I devote a slide calling for a reform of the private placement system, in particular the elimination of the "existing security holder" requirement of the exemption that allows non-accredited investors (non-millionaires) to participate in private placements. I discuss the problems hampering a turnaround for the resource juniors in greater detail in a Howestreet.com Interview - Dec 18, 2019. I also created a powerpoint presentation which uses the Tri Origin example to show how insanely complicated the paperwork is for a private placement: Navigating a Private Placement Document. While it looks like a turnaround is underway, it is still critical to engage a new capital pool, especially including Post Boomers, as a source of direct financing for juniors because the brokerage sector can no longer perform this role on anything but a very select basis.
In late January 2016 after a very dismal 2015 for resource juniors the market started an uptrend that tracked a rebound in the price of gold which stalled as soon as the gold uptrend reversed in August 2016. When gold started rising in May of 2019 the producers tracked the uptrend but the juniors only did so half-heartedly. And when gold stalled in September 2019 the entire junior resource sector sagged with a pickup starting only in mid December amidst capitulation selling even though gold was holding up in the $1,450-$1,500 range. In terms of the market sentiment cycle we are allowing a glimmer of hope from an abyss of depression. Will this time be different? Much will depend on the sustainability of the gold uptrend, which for now is being treated as a safe haven from rising uncertainty about where the United States is leading the world.
KRO is now closed to new registrations seeking the USD $450 annual individual membership, though this deal remains available to individuals who previously registered at KRO. You can Update your membership and use the email on file to recover your log in credentials. New registrations are still available for Multi- User Corporate memberships which cost USD $1,000 per year (the annual membership used to be USD $800 per year). The web site is now over 15 years old and needs a redesign whose completion date is at this the time uncertain. In fact, if the turnaround starts to accelerate, the completion date will become an unknown because this is the most lucrative time in the resource junior market cycle and John Kaiser will focus on highlighting the erupting winners.