D. Stewart Armstrong
June 15, 2008
It’s Official: There is “Blood in the Streets”
I do believe its official: we have “Blood in the Streets”. However, the mess is being cleaned up and the aftermath hidden away very quickly. Those in power don’t want you to know what is really happening. After all, “Blood in the Streets” is not a good thing—its messy, its yucky, and people can’t concentrate on their shopping.
However, it must be made to look like its being “cleaned up”, so just consider this condition to be another “hose job” resplendent with copious amounts of “jawboning”. The hose is the best means of “cleanup” especially if the contents from the hose are under pressure. Therefore, we have a pressure washer cleanup caused by a pressure cooker financial atmosphere. Consider this an unofficial warning because we’ve all been hosed ’tis true; however the future holds a host of additional hosings for all of us. This process is going to repeat itself until one of two things happens: the citizens of this country, extraordinarily tired of being hosed, will demand more transparency and truth from their government or we’ll find ourselves a third world country with a currency that is non functioning. What do you think is going to happen? How do you feel this is all going to play out?
By all means submit your comments to consulting@seacoastpub.com .
Do you believe the government inflation numbers from their Bureau of Labor statistics? Do you believe what you are hearing (the aforementioned jawboning) or do you believe the prices you are seeing and paying at the gas pump and the supermarket?
Do you believe that the Fed is going to raise interest rates? If they do indeed raise them to “support” the dollar, it may be lights out. Nothing will hasten an economic downturn faster than raising rates when there is historically high illiquidity, historically high gas prices, and “bubbles” up the ying-yang. The one thing they’ve managed to do via paper is to keep the price of precious metals under the radar. Never forget that the precious metals are the canary in the coal mine; the thermometer of the economy. If the powerful can manipulate the thermometer they can pull the wool over the eyes of average Americans. Currently in terms of inflation adjusted dollars, gold should be somewhere north of $2000 per ounce. So remember the objectives of the Power Elite: Keep the Dow Up and Gold Down (and never let them know you’re hurtin’!)
Now remember, the powerful don’t believe you and I can really feel the economic effects (the pinch) of that $5.00 gasoline, $4.00 milk, and $4.00 bread. In other words, they’ve really tricked us this time—yesirreeebob, they really have. We have no idea that they’ve plundered (expanded) the money supply and have caused rampant inflation. They are just too clever for the “average type bear!”
Here’s the crux of it: Do you believe that Congress and the current American system they’ve created along with their perks, power, partnerships, and privileged people will be disbanded in order to form a more perfect union? If you do, I not only have a bridge to sell you, I have the river for sale over which the aforementioned bridge was constructed!
If you do have funds for investing, what are you buying?
Surprise, surprise! Precious metals and junior mining companies are at the top of my list. Junior Mining Companies really do have blood in their streets. So what is the old axiom? Buy low and sell high. Buy when there is blood in the streets?
Quality Junior Mining companies are at historic lows; especially in this cycle. Buy! I’m going to give you a list of five companies. I think they are at incredibly attractive entry points given their management, their assets, and their locations.
The key here is Patience-Patience-Patience!
I am suggesting that the prices of these companies are reflecting “Blood in the Streets”. Could they go lower? Well of course they could, but I don’t think by much. A good rule of thumb is not to be too greedy. Take your 60% out of the middle. You’ll never consistently pick the tops or the bottoms. So the best idea is to leave the 20% on each end of the spectrum for those crazy or greedy enough to think they can pick the precise tops and bottoms. I will tell you that right now is an incredibly good time to be buying quality Junior Mining stocks, especially in precious metals and energy.
This is an environment where you or I cannot “talk up” a stock. This is an environment where all you can do is to point people in a certain direction and then they make their own decisions. Keeping quality companies on the radar screen is a good bet for future gains.
We’ve heard it said so many times that you buy low so you can sell high; you don’t follow the herd; you do not behave like a lemming; the crowd is almost universally wrong—don’t follow them, and of course, you buy when there is blood in the streets. This is one of the reasons why I am recommending these companies now– I find them to be incredibly good values considering the projects, their management, and their price.
One final thought on these companies. I personally know the management of each one of these companies having spent hours and hours with them on the phone. They all have integrity. Just because their stock prices are depressed is not an indication of anything other than market shenanigans. These companies will sell themselves if you take the time to visit their websites, review their latest press releases, and do a little “googleing” . Once you realize that the management is square, the rest falls into place given the excellent projects they represent. Remember, these are high risk, high reward types of investments.
Oromin Explorations. (OLEPF.OTC ) Six drills working almost 24/7 outlining enormous deposits in Senegal, Africa. That’s correct—I mean plural as in many deposits. I promise to have something more extensive to you in the near future. Suffice it to say, Oromin has to be my number one pick for 2008-2009. It is now selling for less than $2.50. Be certain to visit their website at www.oromin.com. ducate yourselves! You don’t need me for that! Remember that Mine-Tech, the “parent company” is led by Chet Idziszek, an extraordinarily seasoned geologist and business person who has Oromin Exploration, Madison Minerals (MMRSF-OTC), and Lund Gold (LGD.CA) under their umbrella. It would appear that Mr. Idziszek knows many of the movers and shakers in the industry having been named Canada’s Mining Man of the Year a dozen years back after helping to discover Arequiupa. His associates include David Mallo and Doug Turnbull, two of my favorite people in this sector–as much for their humanity as for their geological expertise. OLE is going to break loose one of these days and you won’t want to miss this ride.
Geocom Resources (GOCM-OTC) Excellent management by way of John Hiner and 35 years of experience. Look at their latest press release from South Chile. They have an excellent business model with Kinross, BH Billiton, and Latin American Minerals as JV partners. Price: around $.15 IMO, I’d buy a boatload. This is what you call leverage, real leverage backed up by integrity, a very small tight nit group of JV partners such as Kinross and BH Billiton, and a list of high quality international projects that will knock your socks off. Simply review their latest press releases and you will be sold. www.info@geocom-resources.com will put you in touch with Samantha Hayes, Mr. Hiner’s IR representative. Incidentally, contact me for their free GOCM CD which has been a big hit. Email me at www.seacoastpub.com and I’ll have one sent to you at no cost. It is linear, informative, and comprehensive.
Journey Resources (JNY.CA ) Solid management with excellent silver projects in Peru and in Mexico. www.journeyresources.com They have an excellent website and work with advanced stage projects which are very close to production.. They will be producing silver in the next year or two and are close to having a 43-101 completed. Price is around $.20. This company also has huge potential and I know what Jack Bal is trying to accomplish and that is for Journey to be a major silver producer. This is an incredibly hard working team which includes Andy Prose and Michelle Larmer. Do review their latest press releases.
Golden Phoenix (GPXM.OTC) has been one of my favorites for the last several years. They are selling at around $.17 a share, which I find to be absolutely ludicrous, but hey, that’s just me. They have a molybdenum project in Ashdown, Nevada, which is producing millions of dollars in revenue every quarter, they have the Mineral Ridge mine which holds enormous promise, they have their own drill rig that they are purchasing, one of the best websites on the web, and an excellent management team, headed up by President Rob Martin. I have several articles on this company on this website so again, it is simply one of those situations that begs for attention. Of course, when the stock is at two or three dollars a share, everyone will be saying ”Why didn’t I know about that company?
GPXM appears to be stuck in a rut, because investors can’t see past a few reservations which may have been relevant early on but are no longer valid. Golden Phoenix is going to be one of those companies that surprise people out of the blue. Only, of course, it won’t be out of the blue but as a result of hard work and perseverance over half dozen years.
Newport Gold (NWPG-OTC Newport is selling at seven cents a share. This is another company that will be a big surprise when it finally gets some real-time exposure. Currently they are in a “building mode” and are being led by Dereck Bartlett, their CEO. Alex Johnston is on board and he is very savvy in the financial end of things. They have a website, which is www.NewportGold.com. They have a property called “Burnt Basin” in B.C. Canada and all I can say is that it behooves us to review the latest press releases and calculate how much that “rock” values out to on a per ton basis. It is well over $500 per ton “rock” which is impressive by any standards. Newport Gold is a classic “sleeper” and I have spoken to many of Derek’s past employees and all to a person, have had positive things to say about the man. There is a “China Deal”in the works but it is not being heavily promoted at this state. Like I said, they are in a building mode and most people would simply pass this one by–However you now know better.
In my opinion, all of these companies are worth salting away and waiting for the market to come to you. This is why you buy these companies at this point. Some of them are selling for less than book value, and some of them could make, are making significant discoveries. No one seems to care. But we’ll get to do that another time. At seven cents a share, a thousand shares will cost about $70 plus commissions. Do the math. Right now is the time to remember that there is “blood in the streets”.
Dr. Ron Paul and his “Campaign for Liberty”
I want to bring to your attention Ron Paul and his newly formed organization titled Ron Paul’s Campaign for Liberty which can be found at www.capaignforliberty.com. Coming from anyone else, I would believe the slogan to be a cliché. Coming from Ron Paul I believe the slogan and the concept behind the slogan has credibility and he will try to ignite a campaign for liberty. I would highly recommend that you join; at least take the time to review the message. Remember, United We Will Stand. This is an opportunity to put your thoughts into action and I trust Dr. Paul. More…
Here are the lyrics to a song that I wrote– obviously, it goes better with the music; but you’ll get the gist.
United We Will Stand
America, America– we’ve never loved you more…
First Verse
From the time of Washington we’ve been a nation of men and women who were proud and strong,
And though we’re many different kinds of people, We’ve built a country where we all belong
And the one great thing that we all have in common, Is the freedom to be who we want to be
To build a better life for ourselves and our children, The right to create our own destiny
The Chorus
United we will stand, together hand in hand in hand, from every part of this land we’ll work– to save the American dream,
United we will be, from sea to shining sea; one voice for truth and honesty, the time to speak out is here
The Bridge
America your future is waiting
Do we have the will to make it right?
Fulfilling all the hope and promise that have been our guiding light.
End
***********************************************
I believe there are several key phrases in this song:
“One voice for truth and honesty, the time to speak out is here”
“America your future is waiting, do we have the will to make it right?
Fulfilling all the hopes and promise that have been our guiding light.”
If there ever was a time to speak out for America and the principles upon which she was founded it is now. I believe we are country that has been terribly misguided. There seems to be an entitlement attitude and I think it begins with the way the two national political parties try and court us with promises they cannot possibly keep. Even though we know that those promises can’t be acted upon, we believe them anyway!
We all know that freedom isn’t free.
We’re watching the miniseries centering upon the life of John Adams during the 1770s, and the lead-up to the Declaration of Independence. People knew what liberty meant back then and they fought and gave their lives for it.
Sometimes it takes an external force to unite a country. That is what happened to the American colonies because of the British. In many ways, that is what happened in Iraq. Only we were the British in that situation.
If we had gone in, “done the job”, (ill conceived as it was) and gotten the heck back out, with no further political ambitions we would have been a lot better off. But somehow we had our eyes on that oil thinking that we were securing America’s oil for the future at $30 or $40 a barrel. Those barrels are probably costing us in the vicinity of $15,000 apiece, not to mention the lives and the “hit” to the reputation of the US as an invader. We were told that there were weapons of mass destruction; then we were told we were outing a dangerous regime; then we were told we were fighting for liberty and for the Iraqi people; and finally we were told that we were stabilizing the entire Middle East by eliminating Saddam Hussein. We were told many things most of them untrue. I ask you now, have any of those goals come to fruition? When we initially invaded with Rumfield’s concept of “shock and awe”, we literally destroyed the infrastructure of one country and as importantly, we destroyed our own County’s self-respect and fractured the opinions of its citizens. No, it was not about 9-11. It is now the United States being in shock and awe because of the financial repercussions. Regardless of the spin, intelligent people knew America was going to have to be held accountable. We are being held accountable right now with oil at $130 a barrel, with inflation at 15% per annum and the resulting prices climbing ever higher. We have an economy that’s barely limping along and a future that looks rather bleak. Ron Paul is a libertarian which means that he is for limited government and for government that truly stays out of the affairs of other countries.
Personally, I believe there are times when we need to take a stand and do the right thing by being a good neighbor. We have squandered billions and billions of dollars on a useless war and ultimately the cost will surpass one trillion dollars if it already hasn’t done so. We could have used that money to build up the infrastructure of these United States, to create the best educational system in the world, to help our neighbors north and south of us, and to use our military might in places where it could have helped desperate people trapped in untenable le situations Darfur comes to mind. So I ask you, do we have “one voice for truth and honesty? Is it possible that we can save the American dream? Right now that answer is “blowing in the wind” but it truly comes down to each and every one of us and how much we’re willing to stand up for liberty-real liberty. Not the “canned kind” that is packaged and labeled for mass consumption but real liberty along the lines that our forefathers had in mind.
Ladies and gentlemen, we are at a point in our history, at a crossroads, whereby the citizens of this country need to stand up for what’s right. Our system is broken; terribly broken– otherwise there never would have been an Iraqi war. Congress would have grown some backbone, and those of us who stood up against that war, would not have been labeled as unpatriotic and traitors.
It is absolutely no fun bringing up the past but the past is now as we are still fighting in Iraq and there are some who say we will claim victory in 2013. My question is how is victory defined? These people are talking in terms of military victory in 2013. What we need now is civil victory and we need an America that lays hold of the truth and will not let go. I will close with this idea which is an old one, but a wise one nevertheless. Those who ignore the lessons of history are doomed to repeat them. The United States ignored the lessons that the Soviet Union taught the world when they had their turn in Afghanistan. But we ignore those lessons for whatever reason and we are repeating history and it is a violent exercise.
Of course we support our military, but even our military is fed up. So again America, your future is waiting– do we have the will to make it right, fulfilling all the hopes and promise that have been our guiding light?
Camino Coins was co-founded by Ron Paul
www.caminocoins.com (1.650.348.3000—1.800.348.8001)
Ron has an old friend whose name is Bert Blumert. Burt is a wonderful man and a friend of mine who writes for www.lewrockwell.com and is well worth reading. Many years ago, they founded Camino Coins, a precious metals enterprise based out of Burlingame, California. You know Dr. Paul has always believed in the Constitution and part and parcel of the Constitution is the notion that gold and silver should be the foundation of our financial system. Dr. Paul, who is an obstetrician, founded this coin company “on the side” as a means of expanding that concept taken from the Constitution. He had to put his interests in that company on the side because of his duties as a congressperson but the point is Dr. Paul believes in “hard money” and that government should not be spending more than it’s taking in. It’s called balancing a budget, something more and more households are hard pressed to do.
I think once people start to understand what Congressman Paul is really saying, it’s almost impossible not to agree with him. That is of course unless you are on the dole and using the United States government as your own personal piggy bank. That’s how it works you know, people look to the government to solve every problem in their lives, to protect them, when they need to really stand up and be accountable– be self-sufficient. I’m not going to go into a long diatribe pertaining to Ron Paul and his ideals at this point, but unless something drastic happens, I will continue to support Dr. Paul as he and his hundreds of thousands of supporters move forward in order to bring the United States back to a political center.
Please remember I am neither a Republican nor a Democrat, but rather a centrist, and a constitutionalist with libertarian leanings. I really have few political agendas.
We all know that the phrases of “fighting for liberty” and “freedom for the people” have been used so often under the wrong circumstances that they’ve almost lost their meaning.
The omnipresent Gift to America or the Gift that Keeps on Giving
I want to once again bring to your attention an article that I wrote titled ” A 2008 Gift to the Gold Community”. If you haven’t already read it, by all means try and make the time to do so. This article is simply a list of a dozen or more talented people who are trying to elevate our consciousness by assisting us in recognizing the opportunities and challenges which face us straight-ahead. These gifted writers/thinkers/analysts understand the truth as it affects America, the international community, and how gold, silver, and the other precious metals play into this equation. Along with that group I would also like to add Eric Hommelberg at www.golddrivers.com.
There are many intelligent, caring, dare I say altruistic individuals who are endeavoring to get the truth out to our American citizens because they love this country–our country and the principles upon which it was founded; but many people don’t want to listen. It may be more along the lines that people don’t know how to listen or even something to the effect that people don’t have time to listen. Some of these “letters-reports” cost money because most people need to make a living, including these reporters/analysts and this their way of doing so. But considering the relationship of the financial costs to the intellectual gain appears to me to be a no-brainer.
“What the world needs now is love sweet love. It’s the only thing that there’s just too little of” — yes, this is true. But, what the world also needs right now is truth and justice. In the land which was supposed to be founded on the principles of truth, honor, and justice; in the atmosphere of transparency, and an environment of decency, America is falling behind.
Again, under these circumstances, think Ron Paul’s www.campaignforliberty.com
There’s one thing that occurs to me and that is simply that the United States has an older demographic, that is getting even older. This older demographic was referred to by Tom Brokaw as the great generation or the greatest generation. They fought and gave the lives for truth, honor and justice. The generation behind them has a challenge and that is to fill their shoes in a way which would make them proud; that would make them feel that they gave their lives for something honorable. Many of their buddies got ground to mincemeat during that war and yet our generation was bogged down in Vietnam and now we have Iraq. World War II was a necessity because it saved the world from tyranny, from monsters who killed an excess of 6 million Jews for no reason other than they were Jewish. I ask you if Vietnam was truly necessary, a war where over 50,000 of our boys, and hundreds of thousands of Vietnamese plus thousands of acres of rain forest and jungles and their inhabitants were napalmed and infected with agent orange. And then of course I have to ask you if Iraq was really necessary and are we going to look back in 20 years and think of the hundreds of thousands of people that have been killed and for what reason? Was it really for the reasons given; the reasons which seemed to change with every exposure of false pretenses and misinformation?
There are many things which have concerned me over these past five to six years.
But the three that concern me the most right now are:
1. A major War breaking out (or being created–think Iran–think Republicans needing a “strong leader” to protect us; one with experience? Anyone come to mind?)
2. Runaway monetary and price Inflation– we already have both!
3. The US dollar becoming a currency debased beyond redemption and ultimately evolving into “The Amero”. The Amerco will be a currency much like the Euro, only the three participating countries will be Canada, Mexico and The United States.
Currently there are two main asset classes which can assist us in protecting our “stuff” and helping with our futures.
1. Precious metals
2. Energy
In essence, it’s that simple. I think if we “cut to the chase” as in so many instances in life, and in business, the ultimate conclusion can be quite simple.
The greatest generation must be replaced by another great generation in order to preserve this Republic. We need to demand transparency and truth from our government. Then we need to offer ourselves and our time with truth and transparency, because, United We Will stand.
Until Next Time,
D. Stewart Armstrong
Consultant to the Junior Mining Sector
Posted by D.Stewart Armstrong in Articles