NuLegacy Initiates Exploration on its IRC Claims
To friends, family and NuLegacy Shareholders/Stakeholders,
Today's news release needs no elaboration - it continues to support our view that our Nevada properties host several highly prospective Carlin-style gold systems.
You will recall my recent comments that in the short-term the gold price was/would be pressured by the Shanghai stock market collapse.
My conclusion was that while the Shanghai crash would initially oppress the price of gold (as gold was being 'force sold to meet margin calls') ultimately it would lead to significantly higher gold prices just as happened after the Crash of '08. During the Crash of '08 the price of gold initially went down by 25% and then went up 215% over the next three years.
I know it's the 'dog days of August' and no one really wants to be challenged with a heavy read. Yet to be ready for September (back to school and back to markets) and not be surprised when the 'gold price and interest rates go up together' I recommend you read the following two links.
The first is an easy read by the "Reformed Broker" that references a 'correlation' study by David Bloom FX Strategist with England's biggest bank - HSBC - that debunks the popular misconception that gold cannot go up when interest rates are rising!
The second article, aptly titled The Edge of Chaos is a much heavier read by our friend and shareholder Dan Oliver of Myrmikan Capital, LLC of New York. Dan does an exceptional job of reviewing what happened in America and Europe in the 1920's and 1930's and what likely is happening in China and America today. He explains the process by which the Shanghai crash should lead to higher interest rates and higher gold prices.
What he is describing is in effect the economic equivalent of 'the butterfly effect' whereby a small change in initial conditions creates a significantly different outcome - i.e. - metaphorically - how 'a butterfly beating its wings in China affects the course and intensity of a hurricane in the Caribbean several weeks later'.
Enjoy the last of the summer and all the best,
Albert J. Matter
NuLegacy Gold Corporation | NUG:TSXV | NULGF:OTCQX
C: 604.512.7003 | www.nulegacygold.com
The foregoing does not constitute an offer to sell or the solicitation of an offer to buy any security and is not intended to be relied upon as advice to investors or potential investors. In addition, the foregoing contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions based on information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation.