D. Stewart Armstrong
July 25, 2009
First of all, my personal considerations:
I like:
Oromin Explorations (OLEPF-OTC) about $1.25US
Golden Phoenix (GPXM-OTC) about $0.025 cents (that’s two and one half cents per share!)
Clifton Star (CFO-CA) about $2.50 CA
Nevsun (NSU-CA) 1.80 US and Canadian
Hecla (HL) $3.10 US ( A long and storied past—saved people during last depression!)
Golden Star (GSS-OTC) $2.24
Gold Resource Corp (GORO-OTC) $4.53
Timberline Resources (TLR) about $.38 (AMEX)
Where do we go?
As we look across our war torn country that is slowly dissolving into financial anarchy, I am deeply troubled.
I am a firm believer that free markets are a thing of the past. Not to sound like sour grapes, or Arnold’s “girly-man”, Wall Street has taken over the United States and the banks are their first vehicle of choice to implement policy.
I cannot shake the idea of what would have happened if that $6 trillion dollars was distributed to the legitimate taxpayers of the US. We are, after all, a consumer based economy, and we need to consume to survive. However, one out of four Americans is job/career compromised and don’t believe the baloney figures being posted. It is not 9 %. In some areas of Michigan it is 30%.
I realize that the stock markets (Dow and S&P) appear to be improving; especially with the Dow above 9000. I hear analysts saying that we are headed higher and will have a cyclical bull market in stocks over the next two years. I do not agree with them. These markets are for the big boyz and their black boxes that now trade in seconds not minutes.
People, this is different than anything this Country has ever encountered. Jim Sinclair is not the end all be all, but he’s a pretty smart guy who has tried to do his best to educate Americans on his own dime.
Take advantage: www.jsmineset.com. It’s a freebie and there is some excellent info on the site—nothing specific as in which companies will appreciate—but Jim, Dan, and friends will help you find your own way.
Buy Gold and Silver—not ETFs
Buy gold and silver when and where you can. Listen; even if you purchase a roll of quarters or several silver dollars, you are starting down the right track because you are starting. Formulate your plan or put another way: plan your work and work your plan.
Now listen, I know that people are living from paycheck to paycheck and there is nothing left over but bills and more bills. In California, even yard sales are dismal because people are not buying anything that’s not a necessity. It is like someone turned off the financial faucet.
But the longest journey begins with the first step. Buy 10 pre 1964 dimes. Figure each dime will cost you 10x its face value or about $1.00 each. So ten dimes is going to cost you $10.00 plus shipping. Have a yard sale and find a way to come up with ten dollars or even $100. Put that rainy day money into silver. Forget the next $5.00 Happy Meals for the kids and put that $10 towards a little silver. I don’t care how you do it but find a way. The kids will be healthier and you will be wealthier and perhaps wise?
The next step is where to buy? Maybe you’re lucky enough to have a local coin dealer, such as a Jason Hommel Rocklin Coin Shop in your area. (Google Jason Hommell for some great articles on silver) (http://silverstockreport.com/buyitnow.html) or go to www.silverseek.com — Peter Spina’s site. By the way, Spina and Phillips have an extraordinary newsletter in my opinion—I think they’ll send you a copy if you email them at goldseek.com.
But if not, before buying anything locally, go to Camino Coin (1.650.348.3000) or Rocklin Coin shop (916.315.0888) in Rockland California and check prices. Prices can differ by 40%!!! So it behooves you to do what your mama said and “shop around—ooh yea—you’d better shop around!” Buy locally but these two outfits are an excellent starting point. Franklin Saunders of the Money Changer in TN is also excellent. These are just a few of my favorites for comparison shopping but hey, if they’ve got the best prices—don’t be afraid of doing business with them. Everything is insured and they are all outfits with integrity. And heaven knows, we need integrity in this our beloved America.
Again, Camino Coin in Burlingame CA is another honest outfit and will give you some of the best prices in the nation. Ron Paul helped to start this business and it was sold several years ago but they’re still as solid as ever. I’ve spoken about them many times in the past. Their number is in Burlingame. Ask for George, Parker, or Phil and tell them I sent you. They will be happy to work with you so that you get the feel of the physical markets. You don’t have to start off with thousands of dollars; not even hundreds—just start!
Over my Shoulder.
Stocks and especially Junior Mining Companies are my beat. Remember this if you are a newbie. Junior Mining Companies are risky and currently price wise, they are all over the map.
I want you to remember the huge distinction between investing and speculating. Both are very risky in this day and age but speculating offers more leverage but also more risk. However, with the right company, and with the right combination of management, projects, and cash in the bank, you can do well with a solid junior mining company.
There are some junior mining companies that are going for give away prices and those prices are under five cents per share. I shall leave it up to you to perform your own study of each and every company I list and these are not recommendations—they are companies I am buying or will buy—they may be companies that I like. Remember—they are not for the faint of heart.
I also have to say that there are excellent newsletters and sites out there that can help you. Take advantage of them and don’t be bullied into buying any service. The better ones are expensive—sometimes $300 to $500 per year. I hate the ones that are just relentless with their damn private reports and oh boy have we got the secret for you to make a fortune. Well if you’ve got the secret, why are you selling? I’m ranting. The worst are the ones that will make you read 10 pages before you even know what they are charging. That is the old Jay Abraham method of salesmanship and you can recognize it in many different arenas of sales. The idea is that the more time you have invested in reading about the project or service, the more likely you will buy.
I like Roger Wiegand and he can be found on Kitco.com and he has a service called Trader Tracks—Excellent! Look for his partner Jay Taylor of www.miningstocks.com. Jay’s been around for a long time.
If you have questions about letters regarding the gold and silver community, drop me a line and I’ll try and help. There really are people out there who want to help you. I’d like to think I’m one of them. I just don’t have anything to sell you yet!!
OK so here are a few companies that I’ve followed for a long time that I believe have a chance of doing well from where they are. Remember, you can always lose everything in “penny stocks” so don’t go hog wild. And remember that the government will do everything in their power to destroy the gold and silver markets so they can continue to print their dollars with the status quo appearing un touched. Gold is the canary in the financial markets and we’ve lost a great many canaries. Some of those poor canaries have been taken out with s shotgun.
I like:
Oromin Explorations (OLEPF-OTC) about $1.25US
Golden Phoenix (GPXM-OTC) about $0.025 cents (that’s two and one half cents per share!)
Clifton Star (CFO-CA) about $2.50 CA
Nevsun (NSU-CA) 1.80 US and Canadian
Hecla (HL) $3.10 US ( A long and storied past—saved people during last depression!)
Golden Star (GSS-OTC) $2.24
Gold Resource Corp (GORO-OTC) $4.53
Timberline Resources (TLR) about $.38 (AMEX)
This is enough to get me started. I’ll look at the company, management, projects, cash on hand and the market sentiment as a whole.
I personally believe that gold, silver, and the PM complex is the only place to be in this shaky financial environment. I don’t believe that we’ve been told the truth vis a vis the economy, the bank bailouts, or so many other things crucial to our survival as a nation or as individuals. I believe that the gold and silver markets have been manipulated/managed for years because gold is a political metal. That is to say, that when the US went off the gold standard in 1971 (Nixon) the printing presses were allowed to turn out “paper” 24/7 and so they did. But that’s another story for another time.
And I have to believe that the government or at least certain parts of it are fighting for their very survival. After all any entity 100 trillion dollars in debt has to be in a mood of contemplation. Anything that comes between that entity and its survival is deemed the enemy. But ladies and gentlemen, America was set up by our founding fathers to be our country—not the banksters, not the politicians but ours. Don’t ever forget that.
Feel free to email me at consulting@seacoastpub.com to be on our list, for questions or whatever.
Remember, all disclaimers apply, information is deemed accurate but do your homework and apply your own common sense to the situation and you make your own decisions. These ideas are for me personally and may not work for you.
Until next time,
D. Stewart Armstrong
Consulting to the Junior Mining Community
Posted by D.Stewart Armstrong in Articles