Saturday, November 3, 2012

Precious Metals Miners, Research, Thoughts

In keeping with my mathematically based opinion that neither Obama nor Romney can fix the deficit nor find the money to pay off that 16.3 trillion debt that we owe- I have been doing a lot of research lately.

Eventually the fiat money system will cave in. There will be a reversion to the mean- which will have gold and silver as the centerpiece of currencies. That's how it's been for thousands of years. Gold and silver are money.

It is interesting to note that just because you are in the right business at precisely the right moment in time- doesn't mean that you will be successful. A huge earnings miss at Barrick Gold proves this out.

I have always shied away from mining stocks. I'll tell you why. They are infamous for pumping and dumping stock on investors; inflating and lying about potential finds. Never have I seen an area of investing so filled with shysters. Mining has always been a feast or famine business. I grew up in a mining town. Butte is essentially a ghost town now, relying on various other business ventures to survive.

Precious metals also have one additional and monumental hurdle to overcome. Bankers. When you buy precious metals, you are actually buying puts on the banker's invention, currency. When people quit using fiat currency- they quit needing bankers. Bankers can't make money if you refuse debt and their fiat currency. They can't build those giant monolithic memorials to themselves when people realize that any debt at interest means in essence- that you are working for a bank. So banks have this giant captive work force of slaves that rely on debt and who in turn pay "interest" on debt. You could not dream up a better scheme for enriching yourself without risk and without breaking a sweat. Indeed, the only time Christ was pissed was at the moneychangers in the temple. Screwing people out of their money. Not much has changed- just the size and scope of the operations.

So that's what you are up against. Schemers, lies, boom and bust cycles, central bankers, and a market that seriously needs to correct. A formidable array of opposition. You absolutely have to use good judgment and due diligence- do not scatter what wealth you have to chance and the four winds.

I believe 25-50% of your money should be in physical gold, silver, and platinum. I even have about 100 pounds of copper in the form of old pennies and nickels.

I've put together a list of 21 mining stocks, juniors and seniors, that meet my "unhedged" criteria. One by one, I've been researching them all week. So far, I've invested in only two. Many of the miners, nearly one half, came from Dave in Denver. Dave runs a precious metal fund with a minimum "buy in" of 100k. It's very safe to say that Dave knows a little bit more about mining stocks and most importantly their financial status- than I do. Not only do I like Dave and love what he writes but for some odd reason- I trust him without ever having met him. I think because he is willing to stick his neck out. I have radar for cowards and Dave ain't one of those. I check his site everyday.

I have about ten other sites like TF Metals which I review frequently. I use 321 Gold as sort of a clearinghouse for information, a site my Uncle Lynn turned me on to.

If any of you are interested in the list of miners that I have- I will provide it to you with absolutely no opinion. You will have to do your own due diligence. Email

One last thought. Be patient. The world is financially collapsing and the people in power are going to try and stave off the inevitable. It will not work. Do not be a bi-polar investor. Don't worry when gold sells off 40 bucks like it did Friday. Gold and silver are the ultimate backstops in an irresponsible world of worthless fiat currency. There will come a day when conscious, rational thought catches on. You will be positioned correctly when that time comes.


Anonymous said...

To those that doubt what Brian is writing about, pick up the book "Aftershock" the author is "David Wiedman". The book will outline what is going to happen between now and the end of 2014. The book also gives you advice on protecting your wealth and how to survive the economic collapse that is comming. If you think that the author is a fear monger, think again. The author called the housing bubble in 2005. To all those who really know what is going on, keep stacking.

Marcus said...

Good write-up, Brian. I believe the whole problem with the debt-based monetary system besetting us has to do with the fact that when money is created from nothing (and lent out), the interest to be paid on that money is not created at the same time. How, then, can all loans be ultimately repaid when more money is demanded than is in existence, unless the solution is to create more, by borrowing more, so as to pay off previous debts, and so on and so on? How long can a ponzi scheme like this last? I think we're finally getting the answer.

Here's a link to an article which explains things pretty well with the monetary problems besetting America. It's a bit dated, written in 1986, but it's spot on and is in essence a condensed version of G.Edward Griffins book "The Creature from Jekyll Island", which is also a great read, but is a few hundred pages in length and a bit of a slog.