“It is not enough to survive, one has to be worthy of surviving.” B.G.  And this is why gold will succeed where as the U.S. dollar will fail.  This country was built on solid money and a sound currency.  Actually, every great and powerful country is built on a sound and solid currency. And every great and powerful country is built on plentiful and reasonable energy costs which is why uranium is beginning to catch my attention.

Don’t forget our goal is to follow this market and to keep our eyes on ALL the resources…including the very hot energy play uranium.  Should we be observing uranium right now?  Our sure loss if we don’t.

And while uranium will never be a currency it is becoming today the energy vehicle of choice as the entire world is turning once again to nuclear power for its energy needs.  So high energy costs and a debased currency can create tremendous profit opportunities …yes.  The issue in these essays is really not just about gold but making money. 

Do you ever ask yourself, “Why didn’t I see that?”  It is human nature for us to live in a fog.  Very few of us really have the brains to really “think.”  Oh, there are those who acquire vast educations.  But does a diploma guarantee success in this world?  Does a sheep skin mounted on the wall even mean we can think originally and “outside of the box?”  True brains belong to those who can project themselves down the road and visualize the world of tomorrow. 

True common sense belongs to those who know that the comfort we enjoyed yesterday just may not be there tomorrow if we do not make the appropriate decisions and turns in the road today. Life is a very narrow path and we cannot assume that yesterday will play out the same way in the years to come.  Yes, the past and present shapes the future.  But there are so many pieces to the puzzle that we have to put together to make an estimation of where tomorrow will lead us.  That is why we have to read and study all the time.   

If you are taking the time to read these various financial websites then you personally are way ahead of the “common herd.”  The next step is to act on what you read and make the appropriate life changing decisions you know must be made in your personal finances.  And one of those questions you must ask yourself is if your investments are at least 10% to 30% in gold and resource related assets.

Hey David,

“Can you feel the tension in the markets? The election, the dollar, bond markets, and housing all balanced on a razor. Regardless of the election outcome we are setting up for a major metals move…”

Mark R. C.                                                   

Let’s get back to what is first and foremost on all of our minds.  We are in this game principally to make money via investing/speculating in gold and resource stocks.  How do we go about doing this?  Bob Moriarty lays out well a good overall principal to adhere to when planning your strategy with these smaller stocks.  What does he say?

“I like the analogy of buying Canadian Juniors as lottery tickets.  You don’t put all your money on any one.  You don’t expect them all to pay off.  But when you enter a big lottery and win, you win big.”  Bob Moriarty

Anyway, you get the picture.  Don’t put your eggs all in one basket.  And when one stock does do well it can have the capability to go literally to the moon as we often see with individual successful mining shares.

“Another factor counting in favour of the uranium story is that its price is only 3-5% of the total cost of producing electricity from nuclear sources, says Froneman. Thus, even a large increase in the uranium price has a relatively small effect on governments’ decision to go nuclear.” click

How long will the uranium price keep rising?

• “Certainly the supply constraint is going to be with us for the next five to ten years.” click
  
  
• “The issue is there hasn’t been exploration for many years because it was written off as a material that would not really have real commercial uses…” click

 How much did I say the price of uranium has gone up?!

“…a sixfold gain since 2001 is just the beginning of a rally that will last years…”

When we follow the resource stocks its important to keep our eyes on which ever particular resource is doing exceptionally well.  And as I say this turns our attention upon the lowly element uranium…named after one of the planets.  Look below at the graph and you will see why we better be discussing now “uranium.”

What does the above graph mean?  It means there are some uranium mining companies presently climbing to obscene levels.  Anyway, now is the time to get in on this market as the worlds demand for uranium is only destined to increase dramatically with every passing month. 

Well, it looks as if my crazy forecast that gold would close the year around 700 per just may be shaping up to be a reality.  Simple observations led me to this conclusion.

So, you really think gold or resource stocks have no place in your portfolio?  Well, even if you are not keen on speculating you should at least be a believer in insurance.  A percentage of your portfolio should be in gold just to act as insurance in an ever increasingly dangerous world.  And you don’t think this world is dangerous?  Sounds very much as if we have a nuclear race that has just begun in the Middle East.  Read the interesting article below.

“The spectre of a nuclear race in the Middle East was raised yesterday when six Arab states announced that they were embarking on programmes to master atomic technology. The move, which follows the failure by the West to curb Iran’s controversial nuclear programme, could see a rapid spread of nuclear reactors in one of the world’s most unstable regions, stretching from the Gulf to the Levant and into North Africa. The countries involved were named by the International Atomic Energy Agency (IAEA) as Algeria, Egypt, Morocco and Saudi Arabia. Tunisia and the UAE have also shown interest.” “The announcement by the six nations is a stunning reversal of policy in the Arab world, which had until recently been pressing for a nuclear free Middle East, where only Israel has nuclear weapons.” click

You know, all I can say after reading the above article is, “Got gold?”  Of course you better have something even more substantive also in your life.  But there is definitely a place for gold while you reside down here.  Maybe you should also be asking yourself, “Got Uranium?”

Why Uranium?

“Is there anything that can stop the mushrooming uranium price?” “It takes a brave investor to bet against uranium. The price of the radioactive metal has barely seen a negative day’s trading in the past five years.”

And what significant event just happened that will drive the price of uranium to the moon?

• “Cameco’s unfinished Cigar Lake mine, which was expected to come into production next year, and produce up to 10% of the world’s uranium supply was flooded last month, delaying production by at least a year. This set the prices of uranium and competitors’ shares soaring.” click
• “We're in an historic uranium shortage,'' said James Passin, who manages $580 million at New York-based Firebird Management LLC and began buying shares of uranium producers five years ago. ``We're in a global nuclear revival.” click

·         “…just the beginning of a rally that will last years…” click

Aaron sends us an email reminding us how most folks are like sheep and never taking advantage of the opportunities around them…the humble herd.

Hello Dave,

“While many have labeled you an extremist I really feel you are very conservative in your analysis of where gold is heading. 

The coming collapse of the dollar will be unlike anything history has ever seen.” “It reminds me of my friends in college, all the student loan money being spent on clothes and beer.

No one gave any thought to paying anything back, now most are working struggling to pay back the "free money…" 

“Tried to talk to the in laws regarding what’s ahead but they feel things are fine and will leave all their assets in real estate and 401K.”

Aaron W.

A few years from now Aaron’s in laws will wish they had listened to their son in law.  But of course by then it probably will be too late and they will be bankrupt.  Subscribe to Gold Letter to receive emailed reviews of under valued gold and resource companies including uranium companies. 

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I know a ton of you out there have already made a lot of money off of gold and resource stocks.  Share with me your story as I would like to hear it.  In particular, just what did you do with your profits? 

David Vaughn

Gold Letter, Inc.

David4054@charter.net

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