Do you ever wonder what tomorrow holds?

“…you and I tend to take it for granted that this time series – this arrangement of past, present and future – is not simply the way life comes to us but the way all things really exist.” C.S. Lewis

Wow! Now what in the crap did I just say and what does it have to do with gold or even anything? Well, the way we have known things these past 25 years is preparing to change radically. You don’t believe me? We shall see, we shall see. Sure, the change is subtle and even tactful. Change comes often with stealth and no one even notices the slithering snake that quietly has moved into the room. But whether we choose to acknowledge it or not change does eventually assert itself and makes itself known. And woe to those who are unprepared.

Thanksgiving is a time to be thankful for what we have and also a time to be thankful for whatever perception we have been gifted with. Be thankful for any insight and awareness you may have of the coming tsunami which is on its way and gathering speed with every hour that passes.

The world is changing and you better get on board and at least recognize and acknowledge these subtle changes occurring around us. The time is coming when the open door will slam shut and those still hanging around outside smoking a cigarette and taking a break will be left out in the cold and the door will be shut and locked barring their return. An invisible noose quietly continues to position itself around the US of A and that noose is one made of too much debt. That noose continues to tighten a little more each day but no one notices or pays it any attention. 

Anyway, in preparation we can get out of debt and invest in those areas showing the greatest immediate promise. And this is why we turn our discussion back to gold and its buddy, uranium. Uranium and gold are the investments of choice to be in today so we should load up our portfolios with all that gleams yellow. 

China, China, China! We just can’t seem to get away from that name. No matter how hard we try we always come back to China in all our discussions.

“China will be the world's premier gold producer within the next decade as the country widens its doors to more foreign investment.” “…in recent years, China has lifted its control over the gold market, and the country is now the fourth-largest gold consumer in the world.” “And since the launch of the Shanghai Gold Exchange in 2002, the gold market has been vastly liberalized. The exchange amounted to 905 tonnes in 2005, up 36% from 2004. ITS GOLD TRADE VOLUME MORE THAN DOUBLED in the last two years to $14 billion.” Click 

What does this mean for us the investor? It continues to prove the growing wealth in Asia and the necessity of keeping our eyes and our wallets pointed to the east. And more China trivia?

Larry Edelson - “If  China were to lay its $1 trillion in reserves end-to-end using dollar bills, the trail of paper would stretch for 96,906,565 miles. That’s enough to wrap around the widest part of the earth 3,876 times!” “…China has the largest foreign reserves of any country in the history of the planet. Compare that to Washington, which owes nearly $9 trillion, not counting contingent liabilities.” Larry Edelson, Martin Weiss Research

The U.S. owes while the Chinese sow. All very interesting trivia but what Larry has to say below should cause us to sit up and pay real attention.

Larry Edelson –“China Is Going to Corner The World’s Gold Market” “I warned of this nearly three years ago, but now the signs are even clearer: OVER THE NEXT FEW YEARS CHINA IS ESSENTIALLY GOING TO CORNER THE WORLD’S GOLD MARKET. In the process, the price of the precious yellow metal could soar to well over $1,000 per ounce, and eventually to more than $2,000 an ounce.” Larry Edelson, Martin Weiss Research

China keeps screaming to the world that it will soon take gold by the horns, but who pays attention?

“Chairman Cheng Fumin of the China Gold Association said the country would double its efforts to facilitate future trade of gold…” click 

Why is now such a great and important time to get into uranium mining stocks in particular? Because the price of uranium is expected to jump significantly again in a couple of weeks or so.

“…judging from the number of utilities seeking U3O8 equivalent, it is unlikely spot price increases will stall or stabilize at this level. Nor will the price likely increase by tiny increments between now and year end. By next weekend or the following, we could very well be looking at the ten-percent jump investors have been waiting for.” Click 

Can’t get any better than that, but it does!

“According to Gene Clark, utilities are circling suppliers and especially those holding uranium. “Eight utilities and three intermediaries are chasing over five million pounds of U3O8 equivalent this week,” Clark told us.” “…over twenty utilities are now hoping to obtain more than 55 million pounds of U3O8 for long-term delivery beginning as early as next year, according to Trade Tech.” click 

What does this mean? It means that uranium mining stocks are fixing to climb yet higher still. 

“I'm already hearing rumblings from many sources that another round of non-utility buying is entering the physical market now…” “Miller believes the spot uranium price will go a lot higher than $61/pound…” click 

And, yes, China is there making its contribution to a growing demand and higher prices.

“China plans to build 30 to 40 nuclear reactors over the next 15 years.” “China wants to QUADRUPLE its nuclear capacity by 2020.” Click 

And to conclude with gold?

Mary Anne & Pamela Aden - “…the resource shares have finally started to rise. It took a while and for many, the five month correction from May to October seemed endless.” “…gold is in a solid rise above $500 and it has a good chance of reaching the top side near $850, its 1980 peak price. This fourth step will be complete once a record high is reached.” click

Now here is a conundrum (big word). Should you invest in gold or uranium? Or uranium over gold. Easy answer. Invest in both.

Uranium continues to be the investors darling if supply/demand forecasts continue to unfold as predicted.

“RBC Dominion Securities Inc. boosted its uranium price forecast for 2007 to an average of $100 U.S. a pound from $55, saying a flood at Cameco Corp.'s Cigar Lake mine in Saskatchewan will delay production for two years. Analysts boosted their forecast for 2008 to an average of $85 U.S. a pound from $50, and for 2009 to $75 U.S. from $40.” click

Information coming out continues to confirm that uranium mining companies represents one of the best speculative opportunities for making significant money.

“A glowing outlook for uranium has renewed the market's love affair with miners of the nuclear fuel…” “Uranium oxide, also known as yellowcake, has surged to $62.50 a pound, more than 300 percent higher than in early 2004, when prices began to climb appreciably.” Click 

And just what is the present market demand and supply ratio?

"We have a great opportunity in the uranium area right now, because the demand is about 180 million pounds a year worldwide, and the supply is about 140 million pounds…" "Until you close that gap, which won't be till around 2013, it's not clear where all the uranium is going to come from." Click 

Oh, by the way, my dad just wrote a book about an adventure of survival he and his dad shared in the Amazon Jungle just a year or so after World War II in 1947. My grandfather was an Indiana Jones type of guy and my dad still a kid around 17 years old. They became trapped and lost in the Amazon and for six months had to live off the land as they made their way back to civilization. They even ran into Germans hiding in the jungles escaping capture after the war. Anyway, go to the following link to read an excerpt from my Dad’s book.

You will only make money in this market if you subscribe to a publication that informs you what the best companies to invest in are. Subscribe to Gold Letter to receive emailed reviews of under valued gold, resource and uranium mining companies. 

"People don't realize how long it's going to take to bring these things into production…” “There are 440 nuclear power plants generating electricity around the world, with another 82 reactors being built or planned for completion within 10 years, estimates Cameco.” Click 

Write soon. 

David Vaughn

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