Golden Minerals Company

Okay we all know for sure how the game is played now…there is no turning back, no time for wishful thinking. It’s time to move on and take advantage of what we do know. There is incredible opportunity knocking at our doors. We know that ECU clould go down from here and be a very good buy in the 80 cent area… if that happens. Otherwise, if you’re content to wait for the upside, you will be rewarded buying long here and just waiting. If you’re a gambler, sell all your ECU and buy AUM …they will both trade similarly. AUM is margin able but watch for a possible low in July. The value is there. Despite the rip off, you are still buying gold and silver in the ground at discounted pricing to spot $1500 and $34. That will be seen as quite a deal in one year…or six months.

On the other hand, there are dozens of other stocks that will give you excellent returns such as SLW…or SLV or so many others. If you really want a bang for your buck there are dozens and dozens of JPMs and some rare earths that are ready to sproing. I’ve got so many with “U” shaped charts, bludgeoned stocks that are poised and ready that it’s hard to pick. Some of them will do what ECU should have done…as $ inevitably rush into this sector….some are the 10 to 20 baggers we have talked about before. Whatever suits your style. No matter how you cut it this sector is finally going to move…and guess who’s ready to make the most of it? That’s right … the same bastards that have screwed the sector all along. But you all know that. Never mind, they have the short hedgies in a noose and will cut their throats at the right time.

Jim Sinclair and Dan Norcini gave us all the info we need in their King World News interview on June 19th.

The hedge fund short selling and lengthy suppression to extremes…of the woefully underperforming mining shares is coming to and end as we are very near to the move to the other side of the trade…when the shorts will have to be covered. The selling by the hedge funds has run against fundamental values for far too long. As prices consolidate they become more attractive to acquiring entities. This means the short funds will be fighting with those acquiring interests. Looks like ECU missed the boat on that one as one of the hedge funds seems to get it. Its time to make it work for us now.

So, in some respects we have the illusion of entropy whereby irreversible disorder has seemingly descended upon the JPMs and has been successfully perpetrated on the retailer. Okay, theft. In order to reach for equilibrium the pendulum, gravity, the fundamentals always reassert themselves. When prices are disconnected from the strong surge in supply and demand they will push back to reflect true value….and the gargantuan hedge funds will trip over their own paper pricing greed.

Large entities are appearing on the scene (China) that now must capitalize on real value…multiply those ounces-in-the-ground by $1000 for the value we keep babbling about. So on the one side we have the hedge fund destroyer and in the other corner we have the acquiring “interests” with building desire. Watch as this begins to play out in Africa, China and all other areas excluding the US. Short sellers will soon push hard to cover. China for one, wants to dramatically increase gold reserves and it will acquire gold and take it off the market…as supply decreases. Of course there are also the usual culprits such as the central banks, “no longer selling”.

The acquisition binge is coming as the big majors salivate for additional resources and the share prices of these targets will rebound so violently that the shorts will get caught offside and suffer huge losses. There will be selective acquisitions that will erase low prices. There will be a mania for shares as the deflationary mindset changes to an inflationary one with the $US falling through major support levels. PM/JPM shares have a long way to go to reflect true value. The XAU/gold ratio is back at 2008 levels when gold was near $700 during that credit crisis. Many shares are trading down at those levels now with gold at $1500.Who sells such extreme value??? The more they sell the lower the price goes…and the more supply is curbed, demand is increased...and the lower the risk for the buyer. So, shares that buy gold at $1000 when the spot is $1600 are a huge discount to the price of gold. Chinese and South American miners and explorers are most attractive now.

The seventies in comparison were child’s play…a modest dress rehearsal for what’s coming. The demand today for gold is extraordinary as gold is devoured at the discounted prices the shorts have created. These shorts have created bargains in companies that they don’t realize. This secular gold bull has been a painful nightmare for shareholders.

We are approaching the late nineties tech phase in the PMs/JPMs…the Pac Man phase. Management must have a majority of shares outstanding or adversarial acquisitions will happen as the companies are sold…so DD is crucial.

Shareholders must remain centered here as prices have been slaughtered by the hedge funds that have created bargain basement prices for gold.

WHY SELL PROMISING PROPERTIES AND GOOD POTENTIAL AT SEVERELY DEPRESSED PRICES?????