If a panic in the broader markets put liquidity-crunch-induced pressure on the gold price, the meltdown should be less severe than in 2008 and the eventual rebound could be dramatic, possibly triggering the mania we’ve been calling for. Remember: the market crash drove gold almost down to $700 in October ’08, but the same fear drove it almost back to $1,000 by February ’09. Silver topped that with a 60% rebound over the same period.
As the debt-glue holding everything together continues to lose its grip, the ride will only get rougher. As bad as 2008 was, if the Crisis Creature appears to be coming back when everyone on Main Street thought it was dead, the fear should be much worse – and that should drive gold way, way north. It’s possible the fear, coupled with the lack of any safer alternatives, could prevent gold from melting down at all, sending it instead straight through the roof into the clear blue Mania Phase sky.

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Last week, the price of gold again broke below its new base at $1,200, and the U.S. stock market was again under strong pressure, due to a confluence of fears, most of which point to a deflationary double-dip. The fears were fanned by disappointment in the just-released early quarterly results, by the latest CPI reports that show inflation continuing to moderate, and by yet another poll revealing faltering consumer confidence.

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Khan Resources (KRI.TO) was just getting its stock price moving upward again when the Mongolian Nuclear Energy Agency decided to cancel its mining license earlier this year. Khan has some uranium mining operations in Mongolia. But we have just received word that a Mongolian court has ruled in Khan Resources favor and ruled the NEA’s [...]

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Once an anomaly is identified, it takes extensive and very expensive field work to determine the best locations for drilling holes in the ground, which you have to do to calculate a volume of mineralized rock, from which you can estimate the metal contained. It usually takes at least a year, and often several, to identify targets for drilling. And drilling off a deposit of any significant size takes several more years, usually after many false starts and setbacks, because you can’t see through rock to know where the goods are.

Continue reading " Does Afghanistan Have $3 Trillion Minerals? "

I don’t know if someone else coined the term, but I first heard the term two-bagger, three-bagger, ten-bagger from Peter Lynch in his famous book One Up On Wall Street that I read a LONG time ago when Peter was still in charge of the Fidelity Magellan fund. We made some good money with Peter [...]

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L: You don’t think America can win the War on Terror?
Doug: [Sighs deeply] No. Not only is that impossible, the very idea is meaningless. Terrorism is not an enemy – it’s a tactic. You can’t have a war on terrorism any more than you can have a war on artillery barrages, cavalry charges – or a war on war, for that matter. The first step in winning a conflict is to identify the actual enemy. And the fools in DC can’t even do that.
But before we look at the future, it’s worth noting that terrorism has long been a favored tool of those in power, going all the way back to ancient times.

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Short answer – HECK NO! If Ben Bernanke wanted to run a real company in the real world he would have to operate by real rules, not Alice in Wonderland, printing press in my back pocket rules. But… maybe someone else has a different opinion! Is Ben Bernanke Smart Enough to Be a CEO? By [...]

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Oddly enough, where the mountains were once the guerillas’ strongholds, now they are relatively safe. Basically, where there’s good infrastructure, the army can deploy easily and the rebels don’t stand a chance. Up by Ventana and Greystar, I’m told, some 300 guerillas were cornered and wiped out to the last man. No prisoners in this war. So, they have been pushed out into the most remote regions, which are out on the jungle plains where there are no roads. One project I wanted to see is on the edge of those plains to the west, and the company politely said it was not yet safe… but that there’s a new army base nearby, so in time, the violence will move away.

Continue reading " Columbia – Investing Again In Mining Stocks "

Peter Grandich has a free investment newsletter / blog that many people have come to rely on for investment advice, particularly in the past year with his phenomenal stock market call and for resource stocks of the junior Canadian variety of which he has had a number of recent winners also. Peter has highlighted these [...]

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At any given time, there’s a single international spot price for an ounce of refined gold. Gold is priced in U.S. dollars: $1,076.50 per ounce as we go to press. But what about the gold an exploration or mining company has in the ground – how do we value that?

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