I spoke with the Company today and they reiterated that a lot of resource newsletters are taking interest in LTU. They also directed me to this site: goldminingoutlook.com
Following is the Summary but the Outlook for Gold is also worth reading.
SUMMARY:
My current outlook is STRONGLY BULLISH. It is clear that commercials are very eager to accumulate gold at any price below $300 spot, but are equally eager to sell forward at any price above $300 spot. This activity has been accompanied by strong worldwide physical buying. Gold has recently made a serious attempt to decline but has run into significant resistance, indicating waning downside momentum, while seasonal factors support the case for a rebound. Once investors are convinced that gold has a powerful base of support at or modestly below $300, the yellow metal is likely to once again attempt to test the upside. Since the chance for a sudden sharp selloff in gold always exists, pullbacks should be used as an opportunity to purchase undervalued gold mining shares as well as gold coins and other collectibles. Do not buy options or on margin, so that the magnitude of the increase, rather than its precise timing, is of primary importance. Current valuations represent a strongly favorable time to buy, especially with the volatility and pending collapse in U.S. equities and the plunge in the U.S. dollar spurring a small but critical and growing mass of investors to search for viable alternatives. The announced failure of an increasing number of hedge funds is the bold writing on the wall; only a fool would ignore its implications. As gold mining shares become "trendy" (with the baby boomers around, you can count on it happening eventually), their prices could increase rapidly. Keep an eye on the JOC commodity index as a trend setter; recently it has been recovering from historic lows. Take advantage of the usual delay between the early stages of a stock market collapse and the beginning of a gold rally by buying now.
Remember that buying gold mining stocks at current levels is like buying common stocks during the Great Depression: everyone will say that you are crazy, there will be a lot of short-term volatility, and anything that you know to be logically true will seem to be the inverse of actual market behavior. |
