Canamex Gold Corp
Owner and developer of the prolific Bruner gold and silver project in Nye County, Nevada. Canamex is financing the development of Bruner via the sale of metal streams.
Listed company with a 30 year history
Canamex is a Canadian listed (CSE: CSQ) mining corporation originally incorporated in 1987 specifically to carry out gold and mineral exploration. The Company is fully regulatorily compliant, with a strong mining development pedigree and a leadership team with diverse but complementary skills.
Future focused and innovative
Canamex is using a metal stream financing structure to fund development of the Bruner project. This allows Canamex to progress development without diluting shareholders or incurring expenses via debt financing.
METAL STREAM TOKENS
Backed by Gold & Silver
Canamex will soon have an exciting announcement regarding the issuance of metal stream tokens backed by physical gold and silver to be extracted from the Bruner project in Nevada.
Tokens are by their nature more efficiently and easily stored and traded than physical metal. Metal stream tokens may be traded directly 24x7, or via digital security exchanges when listed.
Backed by bullion, certified at 99.99% purity, and a metal stream from a North American listed mining company with strong and experienced leadership. Fully compliant with securities laws and regulations.
Tokens are initially offered at a discount to the current spot price of the metal backing the token. A more flexible, cost-effective, and efficient way to acquire and hold gold and silver than any other.
Industry News & Views
14 January 2020
Gold: A Perpetual Store Of Value
The price of gold has powerful impacts on our economies
Since the dawn of humanity, gold has been considered a valuable and precious material but it is not until 643 B.C. and the Lydian minting of gold coins that we first start to see gold being used as a store of monetary value. In ancient times coins would have holes in the center and could be strung on cords. However, carrying precious metal around presented issues for convenience and security.
“The desire of gold is not for gold. It is for the means of freedom and benefit.” — Ralph Emerson
The Roman emperor Augustus who reigned from 30 B.C. until 14 A.D set the price of gold at 45 coins to a pound of gold. Later, Marcus Aurelius Antoninus (211 and 217 A.D.) inflated gold’s value to 50 coins per pound. This had the impact of reducing the value of the coins while increasing the value of gold. The debasing of the gold currency happened again under Diocletian who raised the number of gold coins to the pound from 50 to 60. Finally, it was Constantine the Great, who pushed the value to 70 coins per pound during the years 306 A.D. to 337 A.D. These inflationary policies were used to raise finance for conflict and the adverse economic impact on society was compounded by rising taxes.
The result of successive reductions in the value of gold coins lead to a state of hyperinflation. It is estimated that during this period the price of one pound of gold went from 50,000 denarii in 301 A.D. to 20 million denarii by 337 A.D. This is an incredible rate of inflation during one lifetime.
The British were more cautious in their approach to gold valuation and in 1257 Great Britain set the price for an ounce of gold at 0.89 pounds. The price of gold set by the British was to rise by approximately 1 pound over each successive century.
By the time paper money was in broad circulation during the 1800s other countries were operating versions of what was known as the gold standard. This allowed them to peg the value of their paper currency to a specific weight of physical gold. To maintain the gold standard countries were required to retain enough gold reserves to meet the obligations of their paper currency. Later the Gold Standard Act in the United States was to set the value of gold at $20.67 per ounce.
Before The United States implemented the Gold Standard Act, they used the British gold standard. This set the price of gold at $19.49 per ounce in 1791 but was later raised in 1834 to $20.69 per ounce. The British managed to keep the value of gold at 4.25 pounds per ounce until the enactment of the infamous Bretton Woods Agreement in 1944. This was a turning point in the global price of gold as global currencies began pegging themselves to the dollar instead of gold as The United States owned what was supposedly the world’s largest stockpile of gold.
It is widely recognized that the Gold Standard Act and the raising of rates by the Federal Reserve were two key factors that contributed to both the lengthening and deepening impact of the Great Depression. The great stock market crash of 1929 saw the contracting of the United States economy in just five years and prompted many people to rush to the banks to redeem their paper money for physical gold. By 1933 the United States was so concerned about their diminishing stockpile of gold that in 1934 Congress passed the Gold Reserve Act which prohibited any private ownership of gold. It is interesting that there were a few exemptions to this rule as some people were given special dispensations to legally own gold. It would be fascinating to discover who those exemptions were granted to.
In 1971 President Nixon declared that the Federal Reserve would stop honoring dollars in physical gold and decoupled the dollar from the gold standard. Since that point the United States dollar has not been backed by any physical commodity and some commentators believe that the United States dollar is today worth only a fraction of its perceived value.
Once gold was disengaged from the United States dollar its price exploded on the open market rising to $120 an ounce. During the 1980s traders wishing to hedge against the rampant inflation of the period were investing heavily in gold which pushed its price to $594.92. Gold’s price then eroded to $410 an ounce and was relatively stable until 1996 when it fell further to $288 per ounce.
Just over a decade later during the financial crisis of 2008 investors that were looking to hedge against the impact of an economic slowdown helped push the price of gold up to $869.75. Three years later in 2011, the price of gold reached its all-time peak of $1,895 as a response to investor concerns that the United States would be unable to service its debt.
Since 2011, the price of gold has fallen as the United States economy has improved and the inflation rate has been relatively stable. Gold’s current price hovers around $1,500 and until very recently the market for the precious metal has been comparably stagnant.
Globally gold is valued based upon its spot price, but is gold’s spot price the same everywhere? As gold is globally traded and the denominated volume of gold is identical, theoretically the spot price for gold should be the same wherever you wish to trade. However, because of currency fluctuations there can be marginal differences in the spot price due to the currency conversion. Another factor that impacts the price you can purchase gold for is the varying cost of dealer premiums, so if you are buying gold it is important to research the market for the best price. Although available almost everywhere some of the largest markets for gold trading are in the United States, London, Zurich, China, and India.
If we wish to understand where prices are going it is instructive to look back to where prices have been. The gold market is based on global supply and demand. With the demand for gold rising due to population growth and the supply of gold diminishing and getting harder to extract it is clear that the long-term price of gold will rise as more people bid on less gold in the market. To put things in perspective it has been estimated that only 171,000 metric tons of gold have been mined in all of human history. This may sound like a lot but it is actually a relatively small volume and there have been periods of time in which the volume of gold mined remained relatively static.
The current spot price of gold is not solely based upon investment considerations. The yellow metal is also purchased for jewelry production and industrial applications. Because gold is usually denominated in dollars the value of the dollar can have an impact on the market’s appetite for the precious metal. A rise in the comparative value of the dollar can make gold comparatively more expensive for foreign investors and conversely, a drop in the dollar can make gold attractive for investors. Another key factor that impacts the price of gold is the rate of interest being offered by the banks. As gold does not deliver any dividends a high rate of interest makes gold less attractive to investors and a low rate of interest improves gold’s price because investors suffer reduced opportunity cost.
Fundamentally it seems that there are discounts available in the gold market and the value of gold only appears to be rising over time. Both of these reasons add up to make gold a solid long-term investment and hedge against inflation and market volatility.
6 January 2020
The lifesaving properties of pure Gold
Gold’s powerful medicinal values have been used since ancient times
Our current historical perspective on gold as a medicine dates back to ancient Egypt 5,000 years ago and the alchemists of Alexandria. Although access to gold was reserved primarily for the elite, those that could used gold for purifying the mind, body, and spirit. Their belief was that gold had a stimulating effect on life force energy and legends tell us that these ancient Egyptian alchemists were able to create an elixir of liquid gold which when consumed was able to perfect health, heal disease and restore youth.
Gold was seen as a mystical substance in ancient Egypt, something that represented the natural embodiment of perfection. We know too that gold was used in dentistry because we have archaeological evidence to prove it. It is clear that the quality of dental craftsmanship in those times was excellent. We still use gold for dental work today because it is malleable, non-toxic and doesn’t tarnish or corrode. It’s estimated that around 13 tons of gold are used in dental work around the world every year.
Medieval doctors understood the medicinal value of gold and prescribed it for a variety of ailments ranging from instances of melancholy to diseases of the brain and heart. In Europe during this period patients were prescribed gold-coated pills and gold-infused waters. Powdered gold was added to beverages to address symptoms of arthritis. Many famous medieval writers including Geoffrey Chaucer referred to the medicinal uses of gold.
The eleventh-century medical lecturer Constantinus Africanus said:
“Gold is more temperate than the other metals. It has the property of relieving a defective stomach and comforts the fearful and those who suffer from a heart complaint. Galen confirms that it is effective against melancholy and baldness.”
Gold was considered to be effective in very small doses often known as filings. Arab physician Abulcasis explained the process:
“Take a piece of good and pure gold, and have a plate with pure sweet water in front of you; and have a rough clean cloth of flax, one end of which you keep in your hand. The other end should stay soaking in water on the bottom of the plate. Then rub gold with the cloth, always moistening the cloth with water, and fine filings descend to the bottom of the container. Do so as long as much of that gold as you want to have been shaved. Then leave for an hour, and mix water speedily and wash three times and dry up and preserve it. Do the same thing with silver. And there are some who shave the filings thinly and then use them.”
Medieval Europe had some strange theories. To paint a picture here is a fascinating medicinal recipe from the time which was claimed could cure eye disease, leprosy, blemishes, and youthfulness.
“Take the filings of silver, copper, iron, lead, steel, gold, calamine of silver and of gold, storax, in accordance with the activity or inactivity of the patient. Place them in the urine of a virgin child on the first day, on the second day in warm white wine, on the third day in the juice of fennel, on the fourth day in egg whites, on the fifth day in the milk of a woman nursing a girl, on the sixth in red wine, on the seventh in egg whites. And place everything in a bell-shaped distillation tool and distill on a slow fire, and keep what you have distilled in a gold or silver vessel.”
Lead, which is extremely toxic does not seem to be particularly helpful in this recipe. It is interesting to read these recipes from the past to see how gold was used medicinally. Gold was also used for cauterizing wounds and Serapion the Younger tells us that “when cauterize with gold it does not cause blisters, and the healing is faster and better.”
Renaissance Europe saw increased use of gold in medicine. Paracelsus who founded the school of Iatrochemistry that deals with the chemistry of medicine, created many medicines from metals — including gold. The 1900s saw surgeons implanting gold under the skin next to inflamed joints to alleviate symptoms.
The Chinese also have a long tradition of using gold for its medicinal properties. Those traditions are still in use today and Chinese villagers have been known to cook rice in a pot with a gold coin. They believe that this cooking method will add trace amounts of gold back into their bodies. Expensive restaurants in China and around the world will also use pure 24 karat gold leaf in dishes.
Like silver gold can be made into a colloid. When fine particles of gold ranging from one to one hundred billionth of a meter are suspended in a solution Colloidal Gold is created. Because of the increased surface area of the fine gold particles new and powerful medicinal properties are expressed. Colloidal Gold was first created in its pure state by the English chemist Michael Faraday. At the time this preparation was known as “activated gold” and was used in the nineteenth century to cure alcoholism, known in those times as dipsomania. Gold has been utilized in medicine since at least 1885 in the United States, where it was used to heal the heart and circulation system. It is worth noting that pure gold has been used to treat arthritis continuously since 1927.
Gold is even more frequently used in medicine during our modern times. In surgery, gold is currently used to repair blood vessels, bones, and nerves. It is also used in cancer treatment where injections of microscopic gold particles can help to retard prostate cancer. Ovarian cancer is being treated with Colloidal Gold and surgical implements are made of gold for certain applications such as clearing arteries.
New and interesting applications are being created for gold that allows molecular markers to be attached to nanoparticles of gold. These markers are then followed around the body allowing scientists to understand how the body behaves and observe reactions within individual cells.
Because gold is “biologically benign” scientists are using it to deliver new and improved drugs in medicine. Since ancient times we have known that gold is useful for rejuvenating human organs such as the brain, heart, and digestive system. Gold is still found in the modern drug Myocrisin which uses an injectable form to treat rheumatoid arthritis and progressive juvenile chronic arthritis.
It is believed that Colloidal Gold has the potential to improve our ability to concentrate, bringing improved mental acuity. Colloidal Gold is thought to impact mental function by improving nerve ending conductivity. It is possible that gold can improve our energy, drive and potentially libido.
What we do know is that gold is non-toxic and has been used in medicinal treatments since ancient times. Perhaps it is valuable for us to look not only to the present but also to the past when we are searching for health solutions for the people we love. It seems clear that using gold in medicine has perhaps no negative health impacts and can offer powerful solutions.
Maybe we all need a little gold in our medicine cabinets!
17 December 2019
The history of the gold standard and the growth of debt
The history of the Gold Standard & explosion of debt
A journey through the attempt to peg fiat currencies to gold
The discovery of gold flakes in the American River at the base of the Sierra Nevada Mountains in 1848 sparked what would become known as the California Gold Rush. In 1861 the United States treasury secretary Salmon Chase was printing paper currency and the Gold Standard Act mandated that gold would be the only commodity accepted to redeem that paper currency. The law set the value of gold at $20.67 per ounce.
Around this period other countries began adopting gold standards ensuring that their governments would redeem their paper currency for an equivalent value in gold. This had the effect of improving the speed of business as heavy golden coins or bullion did not need to be handled and this improved international trust in the developing global trade markets. The ultimate effect of gold standards were to give value to paper money as it was backed by something physical. One problem with this system however, was that the value of paper money dropped whenever new deposits of gold were discovered.
The founding of the Federal Reserve is something that is not widely discussed and is beyond the remit of this article, but the history is fascinating and deserves investigation. The Federal Reserve was ostensibly created in 1913 to stabilize gold and currency values however, it is clear that the Federal Reserve has been used for other less publicized purposes.
During World War I the gold standard was suspended in European countries to enable them to print enough money to fund their wartime expenditure. This overprinting of unbacked paper money in some cases lead to hyperinflation and highlighted the value of pegging paper currencies to a guaranteed value in gold. This ultimately led to a return to the gold standard.
The Great Depression created another challenge for the gold standard. The legendary stock market crash of 1929 lead to a rise in the price of gold. The ensuing rush by people desperate to redeem their dollars for gold lead to banks failing and a culture of hoarding gold as the result of the failing community trust in financial institutions. In response, the Federal Reserve went through a series of interest rate hikes. Their stated goal was to increase the value of the dollar and make dollars more desirable to avoid United States gold reserves being further depleted. The adverse result was that the increased expense of doing business in dollars made the depression worse and lead to bankruptcies, massive unemployment, and widespread misery.
President Franklin D. Roosevelt closed United States banks on March 3, 1933, in response to a run on gold reserves at the Federal Reserve bank of New York. When the banks reopened 10 days later on March 13 all the gold reserves had been consolidated to the secretive Federal Reserve. Banks were no longer allowed to redeem dollars for physical gold and exporting gold was expressly prohibited.
In a further push towards consolidating gold reserves, Roosevelt ordered United States citizens to exchange their gold for paper money on April 5, 1933. The reported goal was to prohibit gold hoarding and stop the flow of gold overseas. All this consolidated United States gold had to be stored somewhere and this was the foundation of the infamous Fort Knox facility. The volume of gold consolidated at Fort Knox was supposedly the world’s largest collection, although there is a growing mistrust over the credibility of the audits that have been conducted.
January 30, 1934 saw the introduction of the Gold Reserve Act which made it necessary for Americans to obtain a license to own physical gold. This enabled the government to repay its debts in dollars instead of gold and devalued the value of the dollar by 40%. By increasing the price of gold, which had remained stable for 100 years at $20.67 per ounce to $35 per ounce, Roosevelt effectively increased the value of the government’s gold reserves from just over $4 billion to over $7.3 billion and devalued the dollar. With the end of the depression in 1939, the United States and other countries were able to return to modified gold standards.
A decade later in 1944, the infamous Bretton Woods Agreement defined the value of exchange for all currencies in gold and mandated that signatory countries convert the foreign official holdings of currencies into gold at the set values. The price of gold was internationally agreed to be $35 per ounce. Because the United States was the holder of the most gold in the world, other countries pegged their currencies to the dollar rather than gold. To maintain stable exchange rates against the dollar foreign central banks would buy or sell their own currencies in foreign exchange markets. Pegging to the dollar was useful for improving international trade.
As the dollar came to replace gold for international exchange, the value of the dollar increased while its worth in gold remained static. By this point, the United States dollar had become the world currency with enormous impacts on further global markets such as oil.
By 1960 the balance between the United States’ gold reserves and the value of the foreign dollars outstanding was positive and other countries knew that the United States was in a position to honor its debts in gold. With an increasingly prosperous economy, the United States was consuming increasing volumes of imported goods creating concern for foreign governments that the United States might not be able to back up their dollar payments with gold.
A further complication arose during the cold war. The Soviet Union was a large oil producer and because oil is traded in dollars, they accumulated vast quantities of United States currency. These dollars were deposited in European banks to stop the Soviet Union’s accounts from being frozen as a strategy by the United States. The deposits came to be known as Eurodollars.
A decade later by 1970, the United States’ foreign dollar holdings were almost three times the value of their stored gold. The economic policies of President Nixon were the cause of double-digit inflation known as stagflation. The inflation had the result of devaluing the Eurodollars. Banks began redeeming dollar holdings for gold and the United States was unable to meet their obligations.
The death of the gold standard began on August 15, 1971, with Nixon changing the value of an ounce of gold in dollars to $38 and prohibiting the Federal Reserve from redeeming dollars with gold. The gold standard became effectively defunct and the United States raised the value of dollars to gold again to $42 in 1973. Finally, in 1976 the dollar was completely decoupled from the value of gold and the spot rate of gold rocketed to $120 per ounce.
Without gold to back their currencies countries began printing more and more paper money. This has led to inflation which is essentially a hidden tax for the population as the real purchasing power of their fiat currencies is eroded year on year. Conversely, the value of gold has soared reaching a record high of almost $2,000 per ounce.
The relationship is clear — the value of gold has increased while the value of fiat currencies has decreased. Economic stability requires a long-term perspective and the choice between an appreciating asset or a depreciating asset is a choice between success or failure.
Perhaps it is worth remembering the words of the legendary financier JP Morgan:
“Money is gold and nothing else.”
The history of the gold standard and the growth of debt was originally published in Canamex Gold Corp on Medium, where people are continuing the conversation by highlighting and responding to this story.