Walker Commercial Funding's Mining Blog

Protected: Gold, Infinite Debt, and the Problem of Capital Storage: Has The Hotelling Moment Arrived?

2011-03-09T04:49:00.000-08:00

Protected: Gold, Infinite Debt, and the Problem of Capital Storage: Has The Hotelling Moment Arrived?

Great Article! The last paragraph reads: As the United States has now (long) embarked on a massive dollar devaluation program, in part to bust the CNY-USD peg, but mostly to mitigate the next leg down in real-estate and debt deflation, we should consider how resource extractors might behave in such an environment. Two obvious possibilities are as follows. First, oil producers rather than chasing higher prices in dollar-terms might start to demand full or partial payment in gold. Meanwhile, gold producers might consider banking some of their capital not in cash, but also in gold. And yes, both oil and gold producers could simply leave more of the stuff in the ground. What may become more clear is that, beyond the need for operational cash, turning excess production of resources into paper currency will increasingly become, per Hotelling, a losing proposition.

Is Your In-Ground Asset "Bankable" or "Fundable"?

2011-03-04T19:08:00.000-08:00

Please click on this link: http://brianwalkercommercialfunding.podbean.com/in-ground-asset-qualifer/ to download our simple, one-page page form to determine whether or not you have a "bankable" transaction.
Thanks,
Brian Walker
281-964-8037
mines@walkercf.com

Gold pricing manipulation - great report on geopolitical influences

2011-03-04T05:44:00.000-08:00

Geological Reports Stating PROVEN RESERVES - Absolutely Necessary!

2011-02-19T19:10:00.000-08:00

In order to fund any in-ground asset, we will require an independent geological report stating specifically what the asset has in PROVEN RESERVES. In short, a geologist must send samplings to an independent lab for testing. Once the test results return, the geologist will interpret the data and provide a value, in US dollars, which indicates what reserves are PROVEN to be in your claim or lease.

Unfortunately, we cannot use reports that state INFERRED, PROBABLE or ESTIMATED reserves. The geologist must state what the PROVEN reserves are.

We'd be happy to review your reserve reports to determine if your project will qualify. And...as always, no upfront fees. Please contact Brian Walker at mines@walkercf.com or 281-964-8037 for more information.

New Expedited Service Options for Those in a Hurry....

2011-01-28T20:25:00.000-08:00

We are pleased to announce we now have an option to expedite/accelerate your road to funding your in-ground asset. Please call Brian Walker at 281-964-8037 or email him at mines@walkercf.com for more information.

Gold Heading to $5K /OZ!!!

2011-01-05T12:47:00.000-08:00

New Submissions.... as of January 3rd, 2011

2011-01-02T18:34:00.000-08:00

As of January 3rd, 2011 - we are only accepting mines that are a) operational and; b) have geological reports showing a minimum of $1B USD in PROVEN reserves. ***We will open the doors for non-operational mines again in late July.

Please feel free to email your questions to mines@walkercf.com or call Brian Walker at 281-677-8440

WSJ Video: Gold Continues to Shine

2010-12-07T07:01:00.000-08:00

Gold Closes at $1415!

2010-11-09T06:19:00.000-08:00

It's on a serious run. We have ways you can get a piece of the action by partnering with our mining partners for production. For more info, call Brian at 281-677-8440 or skype brian.walker7 ... I can also be emailed at mining@walkercf.com.

The Bond King Speaks - by Simon Heapes

2010-11-09T06:10:00.000-08:00

The Bond King Speaks

By Simon Heapes
Most people have certainly heard of Bill Gross. After playing black-jack professionally in Vegas to help pay for college, in 1971 he founded Pacific Investment Management Company with $12m in assets. Today PIMCO runs the largest bond fund in the world, its famous and huge $252billion Total Return Fund. The company manages over $1.2trillion in assets globally, and is the largest bond-fund manager in the world. Bill Gross became a billionaire running this business, so when he talks about bonds everyone listens. His CNBC nickname “The Bond King” is well deserved, few know more about bonds and no one is more influential. Once a month, Gross writes his “Investment Outlook”. His new November edition, which he published last week, is nothing short of explosive.
After discussing the futility of the USA election since both of the parties perpetually grow government, he delved into the whole Quantitative Easing two (QE2) inflationary nightmare. He wrote, “Wednesday is the day when the Fed will announce a renewed commitment to Quantitative Easing, a polite way to say “writing checks.” The market will be interested in the amount (perhaps as much as an initial $500 billion) as well as the targeted objective (perhaps a muddied version of “2% inflation or bust!”).” Gross went on to discuss the impact on bonds.
“Check writing in the trillions is not a bondholder’s friend; it is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme. Public debt, actually, has always had a Ponzi like characteristic. The Fed, in effect, is telling the markets not to worry about our fiscal deficits, it will be the buyer of first and perhaps last resort. There is no need as with Charles Ponzi to find an increasing amount of future gullibles, they will just write the checks themselves. I ask you: Has there ever been a Ponzi scheme so brazen? There has not.” These are very strong words considering it is Bill Gross, not some random commentator, writing.
Later he wrote, “It raises bond prices to create the illusion of high annual returns, but ultimately it reaches a dead-end where those prices can no longer go up. Having arrived at its destination, the market then offers near 0% returns and a picking of the creditor’s pocket via inflation and negative real interest rates.” He concluded, “But either way it will likely signify the end of a great 30 year bull market in bonds and the necessity for bond managers and, yes, equity managers to adjust to a new environment.”
Bill Gross and PIMCO are already making these adjustments for the end of the bond bull and the coming inflation Bernanke’s Fed is dooming the world to suffer. PIMCO has been steadily reducing its Total Return Fund’s allocation to government debt. In September alone, the last month the data is available, its government debt fell from 36% of holdings to 33%. Back in April, this bond giant even started to offer equity funds! These funds have been enjoying in flows too. To see PIMCO start shifting into equities is amazing.
The world’s greatest bond investor calling the end of the three decade bond bull is stunning. Remember all the foolish ostrich investors who flooded into Treasuries over the last couple years? They are going to be in serious trouble. The Fed is going to force massive inflation into the system, via direct monetization of Treasuries, that is going to ultimately eviscerate bond holders. Gross himself wrote about this.
“Bond holders, while immediate beneficiaries, will likely eventually be delivered on a platter to more fortunate celebrants, be they financial asset classes more adaptable to inflation such as stocks or commodities, or perhaps the average American on Main Street who might benefit from a hoped for rise in job growth or simply a boost in nominal wages, however deceptive the illusion.” He also pointed out here that commodities are more suited to inflationary times. This is super bullish for GOLD.
Gross was interviewed on CNBC yesterday morning. He pointed out another facet of the massive monetization that the Fed is undertaking, its impact on currency. He said, “I think a 20 percent decline in the dollar is possible. When a central bank prints trillions of dollars of checks, which is not necessarily what QE2 will do in terms of the amount, but if it gets into that territory that is a debasement of the dollar in terms of the supply of dollars on a global basis.”
He continued, “QE2 not only produces more dollars but it also lowers the yield that investors earn on them and makes foreigners, which is the key link to the currencies, it makes foreigners less willing to hold dollars in current form or at current prices.” So not only is Gold a primary beneficiary of the Fed’s inflationist policies, but in addition to the bondholders the dollar is going to get crushed. AFE has written about this for a decade now, and it is just incredible to see someone of Bill Gross’s stature warn about it.
The stock markets are utterly convinced, thanks to the Fed’s incessant telegraphing of QE2, that this week is the week it will be formally launched. Bloomberg surveys Wall Street economists and reported this morning that 53 of 56 expect QE2 to start this week. 29 believe the Fed will be pledging the initial $500b Bill Gross wrote about, 7 predicted $50b to $100b a month, and the rest expect up to $500b. A half a trillion dollars in new money created out of thin air, to buy government bonds, is an incredible feat of inflation. Not a single economist thought QE2 would not launch soon!
With the bond bull in mortal peril, we may very well be on the verge of a major shift in capital allocation. Rather than trillions of dollars parking in low yielding Treasuries where inflation will eat away any real returns, serious capital is going to start seeking tangible assets like we saw during the late 1970s. This includes gold of course!
If a small fraction of the capital hiding in bonds today shifts into Gold, it is going to make their secular bulls to date look tiny.
Kind regards,
Simon Heapes
About Simon Heapes: Simon Heapes is the Director of Treasury for the Anglo Far-East Bullion Company, a premiere private bullion custodian who has served affluent and institutional clients in the acquisition, vaulting, and liquidation of “good delivery” gold and silver for two decades.

Acronyms to Know

2010-10-14T21:43:00.000-07:00

Years ago I became very frustrated when borrowers/sellers/funders would use acronyms that I didn't know. Some people throw out these acronyms to make themselves appear to "masters" of the transaction type. For your benefit, I have compiled a list that all intermediaries should know. Hope this helps an allows you to understand and work on competent and professional manner without the embarrassment of having to ask what the last three acronyms meant. Here is another resource for acronyms if you don't find them here: http://www.acronymfinder.com http://www.acronymfinder.com

Acronyms to know:

CIS- Client Information Sheet

POF- Proof of funds

LOI- Letter of Intent

SPA- Sale and Purchase agreement

PPP- Private Placement Platform

NDA- Non Disclosure agreement

VOD- Verification of deposit

SLS- Senior Life Settlement

L2L- ledger to ledger, bank to bank parallel funds

SBLC- Standby Letter of Credit (domestic)

DPLC- Direct Pay Letter of Credit (direct pay letter of credit)

BG- Bank Guarantee (Same thing as an SBLC, but European)

MTN- Medium Term Note

T-STRIP- Treasury Strip

MOU- Memorandum of Understanding

CLC- Conditional Letter of Commitment

JP54- Jet Fuel

D2- Diesel

IMFPA- Irrevocable Master Fee Protection Agreement

SFA- Sub Fee Agreement

GOLD & DIAMOND TRANSACTIONS:

TTM- table top meeting

BCL- Bank Comfort Letter

R&E- Rolls and Extensions (the buyer can extend his contract to continue buying gold on a regular schedule)

LBMA London Bullion Market Association

Manifest- A description/list of the stones/gold and the price

Spot buy- transaction is paid for in cash, usually bank to bank at the time the goods are delivered.

RWA- Ready, Willing and Able

SCO- Soft Corporate Offer , an offering made by the seller of gold, gems, etc.

FCO- Full Corporate Offer- This is what a seller is willing to sell at and the terms of the sale

Kimberly Report- a report stating the diamonds are not “conflict diamonds” www.kimberleyprocess.com

Educate yourself on diamonds: www.ajediam.com/Sizes-of-Diamonds.html

GOLD SPECIFIC:

GLD gold is:
• Generally12.5kg bars, possibly other forms, (e.g., 1 Kg bars or other forms) 999.5+ Au, with London Metal Exchange (LME) recognized hallmark, and proper provenance, that is,
• Presently held in custody with full responsibility by a London Metal Exchange accepted depository, who certifies clean, clear title, and ships the Au under bond to the buyer’s LME accepted depository at seller’s cost.

If the gold does not meet criteria of GLD gold, it is non-GLD gold or AU

PROOFING UP YOUR BUYERS:

MT799- This is a simple text message sent bank to bank to verify funds

MT760- is a blocked funds instrument

Brinks Account or Malca-Amit account (this is the best)

VOD- Verification of deposit

POP- Proof of product

B2B- Bank to Bank

Shipping

FOB- Free On Board- Without charge to the purchaser for delivery on board or into a carrier at a specified point or location. (This can be tricky. i.e. FOB Houston means free freight to Houston and the product is probably located in Houston…if it’s going elsewhere, the buyer will have to pay for the shipment

CIF- cost, insurance, and freight

BONDS AND OTHER FINANCIAL INSTRUMENTS:

CUSIP Committee on Uniform Security Identification Procedures and the 9-character alphanumeric security identifiers

ISIN- International Securities Identification Number

DTC- Depository Trust Company

Euroclear- The world's largest settlement system for international and domestic bond and equity transactions. Euroclear provides a variety of financial services, including securities lending, settlement, and clearing.

Bluescreen- A screen shot of the traders window

MINES:

43-101- This is a Canadian geological/assay report on an in-ground asset. It is unique to Canada. i.e. The US has attorneys, the UK has barristers.

WSJ Video: Predicts $5K per oz - Demand will be HUGE

2010-10-14T10:53:00.000-07:00

Analyst: Gold Run Just Getting Started

2010-09-23T05:18:00.000-07:00

http://www.cnbc.com/id/15840232/?video=1597384344&play=1 -----Gold is on the move and not slowing down anytime soon....

A Video From Our Last Site Inspection In Peru....Que Bonita!

2010-08-28T12:22:00.000-07:00

Submitting Your Mine for Funding is Easy...

2010-08-14T09:54:00.000-07:00

We at Walker Commercial Funding try to make the funding process as easy as possible. We have the submission process down to a science. What we have found is that most miners have 95% of our needs list at their fingertips and are able to submit a thorough, clean package in less than a day. You can download our MINE FUNDING NEEDS LIST by clicking on the hyperlink. We also have our mining information in Spanish for those of you more comfortable with the Spanish language.

Because the ultimate destination for funding is typically Wall Street, we do ask that everything be submitted in English.

Tired of the Scams in Getting Your Mining Project Funded?

2010-08-06T18:11:00.000-07:00

If you own the mine and have a strong geological showing at least 1B USD in PROVEN reserves, we can help you get funded. Call 281-764-1605 or mines@walkercf.com for more info. We charge no upfront fees.

Want to Know What is Really Going On? Follow the RIGHT Media....

2010-07-21T22:13:00.000-07:00

It disgusts me to hear what spews from the mass media conglomerate's news.....if you want to know what is really going on...try these news sources:

http://finance.yahoo.com

http://online.wsj.com/home

http://www.forbes.com

http://www.cnbc.com

More States Minting Their Own Coins

2010-07-04T14:32:00.000-07:00

Texas just announced last week that they will be minting a $50 coin made of 99.99% silver. We anticipate gold coins will be minted once gold production increases. At the moment, however, nearly all gold in production is tied up in contracts with buyers.

If you are a serious buyer of gold and want a relationship with a miner on the threshold of going into production, please call us at 281-764-1605 or mines@walkercf.com ....
for info on states minting their own coins, please visit http://www.coinnews.net/2009/12/30/united-states-mint-coins-2010

How much cash do you need to get your mine operational?

2010-06-12T01:43:00.000-07:00

If you have a substantial claim (25B plus) with proven reserves and only need 2-3M USD to get become operational, please give us a call to discuss a way to get your mine operational so that your 144a bond offering is more attractive. Feel free to Brian at 281-764-1605

Brian Walker - Blog on BrightFuse - A Talent Community

2010-06-12T01:35:00.000-07:00

Here is a great networking site I recently found. Great for connecting with bright people and great ideas...

Brian Walker - Blog on BrightFuse - A Talent Community

Still Not Funded on Your Mining Project?

2010-06-10T22:25:00.000-07:00

If you have proven reserves of 1B or more of any precious metal, please see our punchlist to see if you have everything necessary for us to fund your project. We charge no upfront fees and only accept projects that have a high probability of funding. For more information, please contact Brian Walker at 281-764-1605

New Funding Sources!

2010-06-01T08:42:00.000-07:00

In addition to our normal debt structure for your mine. We have found a fantastic funding source that can fund very quickly. You must have all of the documentation from our needs list and be willing to give a 5% equity position in the asset. Minimum proven in-ground reserves for this funder is $2 Billion. Precious metals are preferred.

Gold ATM Debuts; Watch it Work

2010-05-13T09:29:00.000-07:00

From CNBC 5-13-2010

On Thursday May 13, 2010, 9:31 am EDT

Amid fears over the strength of nearly every major currency, Abu Dhabi's top hotel has come up with a new type of ATM for their most risk-averse guests. The Emirates Palace is giving those staying there the chance to withdraw gold from the world first ever gold dispenser.
With gold prices at record highs amid fears that the EU's rescue package will drive inflation higher, the ATM monitors the daily price of gold and offers small gold bars that weigh up to 10 grams with customized designs.
This could be just what those who stay in one of the world's most expensive hotels will need as they watch the euro, yen and dollar jump around in volatile trade.
The hotel boasts 302 Grand Rooms, 40 splendid Khaleej & Khaleej Deluxe suites, four Royal Khaleej suites and sixteen three-bedroom Palace Suites divisible into a total of 48 one-bedroom individual suites.
Thomas Giessler, the German entrepreneur behind the idea, chose Abu Dhabi because of its high-rolling atmosphere. Geissler said he hopes his Gold to Go machine will tie in nicely with the region's traditional ties in gold commerce.
Giessler's timing is very good given gold is currently at a record high. Given the price action at the moment your 10 grams could be worth considerably more by the time you check out and could help you pick up the tab at the luxury resort. One night in a three-bedroom suite that could set you back more than $10,000 a night.

Gold Buyers and Gold Buyer Mandates Wanted

2010-05-08T14:21:00.000-07:00

As you know we are direct to more than 40 miners and the numbers are growing. If you have an interest in buying gold before it hits the open market, please contact Brian Walker at brian@walkercf.com or 281-764-1605 or skype brian.walker7

Another definition with more details on The Swiss Proceedure

2010-05-07T23:42:00.000-07:00

Selling and Buying Gold
Forget the performance bonds, escrow and parallel accounts, the meaningless SGS certificate, bank comfort letters (BCL’s), letters of credit, MT 103’s, 760’s, 999’s, etc., and the various hallmarks,attestations and protestations that the product is valid, that title is clear, that people are responsible and
full faith, et cetera. GLD Gold is bought and sold by Bullion Banks through a bank bullion officer under what is called "Swiss Procedures.” The Swiss Procedures are very simple and direct.

Good London Delivery Gold (GLD)
For Good London Delivery gold (GLD) the buying bullion banks pay immediately upon delivery. Title is retained by the seller until payment. Bullion banks do not prove that they have funds, it is known.
GLD gold is:
• Generally12.5kg bars, possibly other forms, (e.g., 1 Kg bars or other forms) 999.5+ Au, with:
London Metal Exchange (LME) recognized hallmark, and proper provenance, that is,
• Presently held in custody with full responsibility by a London Metal Exchange accepted depository, who: certifies clean, clear title, a ships the Au under bond to the buyer’s LME accepted depository at seller’s cost.
The LME approved depository’s certification with full responsibility is the critical factor. All GLD gold is registered. GLD gold can be authenticated through secure banking channels by a bank’s licensed bullion officer.

By banking definition, a Full Corporate Offer (FCO) for GLD gold contains the data that allows verification by a bank’s bullion officer. The minimum required data is the complete certificate number(s) for the gold or the SKR(s) indicating the gold certificate numbers from a registered secure depository. The buyer/bullion officer will not authorize and/or sign any document until the GLD gold has been verified, as this is contrary to all bullion banks gold procedures. In certain instances in order to verify we will need a letter of authorization from the seller to verify. If this is the case I will forward the bank-required format.

The buyer’s representative will issue an FPA when the Full Corporate Offer has been verified. According to banking rules the buying bullion officer will not contact the selling bullion officer until he has written permission from the seller to do so, to do so would be considered solicitation.

All Other Gold
If the gold does not meet all of the above specifications it is not GLD gold. For all non-GLD Gold,(former GLD (nominally 1 a/o 12.5 Kg bars), dory, gold dust, ingots, nuggets, etc.) the bullion banks pay immediately upon proof of what they are buying. Title is retained by the seller until payment.

Proof of what they are buying is accomplished by the seller delivering what he says is gold to the designated airport closest to the buyer’s designated refinery depository at seller’s cost. The seller provides evidence of clean, clear title. The buyer arranges to pick up the gold by bonded courier and transport to the refinery. The refinery depository refines the said-to-be-gold at the buyer’s cost. The refinery depository refines the material, assays the metal melt, and issues its Au credit memorandum.

Assay samples are retained. The refinery, seller, and buyer each agree as to the accuracy of the refinery’s credit memorandum. The seller retains title until he is paid. He is paid immediately upon the refinery’s issuance of their credit memorandum. The buyer later converts the refined gold to GLD status and sends it to the buying bullion bank.

In both cases above the buyer issues the contract as instructed by the buying bank.