Gold Rush!

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 12^th 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!”