“Gold Set For Massive 2004 Gains, Daniel Thorpe, Mineweb.com, 1-6-2004
Johannesburg – Gold may be headed as high as $600/oz by the end of the year as the dollar sustains its current weakness & the market continues to push the metal higher in wild, uncertain market conditions.”

And do we want to hear further words of encouragement about this present gold bull market?

“…THE BULL TREND SHOULD BE VIEWED IN TERMS OF YEARS, NOT MONTHS…”

But yet, as gold has ascended above 400 an ounce, I have witnessed lethargy among gold equity investors as if they were hit with a bright flashlight on a cold dark night with no star light nor moon light. The gold stocks really have not even begun to reflect gold’s more favorable rise above the 400 mark.

Yes, this year, 2004, should be very positive for gold investors.

And we turn now to USA Today to see headline articles about “gold.”

USA Today, Barbara Haenbaugh, 1-6-2004 “Washington – Prices for gold, silver, platinum & other metals SOARED Monday as investors yanked their money out of the falling dollar & put it in metals.”

“Monday, the dollar set a RECORD low at $1.27 per euro & weakened against the yen despite attempts by the Bank of Japan to intervene…”

And while many analysts keep waiting for the dollars drop to stop suddenly & for gold to fall back to pre 300 dollar an ounce prices I personally believe the strength we are seeing in gold is part of a long term pattern & not merely a short term rally. Yes, we have lived 20 years with a serious bear market in gold & it is very difficult for investors to accept the possibility that now we may be in an over all bull market for gold for the next 20 years.

Will the next 20 years see a continued bull market in the gold price?

Who knows!!! But I am sure of the following. And what I know with certainty is that the over all fundamentals continue to look very positive for gold & that for the next few years these are the facts we as investors should be concentrating on.

Listen to the following email I received from a reader:

David,

There is no-way I would want to give away my stocks at these cheap prices. …

So what would I gain to take a profit? …

Sincerely,

Mike

Though Mike’s email message was in a friendly tone this type of message frightens me. Now what did Mike just say that caused me to swallow my chewing gum? Let’s read it again.

“SO WHAT WOULD I GAIN TO TAKE A PROFIT?”

Mike represents the type of investor who does not have a buy & sell strategy, but is merely waiting for that imaginary profit someday where he in his leisure can sell his profits & become rich. Mike represents the typical investor who does not understand that it is the act of trading where by money is made & not merely watching your portfolio grow in your monthly statement.

This type of investor probably will never make a single dime off of his gold stocks & do you know why?

He or she looks at these stock valuations as “money in the bank” which it is definitely not. You only have made an actual profit on the day you sell a stock issue & place the proceeds in your bank account or under your mattress.

Mike might be a nice guy, but I sense he does not have an adequate & realistic sell strategy & he will probably still be holding on to his gold stocks loooong after this gold bull is over some day & after the stocks have reached their cyclical peak.

The same thing happened during the Tech Bull Market during the late 90s & I watched so many investors with portfolios that grew to over 1 million dollars, but the investors never sold even after these stocks reached their peak & began their long slide back down.

Gold stocks are like “burning matches” (master gold analyst Doug Casey preaches this) & we must have not only a “buy” strategy, but also a preconceived plan of when & at what percentage gain we are going to sell.

Let me give a quick recommendation here for Doug Casey. Doug is a very talented & knowledgeable analyst who has been around the markets for quite some time & is definitely worth listening to.

And how about another tidbit of economic data that is severely shaping the over all markets & gold itself? Consumer debt continues to dangerously rise along with the US national debt. And understand that this problem is a ticking time bomb & it will not go away until it is dealt with.

AND IT IS BECAUSE THE WORLD RECOGNIZES THIS PROBLEM OF CONSUMER & US NATIONAL DEBT THAT THE US DOLLAR CONTINUES TO PLUMMET.

Yes, US consumers are working very hard at ignoring this plunging dollar, but I guarantee you that the rest of the world & foreign investors are not ignoring the falling dollar. And this is why the rest of the world is selling their US dollars & buying gold.

I guess my question to you is: “Are you investing now in gold related investments?”

Let’s ask ourselves again. Why is gold the best investment for the 21st Century?

DOLLAR HITS RECORD LOW VS EURO, YAHOO FINANCE, DANIEL BASES, 1-6-2004

“Overall, there are very few technical or policy barriers to limit the dollars fall right now,” said Patrick Brodie, chief dealer at SMBC in New York.” …

“I think this move is beginning to feed on itself. The dollar is falling because it’s falling,” said Marc Chandler, chief currency strategist at HSBC in New York.

And as the dollar FALLS what correspondingly goes up?

GOLD!!!

And which represents the one best gold stock to invest in?

There is no one perfect gold stock play & it is safer & more conservative to invest in numerous gold plays & to make your money by averaging & taking your winnings as a percentage as they grow.

It is best to review many different & new gold projects & properties. Making money in gold stocks involves the act of trading & investing in many different gold plays.
There are literally thousands of gold & silver mining companies out there in the market place competing for your investment dollars. Some of these companies represent good speculations & many do not.
Gold Letter Alert emails to subscribers reviews on new & different gold & silver company opportunities. Also, all past issues are made available to all subscribers for free via a password & login.
And every company reviewed is charted & kept track of within a portfolio. And at present over 41 different gold & silver companies have been reviewed & are up collectively an average of over 79% (1-7-2004).
You, the investor, ultimately decide which prospect meets your personal objectives. But it is Gold Letter’s goal to provide subscribers with respectable worthwhile candidates from which to choose.
And for a limited time only your subscription is a one time payment that lasts for LIFE!!!

AT GOLD LETTER WE BELIEVE IN GOD, FAMILY & COUNTRY.

Let me share one more thing before I close.

I write about other things just so readers can be reminded that making money & gold are not the most important things. Upon finishing up this article I received word that my mother was just diagnosed with pancreatic cancer this morning & probably only around 30 days or so were her only days remaining. And when I began writing this article earlier this week she was fine & I wished her a happy birthday on Monday.

We will not take our wealth to the grave with us, but we can have hope in Jesus Christ & eternal life if we know Him as our savior.

David N. Vaughn
Gold Letter, Inc.

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