PRICE OF GOLD SOON TO RISE
Wouldn't we all like to see the MGMX PPS rise drastically? That is what happens to gold mining stocks when the price of gold rises. And the comparative rise is NOT linear. If gold goes up 50% the PPS could go up 1000% or more. What are the chances of this happening soon? EXCELLENT!!!!
The US Dollar is at an all-time low. Fed Chairman Bernanke (SP?) will not move to correct this problem by raising interest rates. He fears that if he does the housing market, which is already on the cliff of disaster by low cost Adjustable Rate Mortgages, may crash. In addition to ARM(s) percentage increases are the uncredit worthy mortgagees that really did Not qualify for a standard 10-20% down fixed-interest 30 year loan. They got their loans with nothing down at a slightly higher rate and can not keep up with the payments. They have nothing to lose by walking away from their mortgages. To top all of that off, Bernanke is waiting for the opportunity to cut interest rates to save the home builders and give the banks some time to get more quality loans on their books to counterbalance the poor ones of the past 2 years. This non-action or lowering of the rates is going to kill the value of our dollar. All central banks have been unloading US Dollars for quite some time now. Soon the standard (GOLD) will be pushed up in price, maybe as far as $2,500 US Dollars per ounce. Even if we don't get that high, remember that the price of mines and mining companies of gold, will increase exponentially. MGMX and EAGM should do extremely well within that situation. I believe this will all take place by 12/31/2008. That's my prediction. SAM.
AI
