GGR Courtesy Sample: ‘Simple Secret Weapon’
HOUSTON – On Monday, June 18, we shared a video offering with our subscribers mainly about one of the technical tools we rely on as Vulture Bargain Hunting speculators. The tool is simple to understand but we very much doubt there will be all that many “gamers” that will end up using it.
Most people who game the small resource companies (SRCs) are just not geared to take this kind of approach. It is a matter of tenacity, time and the ability of SRC gamers to think longer term in a crisis or near crisis, frightening environment.
Along with the video offering we also sent out an appendix which contained the relevant charts of specific companies covered and a good deal more information than we can cram into a short video. Among our comments in that appendix were the following:
Excerpt from the GGR Appendix for June 18, 2012:
“There are all kinds of issues that trouble the markets at present. Europe, Greece, Spain, France, Italy, massive money printing, Iran, Egypt, India, China slowing, the upcoming U.S. election in November, colossal sovereign debts and unsustainable deficits in the developed socialist and rapidly becoming socialist West … and those troubles just scratch the surface.
All those nasty problems and the large corrections for precious metals have conspired to produce a vicious buyer’s strike for the companies we call The Little Guys.
We think there is a common thread running through all these issues and although people are in tremendous fear at the moment, all of these global problems seem to be supportive for the future of gold and silver. We think that gold and silver are being reclaimed by the global markets as the preferred and “safe” currency. All things considered, that is the keystone of our long term strategy. Everything else is secondary.
We are confident that the world’s central banks will continue to create money out of thin air to keep the system well liquefied and it is that money printing that gives us high confidence for the future in metals. That is one reason we are particularly interested in the miners and explorers. When markets stabilize the miners will excel again, of that we are as certain as we can be of anything in the markets.
Vultures Game High Volatility
In 2008 the world was troubled over the global banking system. Remember the dire doomsday scenarios some of the commentators were scaring people with? It was the end of the world as we knew it, they said.
They said there was no way for the people in charge to stop the inevitable fall – of the entire world – into an Armageddon abyss. They collectively sold their books, their newsletters and their advisory services on that end-of-world message.
We thought then, and still do, that it was ironic that people would sign up for services, and pay for them with hard earned after-tax dollars, yen, euros, or whatever – when the end of the world was looming. If the end of the financial world was really upon us, wouldn’t that money be better used for a great last meal or something? But I digress…
So maybe the end of the world story was good for business for the Prophets of Doom (PODs). They sure scared a bunch of people out of their stock positions and got them all neurotic, but the Prophets of Doom got the “end of the world” part wrong in 2008, didn’t they. … Of course they would say they were just “early,” and be sure and keep that subscription up to date so you’ll be in good standing when the end of the world does come!
One reason the PODs didn’t get the end of the world deal “closed” is that those in political and financial power today can come up with ingenious ways to keep the game going. …
Maybe the financial world should have come to an end in 2008 and maybe it should now, in 2012, but betting on the end of the world is a poor percentage bet, and we believe that when this current scare finally gasps its last we will still be here. We will still be following our Favorites and still be gaming the rise and fall of bull and bear markets in the junior miners and explorers.
We could be wrong, of course, but if we are (wrong) we take some comfort in the notion that the PODs won’t enjoy being “right” very much. Certainly they won’t enjoy being “right” as we Vultures will.
We Vultures take the other side of the doomsday trade and we think that is a fun way to play.
And that leads us to the reason for this message today. Long-Term Monthly Charts.
A long time ago now we noticed that some, … not all but some, issues we track exhibited repetitive, extreme, gigantic volatility. However, and this is the very simple but key part, so listen closely: The volatility played out over a period of years, not weeks or just a few months, which is what a majority of the ADD-infected retail gamers are usually mentally prepared for.”
(End of excerpt)
With that part of the introduction done, just below is the video we shared with our subscribers on Monday as a courtesy to our entire readership. The video is best viewed using one of the larger screen options at lower right on the YouTube view screen. [ ] One can also choose a higher quality of delivery up to the highest using the YouTube tools button (lower right on the viewer).
As a short postscript and for the record, one of the reasons we hold gold and silver bullion is in case the Prophets of Doom are finally “right” and the world financial system does indeed go pear-shaped into the proverbial abyss. The small, high volatility junior miners and explorers we are gaming are all speculations; they are all high risk; we don’t think they should make up a large portion of anyone’s overall portfolio and they are definitely not for everyone. … With that said, when one of our Little Guy companies does hit the famed “brass ring” we do indeed want to be involved – because that is what Vultures consider “fun.”
Disclosure: Members of the GGR team may hold long positions in the companies mentioned in the video. Companies mentioned include Guyana Goldfields (GUY.T), Timberline Resources (TLR), Constantine Metal Resources (CEM.V) and Mega Precious Metals Corp. (MGP.V). Caveat Utilitor.