|
Current and Previous Reports
Larry Myles Reports
All the
talk about the so-called unspeakable
horror of early capitalism can be
refuted by a single statistic:
precisely in these years in which
British capitalism developed,
precisely in the age called the
Industrial Revolution in England, in
the years from 1760 to 1830,
precisely in those years the
population of England doubled.
|
The Emergence of Intelligent Gold
The Demise of Easy Gold
....the emergence of intelligent Gold
The Business of Gold Investment Standard
Model at Work
As my subscriber base continues to expand, and the
investment standard outlined in 'the
business of gold' continues to gain
attention, it is time to respond to the many
queries of how effective my
standard has been to date. We will
concentrate on fact and historical evidence
while avoiding anything that smacks of the
affected, pedantic and the vain.
Although I will take the time to
draw example from our last two publicly traded junior gold
companies that have performed admirably, as
they
are template models of my investment
standard. Both companies have
continued to receive higher than average
investment interest as knowledgeable
investors continue to embrace the
guaranteed safety of owning physical gold, and
will invest accordingly in promising junior
gold companies.
|
From “The
Business of Gold Explained” --
If we are prepared to
look and to listen, we can always
count on history to give us
guidance. All we have to bring to
the table is a willingness to learn
from those who have preceded us.
And when it comes to recognizing a
genuine storehouse of value, even
the vile revisionists would have a
tough time glossing over this
absolute:
Throughout history, every single
government that has created its own
brand of state sponsored,
faith-backed fiat currency has
watched that brand of paper money
devalue and disappear.
|
While explaining the methodology behind the
business of gold I reference the
importance of owning a combination of hard
currency metals, along with shares of
carefully selected publicly traded junior
gold mining companies. As per usual, I offer
recommendations; but rely upon your ability
to ably and vigorously initiate your own
process of due diligence. The tough
times are far from behind us. We need to
protect and grow our financial security and
to reach our goal, we need to deal directly
in the reality of gold – by
owning physical gold and silver.
I can think of no better way to subsidize
your allegiance and fidelity to hard gold and silver than by
understanding the junior gold markets;
thereby allowing for the opportunity to
invest in, and profit from the business of
gold. Do this right and the cost of your
gold and silver coins will drop to zero
dollars. Equally important is for you to
understand the philosophy of
self-determination and how
owning gold is
reflective of a positive mindset.
I am confident that during
the due diligence process the proper
selection of a publicly traded junior gold
company is at least partially reliant upon
embracing our common sense investment
standard. And where better to start than
recognizing the crucial importance of
company management.
...expanding upon the importance of
management
Investing in the penny
markets, many of you have become aware of
the aspects and phases of my
personal investment standard; a common sense
formula that if followed, should increase
our odds to succeed and profit.
As investors of publicly traded junior gold
companies it is important that we all
accommodate the following criteria when
researching a target company: recognizing
and appreciating a strong and experienced
management team, a prudent amount of cash in
the bank, a stellar property that has
already identified gold in the ground, a
work program that will not only expand the
library of information on that property, but
identify an economic resource and last but
not least, a company with a reasonable
number of shares in circulation. When it
comes to risk-reward, begin with this
investment standard and compromise
accordingly, if at all. The above five
points constitute my tried-and-true
standard; when all five points score well, I
feel my investment in a company is as solid
as a slab of bedrock. Such has been the case
for years; profitable results have proven
out. As with any system…beware of
complacency!
There is a commonly held wisdom that
investment systems
work – until they stop working; leaving
investors with nothing other than excuses,
babble and confusion. But if the
failure to perform, or even a diminishment
in the level of performance is noted early
on, we are offered the opportunity to study,
reflect and possibly alter the entire
system or at the very least a component of that
system. Recently I had such an opportunity
handed to me; an invitation to review how I
rate the most important point of my
investment standard – company management.
Note: A summary of analysis offered by
Duncan Adams, one of my more erudite
readers.
|
“It would be rare indeed to find a
single jurisdiction on planet Earth
that has not crafted policies
offering good practices and
sustainability guidance for the
benefit of the community of metals
miners; thereby ensuring
environmental respect for our shared
habitat.
I believe that much
of this guidance is simply good
old-fashioned common sense enforced
into practice; welcomed by all
responsible members of the mining
community. Arguably in a few
jurisdictions within the borders of
hitherto ‘tier one’ countries some
of the guidelines may be viewed as
being overly stringent and
amplified; offering perhaps too much
in the way of comfort to dreary
patches of land long forsaken by any
of God’s plants and creatures.
Be that as it may, if a
company plans to move into
production it must work within
jurisdictional guidelines.” --
Duncan Adams
|
Duncan’s observations
dovetail nicely into another avenue of
discussion that will soon impact every facet
of the narrative on gold – the ongoing
debate over the fate of ‘big gold’. For our
purposes, whether or not the major gold
producers will survive is not the
question. Logic dictates that they will at
the very least, evolve and remain a
factor for years to come. The emergent
issue that will soon become the ‘spotlight
question’ - how will the changing face of
gold production impact the demand and supply
cycle?
The Demise of
Easy Gold
…and the emergence of intelligent
gold
Arguably ‘demise’ may be too
strong a word, but I will most certainly
agree that most of the significant gold
deposits in safe and solid countries like
Canada, USA and Australia have already been
discovered and mined. For a myriad of
reasons, I no longer count South Africa as a
‘safe and sound’ country – but my point of
view is unimportant as the production
numbers coming out of that country continue
to plummet dramatically month by month.
The current number one gold
producer on the planet – China; production
problems will only increase as that country
continues to wring gold out of a land that
does not exactly have a history of
under-exploitation when it comes to
mining the yellow metal. Cutting edge
modern methods and the sheer will of China’s
central government notwithstanding – expect
Chinese gold production to fall off a cliff
within four years.
As to junior gold companies closer to
home it is no longer good enough to merely have a
team that can go out in the field and
discover an ore body; management must also
show a capability to put their ore body into
production. Reason: Not every proven
resource is going to attract the involvement
of a major gold producer. Which means the
vast majority of the ‘cute and sexy’ little
plays may enjoy a moment in the spotlight,
but in the end they will fade from memory.
This brings us full circle right back to the
review of company management; companies with
a strong management team capable of moving
their companies forward – either into small
scale model of profitable production or the
seamless transfer of a junior company’s
gold-rich resource property into the camp of
an experienced major producer. Key of
course would be the enhancement of the share
price to the benefit of the investors. One
stellar
example of the kind of company I am talking
about:
Worth remembering: When it comes to
owning shares in public companies, we are
speculating. When it comes to owning gold
and silver coins and bars, the speculation
stops. Shares we trade! Coins and
bars, we accumulate.
Larry Myles
604-408-7600
1-877-405-7600
Receive Larry Myles Reports
Larry Myles is neither a
geologist nor a financial analyst. I do not
purport to offer personal investment advice
nor recommendations. While all statements of
fact are derived from reliable sources, an d
are believed to be accurate, I make no
warrant that they are so. You must do your
own research and check statements of fact
for yourself. My opinions are precisely
that, my opinions. I do not accept any
responsibility for any gains or losses you
may experience resulting from actions taken
based on my opinions. If not otherwise
qualified, you should consult with your own
personal financial advisor before engaging
in any investment activities. Larry Myles
Reports does not provide individual
investment advice, act as an investment
advisor, or individually advocate the
purchase or sale of any security or
investment. Larry Myles may actively trade
in the investments discussed in this
publication. Larry Myles may have a
substantial position in the securities
recommended and may increase or decrease
such positions without notice.
I do not know
your personal financial circumstances. I am
not your personal financial advisor. You
must do your own due diligence. By entering
this web site, or reading LMR reports, you
acknowledge and accept the foregoing. |
