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URANIUM
SIZZLES! Gold continues in its comfortable holding range refusing to move below an established floor and constantly bouncing at it’s aimed for ceiling. Now is a good time to assess what we are doing and why. Or at least to attempt to understand what we are all about. Life is really short and the time never really is appropriate for whatever you want to do that is important. If you waited until you were “ready” before you had your first child you wouldn’t have any. Generally in life we find ourselves multi tasking and taking on tasks before we desire to. “The reality of the human condition is such that…we must “salvage our fragments of happiness” out of life’s inevitable sufferings.” Gary Thomas, SM I suppose the point is that tomorrow is quickly coming and to prepare for it today we have to do many things sooner that we really would like to put off. I have watched with amazement how fast this decade is passing. It seems just yesterday we were at the beginning of this new century. Now we are quickly moving to the conclusion of its first decade and the start of the second decade, 2010 – 2020. Oh! I almost forgot to mention the present price of uranium. Look below and hold on.
“…Worldwatch this year focused on two rapidly growing countries, China and India. Combined, the two countries include 40 percent of the world's population. Flavin (Worldwatch President) said as both nations continue to develop, they have been hungrily gobbling up the world's resources…” "If you look at the fact that if China and India were to demand as much of the resources in this ecological footprint term as even Japan does today, you would have to literally find an additional planet earth just to support their needs…” Click How well I remember when gold peaking at 400 an ounce was a dream beyond imagination. Well, gold is averaging 250 dollars higher than these old figures of yesterday. Are the gold mining companies making money still? The seniors struggle as their reserves continue to be used up and it is a hard search to replace these numbers. This is where the junior gold exploration and near term production companies come in and shine in all their glory. The seniors need the gold these juniors are finding and producing. And that is why you will find premium values on the best junior gold companies. Lawrence Roulston – “With metal prices at all-time highs, investment dollars continue to pour into the metals markets.” “One area where investors can still find exceptional value are the exploration and development companies. To a large extent, many of these companies are ignored by the big finds because they are simply too small.” “As individual investors, we can participate in exploration and development companies, with the ability to get in and out without too much difficulty. These companies provide exposure to the metal markets… and also provide the benefits of investing in emerging companies. There is a movement among the institutional investors to move down the ranks, already having gone from the majors to the mid-tiers, with a few funds actively participating in the larger exploration companies.” “…the new money coming into the metals markets will increasingly find its way into the small companies. While many companies may see their share prices drift lower, companies that generate meaningful results – and those that can attract the attention of institutional investors – should continue to enjoy appreciating share prices.” Click From 2,000 BC to 1,000 BC the world was preparing for civilization. From 1,000 BC to 0 AD the world was becoming civilized with all that civilization brings. From 0 AD to about 400 AD the mightiest empire the west had ever known lived and died. By the 5th century to 1,000 AD the western world entered a significant dark age that saw much of the world converted to barbarism. From 1,000 AD to about 1,500 AD the world slowly began to awaken from its slumber and ignorance. From 1,500 AD to 2,000 AD our modern era began to take shape that ultimately brought us Dell computers and the Internet. Now what lies over the horizon and just around the corner? I sincerely believe with the advent of 2,000 AD a new era is shaping up and is in the early formative stages of developing and asserting itself. Hi David, “Well, how about this little bouncing act in the USD? Those guys at the Fed are becoming too predictable at their unpredictability. Watching the dollar is making me sea sick, or better yet, it's like listening to a boxing match... he's up...he's down...he's up... Most don’t realize it's just another ill-fated attempt by the Fed to emotionally manipulate PM investors. They are experts in this field and have been doing it for years. This multi-faceted approach to "create the illusion by confusion" is by far their most powerful weapon in their arsenal of mass scale manipulation. Deceptions include central bank gold sales, record high stock markets, artificially low interest rates, political leaders saying debts don't matter and other such jargon, re-inflating of bubbles due to increased money supply....the list goes on. The fact of the matter is the trend for PM's is solidly in place, and albeit a shaky ride, it continues its inevitable rise fueled by bad fiscal policies. And like all bull markets, it remains largely unknown by the general investing public until the final blow-off phase.” Anthony S. What is the significance of all the above rambling? Our world is in the dramatic act of change right now. And that change will encompass the financial and economic world in a big way. This is why I have repeatedly stated over and over to look at 1980 to 2,000 as a once in a lifetime cyclical event in our timeline. That timeline and circumstances are changing dramatically from 2,000 AD on. You can see these changes if you study hard and map out the differences between the last years of the 20th century and compare it to events shaping up in the 21st century. Like I always say – you snooze you lose. Don’t be a camel to obvious changes at work in our world today. And our strong point here of course is to illustrate that even the nature of investing is changing. Is financial and economic change at hand? “Retail sales suffer worst monthly fall since 1970…” “What was once a dull pain behind the eyes is threatening to become a full-blown migraine for the nation's retailers. On Thursday, they reported one of their worst monthly sales performances ever…” "Consumers are not feeling quite as healthy from an economic standpoint as they did last year at this time," said John Morris, managing director at Wachovia Securities.” “…disappointments crossed all segments of the industry…” “…the biggest drop since the index started tracking the data back in 1970.” Click Have you ever heard the following term before? “Deal with the cards in your hand.” In other words the point is to play the cards you have. Now most folks get lost in the conceptualization of this principal. Today is not 1985 nor 1990. It’s hard to imagine that in few short years so much change has already happened. But those are indisputable facts. But we remain steeped in the nostalgia of the past and what we have grown used to and are familiar with. Between 1885 and 1907 an entire new world was developing with the introduction of new ideas and inventions. But there remained those still wishing for the comeback of the horse and buggy. Generally only history books can analyze and record the changes that occur over time and only when the years have passed to the extent we can look at a span of years objectively. For the most part old familiar principals are changing today but most people do not recognize the change. Neil Charnock - “What about the near term future of the gold and silver markets, what we can expect to see?” “Any correction however, will not be as deep as we have seen over the last 6 months; the market is gearing up for a very strong move. We are either nearing the end of the long consolidation in the current range or we are seeing the beginning of the next up-leg, the difference is quite meaningless. What I am saying is that gold is holding firm at these new higher levels, it has moved up and may take a short breather while it gathers a head of steam for the next rally.” “To help us examine this it may be beneficial for investors to observe some similarities between the precious metals and uranium at this time. Since the amounts of gold and silver actually available for purchase are so small and the uranium market is so small… these two special market segments have much in common. Gold and silver are rare.” “Gold, silver and uranium markets are all in a state of supply deficit.” “My observation is that uranium is providing a wonderful preview of what is to come in the near future. This relates to the physical commodities and to the shares traded in the companies that mine, are developing mines or are exploring for precious metals.” “Stellar gains are being made and you cannot find ADR’s on these stocks, even if you could find them the action is here.” “Think about very large capital flows bidding for virtually non existent supply and imagine the price gains possible.” Click In the early 1600s the population in the U.S. was around 104 living souls. By 1700 the population had grown to 250,000. And in just 75 more short additional years the population grew to 2,800,000. Now you tell me that in retrospect this was a time of change in just a short order of time. And today change is occurring mightily right before our face but most of us do not recognize it. Immigration is something changing the fabric of our society today. The US has always been a nation of immigrants, but the immigration occurring today will eventually change the entire face of America. “…America was a land of immigrants before it was a nation.” “New Americans are still coming. And, though the nation is engaged in a heated debate on illegal immigration, the desirability of a lawful and orderly immigration is not in question.” Click We talk over and over about having a selling and buying plan. Do the expert professionals also push these principals? What do the professionals have to say? Roger Wiegand - “Trading on hope or fear will cost you money.” “Expect to sell your junior stock when the price is moving up into strength. This one hurts as it appears you are giving away more profits while this little beauty keeps on rallying. However, if a very obvious price resistance point is approaching, you can take a pre-planned stated price goal and simply bail out before the crowd. Your exit fill will be infinitely better selling into strength when buyers want your stock.” Click Let’s read part of what we just read again because it is very important. “Expect to sell your junior stock when the price is moving up into strength.” Click We agree with this recommendation and encourage investors to trade at least a portion of their profits along the way. Now lets hear a story about one of these small companies that saw its share price rise from one nickel to well over 4 dollars. Now that is real money. Roger Wiegand - “We know of one stock that came on very quietly for under $.05 per share. This was an obvious high risk flyer if there ever was one. The story was excellent and it attracted some big time traders who all bought in. Today, the shares are trading near $3-$4 and they are not even listed yet but should be this summer.” “Those kinds of trades are better served most of the time with no stops; just buy and hold until you have reached your objective.” Click And Roger follows up by encouraging mom and pop investors to have a plan and a strategy. Play a little conservatively and take advantage of those seemingly easy quick gains from time to time. Remember the objective is to make money and to make that profit consistently. Roger Wiegand - “…traders should take a smaller bite of the apple and be content with smaller gains on each trade.” “She suggests traders have smaller goals…” “…trade for solid gains not expectations of wishful larger ones.” “Do not trade or invest just to be in the game. Have real concrete reasons to trade.” “Our star lady trader looks for set-ups, sets a trading goal and uses solid entry and exit price points to construct a win. She doesn’t care if she might earn more by staying in trade. She will take the earned profit goals and get out. So should you.” Click 20 years is not long. 10 years are just a hop and a skip. So why are we unable to connect the dots and fail to take advantage of cyclical events and opportunities? Because our lives are so very, very short. More the reason to recognize and take advantage of economic cycles. Why can’t at least our intelligence and reasoning recognize the shortness of life and the inevitability of change? We just can’t because it is our nature to be absorbed in our past rather than our future. In 1900 horses and buggies ruled. Blacksmith shops were on every major corner. In 1950 the country was covered with roads, highways and the automobile. In the year 2,000 millions of cars and vast interstate highways covered the land. And 2007 going forward? Actually, not only is a new century dawning, but an entire new 1,000 year epoch is taking hold and shaping our lives today. Recognizing that we are in a new investment era that is changing the way we invest Gold Letter, Inc. reviews undervalued gold, silver, uranium and other resource stocks under valued and poised to rise in this time of increased demand for all resources. Gold Letter’s 10 best performing stocks are up over 2,000% and GL’s top 50 performing stocks are up over 500%. GL charts are computer generated and updated every hour while markets are open.
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INFORMATION The publisher and its affiliates, officers, directors and owner may actively trade in investments discussed in this newsletter. They may have positions in the securities recommended and may increase or decrease such positions without notice. The publisher is not a registered investment advisor. Subscribers should not view this publication as offering personalized legal, tax, accounting or investment-related advice. The news and editorial viewpoints, and other information on the investments discussed herein are obtained from sources deemed reliable, but their accuracy is not guaranteed. Authors of articles or special reports are sometimes compensated for their services. The opinions of FSU contributors do not necessarily reflect those of Financial Sense. |
