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How To Speculate In Mines | By Walter W. Wall



Being an exposition of the principles of investment and speculation, with descriptions of mine-developments and principal gold fields and a glossary of mining terms.

TitleHow To Speculate In Mines
AuthorWalter W. Wall
PublisherBilling And Sons, Ltd., Printers, Guildford.
Year1901
Copyright1901, Walter W. Wall
AmazonHow To Speculate In Mines
-Introduction
In undertaking the task to instruct the ordinary capitalist how to speculate in mining shares, I am well aware that it is no light and easy one, but is beset with many and formidable difficulties. I c...
-Glossary Of Mining Terms
The following is a glossary of the most common mining terms in use: Adit A level driven into a mine from the side of a hill. Alloy A mixture of two or more metals, or a baser metal fused with a fi...
-Glossary Of Mining Terms. Continued
Flume A wooden aqueduct for conveying water to alluvial or placer diggings. Fhix A substance used to promote the fusion of metal in the reduction of ore. Footwall The wall on the lower side of a ...
-Part I. Chapter I. General Observations
I have chosen to entitle this book 'How to Speculate in Mines' rather than how to 'Invest' merely for the simple reason that there is far more speculation in such shares than legitimate investment. A ...
-Part I. Chapter I. General Observations. Part 2
Therefore in a crisis of this kind it is madness to act on the spur of the moment, as so many thousands do. Experience would teach us that this is precisely what the dealers and the public would do, a...
-Part I. Chapter I. General Observations. Part 3
If we have saved up money, we are each one anxious to see it increase; but it depends upon the individual temperament as to what degree of increase will satisfy it. In some countries the inhabitants p...
-Chapter II. Investment And Speculation
In the preceding chapter I said that there is a great difference between investment and speculation, and it is necessary that I should make my meaning somewhat clearer. There are undoubtedly through-o...
-Investment And Speculation. Part 2
But, assuming that we are fortunate enough in finding our honest men, we have to find out that their integrity is not their sole qualification. Honest men have before now brought companies and busines...
-Investment And Speculation. Part 3
again, many of the famous Rand mines are undoubtedly sound investments, provided they are not purchased in the market at inflated prices, and I hope later on to give a list of shares, with the prices ...
-Chapter III. The Golden Rule Of Speculation
'If we wish only to speculate, to make our profits by buying and selling, the rogues will, of course, serve our turn as well as the honest men, and probably more effectively.' I quote this previous re...
-The Golden Rule Of Speculation. Part 2
It is a delicate, complicated business, look at it how you like, and requires almost superhuman insight and foresight to see into all the intricacies of it. But, assuming that the honest, courageous j...
-The Golden Rule Of Speculation. Part 3
It is equivalent to the other golden rule in investment: Be content with a small interest if you would invest your money safely. Another advantage which speculation has over investment, especially if...
-Chapter IV. Directorates
It is of the greatest importance to speculators as well as to investors to study the directorate of a mining company. It is apparent, however, from experience of the past, that this is one of the esse...
-Directorates. Part 2
An incompetent board can do an incalculable and a lasting amount of damage, which is not confined to narrow limits, but which is spread over a wide area. Therefore it is essential that a speculator in...
-Directorates. Part 3
By some inexplicable fatuity of theirs they are contented and happy if they see the name of a lord or a sir upon the board of directors, no matter whether or not that lord or sir has proved himself to...
-Directorates. Part 4
Incapable directors are, for the most part, as incompetence of all kinds generally is, extremely extravagant. Shareholders have, over and over again, therefore, just to take one phase of it, had many ...
-Chapter V. Capital, Area, Position, Size Of Reefs, Etc
After studying and satisfying one's self as to the directorate of a company, we should next look at the capital, which is equally as important a matter. Indeed, a company may have an honest and most c...
-Capital, Area, Position, Size Of Reefs, Etc. Part 2
The speculator runs as many risks, if not more, by speculating in the shares of an undercapitalized company, for a proposal for reconstruction may startle holders and the market before they are prepar...
-Capital, Area, Position, Size Of Reefs, Etc. Part 3
Such companies usually distribute their dividends in the way of scrip, and shareholders, for some reason or other, probably because they know no better, seem invariably satisfied with these, especiall...
-Chapter VI. Economical Facilities
There are many other points for the speculator and investor to consider in calculating the value and prospects of a mining property. Not the least important of these is its position, for though a mine...
-Economical Facilities. Part 2
These illustrations will show the great importance, then, of ascertaining the dip of the reef - a matter to which both investors and speculators pay too little heed. Though all the four mines are show...
-Economical Facilities. Part 3
The supply of water, therefore, is a very serious question for the investor and the speculator to consider if they would invest and speculate successfully; for if a mine has to be shut down through an...
-Chapter VII. Experts
Another matter of the first importance which the investor and speculator cannot disregard with impunity is the trustworthiness and the ability of the expert. These men have a great power placed in the...
-Experts. Part 2
Then the company is duly floated, the public take up the shares, and the vendor and promoter pocket their profits; it drags on for some years, no results are forthcoming, reconstruction follows recons...
-Experts. Part 3
It will be seen, therefore, from what I have said, that, in addition to its importance, it is by no means an easy matter to get the right man in the right place; but that is no reason why the wrong ma...
-Chapter VIII. Prospectus Criticism
We will now go together through two prospectuses, and for our purpose will select two that were advertised about the same date in the financial press. The first we will take is that of a West African ...
-Prospectus Criticism. Part 2
Labour I can only confirm Captain Louis Wyatt's statement; but so long as the boys get regular monthly wages it establishes their confidence in the employers, and any number can be procured from the ...
-Prospectus Criticism. Part 3
The following is a list of underwriters: - The West African Agency, Limited, of Palmerston Buildings, E.C., are holders of 1,750 'A' parts and 1,500 'B' parts in the Wafricana Share Trust, Limited (h...
-Prospectus Criticism. Part 4
It may be beyond doubt, as he says, that the reefs are of high grade, strong and regular, etc.; but so are they in the Hannan's Field and many other gold-fields, where many mines are making no profits...
-Prospectus Criticism. Part 5
'The reefs are not of the lenticular order, occurring interbedded in altered sedimentary rocks, but bear all the accepted characteristics of fissure veins, and the rock formations immediately enclosin...
-Prospectus Criticism. Part 6
'15th August, 1900. 'With further reference to development in the 2nd Level of the Mexican Reef, I am glad to say that since writing you last on this subject the developments carried out have been sat...
-Prospectus Criticism. Part 7
A copy of the Company's Memorandum of Association is printed in the fold of the Prospectus, and forms part of the Prospectus. Purchase The purchase price has been fixed by the Vendors (the Rhodesia ...
-Chapter IX. How Bargains Are Transacted
It is a singular fact that great numbers of people speculate in mining and other shares, and yet they are not only ignorant of the nature and value of the stock or share they buy and sell - depending ...
-How Bargains Are Transacted. Continued
It will be seen that there is a difference of 1/8 in the two prices, and this represents what is called the jobber's profit, or turn, as it is more generally called, and this would amount to a goodly ...
-Chapter X. Other Points Explained
In the previous chapter I spoke of the fortnightly settlements on the Stock Exchange, and I promised to give a fuller explanation of them in this. The meaning of it is connoted by the word itself. Eve...
-Other Points Explained. Part 2
The second day of the settlement is ticket day, and is so called because on that day the broker prepares a ticket, giving the buyer's name and address upon it, which is handed over to the selling jobb...
-Other Points Explained. Part 3
If, on the other hand, we think that the price will not be maintained, but may either go up or down, we buy the 'put and call,' for which we have to pay double the price of the single option, so that ...
-Other Points Explained. Part 4
Sometimes a company is issuing priority shares, or offering the shareholders certain privileges, which may ultimately be of value to them. Such a privilege may be the issue to them of those shares pro...
-Chapter XI. How Markets Are Influenced
'How are markets influenced?' is a question it is not easy to answer, as the financial journalist and the professional dealer will acknowledge. The market is influenced by a complexity of causes and c...
-How Markets Are Influenced. Part 2
The time of profit-taking comes, and prices react. This is misunderstood by the French, and they become alarmed. They swamp the market once more with their holdings, and this time it brings about the ...
-How Markets Are Influenced. Part 3
As all our resources are locked up in stocks and shares, we are anxious to realize them into solid cash, so that we may thus be able the better to meet any crisis, such as would follow on the outbreak...
-Chapter XII. Bulls And Bears
The mining market, just as other markets are, is affected by those influences which are known as bull and bear movements and tactics. But the average man does not know what these tactics and movements...
-Bulls And Bears. Part 2
But bears, as a rule, do not sell without assigning some reason for it, and in the market report we learn that those reasons take the shape of all kinds of rumours. Therefore, to be a successful bear ...
-Bulls And Bears. Part 3
Now, the object of a bull is to raise the price of shares in order to sell them afterwards at a profit. He selects a certain share or shares which he thinks will be the most suitable for his purpose, ...
-Chapter XIII. Fashions In Mining
There are such things as fashions in mining speculation, just as there are fashions in clothes, and these fashions, of course, have their influences upon prices. These fashions, for the most part, see...
-Fashions In Mining. Part 2
No; it was a gold-fever, and, as in all fevers, the victims became delirious and raving. Where the gold-mining industry had become established in other parts of the world it was ignored, probably beca...
-Fashions In Mining. Part 3
This is one way in which the ranks of those who speculate in mining shares are swollen at the times of new discoveries. They are swollen also by others who have been taught by previous experience, but...
-Chapter XIV. Mine Developments
In the glossary appended to this work I have attempted to give a brief explanation of many of the technical words that are so frequently used in mining reports, and that are not understood and cannot ...
-Mine Developments. Continued
Here we have shafts sunk on the reef at B, and levels driven right along the course of the lode, where rises (D) and winzes (E) have been driven and sunk, whilst in some places the winzes and rises (F...
-Chapter XV. Reports And Meetings
Every day we see published in our financial papers extracts from the reports of directors, and also more or less lengthy reports of company meetings. The ordinary man has no other source of informatio...
-Mount Malcolm Mines
The report of the directors of the Mount Malcolm Mines, Ltd., covering the period from the 17th March, 1900, to the 31st March last, to be submitted at the meeting on the 30th inst., states that, afte...
-Chicago-Gaika Development
The report of the directors of the Chicago-Gaika Development Company, Ltd., for 1900, to be presented to the meeting on the 22nd inst., states that the outlay on the property for the year amounted to ...
-Cosmopolitan Proprietary
The annual general meeting of the Cosmopolitan Proprietary, Limited, was held yesterday, at Winchester House, Old Broad Street, E.C., under the presidency of Mr. John H. Gretton (chairman of the compa...
-Cosmopolitan Proprietary. Part 2
I suppose we ought not to trouble ourselves about the market price of shares, but it does seem extraordinary to me that with the prospects before us our shares should be standing at present at somethi...
-Cosmopolitan Proprietary. Part 3
The expenses of working will be very much curtailed when once the railway reaches your property. You will then have stores at Niagara; and, in fact, the railway, which will be ready about the time our...
-Bonsor Gold-Mining
The third ordinary general meeting of the shareholders of the Bonsor Gold Mining Company, Limited, was held yesterday at the Cannon Street Hotel, E.C., under the presidency of Sir John C. Willoughby. ...
-Bonsor Gold-Mining. Continued
With reference to this, I may tell you that, besides the actual ore reserves mentioned, there are some 23,000 tons of tailings on hand of an estimated assay value of about £14,000. Concerning the Nor...
-Chapter XVI. The Financial Press
I have attempted to show in the previous chapter under what great disadvantages the ordinary man labours to estimate the value of a mining share, whether he wishes to speculate in that share or invest...
-The Financial Press. Continued
It is, as we know, the habit of promoters, when they bring out new companies, to go round to the editors of financial papers and ask them to speak a good word for their companies. There are many finan...
-Chapter XVII. Conclusion To Part I
In the preceding chapters I have endeavoured, as far as I have been able, to give what I consider to be some sound advice to novices in mining speculation and investment. It is for that particular cla...
-Conclusion To Part I. Continued
Even speculation in the shares of such a company is attended with more than ordinary risk. We may place great faith in the ability of such a man to manipulate the price as he pleases, but we can never...
-Part II. Chapter XVIII. Rand Mining
Dealing separately with each section of the mining market, the South African is incomparably the most attractive both to the speculator and the investor. In the South African I include the Rand and Rh...
-Part II. Chapter XVIII. Rand Mining. Part 2
Until within a few months ago mining operations ceased on the Rand as far as English shareholders were concerned, but permission has recently been given to a few mines to restart operations. For eight...
-Part II. Chapter XVIII. Rand Mining. Part 3
Sir David Barbour has recommended a tax of 10 per cent. upon the net profits. In some parts of the British Empire the tax is 10 per cent. upon the gross output, so that the Rand, a vastly more prosper...
-Chapter XIX. Outcrops And Deep Levels
In this chapter I purpose to give a brief account of the positions of a few of the leading outcrop mines as they stood before the outbreak of the war, with the dividends they have paid during recent y...
-Outcrops And Deep Levels. Part 2
Driefontein This is another East Rand subsidiary, which paid its first dividend of 25 per cent. in March, 1899. A scheme is under consideration for increasing the capital of the company to £625,000,...
-Outcrops And Deep Levels. Part 3
Jumpers This company has been in existence since 1887, and commenced to pay dividends in 1893, and since then they have been uninterrupted. In 1898 115 per cent. was paid, and, 25 per cent. on accoun...
-Outcrops And Deep Levels. Part 4
Salisbury Although this company was formed in 1891, it did not pay a dividend until 1899, which was at the rate of 10 per cent. In addition to its outcrop area, which is estimated to have a life of o...
-Chapter XX. Rhodesians
It is agreed by every authority that as soon as the war is over we shall witness a great mining boom, and that opinion I fully share. Personally I do not like booms, for they leave behind them a legac...
-Rhodesians. Part 2
Rhodesia commenced its career as a gold producer in the latter part of 1898, when the first returns were made by the Geelong and Selukwe companies, each of which was crushing with a twenty-stamp batte...
-Rhodesians. Part 3
I will now give a few particulars of some of the companies that are likely to attract first attention: Bonsor Capital, £220,000 in £l shares, all of which have been issued. It owns 72 claims, and ...
-Chapter XXI. West Australians
The West Australian market is not the market for the investor. I cannot advise him to go there to seek more than a limited number of good mining investments. It is pre-eminently (if we exclude the Wes...
-West Australians. Part 2
But the future of the mining industry of Western Australia depends almost entirely upon one field, and that is the famous Hannan's Field, where at the present moment the richest mines are being worked...
-West Australians. Part 3
The past record of the Lake View Consols has also been far from pleasing and satisfactory. The shares have hitherto been used as pure gambling counters, and the development of the mine has been subord...
-Chapter XXII. West Africans
It has been proved conclusively that West Africa is a rich and promising gold-field, but therein lies a great danger to the imprudent investor and speculator. Although we have heard so much of West Af...
-West Africans. Part 2
Rich as the country may be, it must not be overlooked that it is entirely undeveloped. Boreholes have been sunk here and there, and proved that the reef exists at depth. So far so good. That is undoub...
-West Africans. Part 3
But a great number of companies have been formed, which have issued no prospectus, and I think, perhaps, on the whole it would be advisable to avoid these, for though we may miss many good things, we ...
-West Africans. Part 4
Henceforth the new name of the company will be the New Gold Coast Agency, Limited. These two companies are practically the whole of the Consolidated Gold-fields group, of which we hear so much in our ...
-Chapter XXIII. Indian Mines
The leading Indian mines of the Colar Gold-field, Mysore, are amongst the soundest mining investments. For a considerable number of years past they have paid very large and regular dividends, and so f...
-Indian Mines. Continued
The following is the record of the dividends paid by the company, to which must be added an interim dividend of 4s. per share paid on July 10 last: Date when Paid. Nominal Capital. Am...
-Chapter XXIV. British Columbians
It has long been proved that British Columbia is a very rich and promising gold-field, though up to the present full justice has not been done to it. Of late years there has been a fair amount of acti...
-British Columbians. Continued
Here the Le Roi mine is situated, respecting the administration of which there is so much agitation at the time of writing, but which is undoubtedly a rich and promising mine, provided the management ...
-Chapter XXV. Miscellaneous Gold-Fields
That department of the mining market known as the miscellaneous is, taking it on the whole, more attractive to the investor than the speculator. Most of the rubbish shares have been relegated to limbo...
-Miscellaneous Gold-Fields. Part 2
Of late years great attention has been paid to the possibilities of gold-dredging in the colony, and up to the present the results have undoubtedly been encouraging. But that is all that can be said. ...
-Miscellaneous Gold-Fields. Part 3
Victoria Victoria is still paying penance for the abuses of which she was guilty in the past. In spite, however, of the fact that English capitalists will put no money into the industry, the colony i...
-Appendix. The Coming Mining Boom
It is agreed by every authority whose opinion merits consideration, that upon the termination of the war we shall witness a mining boom in comparison with which the historical boom of 1895 will sink i...
-The Coming Mining Boom. Part 2
It will come sooner or later. There is no future event so certain as this. And it may come at the moment we wish it, for all we can see. And it will be welcome. There is no doubt of that. We shall all...
-The Coming Mining Boom. Part 3
Assured as the future of Rand mining was, the latest discovery by the Turf Club borehole - one of the most important in its history - makes it more assured. Therefore it is bound to be attractive both...
-The Coming Mining Boom. Part 4
We shall see history repeat itself with little variation. Promoters will come forth from their haunts in swarms; they will offer to the excited and eager public hundreds of companies that will be pure...









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