Ladies and Gentlemen: I think Jim Willie is worth the time it takes to “plough” through his articles; they are detailed, accurate, complex, but well researched.

This one is particular hits home because he is talking about our Nations very existence being in jeopardy. We all need to find a way to save our homes and in some cases this is going to take some very smart speculation. So many who have contacted me are saying that a doubling or even a tripling of their money will not save the day. They need “ten baggers”. The only place I can see those occurring is in the resource sector–precious metals (gold and silver) and energy (oil and gas)  and now, August of 2008 is the time to begin. It will take discipline and patience. If you are up to the task, and are willing to take the risks and to learn, then I might have a few ideas for you. Stay tuned.

Read Jim’s article carefully and consider subscribing to his service. It too, takes patience and discipline.

I will make a few comments and highlight items of importance. However, Jim’s article is as written His Website is www.goldenjackass.com.  Regards, DSA

The Path to the Printing Press by Jim Willie CB

“Conditions are worsening for banks, not improving — defaults and foreclosures keep the pressure on banks and the prime and commercial loans are next to suffer losses. Benefactors up to now have been burned with steep losses. They want more control of the banks they have aided. Yielded Sovereignty will soon be an issue and the banking system will turn to its final solution.”

“An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, US Dollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.”

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The path to the printing press is a long one. It is used at first to spread credit indiscriminately in sustaining commerce and funding financial systems. For the United States, that means horribly inefficient usage of credit in commerce, where 5 units of credit produce one unit of business activity. In the twisted bizarre arena that is Wall Street, the financial maze they created has imploded as yet another chapter is written in the standard textbook of boom and bust. They managed to cause the most powerful deflation storm in eighty years, all born from the monetary inflation wellspring, no easy feat. The Americans think they are immune to the immutable laws of economic nature. They dispatched most of their industry to the Pacific Rim, then Mexico, finally a more complex mix of Asia with China the new center. With that exodus went legitimate income. In its place was the great majority of the US Economy resting atop a housing and mortgage bubble. The heretical US economists, led by the closest thing to Mr Magoo on the planet in the former US Federal Reserve Chairman, endorsed the plan as not only sound, but advanced in risk offset price modeling. Imagine Mr Magoo a knight! Now the entire model is in the process of dissolving, taking down the entire US banking system, including most lending institutions, into the sewer of acidic pits, the wasteland of dilution, or the cemetery for bankruptcy.

Long is the path to the printing press, the ultimate supposed savior of the nation. Current US Fed Chairman Bernanke once said, “But the US government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.” His words are taken out of context, unfair to him. Sue me! The hidden cost is beyond description as huge, like ruin of a national financial foundation. It is a device that kills the host, hardly any solution. When the financial system is totally broken, when allies are totally betrayed, when investors are totally ransacked, when isolation is the spoils of current policy riddled with curried favor, the printing press remains to save the day. What heresy! Usage of the printing press in large scale volume will earn the certain reward of astronomical gold and silver prices. The decisions to be made will determine whether a return to precious metal supremacy is accompanied either first by very high interest rates and uncontrollable credit derivative meltdowns, or second by suppressed controlled interest rates and total discouragement of savings from artificially low interest rates. Systemic meltdown awaits the first path, while continued pursuit of bubbles the second path. Either way, gold wins! The spoils will be devastation for the first path, but rationing for the second path. Both paths require the most dreaded device to be deployed at the last turn, the printing press. Other alternatives will have been exhausted.

A tragedy is in progress. For three years, my premises have centered on foreign-held debt leading to lost sovereignty, on the inevitable wreckage of the US banking system (first with insolvency, later with bankruptcy, finally consolidation and nationalization, and a long drawn out housing bear market made worse by the extraordinary extension at its peak. That pathogenesis is on course, in progress still, despite supposed rescues, most being horribly designed and full of the same broken devices that Voltaire warned about. Few people think much about the Founding Fathers of the United States these days. They would be appalled, even say, I TOLD YOU SO. Thomas Jefferson warned specifically about handing over the power and authority over money to private banks, stating in clear terms that if granted, then in time the nation will lose their homes to bankers. We are there. The brilliant second president crafted the Constitution, an ignored document shredded by those who prefer war, fear, and private profit to liberty, free markets, and honest money, while they spout endlessly about freedom, national pride, and foreign threats. The menace is internal.

IMPERFECTIONS & DECEPTIONS

he Mortgage Relief Bill just signed into law should be regarded as a first pass at governmental rescue actions, the first of many. The first bill always represents the most difficult bill to pass. The succeeding bills will be easier, since the interference has been removed. The nationalization movement in mortgage finance has begun. The benefits will extend ranks to homeowners finally, and not exclusively to the banker elite as seen to the present date. One should note that the elite, primarily shareholders and bondholders, stand in first position of priority in this first bill designed toward rescue and relief. In return for quasi-formal guarantees from the formerly quasi-government agencies, Fannie & Freddie (F&F) will submit to strong reins from a newly created regulator. The Federal Housing Administration will insure up to $300 billion in such mortgage loans, as 400 thousand upside-down homeowners will be lined up for aid, provided loan originators eat a large helping of red ink. Attached to the legislative bill, more like snuck in, was a convenient increase of $800 billion to the USGovt federal debt limit, now at $10.6 trillion. read more

D. Stewart Armstrong

Preface and Insights

One of the questions I receive most frequently is why xyz stock is down (never why is it up)? When the gold price is moving up, everyone is smiling, but when gold and the precious metals markets are moving downwards, everyone is doom and gloom and wants a reason—now! The financial press is only too happy to oblige with a daily commentary of blather. In other words, gold was up because the dollar was down, vice versa, or some other reason as for movement. Of course sometimes they have it right, but so often I feel their commentary is just to fill up space and appease the masses with a reason, any reason!

I want to suggest an insight to both investors and management. Nothing occurs in a vacuum. Another insight is that try as you might, you cannot talk up a stock or a company over the long term. I’ve seen companies “throw” a million dollars at promotion and move a company stock up to $3.00 only to see that stock fall to $.25 when the promotion stops and the tenor of the market changes. We also have to remember that sometimes these orchestrations are nothing less or nothing more than “pump and dump” machinations.

Therefore consider the cost averaging approach to both purchasing stocks (investors) and promoting them (management). My job then becomes to keep a certain stock of some quality in your consciousness—over time; up or down, expensive or er, less expensive. Get the picture? Fundamentals basically run the story—the story does not run the fundamentals.

Companies should “keep on keeping on” just like the old hippies used to “keep on truckin’”? Why? Because that is what they do. Some do it more successfully than others but that doesn’t change the fundamentals of the basic equation.

Making sense of Golden Phoenix

I must admit I’ve been trying to make sense out of Golden Phoenix being at $.15. That is what most investors are primarily concerned about—the $.15 share price so I will address that topic first. However, my opinion is that we have to transcend the share price and look closely at how the company is functioning in these treacherous financial waters especially within the context of the entire junior mining sector. Should one be asking the question “how can Golden Phoenix be an American success story when their share price is at $.15?” Or should they be asking “what is Golden Phoenix doing to create shareholder value and protect their assets?”

My understanding, from talking with Rob Martin is “damn the torpedoes, full speed ahead!” I would then respond to you by saying that it’s not always about the share price of a company but how that company is responding in an economic environment that is absolutely challenging beyond belief. Regardless of the price, and I know it is so very important in everyone’s decision-making process, I have to say that this is an environment where one needs to look at the underlying value of the company and what they are attempting to accomplish.

Indeed, we could go on about these dismal financial markets ad infinitum and ad nauseam because they truly are nauseating. Suffice it to say for this exercise, Golden Phoenix is a reflection of how all of these markets, and the puppeteers behind them, are pulling the strings. Jim Sinclair (www.jsmineset.com) has recently released a list of 22 criteria for investors to review in the choosing of a quality junior company. I am going to begin using this list as I review my own portfolio. Of course, I will also use my own standard five point criteria which I’ve been advocating for seven years:

• Quality, Experienced Management

• Top Echelon Projects

• The Ability to Finance

• The Willingness to Promote

• Company Ethics beyond Reproach.

As you combine these two lists, you’ll see where there is a great deal of overlapping. My list has room under each major category to include Jim’s specific ideas so you might consider mine as the one simplified and easy to remember, a broad overview list and Jim’s as the more detailed (refined) one.

My feeling is that Golden Phoenix meets most of these criteria.

Jim Sinclair’s criteria to consider (verbatim) for the selection of a precious metals junior is as follows:
1. Management ethics, found out by checking litigation, criminal and credit records. All this information is now easily attainable.
2. A property or properties with outstanding upside promise sustained supporting data.
3. History of success both on the ground (properties to mines) and in the financial markets (stock performances of at least 10 to 1 value).
4. Strong hands on board
5. Key man insurance
6. Order of succession in place.
7. No anti-takeover devices written into the indenture of your certificate.
8. Availability of knowledgeable person in the company to speak with.
9. You retain a property-qualified geologist to perform a desk review of all exploration, development and production information at company headquarters.
10. A property visit by this consultant if the position is to be of significance.
11. The company has access to financing.
12. The company has used financial restraint, therein having control over insider options, preferably none.
13. The company has no warrants outstanding.
14. A significant short position at this time is highly desirable.
15. The market must be liquid so therefore some respectable listing is preferable.
16. Preferably not listed on the Frankfurt Bremen Exchange.
17. Key executive and board members hold a reasonable amount of shares.
18. Goodly number of stockholders.
19. Owned by but not primarily owned by some respected fund interest.
20. Preferably not in any index.
21. The company has a good Sarbanes Oxley program with financial checks and balances.
22. Audited by a respectable firm with special attention to who does the subsidiary audits if offshore to the venue of incorporation and trading.
What more can you say? Jim, as usual, along with Dan and Monty and the entire crew have hit the nail on the head. I would say that it is almost impossible for most companies to hit on all 22 cylinders but I think something in the vicinity of a 75% score would certainly be worth considering. I find it quite interesting that Mr. Sinclair mentions ethics as the number one criteria. In this day and age, if you are falling short in the ethics department, you are certainly letting your shareholders down.

Finally I would say that Jim is really referring or at least considering his own company Tan Range Explorations as the template for compiling these 22 criteria. More power to him– he has worked very diligently on behalf of the gold mining community and has never pushed his company out front and center. He is an extraordinarily respected member of this community–and for good reason.

Review the GPXM Website.

As always, I suggest that you review their excellent website at www.golden-phoenix.com. Pay special attention to the Highlight section which is on the front page. The company normally places the latest news in this section.

Then, I suggest that you go to menu bar heading “Everything Else” and look under the sub-headings of “facts and figures ” and find “Photos, and especially “Spotlight” wherein they lay out an excellent historical perspective of the company. It is truly a well presented web site and it deserves your attention. If a picture is worth a thousand words, GPXM is worth a few million.

There are two products for which Golden Phoenix is in the hunt. One is molybdenum, and the other is gold. They are already a producer of molybdenum or “Moly” to which it is commonly referred. But remember that this company does have cash flow, they are a producer, and they will eventually be a discoverer of additional molybdenum and in my opinion they will also be a discoverer of gold at their Mineral Ridge property.

Several Questions

First of all, the web site specifically addresses commonly asked questions under the heading “Everthing Else” and “Chat Shack”

There are several questions that come to my mind when I review this company. First, how is the price of Moly holding up? Secondly, how is the price of gold holding up? Thirdly, what is the financial condition of Golden Phoenix?

The last time I looked, the price of Moly was in the mid-$30 level, holding strong. Additionally, there is serious demand for the product. Molybdenum is used as an alloy to strengthen metal. This alloy of moly and steel creates a material with a special kind of tensile strength– both strong and flexible. This is the perfect metal utilized in constructing pipelines and things of that nature. The emerging markets of the world have a great need for Moly and the grade of Moly found at the Ashdown mine is of exceptional quality. As far as the price of gold is concerned, I think I might be preaching to the choir when I say that I believe it is going well past $1500 an ounce within the next several years.

Short term, it is anyones guess and it may even get back into the $850 range but I strongly doubt that. It is probably the most manipulated commodity on the planet and that is why we have to view the gold charts with somewhat of a jaundiced eye. Personally, I’d be more than happy to purchase gold at $850.

In terms of the financial state of Golden Phoenix, I think we could say that it is on solid footing. Money is not wasted in this company nor is it peeled off to be used as huge bonuses for management. No, I’ve always found Golden Phoenix to be more of a “mom and pop” operation– one where shareholders are taken seriously and where they are not considered to be collateral damage or a Collateral necessity.

I think we also need to remember that management has their own futures tied to the success of this company (#17). That means in effect that if Golden Phoenix does poorly, many of these people who put their life savings into the company are also going to be doing poorly. They are not operating in a vacuum and they have the interest of shareholders firmly in mind. read more

D. Stewart Armstrong

Introduction

Fodder for the masses has to do with how “the powers that be” address all of the turmoil in which we as a nation currently find ourselves in mid-2008 and how those same political entities downplay, manipulate, orchestrate, and deal with this turmoil. It doesn’t matter that they have created this turmoil through misguided policies and printing and wasting humongous amounts of fiat currency which is being created at an ever increasing pace. This will of course end in rampant inflation which cannot be hidden or bluffed away. We will once again reiterate that inflation can be classically acknowledged as an increase in the monetary supply and that rising prices are a result of too many dollars chasing too few goods.

For many years, the masses have been told that “inflation was under control”. This is what I call “fodder for the masses”. But is it under control? Ask any housewife that does the shopping at the local market or anyone who fills up their car with gasoline?

We are the masses—you and I—doctors, lawyers, writers, teachers, carpenters, nuclear physicists, and Indian chiefs. We are fed the fodder and we are supposed to believe it! What the government tells us, what financial TV tells us, what society tells us, and what one left wing, right wing or other group tells us is supposed to be truth. But is it?

Any time you go against one major entity or another you pit yourself against some formidable forces.
We’re not looking for a fight, we’re looking for the truth.

But here is the crux of it. You can make fodder as simple as you want or as complex as you want. You can accept it or you can reject it. I think it was Jim Sinclair who suggested that all of the fodder constantly being thrust upon us to manipulate the masses to accept the status quo and to reject gold is nothing but “noise”. Noise is all around us just like fodder. It’s up to us to choose, but when you really break it down to the lowest common denominator it is really about the truth. All the rest is noise and the fodder is simply a smokescreen to cover the lies.

It’s just like we all learned in the second grade. Tell the truth (don’t lie), get along with your classmates and your fellow students, don’t steal, and play nice.

Protect yourselves and your Families!

You read these pieces that I write with the understanding that hopefully I will bring some enlightenment into your life. By writing these pieces, you bring enlightenment into mine. It is a quid pro quo. So, I’ll cut to the chase. It is not too late to participate and invest in the precious metals complex. But there are three things that I would suggest to you. The first is don’t do anything that is uncomfortable for you such as dealing with futures contracts and especially options. There are no get rich quick schemes in precious metals. We must always have a full understanding of what we are doing, and why we are doing it. We must also listen to people who can be trusted. That can be a sticky one so I recommend you once again review: “The Gift to the Gold Community”, and article found on www.seacoast-consulting.com

Secondly, it is not too late to purchase physical gold or silver. You can do this and still achieve a profit or you can do it as many people do and simply purchase the physical metals as a safe haven. You can still double or triple on your money over the next 5 to 10 years simply by purchasing the physical metal and storing it in a safe place (but not in a safe deposit box). Finally, do not purchase exchange traded funds or ETFs. They make too tempting a target for any government entity which finds itself in a pickle. I will also reiterate that you can start with a simple roll of pre-1964 (90% silver) dimes or quarters.The issue is simply to do something–get started now!!

Mining stocks of all shapes and sizes are still viable and we are afforded the luxury of being able to purchase some very good companies at extraordinarily attractive prices. The last 18 months has been dismal for the juniors but that doesn’t mean the juniors are dismal. It simply means that the environment in which gold shares have been depressed has never been worse. This is because once again, gold competes with fiat currency. Gold is the barometer of the economy and if you can break that barometer you can fool many people most of the time. But remember, you will never fool all of the people all the time. I will update some of the junior mining companies in the very near future. When I update a company, remember that I do it within the context of the market at large because nothing occurs in a vacuum.

Nothing occurs in a vacuum!

First of all, why do I say this? I want you to keep remembering that the world is interconnected and nothing occurs without some prima facie cause. The Housing Crisis didn’t occur out of the blue because people stopped wanting places to live. The dot com bubble in 2000 didn’t happen because people stopped using computers. And people don’t hate the United States because we have a “pretty country”. For the most part, Americans are a kind and generous people willing to give you the shirt off their back if you ask them for it. Most of them will also allow you to “cut in line” if you simply ask them. Force the issue, i.e., butt in without asking, and you’re likely to initiate an ugly exchange. Think about that one because it’s a simple metaphor for “cause and effect”. Most educated Americans do understand what is occurring in this Country–at this point it is simply easier to go along to get along. But this can only continue for so long and when the hard earned money of Americans is at stake, the rules and the attitudes will change overnight–on both sides of the issue. This is what Mr. Ginrich accentuates in his piece posted below.

I feel Americans are a good and decent people; we’re tolerant and exceptionally generous. We simply want a level playing field–this is why the immigration issue causes such heated emotions. The masses are told one thing or another; but they never seem to happen leaving Americans feeling violated because they are paying for illegal health benefits when Americans themselves are paying through the nose for their own very expensive health care and health insurance. Illegals walk into just about any emergency room and have the same health care as most Americans. All the extraneous reasons and excuses given for this state of affairs is simply fodder for the masses.

So, How many times have you heard me say that “nothing occurs in a vacuum”? When we hear about Freddie Mac and Fannie Mae and all of the things that have gone wrong in our financial system, we understand that these issues have all been predicated upon one misguided policy or another. Invariably somebody has not been telling the truth and there is certainly a lack of transparency centering on many of the issues facing the United States today. It is downright frightening and if we don’t find a way to the truth, we won’t find our way at all. It’s that simple. There is a huge disconnect between Washington, DC and the individual states just as there is a huge disconnect between local politics and individuals in those communities. Then there is the largest disconnect between Washington DC and the citizens of this Country.

The fodder for the masses has gotten so ingrained in the public consciousness that we don’t even challenge the mis-guided policies, we don’t even fight for the truth. It’s just too much trouble because we “feel” we don’t have the power to do anything, and besides “they’re” going to win anyway. So don’t fight City Hall; just try to get by. After all, something is amiss when the presidential election process costs in excess of $2 Billion dollars. “What do you expect me to do about it”? That is a prevalent attitude.

This kind of a national mentality develops over years and slowly but surely our civil liberties are eroded away (by design), and the principles upon which our country was founded begin to dissipate. We are all left scratching our heads saying how did this happen? Where did we go wrong? We should know how it happened. It happened because little by little we were manipulated, we were apathetic, we made bad political choices, and we probably spent too much time trying to make a million dollars as opposed to trying to make the country and ourselves just a little better.

Currently this country is not “by and for the people”—it is by and for the special interests. These are the same special interests which have a great deal of power and really only care about themselves and the bottom line– oh yes, they do care about the quality of that fodder. It wouldn’t be so bad, it would almost be acceptable if they contributed something towards our dying planet, and our “bought and paid for” political system, our debased currency, but that doesn’t seem to be the case. Its war over dialogue, it’s ostentatious over substance, and its “bait and switch” on a national level. Look, I don’t want to get too macabre here, too depressing, but I would challenge each of us to spread the message that we are on a fast track to hell in a national hand-basket.

But surely this can’t be a surprise. If it is, you haven’t been reading between the lines. In actuality, we are all so busy trying to raise a family, trying to make a living, accepting our status quo, that we’d just don’t feel we can make a difference. So we accept the fodder which eventually turns into a slaughter of the real freedoms and liberties which are slowly disappearing. It is all interconnected–nothing occurs in a vacuum.

Fodder, Politics, and Gold.I don’t think of myself as a self-absorbed political animal but if you’re involved with gold, or gold-mining, in some ways you are indeed involved with politics—like it or not. The reason is that gold is currency and gold competes with fiat currencies. Therefore, like it or not, I’m involved in politics because gold is a political metal as Bill Buckler so eloquently puts it.

Yesterday (June 18, 2008) in Bill Buckler’s weekly Gold letter (www.the-privateer.com) he stated that a prosperous nation really doesn’t take that much to function. It takes private property being sacrosanct; you need free exchange (I would add in both dialog and ideas) for which you need sound money first and foremost. After that you need a set of inviolable and unchanging laws designed specifically to protect individuals against force and/or fraud perpetrated by anyone including the government (I would add especially the government). For the latter, a well thought out Constitution is also necessary, a constitution laying down the laws which the government must obey. That’s about it.

This brings us full circle to the simplicity issue. I think that the entire financial fiasco facing the US today is really because government, special interests, and multinational corporations have been extraordinarily preoccupied with hiding the truth from us so they can maximize profits, solidify power at the expense of the ideas of our founding fathers.

I honestly believe that we have some congress people that would like to do the right thing but their arms are twisted by fellow legislators, and tainted with party politics to the point that if they want to get reelected, or if they want to be appointed to any of the powerful subcommittees, and they have to go along to get along. And of course there’s always that question of getting reelected– which is far more important than any other issue facing them. They all get caught up in this ego maniacal self- importance of participating in the halls of power we know as government. read more

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”. read more

An American Success Story - Part I

- D. Stewart Armstrong

May 29, 2008

Preface: As I was putting this one to bed, I got to thinking. What really does make An American Success Story? Is it reflected in the share price? Is it the future potential? Is it in the reality or the perception? Is it the management and the project? Is it the stamina it takes over years to build a company and be ever cognizant of the single minded purpose it takes? I think it is a bit of all of all the above and then some. The relevance of any company along its growth curve it reflective of its ultimate success. What I want you to take away from the piece and the ones I’ve written in the past about Golden Phoenix is that this is a company building value for its shareholders and is doing so along the full continuum of its growth curve. I want you to review what the company said they were going to accomplish and then compare it to what has actually been accomplished within that specific period of time. It is empirically verifiable. It is a continuous process of building value for the company and hence for the shareholders. I keep saying “we all want it, and we want it now”. But the big money is made by those who understand trends in the investment arena and get in front of them; recognize true quality; appreciate integrity; and then have the patience and the ability to hold on for the long haul. This is applicable to all companies and Microsoft, Google, and Gold Corp among all the others, have been subject to the same process. How many times have you said. “Oh, if I had only bought such and such”. I think there is a such and such sitting right before us. Who wants to step up to the plate and be part of an American Success Story? I do and I believe.

Introduction

Of all the companies that I have been covering over the past 10 years or so, Golden Phoenix has been one of the most intriguing. Pure and simple, I think it is a real American success story and I personally think the best is yet to come for this junior mining company with a special focus on molybdenum (moly), gold, and silver.

I remember the period pre-Rob Martin and David Caldwell. Back then, it was a bit like the old Wild West and unfortunately the guys in the Black hats were far too many. But many things have changed since those days. The “White Hats” have proliferated and while the company plans for a TSX listing, it continues to ramp up production on their Ashdown moly project and drill for gold on their Mineral Ridge Project. The goal is to eventually run 100 tons of high-grade moly (generally between one and three percent Mo) through their mill at Ashdown. On a consistent basis, those are extremely profitable numbers.

The company turned itself around because it sought out and hired a management team that was seasoned, intelligent and creative. From the boardroom to the mine shafts, these guys instilled a work ethic and a team spirit of which all could be proud. They put into play a business plan that has every probability of success. They’ve engaged people, involved people, and endeavored to create a corporate culture that is both intense and rewarding. I honestly believe that Rob Martin, the President of Golden Phoenix, used his 25 years of success in the private business sector to create a blueprint for success within this company.

Measuring Success

We frequently measure a company’s success solely by the price of the stock; but there are many different ways to measure success. What I believe to be the most impressive trait of this company is adaptability. They have been able to evolve through the different business stages and cycles, which have kept them in the game—kept them relevant—and have done so in a very difficult economic period in America. Why? Because America has chosen to mislead the world about its own business plan, its own accounting, and has refused to be accountable for its own business practices.

Remember, when this company changed leadership about three years ago, there were so many skeletons falling out of the closet that they moved the “Orthopedic Med School of Nevada” to GPXM headquarters in Sparks, Nevada, so the aspiring med students had a plethora of subjects upon which to practice! Ok, so that part isn’t exactly true but you get the idea. They morphed from a “dead company walking”, to an exploration company evolving, to a production company coping, to a full-on producer with positive cash flow that gets better with each passing quarter. All along, they have managed to address one challenge after another while working on a shoestring budget and dealing with the aforementioned skeletons in the closet, and the necessity to change with the ever changing financial landscape. And again, I say to you that this has happened in a relatively short amount of time.

The company has grown from eight to eighty people (in round numbers). But more importantly, the quality of people they’ve attracted has been exceptional. Exceptional people rarely work for mediocre companies. They usually appreciate the challenge of working with the best, and the professionals at GPXM are no different. The three elements that have drawn so many to this company are the quality (grade) of the molybdenum, the team spirit, and the prospects for the future. Ladies and gentlemen it doesn’t get much better than this. And yet, investors are myopic and fixated on what I consider to be the wrong things.

Yes, Golden Phoenix has accomplished much over the past three years—a period that we thought was going to be very mining friendly, and to some extent it has been. But I see it as being a consolidation period as opposed to a rip-snortin’ bull market with share prices going ballistic.

Golden Phoenix has been consolidating right along with the rest of the markets. In this consolidation phase they have been adding value to the company and this is the true value by which measuring success in any company. They are not only purchasing equipment such as drilling rigs, they are developing the total infrastructure at the company from accounting to exploration; from production to sales. This is how one goes about measuring real success for a company.

Finally, remember that all of this “company building” will eventually be manifested in a higher stock price. I know, I know, because I’ve heard from many of you. We all want it and we want it now. I understand that and I am totally on side. Developing a company for the long haul is much more difficult than a cosmetic short term fix; but ultimately, when done properly, it offers up profit potential of enormous magnitude. This is the path the GPXM has chosen.

Please review my past articles on GPXM found on my site at www.seacoast-consulting.com . I’ll be the first to admit I thought the price would be higher by now. But I still believe that part of the equation will be settled in favor of the company. We all have to consider the horrendous financial landscape, which is smacking us firmly on the forehead.

I know this has been a long road—but it feels longer than it really has been. If I could offer but one piece of advice it would be that now is an excellent entry opportunity and this company is going to prove worthy of its name: Golden Phoenix. I fully admit to working for the company and helping them to get the story out. But for those of you following me for some time, you know that I am rather circumspect about whom I choose to work with.More…

New People on Board and on the Board

Creativity has been employed especially when it came to hiring new people. If you review the company roster right now, and then review the resumes of the people involved, you cannot help but be impressed. This is a company with top rate personnel, top rate projects, and a future so bright you do indeed need shades. The latest addition to the team is Roland Vetter, an executive with an excellent background in mining. He strengthens an already illustrious Board.

The Criteria and the Challenge

I challenge you to review the five most recent press releases and then ask yourself if you can see the long term merit of this company. These recent press releases address the (6000 foot) drilling program at Mineral Ridge; the appointment of Roland Vetter, just mentioned; national promotion by the President (Rob Martin) via Stu Taylor’s radio talk show on business related matters; excellent Q-1 results from their molybdenum project at Ashdown; and a recommendation by another well known analyst, Jay Taylor.

Lets see how well these press releases fit in with my own particular criteria for evaluating junior mining companies. Here are the Criteria for Junior Mining Companies I’ve listed for the past five years:

1. Intelligent People

2. Quality Projects

3. The ability to fund

4. The willingness to promote

5. Integrity

As I write this and review these past five press releases the company is engaged in all aspects of the above-mentioned criteria. We know that this company has the roster—please visit their website at www.golden-phoenix.com and witness firsthand. You may not recognize the names if you’re not involved in this mining community on a daily basis, but you certainly can review their resumes. There are some of the best people in the business currently working for and with GPXM.

Conclusion for Part I

I’m not trying to sell you anything nor am I asking you to buy. I want you to do what I’ve always requested. Learn about this company via their website, evaluate the facts, and then make your own decisions.

The old saying about leading a horse to water holds water. It’s true! You can lead a horse or a dog to water but you can’t make them drink. Cats? Forgetaboutit! But I’m sure you get the idea.

Currently, as Americans, we find ourselves in a difficult financial environment. Many of us are sending kids to college, trying to pay the mortgage, getting ready for retirement, paying medical expenses, and so on and so forth. We recognize the fact that we need to make our money grow, and to do so means we have to be a bit more aggressive. We don’t really want to go too far out on a limb and we certainly don’t want to lose all of our capital. We have to walk a fine line.

It is my opinion, even as someone who works with and for this company, that Golden Phoenix offers the potential for excellent returns. If you take the time to really understand this story and recognize the potential, and the success that can be empirically proven over the past three years, I think you may see the same opportunity that I see.

I know that the molybdenum at Ashdown is where the cash flow begins. But I also know that there is no rush like a gold rush. Gold is at around $900 and yet it should be closer to $2200 in inflation-adjusted dollars. I think that when GPXM is cranking on all cylinders, it will be an exciting time.

The move to the Toronto Stock Exchange is in play and has been announced. This has all sorts of positive long tern implications. When America finally wakes up to the fact that $900 gold is still inexpensive, even dare I say “cheap”, there will be a serious gold rush. I see Golden Phoenix right in the middle of it because of their re-development of Mineral Ridge, a mine that produced gold for a hundred years.

Until next time and Part II

D. Stewart Armstrong

Consultant to the Junior Mining Industry

Disclosure and Disclaimer for www.seacoast-consulting.com : In the spirit of full disclosure, although D. Stewart Armstrong (proprietor), Seacoast Consulting, Seacoast Publishing, and/or www.seacoast-consulting.com (web site) are independent entities, they may be employed by any of the companies mentioned in full or in part on this site and/or in any of the articles posted on this site. D. Stewart Armstrong, Seacoast Consulting, Seacoast Publishing, and/or www.seacoast-consulting.com may own shares in any of the companies mentioned. Although the author is an independent analyst, he is also a paid consultant by the Junior Mining and Exploration Sector. The proprietor is a private investor in the precious metals markets. He is not a board qualified or licensed investment advisor. All material is deemed to be accurate and to have been gleaned from reliable sources in a timely fashion; but said material cannot be construed as being totally complete or absolute. Any forward looking statements must be considered as such and taken into account. Consequently, D. Stewart Armstrong and/or the aforementioned parties can take no responsibility for any investment decisions you make or the results thereof. The proprietor does not accept responsibility for any possible errors in calculations disseminated by any company he represents or in which he or the site is involved, nor does he or the site guarantee or insinuate great success or any level of investment results. Consider any and all recommendations as personal opinions on the part of the proprietor and the writers and analysts contributing to the site. It is highly recommended, and even insisted by the proprietor, that investors, individuals, and all interested parties, conduct their own due diligence before becoming involved in any investment or with the interests of any company mentioned. That process would include direct contact with the company to confirm any facts, opinions, or ideas represented by these companies in general or on any Company CD’s distributed and referred to in these articles. The proprietor would suggest the possibility of hiring a professional for advice or to employ a certified investment advisor before making any investment transactions. Again, please consider these articles as opinions and please understand that investing in Junior Mining Companies is a high-risk, high reward proposition and you must take full responsibility for your own actions because there is always the possibility of losing all or a portion of your investment capital. This disclaimer applies to all articles, advertisements, and writers applicable to this site and to any corresponding links to this site including all Email correspondences and communications, and all communications with both public and private entities utilizing any format. This disclaimer is applicable to all articles and communications published previously and to ones to be published in the future. We shall do our very best to place these disclaimers in locations that will be easily accessible to the reader but by the same token it is the readers responsibility to locate the disclaimers and read them.

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