Who says the gold and silver industry is in the tank or on its last leg? I am very impressed by the e-mails I am receiving. There is a much different tone to the e-mails today than what I saw the last time I wrote articles dealing with this subject; Half Price Sale and Half Price Sale follow-up, written in late April and May. Not only that, but I have a lot of e-mails from investors new to the party. Welcorme, you presence is important. It tells me that our numbers are growing. As our numbers grow so does the demand for gold, silver and the gold and silver stocks. This is a very important point when dealing with all the games that have been played in the precious metals arena for years. The games all come to an end when our masses have bought up all the float that exists on the street. It is hard to fight a war without an army; it is equally hard to be short gold and silver when there is none on the street.

This is telling me that the knowledge of the precious metals investor is growing. Congratulations. This is telling me loud and clear that things are changing and the future looks very bright for those who have taken the time to better themselves and their financial future. Knowledge is a very powerful weapon when dealing with circumstances and situations that potentially have life altering consequences.

The best thing that investors coming into these sectors today have going for themselves is the timing of their entrance. One of my most destructive weaknesses of the past has not been the knowledge of what the future may hold, but the timing and discipline necessary to know when to act.

For twenty years our nation and world have been moving in the direction that is the most detrimental to society and its people. This is like the man who gets lost that won’t stop to ask for directions and eventually finds himself in a life-threatening encounter. All this under the disguise and deceit, by our leaders, trying to convince us that they know where they are going; when the truth of the matter is they could not be more lost. Stop and get directions, you morons, from someone that knows the way. Timing is the key to cashing in on the knowledge that one has. This is the tough part. Any gold bug can tell you that the circumstances have been around for years. As time passes and our leaders go further down the wrong road in pursuit of political gain, the story just grows more pressing each and every day. The only point that most people disagree on is the timing of the event. Who knows? That rubber band could still have some stretch to it. I believe that the rubber band can snap any day now. If that is true, then all our gold and silver stocks will appreciate. This will be very profitable, as the next leg will probably give returns of 200% to 300% on the best companies within the right industries. Yes, I am talking about the gold, silver, oil and gas industries. The future could not be brighter for these industries. I have all our money invested in these industries.

This article and “No Prisoners” are so very important because they are examples of everything that I believe and have been attempting to teach others. Knowledge, homework, an open mind and belief in oneself are so very important. When you put all these ingredients together in a mix the finished product is an intelligent investor. Patience is the final discipline that bridges the gap between corrections and future bull market renewals.

I follow my companies very closely. I have done my homework on these companies and I could not be more excited about the future of these companies. I believe they are true pioneers in their own fields. This is how I invest in companies. I do not want to trade; traders do not make the big money. They deny themselves the opportunities to hit homeruns. I want to take full advantage of the knowledge I have gained from the past when gold, silver, oil and gas stocks exploded in the late 1970s and early 1980s.

Again, I want to repeat the fact that if gold breaks out to new all time highs, gold and silver stocks will be trading at a minimum of 5X to 10X their current prices. This is one focus of Mike Hoy. I want that gain in my portfolio and I want to realize it as a long-term capital gain. I could care less whether I own a stock at $1.00 or $.75. I know that I will look back as I sell for $10 or $15 per share and recognize that I had some pretty timely purchases. That $.25 difference in price won’t make a bit of difference as I laugh all the way to the bank. My only concern is the number of shares I have accumulated. I have made some pretty good choices since 9-11. I have taken money and parlayed it into positions that will definitely put a permanent smile on my face when the time comes to cash in. Remember: the biggest mistake you will make is the mistake of knowing when to sell. I will assure you that many of you will lose sight of the final goal and sell your stocks way to early when the time comes. Never feel shy of asking me for my help and opinion. I am glad to share what I can with you. Sometime I will write an article about a past experience I had with an oil company that gave returns to its shareholders that were terrific. The point being is the stock went from the $1 level in the early 1970s to a high of better than $50 in 1980. That is not the whole story; the stock split 3 for 2 several times on the way and the last split was a 3 for 1 split in 1980 and then it went to $50. This company had a very loyal following, the shareholders were faithful and as a result they made a lot of money. What I want you people to understand is the fact that premiums in stock prices are a function of both the company being able to execute its game plan, the knowledge of their shareholders and the loyalty of their shareholders.

If you understand the potential of your investments, it is easy to put a future value on their stock appreciation. Whether your stock price is too high or too low is irrelevant; time will show the answer to that question. The point to this is the fact that if you understand the future potential of your company, then you will be able to easily survive the corrections. And if you are in a position to add to your positions as these corrections come along, this is the opportunity to safely build positions when you know and understand the fact that the mistake is being made by those who are selling their stocks. Knowledge is a very valuable tool to possess. As your profits mount, confidence is acquired without really having the knowledge of where it came from. This, people, is the secret to wealth.

© 2004 Mike Hoy
Editorial Archive

The opinions expressed above are strictly the opinions of the writer. It is up to each of you to do your own due diligence as your opinions may differ from mine. For those of you who are not on my FREE e-mail list and would like to be; just respond to the e-mail address below and I would be glad to add you to the list sharing with you stocks I own in my portfolios. For those of you with questions you can reach me at the number below.

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Mike Hoy
Nebraska, USA
(402) 483-4484 8AM-8PM Central
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