Thursday 4 October 2012

Rumours of Massive Silver find in Peru 'ephemeral'

A mass email was sent out on around 28th of September purporting knowledge of a company that had found a massive Silver deposit in Peru that was valued at 5 Trillion USD. The sender of the email was one Greg McCoach (that cant be his real name, seriously?) who gave a series of 'startling' hints about this massive deposit, but refused to name the company involved.

Fortunately, due to the vast number of people sent this email, it was not hard to find someone on the internet who had done a comment on it, thanks to Bob Tsui for finding it.

The company being advertised is Tinka Resources, which trades on the Canadian exchange (TK on the main exchange and TKNFF on the pink sheets) not only is their share very thinly traded, but according to their own announcements, they have only found 20 million ounces, which hardly translates into 5 Trillion. According to their own announcements, available here: They have only sampled an area 150m by 150m and found in 5 samples between 11 to 115 grams per ton of rock.

Needless to say, it is true that this company is cheap. It is also true that silver is due for serious upside. It may even ber true that there is a large silver deposit there in Peru, but the companies own documents do not show this. In my opinion, Mr McCoach's email was simply an attempt to sell a subscription to some shitty tip service.

In case there is any doubt, here is the last year of Tinka Resources.


Now the reason I originally got into this story was that 5 Trillion of new silver floating around would seriously dent my fundamental assumptions, but is seems they are safe. A bullion seller I was talking to today said that it took 6 months for a $15million USD transaction to be delivered and that there is only 3 days of extra capacity on the silver industrial system. I had assumed things were bad, but I had no idea they were that bad. At the moment, the large banks are using ETF's and other tricks to keep the prices of precious metals artificially low, however, once physical silver becomes even more short, there will be a divergence between paper and physical prices, because after all, you cannot electroplate with paper. =)

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