Fx_Gold
2007-Dec-31, 07:58 PM
Not absolutely sure, as usual....http://www.friendlytraders.com/forum/../forum%28ysw%29/images/smilies/wink.gif
BUT....GOLD has just traded over $900 an ounce. And you need to hedge your bets NOW!
JANUARY 1980
Gold prices set an all-time high of $850/ounce as the dollar fell, oil prices soared, and global peace was strained to exhaustion because of political and religious differences worldwide.
JANUARY 11, 2008
Gold prices crush the 1980 high and hit $900.10 an ounce for the exact same reasons.
Except this time there's a huge difference: All of the underlying fundamentals that skyrocketed gold in 1980 are magnified by at least a thousand this time...
This time the dollar is in an irreversible death-spiral, crude oil prices have topped +$100/barrel, and the stability of societies around the world are becoming more and more fragile by the day as political and religious factions furiously battle.
It's as simple as this: There are absolutely no fundamentals out there right now that point to lower gold prices.
So, buy physical gold? Yes, absolutely!
But you're also going to want a little more risk in your portfolio. More risk, more reward. And the only place to get what you're looking for (mind-blowing investment gains) is in the speculative stock market.
Put it like this: Are you looking for 10:1...20:1...or even 50:1 returns? Of course you are.
The so-called and mostly self-proclaimed "experts" on the boob-tube will tell you that the modern markets are far too efficient to consistently generate those kinds of profits.
Now that may be true for the DOW and NASDAQ companies that the Wall Street guys are trying to ring out. But when it comes to the lightly-covered junior mining sector, it's a completely different story.
You see, it's not uncommon for junior mining companies to experience huge gains (tenfold or more) very quickly as news of a discovery leaks out.
On top of that, the exploding bull market in gold and precious metals not only focuses more attention on the sector, but also causes even more money to be spent on exploration. And the payback on a new find increases dramatically.
It works like this:
Say, for example, Company ABC finds a one million-ounce deposit of gold. And an engineering study suggests this deposit could be mined over ten years at a cost of $250 an ounce, including capital. And let's assume gold sells for only $350 an ounce.
That deposit is worth roughly $100 million.
But if gold shot to $400 an ounce (a 15% increase), the value of the same gold deposit launches to $150 million (a 50% gain). That's over 300% leverage to the gold price (50/15).
Right now, with today's gold price of near $900 an ounce, that deposit is worth $650 million! At $1,000 an ounce it's worth $750 million and at $1,500 an ounce it's worth $1.25 billion.
And if you think gold at $1,500 an ounce is out of the question, think again!
The 1980 record for gold prices of $850 is only the nominal high. When you factor in inflation, you find that gold's value was actually as high as $2,200 an ounce. And I think it's going even higher than that this time for the reasons I've previously mentioned.
For Company ABC and it's shareholders this means heart-pounding investment returns.
I'm talking about gains so big that most people could never even afford to pay the taxes on them right now.
The problem is this: The gold and metals equity markets have grown extremely large over the past few years and have become difficult for untrained investors to successfully navigate and profit.
And to enjoy the gains that have already made countless fortunes for early investors you have to know what to buy and when to buy it.
Just an example of market analysis.....
BUT....GOLD has just traded over $900 an ounce. And you need to hedge your bets NOW!
JANUARY 1980
Gold prices set an all-time high of $850/ounce as the dollar fell, oil prices soared, and global peace was strained to exhaustion because of political and religious differences worldwide.
JANUARY 11, 2008
Gold prices crush the 1980 high and hit $900.10 an ounce for the exact same reasons.
Except this time there's a huge difference: All of the underlying fundamentals that skyrocketed gold in 1980 are magnified by at least a thousand this time...
This time the dollar is in an irreversible death-spiral, crude oil prices have topped +$100/barrel, and the stability of societies around the world are becoming more and more fragile by the day as political and religious factions furiously battle.
It's as simple as this: There are absolutely no fundamentals out there right now that point to lower gold prices.
So, buy physical gold? Yes, absolutely!
But you're also going to want a little more risk in your portfolio. More risk, more reward. And the only place to get what you're looking for (mind-blowing investment gains) is in the speculative stock market.
Put it like this: Are you looking for 10:1...20:1...or even 50:1 returns? Of course you are.
The so-called and mostly self-proclaimed "experts" on the boob-tube will tell you that the modern markets are far too efficient to consistently generate those kinds of profits.
Now that may be true for the DOW and NASDAQ companies that the Wall Street guys are trying to ring out. But when it comes to the lightly-covered junior mining sector, it's a completely different story.
You see, it's not uncommon for junior mining companies to experience huge gains (tenfold or more) very quickly as news of a discovery leaks out.
On top of that, the exploding bull market in gold and precious metals not only focuses more attention on the sector, but also causes even more money to be spent on exploration. And the payback on a new find increases dramatically.
It works like this:
Say, for example, Company ABC finds a one million-ounce deposit of gold. And an engineering study suggests this deposit could be mined over ten years at a cost of $250 an ounce, including capital. And let's assume gold sells for only $350 an ounce.
That deposit is worth roughly $100 million.
But if gold shot to $400 an ounce (a 15% increase), the value of the same gold deposit launches to $150 million (a 50% gain). That's over 300% leverage to the gold price (50/15).
Right now, with today's gold price of near $900 an ounce, that deposit is worth $650 million! At $1,000 an ounce it's worth $750 million and at $1,500 an ounce it's worth $1.25 billion.
And if you think gold at $1,500 an ounce is out of the question, think again!
The 1980 record for gold prices of $850 is only the nominal high. When you factor in inflation, you find that gold's value was actually as high as $2,200 an ounce. And I think it's going even higher than that this time for the reasons I've previously mentioned.
For Company ABC and it's shareholders this means heart-pounding investment returns.
I'm talking about gains so big that most people could never even afford to pay the taxes on them right now.
The problem is this: The gold and metals equity markets have grown extremely large over the past few years and have become difficult for untrained investors to successfully navigate and profit.
And to enjoy the gains that have already made countless fortunes for early investors you have to know what to buy and when to buy it.
Just an example of market analysis.....