Gold Juniors

I am focusing on an area of the equity markets which I perceive has one of the highest leverage potential forward within this sector.

1. Gold and gold producers and on-the-verge producers have been diverging in valuation over the past many months

2. We 'know' that the major gold producers will have to acquire assets somewhere in the next up-cycle (even though at present they are suffering from inattentive management—this will change)

3. Though the world-wide fiat currency disaster continues paradoxically resulting in an apparent flight from precious metals the long term scenario is that inflation will return as the economies "heal".

4. Thus, the debtor nations will let it run in order to devalue the national debt. Therefore...

5. The only safe haven will be gold. But...

6. Gold will again spike. But the world's economic system once repaired will return to a new fiat with a new worldwide financial system—because gold is not the answer as far as building wealth.

This a long equity investment approach and as the stock rises one must be ready to exit to preserve wealth by placing profits into preservation holdings and dividend and other assets which will be less damaged by the coming death and transformation or rebirth of our financial system.

Always remember that gold's value is transient and the only 'real' value is people.

Always seek advice from professional who understand your situation and your goals. I provide my ideas as entertainment and insight not as investment advice. Always always always do your own due diligence.