Vol. 57 - THE BRIGHT LIGHT

Dear Member,

Friday’s plunge came after American International Group Inc. (AIG) reported losses of $5.29 billion in the fourth quarter due to the credit crisis. AIG is the largest insurer in the United States. A key component to AIG’s business in recent years has involved the signing of contracts known as credit default swaps. These default swaps are contracts vowing to cover missed payments of $579 billion in debt. As the quality of credit declines across America these insured debts are quickly becoming less and less likely to be paid. Now that we have outlined the reasons for which the markets plunged on Friday, let us now explain why you shouldn’t fear the market.

It’s hard to believe that March has already arrived. The year is flying by and there finally appears to be a bright light at the end of the tunnel for investors. That light is coming from the commodities sector. If you take the time to review what has been happening over the last couple months you will see that we are in the midst of a bull market for commodities; despite the credit fiasco.

Gold is rising rapidly and the predictions of $1,000.00 an ounce are looking conservative. Every investor needs to be a part of this run or they are not taking advantage of the current economic environment.

Silver, the “indispensable metal,” has been on a run of its own which many investors have overlooked. Since 2005 silver has climbed from an average price of $7.31 to now flirting with $20.00. These numbers are staggering when you compare them to gold. As far as percentage value increase, silver has outperformed gold since 2005. Keep this in mind when looking for your next commodity stock.

Molybdenum, also known as “Moly,” has maintained its historically high levels over the past two years. At around $33.00 it makes the select few molybdenum projects very attractive to investors. The stabilized high price of Moly can be attributed to China’s intense growth and high demand for rebuilding of existing infrastructure in North America. Experts believe Moly’s strong demand will increase over the next 10 years. The advantage for North Americans: we have the best molybdenum properties in the world.

The cost of a barrel of oil has now cleared $100.00. Need we say more?

Spring is a very busy time for mining companies. There will be several