipers on parade.
Who cares? We'll all be rich, with more dollars than we could have ever imagined. Just put your faith in the financial powers and your own false pride.
And if and when that falters, then turn on the weak, the unfortunate, and the different in your prideful anger, and bully and abuse them for their 'failure' which is dragging you down. Since we're perfect, there must have been insidious influences working against us from within. Certainly there was no fault in the status quo and those made wealthy by deceit, fraud, and human misery.
This is what passes for reform in some circles.
I am afraid it will be getting worse before it gets better.
Non-Farm Payrolls for March tomorrow.
Its the kind of report where they will be adjusting the raw numbers DOWN for seasonality, so there is plenty of room to fudge the numbers.
Unemployment claims came in higher than expected today.
This has every appearance of a phony, desperate recovery. But that does not mean that they cannot go on trying to 'muddle through' this to the next election.
The overhead resistance levels are around 1450 and 38 respectively, and are being strongly defended by the paper bulls and bullion bears.
The price of the Central Fund of Canada is likely to remain a bit depressed relative to its NAV and historical averages until their recent additional unit offering is absorbed and the bullion is added to the trust's holdings. The price at which the underwriters obtained their additional shares may act as a short term 'magnet' for the price.
TORONTO, Ontario (March 29, 2011) – Central Fund of Canada Limited (“Central Fund”) of Calgary, Alberta announced today that it plans to offer Class A Shares of Central Fund to the public in Canada (except Québec) and in the United States under its existing U.S.$1,000,000,000 base shelf prospectus dated September 8, 2009 and filed with the securities commissions in each of the provinces and territories of Canada, except Québec, and under the multijurisdictional disclosure system in the United States pursuant to a proposed underwritten offering by CIBC. Central Fund will only proceed with the offering if it is non-dilutive to the net asset value of the Class A Shares owned by the existing Shareholders of Central Fund.
The remaining amount of approximately U.S.$394,295,000 of the original U.S.$1,000,000,000 provided for in the base shelf prospectus is available for this offering. Substantially all of the net proceeds of the offering will be used for gold and silver bullion purchases, in keeping with the asset allocation policies established by the Board of Directors of Central Fund. Any additional capital raised by this offering is expected to assist in reducing the annual expense ratio in favour of the Shareholders of Central Fund...
TORONTO, Ontario (March 30, 2011) - The Central Fund of Canada Limited (“Central Fund”) is pleased to announce that a syndicate of underwriters (the “Underwriters”) led by CIBC have exercised their right to purchase an additional 1,800,000 Class A Shares at a price of U.S.$22.30 per Class A Share, for additional gross proceeds of approximately U.S.$40,000,000 to Central Fund. The Underwriters agreed earlier this morning to purchase 14,350,000 Class A Shares for gross proceeds of approximately U.S.$320,005,000.
The purchase price of U.S.$22.30 per Class A Share is non-dilutive and accretive for the existing Shareholders of Central Fund. The additional net proceeds have been committed to purchase gold and silver bullion for settlement at closing, in keeping with the asset allocation policies established by the Board of Directors of Central Fund. This offering is expected to assist in reducing the annual expense ratio in favour of the Shareholders of Central Fund."
