There have been two Gold rushes in the United States. We are about to enter a third!
By Mike
Landfair
I’ve
recommended buying Gold since 2004 and I always get the look. Are you crazy? Or Gold? Isn’t that risky? Or,
How do I buy it? Or, Hasn’t it already moved? They may ask how much should I
buy and I’ll give them a percentage and they will say, Where do you I buy it?
Should I buy Gold or stocks? What are
you doing with your money?
Then a year
or two later, I’ll meet them again and they’ll say, “Do you still own your
Gold?” I’ll say yes I do. And they will say, “I wished we’d bought it
when you told us. We just took a big hit
in the market. Of course Gold is too
high now, isn’t it?”
Here we are
at $1775 as I write this and I think Gold will double from here and Silver
could be at $100 or more, maybe in 2013.
When I suggest this to anyone who asks me what I’m doing to get better
returns than CDs, I always get the look.
This Gold
market has been rising in stealth mode for 12 years and one of these days,
people I meet will finally say, “Did you see Gold? I’ve got to get some before it goes higher!”
I believe we
are on the edge of our third Gold Rush.
The first Gold rush
began in 1848 with the Gold discovery in California and sparked radical change
in America. The cry, “Gold!” went up and thousands of men and women dropped
everything and moved to California to search for riches beyond their
imagination. By the end of 1849, the non-native population of the California
territory exploded from less than a 1,000 to 100,000 people. “A total of $2
billion worth of precious metal was extracted from the area during the Gold Rush, which peaked in 1852.”
The second Gold rush began after President Nixon closed the
Gold Window in 1971. Gold had been
pegged at $35 an ounce since FDR confiscated our Gold at $22 in the 1930s. After confiscation, FDR immediately raised
our dollar peg to $35, the price that we told the world we would exchange for
U.S. Dollars. By the late 60s, we were losing gold at that price and the price
accelerated to $65, when Nixon said enough and stopped any exchanges of Gold
for dollars.
I was a stockbroker registered in 1968 and lived through the
second Gold rush when Gold rocketed to $850 an ounce, a 38-fold increase from
$22 and a 25-fold increase from $35. If you owned 1,000 ounces of Gold at $35,
you would have seen its value increase to $850,000. American citizens were not
allowed to own Gold until 1975 when it was legalized. So they bought gold
stocks.
Andrew C. ("Ranting Andy") Hoffman, CFA sent me the
following information showing the performance of Junior gold mining stocks and
Producers from December 1978 to the peak in 1980.
Junior Miners:
Carolin Mines went from $3.10 in 1978 to
$57.00, up 1739%.
Mosquito Creek Gold went from $0.70 to $7.50,
up 971%.
Northair Mines went from $3.00 to $10.00, up
233%.
Silver Standard went from $0.58 to $2.51, up
333%.
Lincoln Resources went from $0.78 to $20.00,
up 2464%.
Lomax went from $15.00 to $85.00, up 467%.
Imperial Metals went from $0.36 to $1.95, up
442%.
Anglo-Bornarc
Mines went from $1.80 to $6.85, 281%.
Avino Mines
went from $0.33 to $5.50, up 1567%.
Copper Lake
xploration went from $0.08 to $10.50, up 13025%.
David
Minerals went from $1.15 to $21.00, 1726%.
Eagle River
Mines went from $0.19 to $6.80, up 3479%.
Meston Lake
Resources went from $0.80 to $10.50, up 1213%.
Silverado
Mines went from $0.26 to $10.63, up 3988%.
Wharf
Resources went from $0.33 to $9.50, up
2779%.
The average
gain of these 15 junior mining stocks was 2314%!
Producing Miners:
Domes Mines
went from $92.50 to $154.00, up 66%.
Campbell Red
lake went from $35.50 to $94.75, up 167%.
Dickinson
Mines went from $6.88 to $27.50, up 300%.
Sigma Mines
went from $36.00 to $57.00, up 58%.
Giant
Yellowknife Mines went from $11.50 to $39.00, up 245%
The average
gain of these 5 producing miners was 167%.
I said there
is a third Gold Rush about to take place.
Most people are unaware that Gold has been rising for eleven straight
years and if Gold closes out the year above $1,566, it will make it the 12th
year in a row. It is currently $1,775!
Here’s the
yearly gold:
2000 -- $273.60
2001 -- $279.00
2002 -- $348.20
2003 -- $416.10
2004 -- $438.40
2005 -- $518.90
2006 -- $638.00
2007 -- $838.00
2008 -- $889.00
2009 -- $1096.50
2010 -- $1421.40
2011 -- $1566.80
2012 -- $???
The new book “Gold Rush!”
answers the question “How do I buy Gold?” and is written from the perspective
of a guy who lived through the second gold rush. It is written for the novice who wants to
protect his or her wealth, but doesn’t know how. Mike Landfair has been writing
about Gold (and Silver) and making predictions about future precious metal
prices for almost a decade. He wants to help you to survive the collapse of
fiat currencies. He’s tired of the “look!”
