Can you imagine what happens if suddenly they wake up and begin
a rush to Gold -
There are over 8,000 mutual funds that have not even looked at
gold -- and yet they have a mandate to be fully invested -
What do you think they will do when the only stocks going up are
gold and silver stocks?
How High Can Gold And Silver Stocks Go? -
21st Century Gold Rush UP DATE -
What if we invest in Caledonia Mining Corporation and
CALVF become a LION -
ex. in 1975?..
take a look at the past gains in
a few Gold mining juniors:
History often repeat itself -
a snippet -
Back in the late 1970's, the lineups to buy gold were
reminiscent of people waiting to buy Stanley Cup Hockey tickets
at the then Famous Montreal Forum.
There they stood all raped up in their Parkas, ski jackets,
bulky sweaters, construction boots and as well as executives in
their Patten leather shoes, business suits and cashmere coats.
They ranged in age from their early teens to their 80's;
Waiting for hours on end, to buy Gold.
The analysts and economists cited a litany of reasons to
explain the new gold rush but nobody cared.
Gold prices were said to have become a barometer of political
and economic fears but in the end it was pure GREED that drove
the price until it finally peaked in January 1980, as it hit
$850 an ounce, on the very day Americans were finally allowed
to buy and own gold;
the day that the big surge of American buying was to drive gold
to $5,000.
'The Obvious is Obviously Wrong" that fact was already
discounted in the price.
Tell me something that everybody doesn't already know, that's
when I'll have something of value.
The only important factor was simply that prices were
skyrocketing.
Anybody who was in was making money and everyone else was
afraid of being left out in the cold.
Gold was selling for $250 when 1979 began.
Later, amazed at the sudden surge above $700, gold devotees
began to think $1,000 + some even thought $5000 or even $10,000
was possible.
The rocketing prices even startled the experts and frighten the
analysts who had forecast a precious metals boom but not one
like these newspaper reports and articles on gold and silver
which were all over the front pages in late 1979 and early
1980, but not before.
Articles such as;
"Industrial users worried about gold prices,"
"Silver soars even faster than gold",
"Canadian traders say silver's popular",
"Gold stocks look even better,"
"Ottawa won't announce timing of gold sale,"
were everywhere.
Although we are probably years away from any newspaper articles
of this sort, Rest assured that before this bull market in
precious metals is over there will be similar front page
stories around the world and Cramer will be yelling booya booya
at every gold stock that will then permeate his program.
If your worried that it's too late now, that you missed the
move;
just ask yourself how much space is being devoted to the fact
that gold just broke out to a new recovery and 18 year highs.
(Then as today most analysts and the Media completely ignore
gold, it's only us so called gold bugs that continue to believe
in this bull market), Well I'm not a Gold Bug, I'm a realist
and an economists that studies the past as well as human
nature.
Right now you would be lucky if you can even find a quote for
gold let alone any booya's for gold or gold stocks.
By going back in time to the 1970's I have focused on gold and
silver stocks just to give you an idea of what they will
perform like in the next 3-5 years, and to see what happened
back then when gold first hit $500 then $600 then $700 and
finally $850.
I started my research by going to the library to look at
newspapers from the 1970's, and WOW did I find some amazing
things!!
The Library that I went to had the Financial Post newspapers on
microfilm all the way back to 1972, the very beginning of the
last gold and silver Bull market.
There were very few if any articles when gold moved from $35
in 1972 to $200 by 1976, and hardly anybody noticed when Gold
dropped back down to $100 in late 1976.
The plethora of stories didn't even begin to get published
until late 1978 early 79 and they didn't hit the front page
until December 1979 into January of 1980 the final blow off
top.
The stock tables that I found were absolutely amazing.
In 1975 most gold and silver stocks were trading at under $2
and a lot were penny stocks under $0.50.
Even with gold up 600% from the 1971 low of $35 to the 1975 top
of $200 most gold and silver shares did little to make anyone
wake up and take notice.
Please remember that we were in a severe Bear Market throughout
most of 1973-1974 and keep that fact in mind when the general
market sells off.
I worked for Dominic & Dominic at the time and the President was
one of the worlds Biggest Gold Bulls who became famous for
going to Japan and selling them Gold.
I held a few seminars in an attempt to push Gold stocks as well
as Bullion as the best way to make money in a falling market
but getting an order was like pulling teeth.
It was not until gold retraced its first big sell-off and got
back above $200 did the gold and silver stocks started there
historic bull market that would end at un-imaginable prices.
Some examples were:
Lion Mines - 1975 price $0.07 / 1980 price $380! --
YES that's right, it's not a misprint you could of bought
10,000 shares of lion mines in 1975 for around $700 dollars -
and if you held on for the whole 5 years until January 1980 you
could have netted a total profit of around $3,799,300.
Not bad hey!!!!!
A few others were Bankeno - 1975 price $1.25 / 1980 price $430.
Wharf Resources - 1975 price $0.40 / 1980 price $560.
Steep Rock - 1975 price $.93 / 1980 price $440,
Mineral Resources - 1975 price $.60 / 1980 price $415 .
Azure Resources - 1975 price $0.05 / 1980 price $109
No question about it…that was one of the biggest financial
opportunities in history.
I don't know of any other time, not even the dot.com bubble
(how may of us could get in on the IPO's anyway) where in only
a 5 year time span you could have turned so little money into
so much wealth.
"You only need to make one good investment decision in your
whole life to be super successful".
I believe we are now at that same juncture as we were in 1976-78,
but only this time the fundamentals are even better for gold
and silver than they were back then.
The similarities between the 1970s and today are uncanny.
See if you can find a copy of James Dines prophetic classic
"The Invisible Crash" known then as the "Gold Bugs Bible".
The book is basically a documentary case study of the stock and
gold markets of the 1960's to mid 1970's.
The things that Mr. Dines wrote about back then could have
easily been written last week or talked about on MSNBC
yesterday.
Here are a few quotes A full-fledged panic away from paper
money could start at any moment".
Or how about this nice quote.
"When people see gold and silver standing alone amidst the
economic ruins, they will realize that we gloom and doomers
were actually right".
"Too much paper has been printed in the past, and will have to
be wiped out no matter what."
"People say gold is useless.
Not true.
It is demonstrating its function right now for all to see.
Gold is the ballast for the monetary printing press and gold
will relentlessly punish all offenders"
The list of timeless quotes goes on but I will leave you with
one last quote that is very relevant to today's problems in the
U.S dollar and the so called economic rebound.
"It's beginning to dawn on some people that to defend the
dollar and avert a dollar crisis, U.S interest rates will have
to go up; .
However, if interest rates go up sharply it will choke off not
only our economy but will surly burst the Real Estate Bubble as
well.
What a dilemma!"
The similarities between now and then are simply uncanny.
All of these quotes tell the real story of why gold (and
silver) were so important throughout history.
History Repeats but never in an identical fashion so that it is
not recognizable until only after the fact.
These quotes are the real fundamental cornerstone of why gold
is in a bull market today and why the current rally in the
general equity markets is only a bear market rally based on
near record low interest rates, (that can't last), several
tax cuts and the FED flooding the world with fiat dollars!
Now that the Fed is being forced to raises interest rates,
to save the dollar among other reasons; the stock markets,
bond markets, housing markets and credit markets and finally
the oil market will, shortly begin to implode once their
respective breaking point are reached.
For your own information I recommend you also read
"The Dollar Crisis" By Richard Duncan.
"Balance of Payments Deficits of an unprecedented magnitude
have resulted in credit induced economic over heating on a
global scale.
The foundations for sustainable economic growth will not be
restored until this flaw is corrected and the U.S. trade
deficit ceases to flood the world with liquidity.
The only ammunition the FED has to stop the coming decline in
the U.S. dollar is to raise interest rates.
But if they raise rates too fast they will cause a simultaneous
crash in multiple markets (stock, bond, housing, credit).
Greenspan is attempting to create a soft landing by raising
rates before he is forced to.
So along with raising rates Greenspan is also pursuing a policy
of loose money hence his Conundrum.
Greenspan has painted himself and the world into a corner that
I believe we will not be able to get out of with a lot of
pain..
Investing in gold and silver shares and the physical metal now
and holding them for the next 3-5 years could be the only major
financial decision you may ever have to make in your entire
life.
No need to trade in and out. Just buy some stocks now, add to
you positions on any short term sell-offs and wait until you
see headlines in the newspapers similar to the one that I
opened this essay with.
Or scale into any precious metals mutual fund.
Remember, when that front page story which ran in January 1980,
most gold and silver stocks were trading over $50 per share,
and lots were trading over $100 - $200 some even as high as
$500 per share when only a few years earlier you could have
bought the same stocks quietly for a $1 or $2.
As of now I don't know of even one gold or silver stock that is
anywhere close to trading at over $100 per share.
I know it's hard for most people to think that gold and silver
will surpass their old January 1980 highs, but that is what a
20+ year generational bear market will do to a whole new
generation of investors, who have grown up with falling real
assets (gold, silver and commodities) and rising paper assets
(stocks and bonds).
When the tide of human emotion swings and paper assets really
start to fall hard, the lust and fervor for real assets will be
unbelievable.
The Dot Com bubble will look like small potatoes compared to
some of the up coming gains in the first gold and silver bull
market of the 21st century.
But unlike the dot com bubble that was based on easy financing,
unrealistic dreams of profits aggressive accounting and pure
greed, the coming explosion in gold and silver stocks will be
all about supply and demand and a object FEAR to protect one's
savings from paper destruction combined with GREED to get in on
a sure thing.
There is nothing that can stand in the way of a combination of
GREED and FEAR.
TOTAL EQUITY OF ALL GOLD STOCKS
When the entire world wants a piece of the gold and silver bull
market they will discover that there is only a relatively very
limited supply of shares, and you can't create a gold mine out
of thin air like you could a Dot Com company.
The combined total of all gold stocks is less than that of the
equity of IBM.
Yet it is estimated that there is over $2 Trillion in Hedge
Funds alone.
Can you imagine what happens if suddenly they wake up and begin
a rush to Gold.
There are over 8,000 mutual funds that have not even looked at
gold -
- and yet they have a mandate to be fully invested.
What do you think they will do when the only stocks going up
are gold and silver stocks?
The gold and silver stock sector is very small compared to the
bond and stock markets --
and it won't take much buying, percentage wise, to push these
stocks into the stratosphere.
I am sure that most of you have friends that can't name even
one Gold stock;
But I'm also sure that in 3-5 years they will be touting you
about the latest hot gold new issue coming out of Vancouver,
or Alberta even though they don't know where Vancouver
or Alberta are.
That will be the first major sign that the top is near…
I firmly believe that the opportunity in gold and silver and
the companies that mine them, may be presenting a once in a
lifetime opportunity, where even a modest investment today
could change your financial destiny.
NEAR TERM OUTLOOK
"Plain and simple;
Gold Shares usually lead Gold Bullion both up and down.
Check out their respective Charts.
Gold Shares look to me like they have already bottomed and
have begun the first leg of the next stage of the ongoing
Bull Market".
This is an excerpt from my July letter where I anticipated
that gold was "still in its consolidation phase, but was
nearing completion of what in my opinion, using Elliott Wave
analysis, was a declining a,b,c,d,e, wave (4) triangle.
My best guess then was that the low (if it has not already been
made) would be in the $410 to $420 area",
"you can wait for a confirmed low in B.llion if it will make
you feel more comfortable, as long as you are prepared to pay
20% to 50% more for your favorite gold stocks, once Gold
Bullion breaks out to new recovery highs"
WELL ARE YOU ALL PREPARED TO BUY YET?.
It takes guts to stand alone against the crowd, but that's
what you have to do if you want to make real money.
Who among you can really expect to do better than to get in
within 5% - 10% of the beginning of the next major move?
However since we are still very early into the biggest GOLD
BULL MARKET to come in history and if sleeping better is more
important to you, than wait for Bullion's conformation of
its resumed bull market and then buy.
WELL WE JUST BROKE OUT TO NEW HIGHS.
Be careful not to let buying the stocks at new breakout highs
stop you.
Just treat them like Investors Business Daily and a host of
other analysts have been treating all new breakout highs
for the last ten or fifteen years.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68665149
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68791049
God Bless
a rush to Gold -
There are over 8,000 mutual funds that have not even looked at
gold -- and yet they have a mandate to be fully invested -
What do you think they will do when the only stocks going up are
gold and silver stocks?
How High Can Gold And Silver Stocks Go? -
21st Century Gold Rush UP DATE -
What if we invest in Caledonia Mining Corporation and
CALVF become a LION -
ex. in 1975?..
take a look at the past gains in
a few Gold mining juniors:
History often repeat itself -
a snippet -
Back in the late 1970's, the lineups to buy gold were
reminiscent of people waiting to buy Stanley Cup Hockey tickets
at the then Famous Montreal Forum.
There they stood all raped up in their Parkas, ski jackets,
bulky sweaters, construction boots and as well as executives in
their Patten leather shoes, business suits and cashmere coats.
They ranged in age from their early teens to their 80's;
Waiting for hours on end, to buy Gold.
The analysts and economists cited a litany of reasons to
explain the new gold rush but nobody cared.
Gold prices were said to have become a barometer of political
and economic fears but in the end it was pure GREED that drove
the price until it finally peaked in January 1980, as it hit
$850 an ounce, on the very day Americans were finally allowed
to buy and own gold;
the day that the big surge of American buying was to drive gold
to $5,000.
'The Obvious is Obviously Wrong" that fact was already
discounted in the price.
Tell me something that everybody doesn't already know, that's
when I'll have something of value.
The only important factor was simply that prices were
skyrocketing.
Anybody who was in was making money and everyone else was
afraid of being left out in the cold.
Gold was selling for $250 when 1979 began.
Later, amazed at the sudden surge above $700, gold devotees
began to think $1,000 + some even thought $5000 or even $10,000
was possible.
The rocketing prices even startled the experts and frighten the
analysts who had forecast a precious metals boom but not one
like these newspaper reports and articles on gold and silver
which were all over the front pages in late 1979 and early
1980, but not before.
Articles such as;
"Industrial users worried about gold prices,"
"Silver soars even faster than gold",
"Canadian traders say silver's popular",
"Gold stocks look even better,"
"Ottawa won't announce timing of gold sale,"
were everywhere.
Although we are probably years away from any newspaper articles
of this sort, Rest assured that before this bull market in
precious metals is over there will be similar front page
stories around the world and Cramer will be yelling booya booya
at every gold stock that will then permeate his program.
If your worried that it's too late now, that you missed the
move;
just ask yourself how much space is being devoted to the fact
that gold just broke out to a new recovery and 18 year highs.
(Then as today most analysts and the Media completely ignore
gold, it's only us so called gold bugs that continue to believe
in this bull market), Well I'm not a Gold Bug, I'm a realist
and an economists that studies the past as well as human
nature.
Right now you would be lucky if you can even find a quote for
gold let alone any booya's for gold or gold stocks.
By going back in time to the 1970's I have focused on gold and
silver stocks just to give you an idea of what they will
perform like in the next 3-5 years, and to see what happened
back then when gold first hit $500 then $600 then $700 and
finally $850.
I started my research by going to the library to look at
newspapers from the 1970's, and WOW did I find some amazing
things!!
The Library that I went to had the Financial Post newspapers on
microfilm all the way back to 1972, the very beginning of the
last gold and silver Bull market.
There were very few if any articles when gold moved from $35
in 1972 to $200 by 1976, and hardly anybody noticed when Gold
dropped back down to $100 in late 1976.
The plethora of stories didn't even begin to get published
until late 1978 early 79 and they didn't hit the front page
until December 1979 into January of 1980 the final blow off
top.
The stock tables that I found were absolutely amazing.
In 1975 most gold and silver stocks were trading at under $2
and a lot were penny stocks under $0.50.
Even with gold up 600% from the 1971 low of $35 to the 1975 top
of $200 most gold and silver shares did little to make anyone
wake up and take notice.
Please remember that we were in a severe Bear Market throughout
most of 1973-1974 and keep that fact in mind when the general
market sells off.
I worked for Dominic & Dominic at the time and the President was
one of the worlds Biggest Gold Bulls who became famous for
going to Japan and selling them Gold.
I held a few seminars in an attempt to push Gold stocks as well
as Bullion as the best way to make money in a falling market
but getting an order was like pulling teeth.
It was not until gold retraced its first big sell-off and got
back above $200 did the gold and silver stocks started there
historic bull market that would end at un-imaginable prices.
Some examples were:
Lion Mines - 1975 price $0.07 / 1980 price $380! --
YES that's right, it's not a misprint you could of bought
10,000 shares of lion mines in 1975 for around $700 dollars -
and if you held on for the whole 5 years until January 1980 you
could have netted a total profit of around $3,799,300.
Not bad hey!!!!!
A few others were Bankeno - 1975 price $1.25 / 1980 price $430.
Wharf Resources - 1975 price $0.40 / 1980 price $560.
Steep Rock - 1975 price $.93 / 1980 price $440,
Mineral Resources - 1975 price $.60 / 1980 price $415 .
Azure Resources - 1975 price $0.05 / 1980 price $109
No question about it…that was one of the biggest financial
opportunities in history.
I don't know of any other time, not even the dot.com bubble
(how may of us could get in on the IPO's anyway) where in only
a 5 year time span you could have turned so little money into
so much wealth.
"You only need to make one good investment decision in your
whole life to be super successful".
I believe we are now at that same juncture as we were in 1976-78,
but only this time the fundamentals are even better for gold
and silver than they were back then.
The similarities between the 1970s and today are uncanny.
See if you can find a copy of James Dines prophetic classic
"The Invisible Crash" known then as the "Gold Bugs Bible".
The book is basically a documentary case study of the stock and
gold markets of the 1960's to mid 1970's.
The things that Mr. Dines wrote about back then could have
easily been written last week or talked about on MSNBC
yesterday.
Here are a few quotes A full-fledged panic away from paper
money could start at any moment".
Or how about this nice quote.
"When people see gold and silver standing alone amidst the
economic ruins, they will realize that we gloom and doomers
were actually right".
"Too much paper has been printed in the past, and will have to
be wiped out no matter what."
"People say gold is useless.
Not true.
It is demonstrating its function right now for all to see.
Gold is the ballast for the monetary printing press and gold
will relentlessly punish all offenders"
The list of timeless quotes goes on but I will leave you with
one last quote that is very relevant to today's problems in the
U.S dollar and the so called economic rebound.
"It's beginning to dawn on some people that to defend the
dollar and avert a dollar crisis, U.S interest rates will have
to go up; .
However, if interest rates go up sharply it will choke off not
only our economy but will surly burst the Real Estate Bubble as
well.
What a dilemma!"
The similarities between now and then are simply uncanny.
All of these quotes tell the real story of why gold (and
silver) were so important throughout history.
History Repeats but never in an identical fashion so that it is
not recognizable until only after the fact.
These quotes are the real fundamental cornerstone of why gold
is in a bull market today and why the current rally in the
general equity markets is only a bear market rally based on
near record low interest rates, (that can't last), several
tax cuts and the FED flooding the world with fiat dollars!
Now that the Fed is being forced to raises interest rates,
to save the dollar among other reasons; the stock markets,
bond markets, housing markets and credit markets and finally
the oil market will, shortly begin to implode once their
respective breaking point are reached.
For your own information I recommend you also read
"The Dollar Crisis" By Richard Duncan.
"Balance of Payments Deficits of an unprecedented magnitude
have resulted in credit induced economic over heating on a
global scale.
The foundations for sustainable economic growth will not be
restored until this flaw is corrected and the U.S. trade
deficit ceases to flood the world with liquidity.
The only ammunition the FED has to stop the coming decline in
the U.S. dollar is to raise interest rates.
But if they raise rates too fast they will cause a simultaneous
crash in multiple markets (stock, bond, housing, credit).
Greenspan is attempting to create a soft landing by raising
rates before he is forced to.
So along with raising rates Greenspan is also pursuing a policy
of loose money hence his Conundrum.
Greenspan has painted himself and the world into a corner that
I believe we will not be able to get out of with a lot of
pain..
Investing in gold and silver shares and the physical metal now
and holding them for the next 3-5 years could be the only major
financial decision you may ever have to make in your entire
life.
No need to trade in and out. Just buy some stocks now, add to
you positions on any short term sell-offs and wait until you
see headlines in the newspapers similar to the one that I
opened this essay with.
Or scale into any precious metals mutual fund.
Remember, when that front page story which ran in January 1980,
most gold and silver stocks were trading over $50 per share,
and lots were trading over $100 - $200 some even as high as
$500 per share when only a few years earlier you could have
bought the same stocks quietly for a $1 or $2.
As of now I don't know of even one gold or silver stock that is
anywhere close to trading at over $100 per share.
I know it's hard for most people to think that gold and silver
will surpass their old January 1980 highs, but that is what a
20+ year generational bear market will do to a whole new
generation of investors, who have grown up with falling real
assets (gold, silver and commodities) and rising paper assets
(stocks and bonds).
When the tide of human emotion swings and paper assets really
start to fall hard, the lust and fervor for real assets will be
unbelievable.
The Dot Com bubble will look like small potatoes compared to
some of the up coming gains in the first gold and silver bull
market of the 21st century.
But unlike the dot com bubble that was based on easy financing,
unrealistic dreams of profits aggressive accounting and pure
greed, the coming explosion in gold and silver stocks will be
all about supply and demand and a object FEAR to protect one's
savings from paper destruction combined with GREED to get in on
a sure thing.
There is nothing that can stand in the way of a combination of
GREED and FEAR.
TOTAL EQUITY OF ALL GOLD STOCKS
When the entire world wants a piece of the gold and silver bull
market they will discover that there is only a relatively very
limited supply of shares, and you can't create a gold mine out
of thin air like you could a Dot Com company.
The combined total of all gold stocks is less than that of the
equity of IBM.
Yet it is estimated that there is over $2 Trillion in Hedge
Funds alone.
Can you imagine what happens if suddenly they wake up and begin
a rush to Gold.
There are over 8,000 mutual funds that have not even looked at
gold -
- and yet they have a mandate to be fully invested.
What do you think they will do when the only stocks going up
are gold and silver stocks?
The gold and silver stock sector is very small compared to the
bond and stock markets --
and it won't take much buying, percentage wise, to push these
stocks into the stratosphere.
I am sure that most of you have friends that can't name even
one Gold stock;
But I'm also sure that in 3-5 years they will be touting you
about the latest hot gold new issue coming out of Vancouver,
or Alberta even though they don't know where Vancouver
or Alberta are.
That will be the first major sign that the top is near…
I firmly believe that the opportunity in gold and silver and
the companies that mine them, may be presenting a once in a
lifetime opportunity, where even a modest investment today
could change your financial destiny.
NEAR TERM OUTLOOK
"Plain and simple;
Gold Shares usually lead Gold Bullion both up and down.
Check out their respective Charts.
Gold Shares look to me like they have already bottomed and
have begun the first leg of the next stage of the ongoing
Bull Market".
This is an excerpt from my July letter where I anticipated
that gold was "still in its consolidation phase, but was
nearing completion of what in my opinion, using Elliott Wave
analysis, was a declining a,b,c,d,e, wave (4) triangle.
My best guess then was that the low (if it has not already been
made) would be in the $410 to $420 area",
"you can wait for a confirmed low in B.llion if it will make
you feel more comfortable, as long as you are prepared to pay
20% to 50% more for your favorite gold stocks, once Gold
Bullion breaks out to new recovery highs"
WELL ARE YOU ALL PREPARED TO BUY YET?.
It takes guts to stand alone against the crowd, but that's
what you have to do if you want to make real money.
Who among you can really expect to do better than to get in
within 5% - 10% of the beginning of the next major move?
However since we are still very early into the biggest GOLD
BULL MARKET to come in history and if sleeping better is more
important to you, than wait for Bullion's conformation of
its resumed bull market and then buy.
WELL WE JUST BROKE OUT TO NEW HIGHS.
Be careful not to let buying the stocks at new breakout highs
stop you.
Just treat them like Investors Business Daily and a host of
other analysts have been treating all new breakout highs
for the last ten or fifteen years.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68665149
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68791049
God Bless
My opinions are my own and and DD I post should be confirmed as unbiased
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