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This is what it's all about!Mike Hoy We are currently living in a period of time where future investors will look back with 20-20 hindsight and only wish they had the same opportunity to profit that investors in today's market have standing directly in front of them. I believe that history will show we have entered into the second leg of what I feel will be the greatest bull market of all time. I believe that gold broke out, beginning its second leg of this great bull market on a Thursday early in September. I believe this breakout has set the stage for fantastic profits that most investors can only dream about today and future investors can only look back on with envy. Future investors, using 20-20 hindsight, will be at a loss to understand how all investors in today's world could not "READ THE WRITING ON THE WALL." As I have stated in prior writings, I believe that the events we are experiencing in today's world are an extension of what we experienced in the 70's and early 80's. If this thinking is correct then every investor has the opportunity to make investments that can truly change the financial future of his or her life and the lives of their families forever. Regardless of what anyone would like to believe; when making investments in Junior Mining Companies "THIS IS WHAT IT'S ALL ABOUT"; changing our lives and the lives of our loved ones forever through successful Junior Mining Company investments! Years of experience being a broker has taught me that true wealth is achieved by identifying companies in their early stages of development and making investments with the intentions of holding and adding to positions as the companies prove themselves through successful growth during these stages of development. Time, patience, money and most importantly management that can get things done are key ingredients to successful investments in these companies. To participate in this bull market in gold will most likely be a once in a lifetime event for investors. When history writes the ending to this saga there will be only winners and losers. Most true gold bugs have waited over twenty years for the timing to finally be right and reward them for taking the time and having the foresight to seek the truth. Many of these gold bugs have paid a terrible price in attempting to unselfishly help anyone gain an understanding of the same knowledge they have acquired through years worth of research. I say terrible price because for years these people were labeled as being "negative" and "off the wall" as a result of trying to help and share their knowledge with their loved ones and friends. The harder they tried to reach these people the further they pushed them away. Recent natural and financial events have opened Pandora's Box and the secrets that have been hidden to all, except those of us who have sought out the truth. These truth's are about to be revealed to the unsuspecting and naïve public. These people are about to be taught that the way of life they have embraced and been encouraged to live for the past twenty years is exactly the opposite of what history shows the true norms and prudent financial responsibility to be. In the end, they will be no different than the victims of Katrina. They will be left with nothing and in the end they will have no one to blame but themselves. The only difference between them and the victims of Katrina is the fact that there may not be anyone in a position to give them help and shelter as financial hardships on all may not afford the taxpayer the opportunity to bail them out as well. Since I brought Katrina into this article I must also say that I feel Katrina is exactly what the government needed to open the floodgates on hyper-inflation. Katrina has given the government the opportunity to spend enormous amounts of money while using Mother Nature as a scapegoat for their spending. This is better than a war as the money is spent within the borders of our country and there are no body bags to send home. The recent bankruptcy filings of Refco will have repercussions that will be felt to the very core of our financial system unless the powers that be are able to sweep it under the carpet just like they did to Enron. Refco could be the trigger which sets into motion a string of events that inevitably brings down the financial system that so highly valued its existence. Future articles for public posting and articles to my e-mail list will deal with issues of this nature in much more detail. The important point to understand is the fact that attention and money is beginning to pour into the precious metals sector and this is a trend that is only just beginning. The precious metals sector will see vast amounts of money begin to pour into it as a result of the lack of safe alternatives. In other words the precious metals industry will win by default. The demand for gold is growing and this is a trend that can only be enhanced by future events. As current events continue to unfold even the most outspoken adversaries of gold will be forced to accept the growing necessity to include gold and gold investments into their portfolios. The time is upon us where gold will leave behind its "BARBARIC RELIC" status and enter an era where "FULL FAITH AND CREDIT" is simply not enough and is replaced by "THE GOLDEN RULE!" The recent sharp rally in the price of the Major Gold and Silver Stocks is indicative of new monies flowing into this sector at this point in time It is only a matter of time before this money works its way into the Junior Mining Sector. At this point in time, I prefer my investment capital in the Junior Mining Companies versus the Senior Mining Companies and Physical Gold and Silver because I believe the leverage offered by selective Juniors will, in the end, give returns of 5-10 X that of the Seniors and the physical possession of Gold and Silver. If I am correct in my thinking I will have the option to diversify into the seniors and the physical gold and silver markets as I begin to take profits on my juniors. If my strategy is correct I will have several times more money to work with. My main focus in the Junior Sector deals with companies who have properties that can be put into production in a relatively short time frame with very reasonable amounts of capital required to get them there. I believe that owning juniors that are successful in achieving production in this bull market will give the shareholders of these companies the returns that will truly change their financial lives forever. I do not know of a producing gold company that was trading below $10.00/share when gold traded above $800/oz. in 1980. There are no guarantees that the shareholders of producing gold companies in this bull market will be as financially rewarded as those of the last bull market. I personally believe they will have greater returns by the time this bull market has run its course. The most important point to understand is the fact that investors today in the precious metals sector are pioneers and the mad rush to occupy space in this sector has not even become a thought to those who will inevitably take this sector to levels that could make the tech bull market of the 90's look like childs play. One additional point to make on the Juniors is a point that I have stated in my prior articles. That point is the difficulty in establishing positions of size in these Junior Mining Stocks. Many of the Junior Mining Stocks I follow are very thinly traded. As a result it is extremely difficult to acquire a position of size without moving the price of the stock higher. Normally, I would suggest putting bids in under the market and hoping a motivated seller will begin to give you stock at your price without moving the stock higher. It is very important to understand that periods of low volume in stocks, where their industry is in a long term bull market, is the best time to acquire and build positions. Competition to acquire shares is at a minimum during this stage. As the herd begins to enter this sector, your stocks could see sharp moves to the upside giving the savvy investor immediate returns. The most difficult decisions to make will be the exit price in which to begin taking profits. Investing in a promising company is easy at $.25-$.75/share; the tough part comes in deciding when to sell. For those of you who have acquired large positions in thinly traded companies you know what I mean. The possibility exists that one day we may wake up and find that there are many investors who have entered the picture at the same time. It is at this point in time that I am going to sit back and begin to enjoy the ride as I know "THIS IS WHAT IT'S ALL ABOUT!" I would be glad to share the stocks in my portfolios as well as other stocks that I follow along with the reasons why I own each stock to any of you who would like to be added to my free e-mail list. I will also be adding new stocks to my list soon. Sign up today at the e-mail address below. Mike Mike
Hoy 321gold Inc |
