Vol. 267 - It's Time to Take a Stand With Junior Gold Stocks

Dear member,

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,

 
   
 
PINNACLEDIGEST.COM


If you're not already a member of PinnacleDigest.com and would like to receive reports like this one, once per week via email, please click here to join for free.

Community Talk

Re: Vol. 267 - It's Time to Take a Stand With Juni ...

Pebble mine: 'If God were testing us, he couldn't have found a more challenging place'
Frik Els | July 23, 2012
salmon_roe_400

The Pebble project in Alaska, a 50-50 partnership between Anglo American and Northern Dynasty Minerals, is the subject of a new documentary from Frontline called Alaska Gold to be aired on Tuesday on US public television.

It is arguably the richest prize in mining. The deposit hosts 55 billion pounds of copper, 76 million ounces of gold, 3.3 billion pounds of molybdenum, and quantities of silver, palladium and rhenium.

So far the Pebble Partnership has invested about $500 million over almost a decade and the project has its backers including former Alaska governor Sarah Palin, but has run into strong resistance from environmental groups.

Frontline finds many against Pebble including a former Alaska state senator named Rick Halford:

He cleared his land with dynamite. He calls himself the "ideal redneck Republican". As a longtime leader in the state legislature, he never met a hard-rock mine he didn't like.

That is, until he took a long look at the proposed Pebble Mine in south-west Alaska. It is a phenomenal prospect, the biggest and richest in North America. But to dig a mine there is to make a Faustian bargain that involves an agonizing Alaskan twist.

In return for copper and gold worth an estimated $500bn, state and federal regulators risk poisoning what scientists describe as the last best place on earth for millions of wild salmon.

"If God were testing us, he couldn't have found a more challenging place," said Halford, who helped write Alaska's industry-friendly mining laws when he was president of the state senate.

But the project also has its supporters, including among locals:

"If Pebble wasn't here, I don't know where I would be working," said Sheena Ishnook, 23. She has a $17.50-an-hour job operating an incinerator in Newhalen, a village on the lake. The job is funded by the Pebble Partnership, as part of its campaign to win over local support.

With her savings, Ishnook bought an iPad and is saving for a snow blower and a pick-up truck. She knows that the mine might harm the salmon she and her family rely on for food. "It is kind of a big risk," she said. "But other than that, it gives us job opportunities, makes us stay here at home instead of moving away."

Pebble was slammed in an EPA report released in May concerning the proposed open pit mine and 140 km slurry pipeline upstream from Lake Iliamna – part of a water system where 30–40 million sockeye salmon spawn each year – and the impact on the world's largest salmon fishery, 80 km south of the lake in Bristol Bay.

Last November, 81% of the Bristol Bay Native Corporation —  the largest private landholder in southwest Alaska — rejected the mine on the basis that it will "unavoidably put at risk the 'fisheries and our Native way of life."

A month earlier, voters in the Lake and Peninsula Borough narrowly supported (by 34 votes) a ballot measure put forward by anti-Pebble activists that would restrict future development that affects more than one square mile of land within the 31,000 square mile borough.

The ordinance, however, is being challenged in court by the State of Alaska which argues that it seeks to undermine state authority over large-scale resource development.

Frik Els

Frik Els

Email: fels@mining.com

Frik Els on   Google+

Frik is editor and writer for MINING.com. Frik has developed content for a variety of consumer and business titles in Canada and Southern Africa covering autos, technology, entrepreneurs, travel and entertainment. Frik does not own shares in any of the companies he writes about.

Sharing ideas, being frank with crticism, seeing another's pt. of view, and researching for an edge in a co. and its sector are key to success and don't ignore Mngt's Credentials good or bad play a big part in a successful outcome. Pull the pin  o

Re: Vol. 267 - It's Time to Take a Stand With Juni ...

Hi Southpen while there can be a price to be too early, there is a bigger price at being roo late. But right down your alley of thinking Xstrata got a nasty surprise, well not such a surprise from th ePhilippines Federal and Regional Govt Laws. South America, Asia remain treacherous re energy, policy, power issues so sitting back is working for you kudos. I'll take my chances and picked up more RDK Redhawk at $0.35 last day. Supply side issues still favor a plunge in after prices have taken a huge shellacking to date on Cu for example.

Scratch another project. First it was anglo and Northern dynasty's Pebble mine project in alaska for environmental issues andnow its Xstrata in the Philippines. I like Arizona Projects in their Cu alley better and better. RDK has not had a run yet. of note like the TOP11 of CIBC's Reports of last year.

Philippines Rejects Xstrata Appeal on Environmental Compliance
Published June 04, 2012 | Dow Jones Newswires

The Philippines has turned down an appeal by Xstrata PLC's (XTA.LN) local unit to reconsider its application for an environmental compliance certificate in connection with open-pit mining at its $5.9 billion Tampakan copper-gold project.

In a decision dated May 22, the Department of Environment and Natural Resources said it rejected the appeal pending the resolution of a conflict between national mining policy and an environmental code in South Cotabato province, where part of the Xstrata project is located.

The provincial code effectively bans open-pit mining, but the governments national mining policy allows it.

The government is reviewing the country's mining policy and is expected to issue an executive order in the near term that would harmonize national and local policies.

If Xstrata's local unit, Sagittarius Mines Inc., obtains the necessary approvals by the end of the year, Tampakan is expected to begin commercial production by 2016, the company said.

Sagittarius owns 62.5% of Tampakan, which has 2.94 billion metric tons in resources containing 15 million tons of copper and 17.9 million ounces of gold.

The project is expected to have a mine life of 50 years.

Sharing ideas, being frank with crticism, seeing another's pt. of view, and researching for an edge in a co. and its sector are key to success and don't ignore Mngt's Credentials good or bad play a big part in a successful outcome. Pull the pin  o

Re: Vol. 267 - It's Time to Take a Stand With Juni ...

Rio Tinto presented at Macquarie's Australia Conference on Thursday, stressing that the medium-term outlook for commodities remains very positive despite an expected slowing in Chinese growth rates as that economy matures. In their view, this is in part due to the fact that markets continue to under-appreciate the likely limitations on new supply growth over coming years.

With ongoing capex pressures, less availability of quality resources and increasing resource nationalism, the incentives for development/expansion are lower and are likely to lead to less total supply coming on stream than currently anticipated.

Moreover, the current demands from many shareholders that the global diversified miners increase capital management measures at the partial expense of capital spending plans highlights another risk to current industry supply projections over the next 5-8 years.

Sharing ideas, being frank with crticism, seeing another's pt. of view, and researching for an edge in a co. and its sector are key to success and don't ignore Mngt's Credentials good or bad play a big part in a successful outcome. Pull the pin  o

Re: Vol. 267 - It's Time to Take a Stand With Juni ...

Don't you think it a bit risky to be advocating  Gold stocks in May ?  Demand for Oil equities is a more likely  scenario .Companies that have a mix of Oil and NG could get some relief on the NG side ,IF  hurricanes play havoc in the South,not to mention an  under powered grid throughout the months of A/C. Every Banker in the U.S. has political support from  BOTH parties to keep PM Equities suppressed. ie; Don't lend and carry huge short positions. Why do you suppose they would change that?If Oil does go up this summer ,the cost will continue to make the desirable open pit mine expenses go up,through cost the  of deisel. I agree that we should all be looking for  the best of the best ,gold and silver equities,I just see no  big rise until Americans know who the next people are that will supposedly  guide the economy. Maybe the Canadians can get a gold equities rally going ? ,but.....with 1/10th  the population ,I wouldn't suspect  it could change the sentiment.,throughout N.A. .I suppose it could  ignite the Europeans  and the Asians. Risky call,imo