The best times to buy low are when sectors are forgoten and not
popular but its peak bearishness occurs right before they soar.
Smart investors buy low when bearishness peaks, they totally
know to not miss the greatest opportunities to multiply wealth.

Most investors have forgotten gold stocks even exist, and the
small minority that’s aware of them has spent all year working
to convince themselves gold stocks will never rally again.
This prevalent worldview today is shockingly dumb, as all
markets perpetually flow and ebb.
Extreme hyper-bearish lows in market cycles are
the best times to buy!

The only way to successfully invest is to buy low
then sell high, and what better time to buy low than when
universal bearishness has left a sector radically underpriced?

Buying cheap requires being brave when others are afraid,
the core tenet of contrarian investing.

If you lack the courage to buy when few others will, you will
be forever doomed to buying high after stocks are already
popular and that’s the recipe for failure.

Gold stocks generated vast wealth for smart contrarian investors
over a decade-plus span when little else did.

Undervalued gold stocks will absolutely rise again from today’s
brutal depths, as they are cyclical like everything else
in the markets.

Gold is a totally unique asset class that investors have
demanded for thousands of years for wealth preservation,
essential portfolio diversification, inflation protection, and
capital gains.

As gold rises and gold stocks follow, eventually investors
grow greedy and ultimately euphoric which drives massive gains.
This leaves gold stocks too expensive relative to gold,
so they correct.
From time to time these healthy corrections snowball, leading
to extreme fear and despair and far-too-low stock prices.

These cycles are readily apparent in this simple chart.
It superimposes the flagship HUI gold-stock index in blue
over the gold price in red over the past decade or so.

Both vertical axes are zeroed, so the close relationship between
the gold miners and the metal which drives their profits and
thus ultimately stock prices is not distorted.

Gold stocks are now languishing near a radically-undervalued
major cyclical low.



The greatest bargains ever found in the markets occur when
blood is running in the streets, when everyone else
is scared out of the gold sector.

Between its brutal stock-panic lows of late 2008 and its
subsequent greedy top in late 2011,
the HUI blasted 319% higher over a 3-year span.

This performance was incredible, the general stock markets
as measured by the benchmark S&P 500
only rose 40% over that span.
The investors who fought their fear and chose to
buy cheap gold stocks earned fortunes, while the investors
sitting on the fence missed most of the gains.

Note in the chart above how closely the gold stocks
followed gold in that giant post-panic upleg.
Rising gold prices lead to rising profits for mining it, and
ultimately in all the stock markets profits drive stock prices.
Since building any gold mine is so incredibly capital-
intensive, essentially most costs are fixed at the mine build.
Thus the vast majority of rising gold prices translate directly
into higher profits for mining.

2013 proved to be another extreme anomaly like 2008’s stock
panic.
The Fed’s QE3 campaign led to levitating general stock markets,
resulting in a mass exodus of capital out of the gold stocks
to chase general stocks.
This resulting unprecedented POG bullion selling pushed gold
prices lower, eventually triggering a couple of ultra-rare
futures forced liquidations.
So gold plunged in Q2.

That was actually gold’s worst quarter in something like a
century, wildly unprecedented in modern times.
Even though market history is crystal-clear, after extreme
selloffs come extreme mean-reversion rallies, gold-stock
traders freaked out.
They sold and sold and sold gold stocks, forcing their prices
far lower than gold warranted.
You can see the huge disconnect today in this above chart, the
biggest of this entire secular bull by far.

Much like during 2008’s stock panic, gold stocks plunged far
faster than gold earlier this year.
While gold dropped back to levels first seen in late 2010, call
it a $1300 midpoint, the HUI plunged to levels first seen way
back in late 2003!
The problem is this is a massive, crazy fundamental disconnect.
Back then the prevailing gold prices were only around $400 per
ounce!
For silver stocks, silver was only near $5.25.

Is it rational or logical for gold stocks to trade at the same
place they first did when gold was less than a third of its
recent prices?
Absolutely not!
Profits ultimately drive stock prices, and many of the elite
smaller gold miners I prefer to invest in are trading between
7x and 14x earnings today.
These price-to-earnings ratios are exceedingly cheap,
especially at the low end.
Stock prices are disconnected from profits.

In times of extreme bearishness, investors seek to rationalize
their irrational emotional biases.
So they look for excuses to make them feel smart for believing
the popular bearishness and selling low.
One of these rationalizations today is that gold miners can’t
make money.
That blows my mind!
ure, some on the high-cost side are struggling.
But the best operators like
Caledonia Mining is thriving even in this dismal environment.

Seeing gold stocks at 2003 levels while gold trades at 2010
levels is fundamentally absurd, even more extreme than the
stock-panic anomaly that led to gold stocks more than
quadrupling in the subsequent years.
Provocatively, there is even more in common with those earlier
stock-panic lows.
Back then after plummeting 71%, the HUI formed an extreme-fear
secular support line.

That was just hit again this year!

As of its brutal 2013 lows in late June, the HUI had plunged
a similar 67% in just under 2 years.
And it just happened to bounce right at that extreme-fear
secular support line defined by 2008’s stock panic.
In each of the previous two major-upleg cycles where extreme
fear gradually morphed into greed,
gold stocks more than quadrupled.

There is no reason at all they won’t at least
quadruple again in the coming years.

As always, gold is the key.
Because of the epically-anomalous third quantitative-easing
campaign by the Fed, the general stock markets inexorably
levitated this year as traders assumed the Fed wouldn’t let
stocks fall.
This crushed demand for alternative investments including
gold, leading to professional money managers abandoning it
to chase general stocks.
So American gold investment demand plunged this year.

But can a unique asset that has been in high demand from
investors worldwide for thousands of years be knocked out
of favor forever by one anomalous quarter?
Not a chance.
There is no doubt investment demand for gold will recover and
thrive again, as it too is cyclical like everything else
in the markets.
After such an extreme depth of out-of-favorness,
gold investment will mean revert and
overshoot to being greatly in favor.

And as long as investors demand gold,
the miners who supply it will be highly valuable.
Thus there is zero doubt 2013’s gold-stock anomaly
will soon unwind, that capital will flood back in and
bid this radically-undervalued sector far higher
to reflect its underlying fundamental reality.
The only question is whether or not you have the courage
to make this high-probability bet that is
very likely to quadruple your money.

The real gold show is only starting - right on -

Next week GOLD explodes -
China is back from -
The "National Day Golden Week"
begins around October 1st for about one week -

Why $50,000 Gold?

http://www.jsmineset.com/2013/04/19/why-50000-gold/

Caledonia Mining - Cheap Is Its Own Reward -

Nice Caledonia Mining SA article here....

http://seekingalpha.com/article/1720432-caledonia-mining-cheap-is-its-own-reward?source=email_rt_article_readmore

http://www.caledoniamining.com

Caledonia Mining Corporation - insiders are picking up more
@ the bargain price -

http://canadianinsider.com/node/7?ticker=CAL



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God Bless

GOLD MONTHLY LOGARITHMIC -



HUI MONTHLY



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The Real Legal Money Tender =

http://www.biblebelievers.org.au/monie.htm



God Bless

NGG --- KABOOM!!! to da moon weeeeeeeeeeeeeee! not

NGG.V(.01) gold company..ready to explode >>>>>>>>>

http://www.newguineagold.ca/default.html

WED.t having a huge volume day on no news, a Friday, and a lousy market not to mention tax loss season time...

Anybody following Celestica!??

Ksm.v not only great chart , amazing molybdenum discovery look photos at http://www.kingsmanresources.com/s/IBPhotos.asp

ELLIOT WAVE & Berman's Call
Email: bermanscall@bnn.ca

http://www.bnn.ca

quite interesting.

canadian mining companies are where to be in the upcoming year. PM's are going through the roof

new to the board, just posting. interested in canadian high-tech stocks

Canada's Alberta Oil Sands

It's no secret Alberta has had its fair share of trouble. When Alberta announced its 20% royalty hike a few years ago, companies started to look for better opportunities elsewhere. With the huge potential of the Bakken play in southeastern Saskatchewan, companies soon flocked to Alberta's neighboring province.

Recently, Alberta fought back, revising its royalty program (for the fifth time since 2007) in order to boost drilling activity. The Alberta government recently extended two drilling incentive programs to March 2011.

That's a start. But let's get back to the oil sands. . .


A few weeks ago, I found myself in a heated debate over the future of the oil sands. And one thing soon became clear to me: this gentleman knew absolutely nothing about where oil sands production was headed. All he could focus on was how the dirty tar sands were plaguing the environment. Hence, the oil sands were an abomination that must be stopped.

To a certain extent, he was right. The massive surface mining operations involve an energy-intensive process that leaves a huge environmental footprint. Granted, he wasn't aware of the reclamation projects underway.

The problem, however, was that he knew practically nothing about oil sands extraction. If he were a little better informed, then he might have been able to see the oil sands in a different light.

For starters, only about 20% of the entire oil sands resource is too deep to be mined. And that, dear reader, is the key to realizing its potential.

You see, the next generation in oil sands extraction is not with those surface mining pits, but rather using in-situ methods like SAGD (Steam Assisted Gravity Drainage). In SAGD, steam is injected into a deposit in order to heat up the thick bitumen. Lowering the bitumen's viscosity will allow it to flow towards producing wells.

I wouldn't be so quick to lump these in-situ methods in with those devastating surface mining operations. In fact, in-situ operations leave approximately the same environmental footprint as conventional operations (not to mention they use 20% less water than the mining projects).

Now, that's not to say there aren't still obstacles to overcome. The SAGD method, for example, emits more greenhouse gases per barrel than mining and is still an energy-intensive project.

Naturally, there are more in-situ methods being developed for commercial production. Petrobank's THAI process immediately comes to mind, which involves a fire flood underground and upgrading the bitumen underground. The THAI process is projected to recover between 70-80% of the oil-in-place, compared to the 20-50% recovery from current in-situ methods. Furthermore, the THAI process uses a negligible amount of natural gas and water.

Considering 97% of Canada's oil reserves come from the oil sands, I think it's safe to assume development will continue. Unless, of course, you'd like to see our dependence on OPEC oil rise.

Need more proof of an oil sands revival?

Look no further than Section 526. . .

Section 526

Section 526 of the Energy Independence and Security Act of 2007 had some strong implications for the Canadian oil sands. Section 526 targeted unconventional petroleum sources with greenhouse gas emissions greater than conventional sources. In other words, Section 526 prohibits the government from purchasing fuels with a higher carbon intensity than gasoline.

On June 17, the U.S. Senate Energy and Natural Resources Committee voted for a bill that could put the oil sands back in our good graces. One amendment passed by a voice vote stated U.S. refiners would not be in violation of Section 526 by buying crude oil produced from Canadian oil sands.

With oil prices on their way to $80 per barrel, any weakening of Section 526 will undoubtedly boost oil sands activity. And I expect those smaller companies developing new in-situ recovery methods will come out on top in the next round of oil sands' profits.

Until next time,



Keith Kohl

Energy and Capital

HOD.TO

VT.TO - 13.61

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I had a great Christmas BoomTime. Thank you :) Lots of smiles...and hugs...and kisses...and way too much food. LOL. Hope yours was equally as enjoyable :)

Thanks Susan, I hope your Christmas went well and was full of big smiles !

Merry Christmas BoomTime!!

Week-end commodities TA annotated (Nov. 24)

OIL, GOLD, USD, Ura., Nat. Gas, Silver, Can.$

1 - Do not click on any link: copy and paste it in another browser page

2 - If the chart appears reduced, click on it to enlarge

http://www.chart-service.com/Misejourupdate.htm

Other products and services:
http://www.chart-service.com/

Have a rewarding week.
Richard (aka TA4U)...

ADK.V - Moved from .39 to .51 last week on strong volume

Diagnos to analyze mining data for Everton
2007-11-13 10:18 ET - News Release
Also News Release (C-EVR) Everton Resources Inc

Mr. Andre Larente of Diagnos reports
DIAGNOS AND EVERTON RESOURCES SIGN A STRATEGIC AGREEMENT FOR A MAJOR PROJECT IN MINING EXPLORATION
Diagnos Inc. has signed a service agreement for a large targeting project with Everton Resources Inc., a Canadian exploration mining company which owns key properties in the Dominican Republic and the province of Quebec, Canada. Diagnos will use its CARDS (computer-aided resource detection software) system on the data provided by Everton Resources with the aim of identifying targets for precious and base metals on a territory covering many tens of thousands of square kilometres.
The highlights of this agreement are as follows.
Everton will pay Diagnos an amount of $175,000 in cash and will grant 50,000 common shares which value should not be under 80 cents each on the day of the grant. In the event of this case, Everton will grant the equivalent of $40,000 of shares.
These amounts are versed for consulting fees and for Everton to acquire a territorial exclusiveness in acquisition of titles, companies and in partnership development for a two-year period after the remittal of the report. At the end of these two years, Diagnos could decide to develop business partnerships on the basis of the results of the targeted zone.
A 2-per-cent net smelter return royalty will also be paid to Diagnos for each economical discovery on the studied zone. Everton Resources will have the option to acquire 1 per cent of this NSR for $1-million at all times.
The limit delivery date of the final report is Jan. 30, 2008.

Week-end commodities TA annotated (Nov. 17)

OIL, GOLD, USD, Ura., Nat. Gas, Silver, Can.$

1 - Do not click on any link: copy and paste it in another browser page

2 - If the chart appears reduced, click on it to enlarge

http://www.chart-service.com/Misejourupdate.htm

Other products and services:
http://www.chart-service.com/

Have a rewarding week.
Richard (aka TA4U)...

Thanks Richard for the charts, much appreciated!

Week-end commodities TA annotated (Nov. 10)

OIL, GOLD, USD, Ura., Nat. Gas, Silver, Can.$

1 - Do not click on any link: copy and paste it in another browser page

2 - If the chart appears reduced, click on it to enlarge

http://www.chart-service.com/Misejourupdate.htm

Other products and services:
http://www.chart-service.com/

Have a rewarding week.
Richard (aka TA4U)...

UZZ, NGE, AAE

Chart of interest...VEI.V .41

Chart of interest...ZMR.TO .24

Chart of interest...PRR.V .39

Chart of interest...STG.V .63

Chart of interest...APH.V .40

;)

LOL!

Looks like a bag of chips...LOL

ENA about to catch fire...........

MCZ - MCZ - about to bust out (((ACCUMULATION))), look at Bolling and accumulation

http://stockcharts.com/h-sc/ui?s=MCZ&p=D&yr=0&mn=3&dy=0&id=p14044210647

MPE.V - 1.59

chart on previous reply

NOT, AAE, and ENA

AAE.V - Closed @ 1.55 - 21%
Company URL is http://www.aaer.ca/

GRYW.PK - Closed @ .16 - Up 14.3%
Company URL is http://www.graylingwireless.com/

BIRD.U - Closed @ 2.40 - Up 6.7%
Company URL is http://www.thunderbirdresorts.com/

Chart of interest...ASW.V .25

Lehman has been buying the stock

For sure, december :)

AAE.V should be on your watch list.

HMZ.TO

Chart of Interest...NFX.V .45

TMG.V looks like an uptrend is starting to form.

chart on previous reply

KNP.V - Last @ .45 - Up 29% - Volume of 1,281,350
http://www.stockscores.com/quickreport.asp?ticker=v.knp

AFA.V - Last @ .15 - Flat - Volume of 510,500
http://www.stockscores.com/quickreport.asp?ticker=v.afa&x=9&y=6

Week-end commos & Can. Markets TA annotated (Aug. 18)

http://www.chart-service.com/Misejourupdate.htm

I am still long......we will see what the next 2 months bring.........i hear we should see more news

you also missed quite the fall in other equities ! KNP had a good July I see.

Week-end commos & Can. Markets TA annotated (Aug. 11)

http://www.chart-service.com/Misejourupdate.htm

No, boom, but I am a member of TradingChief.com
And you are welcome to join...

Rich...

Thanks for the post TA4U

by the way, were you "the chief" on stockhouse?