Rave Reviews from Industry Leaders
From John Doody, Editor, GoldStockAnalyst.com
“Gold investing has been tarred by stock brokers and the financial media as only for “kooks”, to leave the individual without a road-map or even a dictionary.
McGowan to the rescue! this book covers Gold’s complete spectrum, including all the menu options for investing, from coins to bullion to mining shares to ETFs to mutual funds. McGowan’s style is entertaining, educational and yet easy to read. “Guide to Gold” will leave you sated . . . full of information, convinced Gold deserves a permanent role in your portfolio, and now with enough knowledge to make it happen.”
—John Doody, Editor, www.GoldStockAnalyst.com
Bill Murphy, Co-Founder of GATA, says:
“At last! Somebody else who’s as irritated as I am about the manipulation in the precious metals markets. This book’s excellent approach for handling today’s gold and silver markets will show you how to make money with precious metals.”
—Bill Murphy, Co-Founder of GATA, The Gold Anti-Trust Action Committee and proprietor of www.LeMetropoleCafe.com
From James Turk, Founder, GoldMoney.com
“This book is filled with humor, loads of investment common sense and useful information about money, which are three good reasons to read it.”
—James Turk, Founder & Chairman, www.GoldMoney.com
THE HAPPY NEW YEAR LETTER, 2011
12-27-2011 TUESDAY AFTER LUNCH MONEY MEMO
1st Law of prognostication: For every prognosticator, there is an equal and opposite prognosticator. 2nd Law of Prognostication: Both are likely to be wrong.
I have a friend who just ran into some new IRA money. She asked for prognostications. I began scribbling to her, mentioning companies I’d talked to at the 
San Francisco Hard Asset Show at Thanksgiving. Half way through the letter, I said, HEY, this could be a Happy New Year prediction letter. And so it is.
So here’s my list of candidates for investing new money. I would prefer them for a regular brokerage account where Uncle Sam can share in losses, but the safest ones can go into a pension account. The rules are: NEVER invest in less than five (5) PM stocks. Heck, 12 companies gets you 99% of the safety you’d get with a mutual fund. Not all of these are precious metals companies, but the same rule applies. Think about equal amounts of money in at least the first 5 or 6.
Prices are as of today, and may continue until January 2nd, when lots of new pension money may come in and ignite things. Tax selling will have stopped in January…and the stomping of gold and silver prices will have ended for the year, so if you’re going to buy any of these, the best prices could be this week! They’re all good companies; they just won’t be as attractively priced.
Most PM stocks are volatile, rather than risky. I mean, many of these have suffered this year, but they’ve gone up over the past decade. Gold and gold stocks will continue to go up, but they most assuredly will not go up in a straight line. I put these in the order of most acceptable to my conservative friend, so the safest are at the top of the list. So, consider the following selections:
There is NO Freaking Gold Bubble, OK?
“No one knows when the bull market in gold will end.” Richard Russell
In my last TAL, I said not owning gold in the current gold bull market is nuts. Then I thought, wait, maybe some folks aren’t buying because they’re listening to financial TV that’s telling them gold is in a “bubble.” “Whoa,” say the Wall Street trolls and mavens. Stay away from gold! We’re here to save you.” Yeah, right.
Are these are the same Wall Street idiot savants who overlooked the tech bubble, failed to notice the credit meltdown, and totally missed the subprime real estate eruption? And now they’ve developed “vision,” and are able to see frothiness in the gold market…the same gold market they ignored for the past ten years? And you’re listening to those guys why?
Yes, we’re in a gold bull market. We’re in Act two of a three Act gold bull market. Act II is when institutions buy. Today, mutual funds, insurance companies, foreign money managers, and hedgies are wading into gold, and the car and pharma company advertisers at CNBC don’t like that. So CNBC knocks gold.
Every bull market ends with a party mania, and Act III is the bubble finale. And the marker for Act III is the entrance of the public into the fray. When the public buys, they buy with abandon, and their money soon does the same to them. There are other recognizable conditions that appear in an Act III bubble. Here are a few:
A Bubble in the Real World of Gold
1. Gold prices will have been driven to real peaks. www.shadowstats.com has said gold would have to exceed $7000 an ounce to be over the real inflation adjusted 1980 number of $850 an ounce. Gold has gone up maybe 400% in the past ten years, a far cry from the 1300% NASDAQ bubble, or the 1500% Dow move from 1982-2000.
2. Gold mining companies will announce a spate of stupid mergers for low-grade projects in dangerous places. Just before the end of an interim oil bubble back in 1985, Chevron paid $13 billion silly dollars for Getty Oil. The same crazed behavior affected Cisco buying a slew of techs back in 1999.
3. Treasury bond interest rates will rise while gold is soaring. Gold and interest rates both respond to inflation pressures. Rates are suspiciously pitiful now.