The ONLY way to trounce gold's gains without having to buy coins, ETFs, options, major gold mining stocks, or tiny exploration stocks...
Source: Wealth Daily
Dear Reader,
Two years ago, a stunningly-profitable gold investment algorithm made waves as it passed by word of mouth from investor to investor in Vancouver's exclusive and famously secretive precious-metals mining community...
Back then, the gold bull run was in full swing, and this algorithm quickly became a buzzword... first among the pros and then, eventually, with anybody interested in profiting off the precious metal trend.
The algorithm — nicknamed "Compound Gold" by insiders and private investors — took advantage of rapidly-rising gold prices to tap profits into formerly dormant mining operations.
Gains from this investment strategy could multiply the percentage gained by gold bullion by factors of 5, 10, 20 — even 50-fold or more.
Best of all, it's such a simple strategy to employ, it could literally be accomplished through a single trade on your online trading account.
Among these investors was the legendary John Paulson, who'd previously made himself a household name when he banked $2 billion shorting the housing market.
When he made his relatively quiet Compound Gold investment in 2009, few people took notice...
You can bet that things weren't so quiet when, 15 months later, Paulson walked away with $314 million in profit — having traded just one stock.
Since those early days of the previous metals bull market, things have changed. If you've been keeping up to speed on gold prices these days, or the outlook for the future, things don't seem quite as bright and shiny as they once were... at least, not at first glance.
After peaking out just south of $1,900/ounce in September of 2011, the gold market's cooled, gradually meandering down to a low of $1,354 in May 2013 before settling at its current price of $1,400.
As strong as Compound Gold was during those post-crisis years, the algorithm cooled right along with the gold market.
Of course, as you well know, with every depreciation in price, a whole new set of opportunities opens up for a low buy-in.
With prices now stable about 25% down from their 2011 peak, private precious metals investors — as well as the institutional investors like Paulson who routinely close 8- and 9-figure returns — are starting to eye the yellow metal once again...
Which means Compound Gold is about to kick it into high gear once again for another round of super-charged profits.
This time, however, there's a wild card in play that did not exist the last time the algorithm activated during the post-crisis gold rush... a unique, highly-guarded investment that for the past two months, even as gold prices took a downturn, has broken all the rules by giving investors the kinds of returns not seen since before the 2011 peak.
But as prices stabilize, and conditions begin to reset to reactivate Compound Gold trading, mining industry insiders are waiting with bated breath to see the true potential of this wild card.
In the next few minutes, I'll tell you everything you need to know about this one-of-a-kind investment, how you can get yourself involved with just a couple clicks on your online brokerage account and, most importantly, the eye-popping returns it could bring you within days of entry.
Before I get to that, though, I want to explain to you how Compound Gold works and why now — just like during the crisis years — investment pros and industry insiders are waiting for it to reawaken.
The Insiders' Secret: Compound Gold
And that's precisely the problem with most companies that own property containing gold, silver, or anything else that's valuable...
Getting the valuable material out of the ground costs money... money that cuts into profits.
Cut enough of the profit and eventually, that land embedded with all those millions of ounces of gold and silver becomes worthless.
Just imagine... something worth billions of dollars — and nobody willing to shell out a dollar to own it.
Twenty-five years ago, when gold was trading at $350 and silver at $7, finding properties like this wasn't hard. More importantly, buying them was even easier.
Because no matter the size of the property — or how many million ounces of gold it held — anybody with an average-grade deposit who decided to start mining right then and there would be doomed to bankruptcy... making those properties worthless.
For those willing to bide their time, however, unimaginable fortune was around the corner.
Let's say you have a 3 million ounce gold deposit, an entry-level purchase for any major mining operation...
With cost of production at, for example, $400/ounce, that deposit would be functionally worthless when gold's market value is at $400/ounce. The owner would neither profit nor lose from the development of that property.
But if the market price rises by just a single dollar from that $400/ounce baseline...
That property suddenly becomes worth $3 million.
Historically, though, your gains would have been much, much bigger.
If you'd bought this 3 million ounce property back in February 1987, when gold was trading for $400/ounce, you'd have an asset with an overall value of zero dollars.
Three months later — when gold hit $470/ounce — that formerly worthless property would now be valued at $210 million.
By December of that year, with gold up to $500, it would be worth $300 million.
Or if you want to look at it in terms of percentages gained:
Start with the same cost of production: $400/ounce...
If the market price of gold exceeded this $400 threshold — even by as little as 1% — this modest property which was worthless the day before... would suddenly become a $12 million dollar asset.
If a week later the price of gold went up a mere $8.00 per ounce (just 2%, based on mid-80s prices), the price of that suddenly valuable asset would double...
A 10% jump in gold price and the value is now up 1,000%.
But remember, the $400/ounce cost is just an example...
Every property — every mine — has its own specific break-even point.
Some higher-grade deposits break even below $400/oz, sending their stock skywards earlier on, while lower-grade properties break even well above $400/oz, launching their stock later.
The only trick is knowing that point and buying the stock when the market price of gold is as close to that point as possible: when the cost of production to gold market price ratio is near or at 1.
Hit that "sweet spot," and any subsequent jump in market price immediately launches the stock into exponential growth.
So it's not just a gold investment — but a Compound Gold investment, as it compounds incremental changes in gold price to generate major profits from a specialized type of property.
It's so efficient at gaining ground and so reliable, in fact, that Compound Gold trades have outpaced the world's single most popular gold investment, the SPDR Gold Trust (GLD) — which itself nearly doubled from $97 to $185 between November 2009 and late 2011 — by 458%.
And it doesn't just work for gold...
A company holding 85 million ounces of silver (not a large deposit by major industrial standards) that was worth zero dollars at $6/ounce... would be worth $17 million if the price of silver went up by just 20 cents.
If silver prices increase less than 10% — from $6 to $6.50 — our property would now be worth $43 million.
And if you'd bought this property in 1986... by the end of 1987, with silver at $10/ounce, this "worthless" property would have a net value of $340 million.
I know this comes off as amazing, but it's actually pretty simple; you just need the market to be heading in the right direction, and Compound Gold immediately picks up speed.
Here's what I mean:
When gold prices spiked back in the mid 1980s, millions of gold investors made 50%, 60%, as much as 80% on bullion.
A tiny handful of Compound Gold investors who had the skill and luck to find the right companies just as gold prices were reaching and exceeding their specific costs of production... made thousands of percent — hundreds of dollars returned for every dollar invested.
This sort of speed and reliability puts Compound Gold in a class of its own among gold investments.
It was so powerful that it gave rise to a whole new class of investors — and helped the precious metals mining industry explode into the sector it is today.
But here's the catch: There are times when this method simply won't work.
You see, back in the 80s, we were in the midst of one of modern history's greatest precious metals bull markets. But just before the run started in 1985, a few people who knew what was coming went around deserted stretches of land in North and South America, buying up seemingly worthless tracts of land — land where there were proven gold deposits, but where the cost of production would bankrupt a company in short order.
And then the boom hit — and it was time to sit back and watch the profits collect.
Of course, nothing good lasts forever. When the precious metals bull market cooled off in the 1990s, anybody working this tactic would have to stop operations... and wait until the next one.
That next one came around after the economy crisis of 2008... and lasted a good three years before this most recent cooling off of the market.
But now, it looks like we've finally hit the reset button. And with gold just barely touching $1,400/ounce, there's a lot of room for growth in the near term.
As you just learned reading about the simple mechanism behind Compound Gold, with each dollar that gold gains... properties and companies that had never been profitable suddenly cross over into the black and transform overnight.
It paused for a while after the 2011 peak — but as prices hit multi-year lows, the moment to take full advantage of it all over again is here now.
The New Bull Market is Just Getting Started...
The U.S. manufacturing base has been shipped overseas. The few jobs being created are in the service industry or government sector. The official unemployment rate hovers near 10%, and 1 out of every 5 Americans is on food stamps. The 2008 economic implosion destroyed the real estate market, sent foreclosures skyrocketing, and swallowed up a nearly $1 trillion bailout... and yet, most experts predict the worst is still to come.
2) Fear
The sovereign debt crisis threatens to spread across the globe. Fearful investors are shifting assets from the euro and other weakening currencies into gold. The stock market rebounded from its 2008-09 depths, but some analysts say it's overbought and due for painful correction. Meanwhile, turmoil across the Middle East, Asia, and elsewhere is exacting huge costs in American blood and treasure...
3) Demand
The Federal Reserve has kept U.S. interest rates at virtually zero with no sign of a hike on the horizon, thereby lowering the opportunity cost of buying gold. And investors have responded with astonishing eagerness, even forcing the U.S. Mint to ration popular bullion products in order to meet overwhelming demand. Expect central banks in China, India, and Russia to fuel demand for gold.
4) ReflationOf the major assets, only Treasuries and gold have escaped the selling panic that has gripped the markets. Rushes on gold have caused mints around the world to run out of popular gold coins. Because of the inflationary impact of government bailouts, $2,000 could be the floor, not the ceiling.
5) The DollarDollar weakness, plentiful liquidity, and policy reflation will be persistent themes in the future. Massive fiscal and monetary stimulus have weakened the dollar, whose current resurgence stems mainly from the European debt crisis. Once that crisis reaches the debt-burdened United States, the dollar's weakness as a currency will be evident to all — and its role as the world's reserve currency will be in jeopardy. As always, gold will be the first and most universal remedy.
Companies with production costs at or near today's
Compound Gold sweet spot are more common today because there is so much more room to profit.
The profit potential for this highly-specialized breed of companies is simply staggering — easily as strong as it was in the days when Paulson made his storied purchases, and far, far in excess of anything we saw back in the early bull runs of the 1980s.
Remember, for gold to just rise a few dollars is enough for these stocks to start doubling or tripling.
Dare to think big, though, and you'll see the real opportunities start to materialize...
If gold itself doubles, you could be looking at 100, 500, even 1,000 times your initial investment.
Just imagine investing $1,000 today... and in two years, cashing out a cool million.
All that matters is finding the right company — with the right cost of production levels — and waiting for that sweet spot.
I know what you're going to say: All these theories and stories are great... but you want to see a live example of what happens when a company hits the Compound Gold sweet spot.
Instantly in the Black: South American Silver Corp
In October of 2009, South American Silver Corp. (SAC) was a tiny $13 million company trading at 13 cents a share.
Investors looking at just the stock value would have been misled, because within SAC's property in Bolivia was an estimated 322 million ounces of silver.
Even at 2009 prices, this deposit had a theoretical value of over $5.1 billion.
But here's where the algorithm comes in...
Because the low-grade ore found in great abundance on this property would cost about $20/ton to process into raw silver, the owners of this property would have been losing $2/ton on their investment (at late 2009 silver prices).
Their $5.1 billion asset wasn't an asset at all. It was a liability.
But over the next 20 months, the price of silver did something spectacular:
In a rally to rival all rallies, silver jumped from $18.50 an ounce to over $50!
That's a gain of over 170%.
Not bad, right? You could have invested $10,000, and by the summer of 2011, cashed out with $27,000.
But remember this: At $18/ounce, SAC was virtually worthless... but at $50/ounce, less than two years later, this company was profiting $32/ounce!
At that price, the entire property had a total resource value of $16.1 billion — with $10.3 billion of that being pure profit.
In case you can't imagine what that does to a company's stock price, here's what South American Silver Corp looked like as it passed its sweet spot last year:
Between September 2009 and April 2011, South American Silver went from 13 cents to over $3.00 for a gain of 2,307%.
So if instead of putting that $10k into raw silver, you bought SAC just as its cost of production hit that sweet spot...
You'd have made a pre-tax profit of $230,000.
It's not a trick, it's not a fluke, and you don't need any specialized brokers or understanding of finance to execute... With a single trade, anybody who knew the cost of silver production for this one Bolivian property would have made millions in less than two years' time.
Want another example?
Here's Copper Mountain Mining Corporation (CUM).
It hit its break-even price back at the end of 2008, when gold prices were at $800/ounce. In the two years since, as the sweet spot came and went, the stock looked like this:
So while gold doubled to $1,830 an ounce in the 26 months following that magical sweet spot, this company went from 40 cents to $8.00 — a self-sustained gain of 2,000%.
The gains took the company up from a tiny $30 million exploration outfit to an exploding $600 million gold mining powerhouse... and would have turned a $10k investment into $200,000.
Here's a third example: Agnico-Eagle Mines Ltd. (AEM).
This one goes back more than a decade — and illustrates the point that every property has its own specific break-even point, which can be exploited.
As the gold market picked up after going through a dry patch in the 90s, the profits on paper suddenly materialized, and the value of this company's property shot up exponentially.
It took a little while longer than usual, but in the end it was a monster success story — gaining 2,600% as it climbed from $3 to $80.
Not convinced?
Here's yet another example...
This company, Gabriel Resources (GBU), hit its sweet spot back in 2009. By mid-2011, it had grown by over 800% into a $2.5 billion giant. (In that same time, gold only rose by 60%!)
This wasn't that small of a company to begin with, but an established firm worth hundreds of millions. Regardless, its rise was so easy to predict — and so reliable — that billionaire investor and hedge fund superstar John Paulson bought a full 18% of the company.
The purchase was just one of the many gold investments he made that year... Paulson also invested heavily in physical gold, as well as a number of larger North American producers.
But this play was by far the strongest-gainer of the bunch, helping to make 2010 the biggest year of his already legendary career.
"Mr.
Paulson, a hedge fund manager who sprang to fame when the housing
market collapsed, personally made about $5 billion in 2010, according to
two investors in his company." — NY Times
1.) International Tower Hill Mines Limited (THM): December 2008: 98 cents — January 2011: $10.00 (1,020% GAIN)
2.) Northern Dynasty Minerals (NAK): November 2008: $1.80 — February 2011: $21.90 (1,216% GAIN)
3.) Teck Resources Limited (TCK): March 2009: $3.30 — January 2011: $61.00 (1,848% GAIN)
4.) New Gold Inc. (NGD): December 2008: $1.70 — August 2011: $13.07 (768% GAIN)
5.) Osisko Mining Corporation (OSK.TO): December 2008: 75 cents — December 2010 $16.00 (2,133% GAIN)
And that's just a small sampling...
Which illustrates my final point: Professional investors and industry insiders have been banking billions off this method for years.
In other words, using this basic principal isn't a new or novel idea. In fact, many of the professional commodities investors refuse to make any trades in which this algorithm hasn't predicted success.
Unfortunately, this simple yet essential system of investment is almost completely overlooked by do-it-yourself investors. This baffles me, but it's just a fact of life in today's financial world...
A vast majority of today's investors have simply never heard of Compound Gold — nor do they understand the basic principal behind its pattern of success.
So you can already consider yourself a member of the elite. After all, you already know how and why this system works and the basic principal behind putting it into action to make yourself tens, even hundreds of times your money back in short order.
But picking the right company can still be tricky... There are so many to choose from, and digging through quarterly financial statements to come up with that perfect cost-of-production isn't exactly a weekend activity for everyone.
To my good friend and colleague, precious-metals guru Greg McCoach, it's a full-time job — and a career-long obsession.
And what he recently discovered is a company that's turned the Compound Gold concept on its head.
I Don't Specialize in an Industry; I Specialize in Making Money
One of our closest industry contacts — and one of my long-time friends — is the editor of our precious-metals newsletter, Mining Speculator. His name is Greg McCoach. Greg has been a specialist in the field for over two decades. And he's asked me to write him an intro to bring Compound Gold to a never-before tapped audience...
Just recently, Greg identified a gold mining company that seems to have shattered the mold.
This company — trading at around 70 cents — is still considered a junior miner.
For the last two months, it's been doing something quite remarkable...
While gold's been declining, eventually settling down at $1,400, this company's stock was flourishing — more than tripling in just several weeks in May of 2013!
Now, Greg's had this eye on the company for awhile, before any of this recent movement started.
The reason? He's got a proven method for weeding out the true winners from among the scores of average mining companies operating in this sector.
Over the past 25 years, Greg's experience has shown that there are three critical elements to raking in eye-popping returns...
#1. The Advantage of Junior Mining Companies
Why invest in juniors?
That's easy — money and unparalleled leverage.
You see, it's not uncommon for junior-mining companies to experience huge gains (tenfold or more) very quickly as news of a discovery leaks out.
"When I first met you, you told
me I could use the profits I would make in the mining stocks to pay off
my house. I didn't really believe you. Two and a half-years later I
recently wrote a check to do just that. I never thought this would be
possible. Thank you so much for your wise guidance." — Robert, Illinois.
And the payback on a new find increases exponentially.
You see, in the mining world, it's no secret that most mineral deposits are found by junior mining companies and individual prospectors.
There are several reasons for this:
Junior explorers are not slow-moving bureaucracies like many senior
companies; juniors make fast decisions both in the boardroom and in the
field.
Senior
resource companies generally have a different role to play — namely, to
fund and put into production deposits discovered and developed by
juniors.
When investing in a junior mining company, you're investing in its management team as much as you are in its promising projects... which leads us to the second critical element to raking in eye-popping returns...
#2. Know the Management Team Inside and Out
When Greg studies a company, he spends hours, days, and weeks with CEOs and geologists — even with companies he never actually recommends!
This is the only way to truly get a feel for their expertise.
After all, in the mining business, if an exploration geologist finds a mine, it's likely that he'll find others...
It's a fact that far fewer than 5% of all exploration geologists will ever be credited with a discovery leading to a producing mine. What's more, less than one out of every 1,000 exploration sites will ever turn into a mine.
But those select, gifted explorers who find numerous mines seem to have a sixth sense that helps them to succeed.
Finding these geologists isn't the easiest task in the world. But they're all drawn to it for the same reason: money.
It's the huge potential that comes when a discovery is made.
You see, as part of a junior mining company, the geologist who makes the discovery might get $10 million, $20 million, or $100 million in capital gains for his efforts.
After all, in the life cycle of a mining stock, it's the exploration phase that provides the biggest move in share price (leverage).
The best and brightest mine finders know it. And they'll search the world over to make a new discovery.
When they do, the monetary rewards are tremendous — for both the management team and for investors.
#3. The Simplest and Most Overlooked Part of Making a Fortune in Investing
It's best summed up by J. Paul Getty, one of the most successful investors of modern times.
What did Getty know about building wealth and investing for spectacular gains that his contemporaries didn't?
Several years before he died, Getty shared his "secret" in his autobiography...
He explained that whenever he made an investment, he tried to apply this simple principal: If you want to make money, really big money, do what nobody else is doing.
In Getty's own words, "Buy when everyone else is selling and hold until everyone else is buying."
This isn't merely a catchy slogan. It's the very essence of successful investing.
But as simple as it sounds, too many people do just the opposite. They buy high and sell low. They're trend followers. To put it more bluntly, they follow the crowd.
The successful investor is a trendsetter, not a trend follower. He gets in — and out — ahead of the crowd.
Now, the company I've been teasing this whole time clearly falls into all three categories:
1.) It's a junior miner — and trading
just north of 70 cents, it's in the very middle of the pack. Not too
small. And not too big (for now at least)...
2.) It boasts a highly-successful
management team. A recent discovery reconfirmed what Greg already knew —
that this team is a winner.
3.) It's a gold-miner — and as you
know, the trend right now, despite all common sense, is to be bearish on
gold. Your average investors are selling... That means those who will
ultimately profit, are buying, now, and buying big.
- It's got a super-tight share structure, with just 39 million shares
outstanding. This is music to an investor's ears, because sparse
sharepools mean when the stock moves, it moves fast...
- Almost 1/3 of this company's worth (over $8 million) is in cash — making this company not just well prepared for the next round of exploration, but its stock well rooted in liquid assets.
You'll Make Triple-Digit Gains — OR IT'S FREE!
Most resource and mining traders would be happy to pay upwards of $2,000 and as high as $5,000 to get the jump on a Greg McCoach play. To them, it's minuscule overhead for the profit potential they're getting.
Right now, Greg is offering this report along with a year's subscription to Mining Speculator for just $49.
That's less than 15 cents a day for a shot at making thousands in one simple trade.
I pleaded with him not to go so low on his subscription fees, but instead of listening, Greg took it a step further... and I had no choice but to accept his terms.
He's so certain your Compound Gold stock will go up by at least 100% before the coming winter that if it doesn't work — for whatever reason — Greg and I will refund every penny of your subscription to Mining Speculator.
Bottom line: Either you double your money in the next six months — or you pay nothing.
No small print, no exceptions, no excuses.
Make 100% or get your money back. Period.
And listen, if at any point during your first six months you're unhappy for any reason at all, just say the word and I'll send you a check in the amount of your subscription fee...
6 full months. Any reason at all. No questions asked.
No matter what you decide, however, you get to keep your copy of Greg's breaking report, called:
"Compound Gold: Ride the Gold Bull to Exponential Gains."
For the introductory price of $49 you will also receive:
- 12 Issues of Greg's monthly advisory, The Mining Speculator
- Research Report #1 — "The Most Explosive Junior Silver Stock of 2013"
- Research Report #2 — "The Yukon's Best: The Easiest Gold Gains You'll Ever Make"
The upside here is staggering. I'm not exaggerating in the slightest when I say that this opportunity can potentially alter your life forever.
But you must move quickly...
Because this opportunity is so explosive — and because this company is still a closely-guarded secret within the investment community — I am limiting the number of subscriptions to just 200.
Once we hit that number, I'm closing the file, sitting back, and waiting for the real action to start.
The way things are progressing in the gold market, I wouldn't be surprised to see my new recommendations double or even triple in the coming weeks...
Things are only going to move faster, and you need to position yourself now to ensure full profit potential.
So please, take a moment right now to reserve your space.
However you choose to order, please do it now.
This opportunity won't wait...
Good Investing,
Jeff Siegel for Angel Publishing
P.S. This trade must be executed within the next seven days. With the recent fluctuations in gold prices, and with major movement on Greg's new gold mining stock, I cannot guarantee that this opportunity will be around much longer... Every day is another day of lost gains. Don't miss out an another dollar of profit — click the button below.
As an investor, gold mining companies are already in my diverse investment portfolio. I have subscribed and looking to profit from the advice.
ReplyDeleteThanks for reading my contributions to Emerging Magazine.