GATA & GOLD GAINING GROUND!!!
For several years the folks behind GATA have been fighting for a free gold market. Recent events and a gradual changing of the public's positive perception of gold prove that GATA's message IS getting out. As gold continues to build a base around 300 an ounce and builds from there it is important to remember that the battle is not yet won. We encourage all believers in free markets to continue to show their support for GATA. Even sending a humble email showing your encouragement & support to the folks behind GATA would go a long way to keeping the flame of liberty & truth alive.
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One of the casualties of a manipulated gold price was the loss of a gold mining company called Greenstone Resources. Greenstone, along with many other fine companies, could not survive an artificially maintained gold price kept unfairly below 300 an ounce. Greenstone at its height had a market cap over 1 billion US dollars. This market cap of over 1 billion dollars was based on a resource of 5 million ounces.
Well, the boys who built a 1 billion dollar market cap are at it again. The brains that created Greenstone Resources have come together to build another gold giant called Seabridge Resources (SEA.V).
Let's introduce ourselves to these gold professionals that are going to make some lucky shareholders very happy.
James S. Anthony, Chairman of the Board, Seabridge - is a financier and corporate strategist specializing in growth companies. Mr. Anthony recently served as chairman of the board of Greenstone Resources Ltd.
Fronk, Director, President and CEO, Seabridge - has 20 years experience
in the gold business, primarily as a senior officer and director of publicly
traded companies. During Mr. Fronk's recent five year tenure as President
of Greenstone Resources Ltd., the company increased gold resources by
over 5 million ounces, completed three bankable feasibility studies and
constructed three open-pit heap leach mines. These activities led to a
growth in market capitalization during this period from approximately
$50 million, to over $1.0 billion at its peak.
Dr. Vahid Fathi, Director, Seabridge -Dr. Fathi was named an All-Star (Gold) Analyst by The Wall Street Journal in 1993, 1994, 1995, 1997 and 1999, and was ranked among the top five analysts in the metals and mining industry in each of those years. In 1994, Institutional Investor included him on its All-American Team as the best gold mining industry analyst
William Threlkeld, Chief Geologist, Seabridge - is acknowledged as one of North America's outstanding geologists. Mr. Threlkeld directed programs that resulted in the discovery and delineation of Las Cristinas, Venezuela (9.7 million ounces), Cerro Crucitas, Costa Rica (2.3 million ounces) and Mulatos, Mexico (2.0 million ounces, National Gold). From 1997 to 2000 he was Vice President, Exploration for Greenstone Resources Ltd.
There is a saying within the gold mining industry that a good gold mine is MADE and not simply stumbled upon. These directors & managers at Seabridge have already proven & EARNED their credentials and they will DO SO AGAIN!
Seabridge has already acquired advanced stage deposits of over 7 million ounces gold. The founding members of Greenstone have proceeded to repeat their accomplishments via Seabridge Resources.
The strategy of Seabridge is to take advantage of the low gold price by acquiring gold properties for pennies on the dollar. Seabridge is acquiring advanced development stage projects in North America to be held on hold for a higher gold price which is on its way. Somewhat like the story of a developer buying up cheap vacant unwanted land along the path where a super expressway is soon to be built. Even while I was writing this article Seabridge was closing on the purchase of another half a million ounces of gold for literally pennies on the dollar.
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There is a story in the Bible about a Master who left his household to go on a very long journey. None of the household servants new when their master was returning. Needless to say eventually the good master did return back home. Because he was gone away for so very long a number of the household servants became negligent in their household chores & duties. Unfortunately, the day the good master returned many of the servants were not ready for that day he came walking up the household steps to the front door. Those servants who had become lazy & did not keep up with their duties were in serious trouble & were thrown into the fire.
My friends, the day of GOLD's return has arrived!
Many gold companies gave up on the return of gold and entered the Internet & Tech sector a few years ago while letting their gold assets slide into a state of neglect & disrepair. Also, there were some gold analysts who lost patience waiting for gold to return and started touting Internet stocks. As far as we are concerned, both those gold companies and the gold analysts who began touting Internet & fancy technology stocks, their days are over as respected gold market players. If they try and re-enter the gold market again buyer beware.
The point we are trying to make here is that now that gold is becoming popular again a lot of self seekers will be attempting to get on the boat as self described market experts and market makers. Keep your eyes open for these false prophets readers. When you seek to gather information about the gold market & info concerning the best gold stocks seek out the advice of those individuals who have stayed the course these last five years. You will recognize who these persons are. Stay away from the opportunists who are trying to get on the boat now without a pass.
What we are trying to illustrate is that it is the bad times that bring out the charactor in an individual and those difficult dark valleys that make the heart strong and the mind tough. Diversity is what strengthens character. Enduring the down side of a business is what gives business leaders savvy, expertise and survival skills. Then when things turn around and better days eventually return their skills are sharpened to a fine edge.
As you look for guidance to steer you to the best gold investments in these better golden days look for the gold leaders who hung in there during the dark years when everyone was laughing at anyone who believed in gold and laughed at any one who believed that gold would one day arise from the ashes.
This gold bull market represents a wonderful blessed opportunity for investors who have seen their 401K portfolios crash to recoup their losses & THEN SOME.
We wanted to mention something else of importance that will probably shock the reader driving him to turn his/her computer off & running out the door. We do not believe in the long-term hold strategy that has been preached to investors for years. And of course the first person's name that you will remind us of is Warren Buffet. Doesn't Warren Buffet buy & hold for the long term? We'll share with you a secret. When WB buys into a company he is not just buying the shares with the simple hope of share price appreciation. WB generally is purchasing a large enough block of shares that gives him a controlling interest in a company. And if you do not know the difference between having a CONTROLING interest in a company and just owning a few shares of stock then you need to go back to your television in your living room.
The concept of the buy & hold strategy that has been fostered on the American People probably has done more harm to the financial health & well being of America's stockholders than any other thing. We'll share with you another secret. Wall Street Insiders & Market Players buy low & sell high. We don't think that is really settling in well so we'll say it again. The power elite buys LOW & SELLS HIGH.
Have you followed the adventures of Enron? If the owners of Enron had the wisdom to sell off a portion of their stock as it went up and diversified in other investments then they would still own a portion of their capital.
The 401K Plan has been preached to a ruinous extent on American investors. They have been told for years that stocks always only go up & that if you just wait 20 or 30 years you will be a millionaire by retirement. Can ANYONE really predict the future? We know that we cannot. We always have thought it was the most wicked & evil act that while ma & pa Kettle have been holding onto their stocks these past two years the market players have been selling & getting out of Dodge.
Don't get us wrong. We are not advocating that there is an automatic cutoff point at which you automatically sell & dump your portfolio. What we are saying is would it not be wiser if as your stock went up you sold a portion & reinvested those funds in another area? The individual investor has to determine when he/she should sell a portion of his/her profits and where those funds should be reinvested for diversification purposes.
The point, though, is that until the day you sell you really have not made anything. Concerning gold shares we believe the wise investor should sell a portion of his earnings as the stock appreciates to guarantee & lock in a profit. But you say, "I may have to pay taxes?" We'll bet every past internet, technology, Enron, Lucent, Global Crossing share owner wishes to the good Lord above that they had sold at a time when they would have HAD to pay Uncle Sam a portion of their share profits to the Fed.
No one can predict the future of ANY company. We believe that the circumstances of the past couple of years are proving to investors that no company is too big to fall. We apply this most particular to gold stocks. Sure, in this advancing gold bull mania these shares will go to the stars. But you only have made any money on the day that you sell. Sell, pay your taxes, and thank God above that you were able to make a significant sum where you had the opportunity to PAY taxes.
What are the results of these myths that for so many years have been fostered on our society of investors? Pay very close attention to the article we want you to read by Paul Farrell with CBSMarketwatch. This article illustrates well the deception that has been perpetrated on the American people.
everything and go to cash?"
ethical crisis in American capitalism is bad and it could get worse. For
those of you who are just fed up with the whole mess, you might consider
an all-cash strategy. That's right, go to cash until your faith revives."
Hold on guys! Are you absorbing this pessimism? Paul is in near tears because the stock market is failing and is no longer producing 30% yearly returns & some of these companies the American people were told to believe in have gone belly up.
One other thing, isn't it amazing how religious everyone becomes when they start losing money? "Trust in prayer." Yes, when we are losing money we "Trust in prayer", but when we are getting rich & the stock market is going straight up prayer is a forgotten concept.
What if during all of the good investing years when stocks were doing well investors were taught NOT TO HOLD ON FOREVER & TO NEVER SELL but, instead, were taught to sell off a portion of their profitable stocks and invest the proceeds into SOMETHING ELSE with that money. The truth is that we were all told to put all our hopes in one basket and HOLD ON TO THE LONG TERM & TO NEVER SELL!!! NEVER LOCKING IN ONE SOLITARY DOLLAR IN PROFITS.
Well, last year a lot of people made money in gold stocks. Isn't the primary purpose in investing to make money wherever the buck is to be made? No, my friends it is not. This whole stock market bubble was fostered on the American people so that while the conventional typical investor was blindly putting every last dollar in their 401K portfolio "for the long term" the market players were getting into the market and buying low & selling high. And they repeated this process over and over compounding their earning on repeated transactions while "ma & pa" were holding forever, but NEVER selling and NEVER locking in one single dollar in profits.
We believe the gold market and trading gold stocks represents a good opportunity for investors to learn the TRUE HIDDEN secret objective played by the "big boys", but kept hidden from the majority of investors. As gold soars and these gold mining stocks create obscene profits learn to sell as the stock goes up. Get your capital out and reinvest in another investment. You repeat the process over & over and end up never having all your money in only ONE COMPANY. That is what making money is all about. The end result is that you have learned to take a portion of your rising profits out & to widely diversify your investments.
"And, speaking of psychology and perceptions of the gold market, conditions are changing quickly in the USA."
"Gold mining stocks are mentioned repeatedly on CNN, the current rallies in gold are news events, and the beginning of resurgence in interest in this commodity is now taking place."
"Please remember that many "Western" investors tend to be "momentum driven", which is to say that they disdain buying "value" in a stock or commodity, but would rather buy into rallies, hoping to buy high to sell even higher. And, gains in those funds which specialize in the precious metals, have gained 46% over the last year versus a 17% loss in the average diversified US equity fund."
"Gold may undergo a cataclysmic transformation in investor psychology, from the ugly duckling to the absolute belle of the ball." Leonard Kaplan, The Bullion Desk 2-11-02
been concern among investors if these undervalued gold stocks are by definition
penny stocks. Let me take the time to define the definition of a true
penny stock so its implications & risks can be understood.
Hey, we're no fools. We'll purchase a stake in a gold company with 3.5 million ounces of GOLD PLUS & a market cap at only a few million ANY day!!! It amazes me yet that so many complacent empty minds are still sitting in front of their TV sets hoping Enron will come back when we are at the beginning of the GREATEST gold bull market this world has ever seen.
We love to hear over & over the words of noted gold analyst Mr. Doug Casey, "It's time to back up the truck and load up on these gold junior shares!!!"
NEW YORK (CBS.MW) - John Hathaway believes it could be the decade for gold.
The Tocqueville Gold Fund (TGLDX) manager sees gold rising to between $400 and $500 an ounce, up from the current $300. "We're still in the very early stages of what could be a very big move for gold," he said.
Factors such as the deteriorating quality of credit in Argentina and Japan, the quality of reported U.S. earnings and the bear market that have been bothering the market aren't going to go away anytime soon," he said. Deborah Adamson CBSMarketwatch 2-13-2002
Below are those gold stocks that we believe have good fundamentals. We believe these companies are presently significantly undervalued & represent a good buy at the time based primarily on their present market cap & share price.
84.3 US million market cap $.53US Approx 10 million ounces +
Gold (NGT.V) 4.4 US mill market cap $.36 Canadian approx 3.4 million/au
(SEA.V) 8 US mill market cap $.86 Canadian approx 7.1 mill ounces +
these choices are based on total gold in the ground, management, and a
couple of these picks are companies we believe will be promoted significantly
by THE EXPERTS. It is the editor's opinion that these picks represent
gold mining companies that are presently significantly undervalued.
It never ceases to amaze us how few of the "Internet & Technology" millionaires (ONLY ON PAPER OF COURSE) NEVER sold a SINGLE share as they watched their paper share price ascend to millions of dollars!
know what happened to these individuals. They lost EVERYTHING as the great
Internet & Technology boom ended.
next article guys and tell me if you think the economy is really turning
around as they say it is on fantasy TV.
Did I read
25%!!! Yes, I believe I did read 25% so far for the year 2002! Sounds
pretty good to me!!! According to this little bit of trivial data gold
appears to be THE PLACE TO BE!!!
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gold securities objectively & accurately is as important as assessing
any other type of security. All potential purchases require diligence
& up to date information. A good broker will have access to good information
that the conventional investor will NOT find on YAHOO FINANCE or other
free sites on the Internet.
Gold remains at or very near to $300/oz, and it does appear that support is holding. Bullion has held, and gold shares held firm yesterday, and our propensity to own (gold) shares remains reasonably high.
the WGC reported that "investment" demand for gold (that other than jewellery demand) rose 8%, led by Japan's rather arch 54% increase in "investment" demand.
Interestingly, the WGC noted that this increase in Japan was less than $8/person in total gold demand, or "one one hundredth of one per cent of GDP." If true, then even a very slight rise to perhaps $15/person in Japan this year would be rather archly bullish. The bullish implications seem worth considering.
Barrick's management has now decided to reduce its hedging operations materially. That, we think, is worthy of not.
Baird Montgomery The Gartman Report 2-15-2002
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READERS PAY ATTENTION!
Gold is at the starting line. GOLD HAS REFUSED to meander far from the 300-dollar mark. The referee has begun the countdown. The runners (gold mining companies) are at the starting line up and ready to begin the most significant Gold Bull Mania RUN we will ever witness in our lifetimes!
It's time to get out of that easy chair & call your broker!
PLEASE send us an email & share your thoughts with us if you are getting excited with this coming gold bull!!!