Pinnacle Activity Ticker
Vol. 267 - It's Time to Take a Stand With Junior Gold Stocks
Enough is enough. Junior gold stocks are getting ridiculously cheap and we're taking a stand.
It comes down to one simple premise. Central banks are printing copious amounts of paper money - from Europe to the US. Yet, central banks have become net buyers of gold. Even European central banks have become net buyers of gold. The last time this happened was over two decades ago. Central banks are buying gold with money they print. What does that tell you about their confidence in the currency they print?
Do you still believe in gold's value?
Do you believe gold will hold its value over the next couple years?
Will central banks around the world continue to print money in an attempt to save the faltering global economy?
Does the US have an insurmountable debt level that can't be serviced if deflation hits and interest rates rise?
If you answered yes to those questions, which we did, then gold stocks have presented you an opportunity that may not surface again for decades.
It makes sense for us to align ourselves with discoverers (junior gold stocks trading are at historic lows) of real money...gold.
Junior gold stocks provide opportunity no other asset class can touch. If you are positioned in before a junior makes a new gold discovery, the profits can be massive - even in a down market.
Rick Rule, the famed resource investor, recently wrote an article which documented why he is excited about this gold market and junior gold stocks. He stated "As experienced junior gold speculators know, nothing adds to share value like discovery. Speculators will fondly remember hundredfold profits from discoveries like Diamond Fields and Arequipa. We are now truly in a discovery cycle, one fueled by sustained capital investments in unprecedented amounts."
We are taking a stand at these levels. When the vast majority of investors give in to gold, much like central banks have already done (net-buyers of gold), and faith in the dollar and other fiat currencies erode further, a broad based rally in junior gold stocks will erupt. The fact that junior gold stocks are receiving near record-low valuations will come to light as inflation destroys currency values. A flood of fiat money will enter the gold sector. It is our plan to be ahead of that money.
Understand that more quantitative easing is coming and that inflation is the only way out.
We all know how quickly sentiment can change. Where do you want to be when investors get bullish on junior gold stocks once again?
Click here to read about our Featured Junior Gold Company of 2012.
All the best with your investments,
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