Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (54450)	6/12/2006 9:50:19 PM
From: Proud Deplorable	Read Replies (1) \| Respond to of 313061

By David Vaughn August 11,2003 Do you want to get a taste of what happens when real gold fever kicks in? Read the following excerpt about the Eskay Creek gold discovery 10 years ago & maybe, just maybe, you can get a sense of what true gold fever is & what happens to gold stocks when this fever hits in full force. The drill went down 240 metres and hit some of the richest sections of gold ever seen in Canada. On Aug. 22, the results were made public and gold mining shares went through the roof at the Vancouver Stock Exchange. The price of Pezim’s stock, Prime Resources, doubled in a week. Calpine shares went from $1.80 to $9.75. Stikine, the stock which had traded for 50 cents the previous summer, hit $59. Gold, Greed & Glory, The Globe & Mail Report On Business Magazine, November 1990 Issue Let’s read that last line again for fun: …the stock which had traded for 50 cents the previous summer, hit $59. Can you imagine the sheer exhilaration of watching a stock you maybe had the lunacy to purchase for 50 cents suddenly climb to a height of 59 dollars? The point I am trying to make here is that this is what happens during a gold stock bull market. As we have said many, many times there is no other sector in the market where historically more money is made than during a bull run in gold stocks. What we are seeing evolve before us is an historical event, but only those on board will profit from it. Let’s read a little more of the story about the gold fever that erupted after the major gold discovery at Eskay Creek. Suddenly, Vancouver was full of new millionaires. Don McLeod, who had staked the mountains since the 1940s, watched his portfolio soar to $4 million. The market value of American Fibre…hit $15 million. By the end of 1989, less than two years after they had rented their first helicopter, the four young prospectors at Arc Resources were worth close to $10 million. They were barely 30, and they were rich. Gold, Greed & Glory, The Globe & Mail Report On Business Magazine, November 1990 Issue Yes, folks, many people do get very rich due to the discovery of gold & when gold fever takes off & gold equities begin to skyrocket. Many individual portfolios rise to millions of dollars. Yes, it has happened before & it IS going to happen AGAIN!!! And more? At last, the Eskay Creek shareholders were rich beyond their wildest dreams. Toffan came away with $53 million on the stock that he couldn’t sell for 35 cents a share in 1988. Netolitzky pocketed another $15 million. Gold, Greed & Glory, The Globe & Mail Report On Business Magazine, November 1990 Issue I am having fun personally watching stocks I acquired for around 30 cents now at around 1.60. And the beauty of it all is the fact that this gold bull market is just getting warmed up!!! Let’s go back in time again and get a look at the skeptics in the 1970s who thought then gold would never rise above 50 dollars an ounce. Back in the early 1970s, at an annual Institutional Investor Conference in New York, the crowd GASPED when one of the panelists predicted a gold price of $100/ounce. Harry Koza, Senior Analyst, Thomsan Financial/IFR, Globeinvestor GOLD Sounds like today doesn’t it? And there were those skeptics who were laughing just a few years ago at the prediction that gold would ever again break through the 300 dollar ounce barrier. Well, gold did break through this impenetrable barrier. And anyone standing in gold’s way now had better get out of the way!