Whatever the longevity of the current rally in gold, beware of the vancouver pump and dump mining schams. The promoters in Vancouver have a lot in common with the anthrax spore, they will be lie dormant for years on end and then sprinkle a little something favorable to their biology and voila they spring to life spreading their toxins.
Well they are back since burrowing into the ground after the bxm fiasco with their clever news release of fledging companies with a promising property in an area that has produced a world class mine, they hire prominent a geologist who can write novels when he isn't looking for gold, and a cadre of brokers who will make a market in the stock for a gazillion share of the stock. The game is the same promising news releases prior to the end of a lock up period for private placement stock, strategic plcement of advertising in areas that a gold bug may lurk. The price rises, investors dump money in while the backers of the stock cash in their options drawing the same funds out. When the frenzy is over, the price of the stock falls back, the investor loses\, the promotor banks his money and returns to the ground waiting for his next rebirth.
Stick with the proven companies mentioned by bob johnson, or beat up small producers with proven low cost reserves, their names are familiar, but do not be sucked in by the anthrax crowd in vancouver.
Ken |
