Greg's Note: After reaching a record level, gold has lost some of its momentum lately. That can be seen in a number of different ways. Gold and Options Trader's Ed Bugos sees this as only good news. Gold should have another surging summer, and now is the best time for investors to get in by playing the "dips." Here are Ed's top five reasons why now is the best time to buy junior and small-cap miners. What do you think? Will gold make a comeback? Let us know at greg@whiskeyandgunpowder.com. Whiskey & Gunpowder
Gold could be ready to end the summer doldrums even before summer begins. The most relevant area of resistance in the way of this outlook is the 30-point range between $890 and $920. If gold can break through and find support at these values it will be poised to rise for the summer. With that said, I think we've had our seasonal low and now it's gold's turn to shine…as the most preferable commodity…and better yet, to become money again. Just writing that makes me realize how early in the game it still is. Who today would believe gold will become money again? Yet, at the top of the market everyone will. Here is the best opportunity for us right now… ~~~~~~~~~~~~~Special~~~~~~~~~~~~~ Get Filthy Rich While You Sleep Doing nothing while collecting royalties has to be one of the best — and easiest — ways to get rich. For instance, David Sengstack does nothing and collects royalty paychecks of $2 million per year...just because his dad was smart enough to buy the commercial rights to a song you've sung a hundred times, "Happy Birthday to You." Michael Jackson does nothing and collects royalties every time a Beatles song plays on the radio (he bought the rights years ago). But Paul McCartney — now a billionaire — does nothing and collects even more on the 3,000 song rights from other artists that he owns. Today, you can do the same…and you don't have to buy song rights. We got something even better. Check it out here… ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The Five Best Reasons to Buy Good Quality Precious Metal Juniors Most of the small-cap and junior resource market has been in decline since gold first broke the $700 level back in 2006. But that's all about to change, I have five reasons why you should buy juniors now before the window closes — lets get started… Reason #1, is that, several depressing factors have come together to produce an early seasonal low, at least for the precious metals sector. Reason #2, as implied in the introduction, gold has lagged the commodity cycle because the market is infatuated with the growth in developing countries, and has inferred a "realness" to their demand for commodities. I've never disputed that the growth exists… just that there is a lot more inflation, and that inflation is what drives prices higher. I believe the gold market is at a bullish inflection point — a point of recognition of sorts. Reason #3, the precious metal juniors have hardly benefited from the bullish trends in these commodities to date, especially since 2006, never mind the future. Lots of money found its way into the junior segment over recent years, to be sure, but this expansion in capitalization has been dilutive. The Canadian Venture Exchange (CDNX) has had a hard time keeping up with gold itself, and is at its lowest level relative to gold since 2002. Simply put, the juniors should be tracking gold — and right now they have a lot of catching up to do. The result is a widening gap between the values of majors and juniors. In my mind, that gap will soon contract. With that said I think it's the best buying opportunity in this segment since 2002. Reason #4, The money that has poured into the junior precious metals segment over the past few years has been soundly invested. I am impressed with the value that I've seen many juniors create throughout this cycle — the development of assets discovered back in the nineties has been astonishing. Finally, the best reason to own these juniors now… ~~~~~~~~~~~~~Special~~~~~~~~~~~~~ Why Has Oil Surged? Dwindling value in the dollar, a crisis in U.S. credit, rising demand from overseas. These are all explanations for the recent surge in oil prices. But that's not the whole story. There are more dangerous and deadly reasons for the rise in oil prices, and the real truth explains why we can expect this surge to last for a long time to come. Click here to read about the "bloody backlash." ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Reason #5, the next takeover wave! Regards, P.S.: So now you know the reasons why you should be in the small-cap and junior miner game. There has been a recent downtick for gold, but that should not last. Readers of my Gold and Options Trader service have seen not only the reasons to buy junior miners, but they've gotten my personal recommendations instructing them which miners to buy and when. Want to know what I told them? Click here to find out… |
Whiskey & Gunpowder Special Reports $1,000 Gold and Rising... 5 Entirely New Ways To Play the Gold Trend The 10 Shocking Reasons for China's Pollution Problem Geothermal Energy: Investment in the Future Here's One Coal Stock That's Set to Skyrocket Investing in Exchange Traded Funds The Real Story Behind the True Gold Bull Market If someone forwarded you this copy, please look here to start your own subscription. Wanna let us know what you thought of today's issue? Now you can... click on this link. Whiskey & Gunpowder is a free e-mail service brought to you by a team of rebellious brigands. If you have not already done so, please click here to confirm your subscription. This will help us ensure you get every Whiskey & Gunpowder without interruption. Are you having trouble receiving your Whiskey & Gunpowder? You can ensure its arrival in your mailbox here. Please note: we sent this e-mail to lemmetry@gmail.com because you subscribed to this service. To end your Whiskey & Gunpowder e-mail subscription, click here. Nothing in this e-mail should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice.We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. © 2008 Agora Financial, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the World Wide Web), in whole or in part, is strictly prohibited without the express written permission of Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. |
