The Golden Train is leaving the station.

September 02, 2011

Over a week ago, we wrote an article called "When the GOLD MAN comes knocking...Watch out he wants your gold".  In article, we mentioned Goldman Sacs was opening a dark pool fund in Canada and how we believed that the mining and gold sector was going to get investment dollars from the "The GOLD MAN" him self Goldman Sacs. The GOLD MAN and his younger brother JP Morg are heavily involved in the precious metals sector, in fact it is believed that JP is heavily short physical Silver and will never be able to deliver the silver they sold on the Comex (more like the Crimex if you ask me) which is the worlds biggest paper market for trading commodities .  If anyone ever asked for delivery on the silver that JP sold in the paper market, there would be the biggest massive short squeeze on physical Silver sending its price to the heavenly skies above and thus sending JP to the Morgue where he will be buried and laid to rest forever.  

So if the Gold Man and JP are short physical, why would they come knocking on Canada's door and enter our markets if precious metals and commodities are in a "bubble" that is about to burst.  One reason only, there is no bubble in Precious  Metals and and many other commodities.  In fact there is a shortage of all commodities including Gold, Silver, all different base metals, Rare Earth Metal, all types of energy, agriculture, water...etc.  The list can go on forever because the appetite for all commodities is strong in all markets, especially in emerging markets they are still hungry and that appetite needs to be fed in the decades ahead.  So what happens when the supply of commodities is low and the demand is high, the price naturally goes up, that is the most basic and universal principle of Economics 101.  No one can fight a universal trend successfully, so if the trend is going up for commodity prices, you know the saying: "the trend is your friend" or "never fight the trend".  

The GOLD MAN and JP are now fully on-board (SEE BELOW) the commodities trend, we believe they are and will continue to be strong buyers of the good mining companies in all commodities including gold, silver and other precious metals group products.  Some people may ask "Why would they buy the precious metals mining companies when they are short gold and silver and everyone is talking about gold and silver being in a BUBBLE?".  I think you are asking the wrong question, the right question would be "How can GOLD MAN and JP hedge their short position or even better, turn a losing trade into a wining trade?"  Easy my friends, the answer is.....they take the opposite side of the short physical trade and go long and buy the mining companies which are extremely undervalued for the last 3 years.  They will create the long and awaited boom in the mining companies including the juniors.  Watch the new trend of the GOLD MAN getting more involved in doing IPOs and Private Placements capital raising efforts in Canada and opening up the offers to their US institutional buddies.

The GOLD MAN has finally boarded the GOLD TRAIN now and it's ready pull out of the station, are you on board?  If not, I would run out  early next week and buy your ticket (gold mining shares) even if the ticket price gets more expensive.  If you don't have any exposure to gold mining stocks, I suggest you get some ASAP before the train leaves the station.  Once the Gold indexes start making new highs on good volume, you know the train is leaving the station and you will have to chase it and start paying huge premiums just to take a ride on the GOLDEN TRAIN to the next stop on the GOLDEN YELLOW BRICK ROAD.  If Golds Purchasing Power GPP gained over 5100% in the last 40 years, imagine the gain you will earn in purchasing power when the train actually leaves the station.  $2000 in September?  Maybe, but we'll let you know in our News Letter when the GOLDEN TRAIN is ready to make it's first stop but for now all we can say is  " ALL ABOARD, The GOLDEN TRAIN is about to leave the station ".

GOLDEN FORTUNES