Jim’s Mailbox

Posted at 6:08 PM (CST) by & filed under Jim's Mailbox.

Dear Jim,

I remember about four years ago you predicted that starting with the development of Kabanga, Barrick’s primary source of revenues would eventually come from its nickel properties as opposed to gold. I can’t remember whether you said you made this prediction to Barrick’s then-President or whether you made it in the abstract. Well, too bad. They didn’t listen to you about the disastrous short of gold derivatives either, so they’ve been forced to sell their interest in Kabanga and they’ll never get a chance to find out. Lots of people (not the least of which, several foreign wealth funds that invested in US banks in 2007-2008) could have saved themselves billions of dollars if they just took the advice you offered for free. It’s quite an amazing study in human ego why they were incapable of doing so.

Best wishes,
CIGA Richard B.

Dear Richard,

I was told by a major mining trade publication to take my advertising away as they would no longer run it.

Apparently I really pissed of some major producer. I think I know exactly who that was.

When I left Kabanga Nickel that picture was running 2.8% nickel and the cobalt crystals could be seen in the core with the naked eye. The metallurgy was simple and the cobalt so easy that you would say it fell out. The resource appeared enormous. If there was any problem then it was infrastructure, but that is not so now.

I went to Barrick to buy Kabanga from them. Oliphant asked me if he should sell it to me. What can you answer? I am there as a buyer My answer was of course I would not.



I am trying to understand what the most likely events that could trigger hyperinflation in the US (or Europe). From your December 12, 2008 post I thought that a shortage of essential goods (oil, food…) may be one of those.

CIGA Christopher

Dear Christopher,

The US dollar collapse in the marketplace late October, early November of 2009 will trigger hyperinflation.

Scarcity of key goods occurs because of a breakdown in financial settlements for shipping and distribution.




I could have missed it, but I have not been aware of your version of the USA devaluing the US$.

Do you have an opinion ???

CIGA Wally


In today’s world currencies trade in a floating system.

The dollar is upward valued and devalued daily. Therefore there will never be any official devaluation to the US dollar in the present system.

The US dollar will trade under .7200 on the USDX prior to Christmas 2009.