Golden Minerals Company

The biggest irony of all these charts is that until studying them carefully, I thought I made a killing last year in gold/silver stocks. Actually, I was only given back what they stole from me in late 2008 !!! A near complete collapse and financial crisis and my gold/silver stocks went down 90 % or more from August to December 2008. So.... the risk free safe haven asset of 6,000 years is dumped mercilessly and the producers of these assets are gutted by 90 % or more when the shot hits the fan ??? Does this make sense ??? Therefore, it is worth noting that they did it once and that they can do it again. Metal does not lie, but paper can and does when controled by the corrrupt.

Digest these charts and if you are not mad at the implications, well then, you are a better man than I am:

To 1.00 = the first week of January 2000.

Everyone on TV has been asking what is wrong with the gold mining shares? Let me tell you, I’d like to know, too! Both the BGMI and XAU declined by over 65% in the credit crisis, while the Dow Jones only fell 53%. Still, both gold mining indexes have broken above their pre-credit crisis highs last November while the Dow Jones has yet to exceed its pre-credit crisis high! True, they have stagnated since then, but blue-chip gold mining shares have been much better investments than the Dow Jones or the S&P 500 since 2000, before or after the credit crisis. So after looking at the chart above, and the table below, you tell me what in the hell is wrong with the gold miners?

They certainly haven’t kept up with the gains in gold and silver, and I admit this is an issue. If things were as they should be, where the SEC would prevent the big banks from naked shorting mining issues, the gains in the mining shares would be much better than the metals they mine. But the spin in the media is that the major miners of precious metals have been a subpar investment in the stock market, but that isn’t true. Currently, I think the miners are CHEAP, and they will eventually make lots of money for those who have the courage to buy an undervalued asset. But I just want to note who is doing the complaining about the “poor action” in the mining shares: the same “expert sources” (CNBC) who didn’t bother to tell you of the top in tech shares in 1999, and urged people to become members of the “ownership society” in 2006.

The revelation that the Fed lent 16 trillion to the global-banking elite in 2008, without a public paper trail, is reason enough to take as many dollars as you can lay your hands on and get some gold and silver coins. Note the lack of outrage about this in the media, or in Congress. Seeing this willful ignorance of the Fed’s malfeasance by the public’s watchdogs is a VERY VERY BAD SIGN of things to come. So do yourself a favor and get the hell out of the stock market, and take the after tax proceeds and buy as much Junk silver (pre 1965 US dimes, quarters and half dollars containing 90% silver) as you can afford. But unless you’re a wealthy collector, stay away from those MS-69 & 70 eagles, the premium over spot is just too high, which could cause short term losses, and is unlikely to pay off in the long run as well. Low premium items like gold buffalos and maples, silver rounds and junk silver will only have small losses if forced to liquidate them for the melt value, unlike numismatics which always require a collector or specialty store as a buyer to get “full value.” In times of financial collapse, you may not be able to find a wealthy collector when you need one. Numismatics are liquid at the “melt value”, but not liquid at the “collector value.” Mining shares are good, but junk silver coins (or pure bullion bars and rounds) are better for the average investor.

"Any day you can trade fake money for real money, is a good day"

– Silver Shield