Monday, March 8, 2010

How to Buy Gold Stocks

$50.61 for an ounce of gold might seem outlandish, but for the next 48-72 hours, it's a reality...

All thanks to one of North America's greatest gold secrets.

It all goes back to the summer of 1860, when a single discovery made by a man known as Captain E.D. Pierce triggered a rush that put Central Idaho on the map.

The early success stories that came out of this region were the sorts of fairy tales that poor prospectors told their children at bedtime:

  • Like the one about a miner named Peter 'Baboon' Bablanie, who harvested over 1,200 ounces all by himself — a haul worth $1.35 million in today's dollars...
  • Or the mine that produced $140,000 of gold — worth $3.3 million today — in a single day's work.

Of course, these early successes were short-lived.

In fact, due to rising production costs and falling prices, most mining operations in Idaho were out of the gold business entirely by the mid-20th century...

...Turning instead to silver and other metals for safe, reliable returns.

That all changed — in a big way — when the economic world was flipped on its head.

But as gold recently touched and even exceeded $1,200/ounce, mass demand triggered a gold rush of a magnitude unheard of for a century and a half.

And just like the first time, the prospectors were quick to jump on the opportunity.

Only this time, instead of pickaxes and tin pans, they took to the foothills with high explosives and ground-penetrating radar.

One such prospector — a 3-year-old mining company worth around $27 million — laid claim to a site which everyone had assumed was depleted back in the 1950s.

Turns out, everyone was wrong...

And within just a few months, this outfit made the discovery of a lifetime: a massive deposit of gold that has since been dubbed the 'Boise Basin.'

With over 600,000 ounces on the property, this $27 million company's assets now exceed $727 million.

That's almost 27 times the company's total value... which means that at today's share price of right around 45 cents, investors like you are buying gold at an equivalent of $50.17 per ounce!

It's the newest profit opportunity from a portfolio that's delivered gains on 22 out of 23 recommendations.

But for a recommendation this big, it'll only be a matter of days, perhaps hours, before the mainstream media gets a hold of the story — closing this exclusive window of opportunity.

In the next few minutes, I'll tell you all you need to know about a gold play that has the potential to outpace gold's own rate of growth by a factor of 9.5...

... And how recently published results from a battery of core tests — the first of several to take place in the next few weeks — have already given investors 47% gains in a single day of trading!

But first, I must explain why now is the most opportune time to buy the most precious of metals...

The Biggest Gold Rush Since the Civil War

It's happening right before our eyes.

The price of gold is on a mad tear, as it reached and then smashed through the $1,000/ounce milestone.

But in reality, this is still nowhere near the top of where gold has been — even in recent history.

And experts like Jim Rogers and John Paulson agree... There's only one place where it's going, and that's higher.

Now, the forces behind gold's historic rise are probably not news to you...

In all likelihood, you probably read about them almost every day in the papers, or you hear about them from the talking heads on TV.

But right now, more than any other time in modern history, knowing how and when to act on these trends is absolutely critical to the state of your wealth.

4 Ironclad Reasons why the rush to buy has never been stronger

 

# 1. Supply and Demand

In all, there are some 158,000 tons (4.8 billion ounces) in the world. That equates to just 0.7 ounces per person.

But now more than ever, the world's leading economies are using gold to hedge against the rapidly dropping dollar.

In short, they're doing the same thing that private investors are doing to protect their wealth, only they're buying more of it — much more.

  • China: Has increased its gold reserves 76% since 2003.
  • India: With 25,000 tons already in reserve, India's gold demand has doubled in the last 20 years.
  • Russia: The world's third biggest holder of gold has increased its reserves by 9% since March 2009.

With all this increase in demand, prices have been doing what they always do...

... Going up and up, creating even more demand in the process.

But here's the snag...

For every ounce that's taken out of the ground, gold becomes harder and harder to find.

# 2. Increasing Rarity = Increasing Production Cost

Since 2003, the production cost of gold has gone from about $185 per ounce to $500 today.

That's a 171% increase.

Which means that during that six-year period between 2003 and 2009, the cost of gold production has outpaced inflation by a factor of 10.2 to 1!

2010_01_chart_2.png

And just as the case is with any finite resource, the more that we deplete the world's gold deposits...

... the harder it is to find more of it.

... the more it costs to produce.

Especially now that Reasons 3 and 4 have sent demand from the private sector towards an all-time high.

# 3. A Weakening Dollar

With each dollar of debt the U.S. takes on, the greenback loses its strength.

And as you know, anyone interested in maintaining their wealth will buy gold to hedge against the effects of this debt.

The point being that gold maintains its purchasing value.

Here's what I mean:

In 1930, an ounce of gold (worth $20) would have bought you a nice three-piece suit.

Today, that same ounce (worth over $1,100), would also buy you a nice three-piece suit...

What would $20 cash buy you today?

You see the point... and it brings me to the last reason.

# 4. In Uncertain times, It's Still the Safest Investment

The oldest reason may still be the most popular.

Immune to the rise and fall of industrial sectors and commercial trends, gold is always an asset, never a liability, and maintains its value regardless of what happens on the market.

It's why the price of gold has steadily increased for the last decade:

gold_chart2

Now let me tell you about the junior mining company that can take gold's gains...

And turn them into profits you'll be enjoying for years to come.

No Ordinary Gold Investment

With unprecedented demand sending prices higher and higher everyday, the world's savviest investors are scrambling for faster and more innovative ways to make fortunes from gold.

Today, that sends the most successful investors to one place: the sector that profits more than any other from growth in precious metal demand...

Junior mining top stocks.

To see what I mean, just look at some of the recent successes already enjoyed by keen-eyed investors who knew what to look for:

  • Decade Resources - 2357% - 1 month hold time
  • Ventana Gold - 3297% since Jan. 2009
  • Animas Resources - 373% - 6 months hold time
  • Victoria Resources - 546% - since Jan. 2009

In the case of Decade resources, a mere four weeks on the market could have turned a $500 investment into $11,785!

And as demand continues to push gold prices up, the opportunity to build a fortune from these aggressively growing micro-cap companies only grows stronger.

Of course, there are many to choose from. And after you've narrowed the list down to an elite group of companies, one stands out — for reasons I'm about to explain...

It's a company I've scrutinized for the last four months.

However, recent developments have turned this prospect into my hottest precious metals recommendation of the year.

You see, this small metals company — trading at just 45-cents as of this morning — now holds title to a gold deposit of legendary proportions... one that's been the stuff of prospector legend since the gold rushes of the 19th century.

And investors just like you are using this remarkable stock to purchase gold at an equivalent of $50.61/ounce...

Idaho's "Gold Renaissance"

I thought I'd made a mistake the first time I crunched the numbers...

But I checked them again, and again, and again... and the figure always came out the same.

It turns out that this small $27 million company is sitting on a gold resource in Idaho worth $727 million.

That means the company's gold resource is worth 27 times the company's total current market value.

So it's clear that the market is grossly undervaluing this company.

But that's less than half of the story...

With a near-target production of 25,000 ounces per year, we're looking at a potential earnings per share (EPS) of $0.27.

Here are a few companies with comparable EPS figures...

  • Aurizon Mines LTC (AMEX: AZK) - EPS: $0.29 - Share Price: $4.94
  • Dominion Mining (ASX: DOM) - EPS: $0.20 - Share Price: $3.76

With an average P/E ratio of 17 and an expected EPS of $0.14...

My conservative near-term expectation for this company's share price is $4.59.

And with current share prices of just $0.45, that's a gain of 920%!

But now I have even more compelling data I want to share with you.

In fact, it's more than just data — it's as near a guarantee as there is in the business of investing.

Let me explain...

At the close of 2009, this company announced that it had just completed a series of drill tests on their Idaho property.

These tests were limited in scope, consisting of just six drill holes.

But the results were astounding.

And it wasn't even the gram/meter mineral concentration values that made the real difference.

You see, when this company's geologists made their preliminary evaluations of the gold deposits on this property, they were based on drill tests that only went down to 85 meters (283 feet).

Now, in the mining exploration business, when you find something you've been looking for underground, you keep drilling until you don't see any traces of it anymore.

These latest drill tests went down to 121 meters (403 feet).

This means that the latest results on this property show gold present to a depth 29% deeper than before...

Adding about $181 million to the property — with a single drillhole!

When this news came out just last week, it caused the share value to shoot up 47% in a single day.

And this is before a single ounce has even been mined.

How to Get the Most Bang for Your Buck: Multiply Gold by 9.5

For some people, a gold investment that helps to maintain the wealth they've created is already enough.

But some people want more...

If you're the sort of person who wants to make real money investing in gold, riding the price of bullion won't cut it.

To make the big profits off the fewest trades possible, you need to magnify gold's earning potential.

And no stock out there does this better than this new discovery.

But you don't have to take my word for it... the numbers speak for themselves:

Between October 2009 and the first week of January 2010,  gold gained 9%.

In that same timeframe, my new recommendation jumped more than 86%!

2010_01_hmm_idaho_gold.gif

That's a percentage gain ratio of 9.5 to 1.

So for every 15% that gold grows, your investment would more than double!

It's exactly the sort of aggressively-minded, wealth-building strategy that my readers have come to expect from me.

But here's the catch:

I usually beat the mainstream media to the punch on these calls by about 14 days.

On average, that's a 2-week advantage that my readers typically have over other investors.

But for my new recommendation — the junior mining company operating in Idaho's prolific Boise Basin — I'm expecting it will catch on in far less time.

A few days at the most... particularly since this operation is right here in the U.S.

In fact, the signs that this one is about to blow are already evident today.

Recent Core Tests Confirm It

Now, as I mentioned earlier, in the closing days of 2009, this company sunk six drill holes into this piece of Idaho real estate.

The core samples, which measured mineral content in the bedrock to a depth of up to 985 feet, represented a limited test...

But in a subsequent press release, management said, "We are extremely pleased with the results..."

And when the results were published two weeks later, the best stock to buy skyrocketed 47%, with the daily volume spiking to over 1000% of its average over the previous three months...

That's on top of the steady climb it's been on since I first recommended it last October!

I've seen this exact phenomenon a couple times in my career.

Exploration companies going from 8 figure no-names to 10 figure players in the space of just a few months.

And all indicators are there that this is where this one is heading right now.

With further drill results imminent, it could happen any day, and it could send this stock well into double-digit gains in hours.

Of course, as the case always is with opportunities like this one, timing is crucial.

And I'll admit that this sort of aggressive investment strategy isn't for everyone...

But it's exactly the kind of thing my readers expect.

If you think it's right for you, read on...

Put my 96% Success Rate to Work for You With These 3 Brand-new Reports...

As soon as you become a subscriber to my Hard Money Millionaire advisory, you'll become one of just 73 new subscribers to receive my most exciting money-making opportunities in this gold bull market.

Everything you need to begin taking advantage is included in my latest research reports:

Research Report #1: My Top Buyout Gold Stock for 2010 — This could be one of the easiest gains you'll make in 2010. It's a small ($75 million) gold company focused on the rapid development of two gold projects with over 1.5 million ounces of gold. The company has just begun to cross some major milestones. And I expect this stock will be bought out by a larger company in the near future... which would mean near-guaranteed gains for today's investors.

Research Report #2: Wall Street's Favorite Silver Stock — One of the best ways to profit from the gold bull market is actually from its sister metal: Silver. Silver consistently outperforms gold during precious metal bull markets. That's why some of the largest and most powerful investment firms are rapidly buying shares of this small American silver stock. In this report, I explain in detail why I think today's investors could be headed for an easy double or triple gain.

And, most importantly...

Research Report #3: The Boise Blowout

This company has two major things going for it:

  1. A sizeable gold resource that's worth 27 times the company's market cap.
  2. Near-term production that could drive share prices over 920% higher in the next few months.

Armed with this recommendation, you'll get in on the ground floor of a company poised to yield a near 10X return in the short term!

And I'll teach you everything you need to know to hit this million-dollar nail right on the head!

In addition, I'll give you all the information you'll need to safely and consistently profit from hard asset investments in the coming years.

Remember, these reports are free — with no obligation on your part!

Simply test-drive my service.

As a member, you'll get immediate access to my brand new gold play — plus the two bonus reports — not to mention a portfolio with a 96% success rate... that paid out more than 52% in 2009!

Have a look:

Listen... you and I both know investment newsletters are a dime a dozen.

And many of them charge ridiculous fees, even when they underperform...

But I know that when readers find an advisory that consistently makes money in any market... the subscription fee usually pays for itself — and then some.

My record speaks for itself.

In 2009, Hard Money Millionaire performed:

  • Twice as well as the NASDAQ...
  • Up to five times better than the S&P 500...
  • As much as 10 times better than the DOW!

In addition:

  • We made gains on 7 out of 7 precious metals investments, including 3 with 100%+ earnings.
  • 5 of our 6 energy investments each returned an average gain of almost 70%.
  • Our portfolio has returned gains on 5 out of 6 positions that hedge against the devaluation of the U.S. Treasuries and the dollar.

Considering where our new gold play looks like it's headed, even a small investment could pay out generously.

So here's my offer to you:

For an annual investment of just $495 — in addition to the free reports you get just for signing up — you'll join a small group of individual investors quietly but confidently beating Wall Street at its own game.

NOTE: This is 50% off our normal rate of $995, but you still get all of the features that come with our retail-priced subscription.

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Or if, for any reason, you feel that it's not worth what you paid... just call in and I'll give you a 100% refund.

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For agreeing to test-drive my service today, you get:

  • Full member-only access to the Hard Money Millionaire website and archives with 24-hour portfolio availability
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  • E-mail alerts on all trades; we'll tell you exactly when to buy and when to sell

Note to Reader: Because this service is so rare, and because we cannot admit more than 73 new members to the file, we will unfortunately not be able to offer any additional discounts at this time.

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