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Everyone — and I mean everyone — should consider owning at least my top three gold mining shares.
Why? Because of what the Federal Reserve is doing to the value of the dollar. It’s deliberately debasing the dollar to help alleviate the worst financial crisis since the Great Depression.
If you don’t believe me, I urge you to read Ben Bernanke’s “Essays on the Great Depression” published by Princeton University Press and available through most online bookstores.
It will help you get into the mind of one of the most powerful men on the planet.
It will show you how the deflationist policies of the 1930s failed miserably … and it will give you loads of insights into why Bernanke is devaluing the dollar, even though he will not admit to it in public.
You’ll also learn more about competitive devaluations … why they don’t work … and why coordinated devaluations do.
You’ll learn about how different countries handled the Great Depression, including why some — such as Japan, China, Sweden and Canada — largely avoided the Depression.
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| The Federal Reserve is deliberately devaluing the U.S. dollar to stave off economic depression. |
And most importantly, you’ll understand why select investments in gold and gold shares are just about the best thing you can do for your portfolio to ensure your financial health and that of your loved ones.
Want a real-life example? Just over nine years ago, I purchased a select group of gold mining shares for my three children. And what’s happened since then?
The stock market is down as much as 46 percent … there’s been no money made in the real estate sector to speak of … or in just about any other investments for that matter — including the allegedly safe vehicles like government and municipal bonds.
But the gold mining shares I purchased for my kids? They have racked up gains of as much as 800 percent!
In other words, because of gold, my kids are uncommonly 800 percent richer than they were just nine years ago.
I’m keeping those gold shares. They are bound, in my opinion, to continue to appreciate. Simply because the Federal Reserve is absolutely determined to inflate away bad debts and reinflate asset prices — by deflating the dollar.
And the Fed will succeed.
Why? Because every central bank in the world is taking the same position. And because — even if central banks can’t print money fast enough, they can always resort to changing the monetary system, just like Roosevelt and the Federal Reserve did in 1933.
In fact, I’ve warned you that I believe the world is on the brink of a new monetary system. There’s not a doubt in my mind that the value of money in every corner of the globe is going to be changed by decree.
Which is obviously even more bullish for gold.
Three Gold Mining Shares
I Think Everyone Should Own
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| Investing in gold and gold shares is one of the best things you can do for your portfolio. |
As I told you earlier, I believe it’s more important than ever that you consider including some gold holdings in your portfolio. So without further delay, here are my top three gold mining shares.
Bear in mind I cannot give you precise buy prices, timing signals, risk-reducing strategies, nor instructions on when to grab profits. All those specifics are reserved for active subscribers to my Real Wealth Report. I’m sure you’ll understand.
Gold Miner #1: Agnico-Eagle Mines (AEM)
One of my favorite miners and one of the best managed. Agnico has a long, stellar reputation of not hedging its gold reserves or production, meaning it can fully participate in gold’s long-term bull market.
Agnico is set to more than quintuple its gold production by 2010 with
low-cost, unhedged, long-life mining projects.
AEM’s important mining operations include …
LaRonde; Quebec, Canada. Undergoing new development efforts and expected to produce 340,000 ounces of gold per year by 2013.
Goldex; Quebec, Canada. Based on a nine-year plan in which gold will be produced at a rate of 175,000 ounces per annum at cash costs of around $230 an oz.
Kittila; Finland. With more than 5.6 million ounces of gold.
Lapa; Quebec, Canada. Producing gold at less than $300 an ounce.
Meadowbank; Nunavut, Canada. Current plans call for a nine-year mining life with average gold production of 360,000 ounces per year at cash costs of $300 an oz.
Pinos Altos; Chihuahua, Mexico. A fertile gold project with 73 million ounces of silver, to boot.
And more!
Agnico’s total gold reserves: 16.7 million ounces.
Current market cap of the company’s shares per ounce of gold reserves: $437.
Gold Miner #2: Goldcorp (GG)
Another one of my favorites, this blue-chip gold miner is a low-cost, debt-free, unhedged gold producer with 10 mining operations producing more than 2.3 million ounces of gold in 2008 at cash costs of less than $300 an oz.
Goldcorp expects to further double its gold production over the next five years thanks in part to a well thought out development pipeline.
Important mining operations include …
Red Lake; Ontario, Canada. Expected to produce more than 1 million ounces of gold by 2012.
Porcupine; Ontario, Canada. With a 20-year mine life and expected production over 350,000 ounces per annum.
Marlin; Huehuetenango, Guatemala. A cash cow for Goldcorp, with gold production costs of less than $200 an ounce, plus loads of silver credits, to boot.
Los Filos; Guerrero, Mexico. Potentially Mexico’s largest gold mining operation, Los Filos should soon be producing 300,000 ounces of gold per annum at cash costs of under $300 an oz. A 5 million ounce gold reserve base.
Alumbrera; Catamarca, Argentina. One of the largest copper/gold mines in the world with the capacity to produce 180,000 metric tonnes of copper and 650,000 ounces of gold.
Peñasquito; Zacatecas, Mexico. This property was Goldcorp’s motive for acquiring Glamis Gold in 2006. In mid-2007 a reserve update showed gold reserves of 13.1 million ounces of gold and 864 million ounces of silver, plus significant lead and zinc reserves.
The mining plan now calls for annual production of 400,000 ounces of gold at an extremely low cash cost of only $118 per ounce, before byproduct credits. 19-year mine life.
Pueblo Viejo; Dominican Republic. Pueblo is a joint venture project with Barrick Gold, with Goldcorp owning 40 percent. Its 25-year mining plan calls for annual gold production of 1 million ounces per year at cash costs of less than $300 per ounce. A 22 million ounce gold deposit.
Goldcorp’s total gold reserves: A whopping 43.4 million ounces.
Current market cap of the company’s shares per ounce of gold reserves: $474.
Gold Miner #3: Kinross Gold (KGC)
Kinross entered the gold mining industry as a junior producer in 1993. Throughout the rest of the 1990s the company thrived while many of its peers fell by the wayside as the price of gold continued to fall.
Important mining operations include …
Kupol; Chukotka, Russia. A high-grade gold deposit cash cow for Kinross, expected to produce more than 550,000 gold equivalent ounces per annum over a seven-year mining life, and at a low cash cost of under $250 per ounce.
Fort Knox; Alaska. Discovered in the mid-1980s, this property has been a major gold producer since it went live in 1997 and is now Alaska’s largest gold mine.
Round Mountain; Nevada. Produces more than 500,000 ounces of gold per year. A 50/50 joint-venture with Barrick Gold.
Cerro Casale; Atacama, Chile. An exploration property that hosts one of the largest undeveloped gold and copper deposits in the world, with potential reserves of up to 23 million ounces of gold and 2.7 million metric tonnes of copper.
Annual production forecasted at 1 million ounces of gold and 130,000 metric tonnes of copper over a 17-year mining life. Incredibly low gold cash costs of less than $100 an ounce when including copper and silver byproduct credits.
Kinross’s total gold reserves: A whopping 46.6 million ounces.
Current market cap of the company’s shares per ounce of gold reserves: A very cheap $217 an ounce.
These are just my top three gold mining shares. There are several more, such as Barrick Gold, Newmont Mining, and Yamana Gold.
But rather than talk about them here, I’ll leave the details on my other favorite gold shares and how to trade them for short-term profits for subscribers to my Real Wealth Report. To subscribe, consider a one-year membership. At just $99, it’s a bargain!
Best wishes for your health and wealth,
Larry
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{ 4 comments… read them below or add one }
Larry – I subscribe to your Real Wealth Report. Yet, I do not see anywhere in your writing that you recommend Agnico-Eagle, Newmont, or Yamana. None are in your portfolio either. You seem to be providing UWD subscribers valuable daily information and updates that are not found in your RWR. Why the difference?
Larry, Could you please define what is meant by “current market cap of the company’s shares per ounce of gold reserves.” Thank you. Karvel
Very interesting material. Will keep your thoughts in mind. Appreciate the videos and articles very much.
Hey Larry
You are an important teacher even to, experienced treaders and a one time Commodities
professional, myself. It would be appreciated if you could review the issue of
profitability of low grade ore content Gold producing mines vs. the higher ore content major
producers.Perhaps even a list of the low ore content producers with the maximum
profitability, should the gold prices would increse substantially.
I seem to recall the Silver/Gold 16 to 1 price multiplier before the photo-film industry have
changed the fundamentals and it is now a mind boggling 70 to 1 Silver to Gold. I understand that the Silver reserve world wide is about 500 million ounces, just a quarter of normal recent reserve and that production is just under the current annual consumption. Obviously it is very fragile
situation when a few years ago the reserve was about five times the current one.
You are making terrific documentary Videos and I am looking forward to more of them.
Wishing you good health and may you be happy.
Gerald