Secrets of the Gold Rush #3 Best Way To Profit From The "Asian Century" Ahead Forget about selling refrigerators to those hundreds of millions of Indonesians. They'll make their own. manufacturing isn't the critical link in this chain. The important point is that even in Indonesia, factories can't run on thin air. As the Third world gears up for business, suddenly you need more stainless steel, which means nickel. You need wiring, which means copper ... and the energy to run all these things, which means coal, oil, gas and even uranium. You need cobalt for the high-tech alloys used in power generation equipment. You need silver for key industrial processes. Nitrates to fertilize the new modern farms. And as everyone gets wealthier - especially in Asia - they all want the ultimate security. Imagine billions of people, all lining up to buy gold.

US growth crawls while the Third World explodes. And they're 80% of the world population! What do they need? Natural Resources!

Remember that these people have been through extraordinary hardship and poverty. They know from personal experience how quickly inflation can vaporize savings... and how governments can confiscate real estate overnight. Remember too that in many Third World economies, inflation is roaring right now at rates of 25% or more.

Small wonder that the average Asian has much, much more of an appetite for gold than the average American. They have trusted in gold for thousands of years and, time and again, it's come through.

The Asian appetite for gold hasn't dented the metals market until quite recently, because the populations of India and China didn't have the purchasing power. But suddenly, they're getting it. And they're guying gold at a record pace.

Want to stand in front of that freight train.... or hitch a ride?

What Really Happened At Bre-X?

Fool's Gold! In March of 1997, the market reeled as the story of a company known as Bre-X made headlines world-wide. A deposit located in the remote jungles of Indonesia, estimated as high as 70 million ounces, was now being called into question. The results of additional tests conducted on the property were coming up dry. The possibility of a fraud seemed real. The market reacted swiftly and Bre-X shares lost over 80% of their value. A few weeks later, after an independent audit on the property, investors' worst fears were realized. Not only was the Bre-X discovery a fraud, there was no gold of economic value on the property. At this point, however, most of the damage had already been done. Investors lost millions in the meltdown (almost overnight). But there's a bright chapter to this saga that you won't read about in the Wall Street Journal and you won't hear about on CNN... A few Smart Investors Got Out With Their Shirts... And The Windfall Of The Century! Doug Casey was telling readers to dump Bre-X all the way back in June of 1996. Readers of his newsletter had bought the stock at the post-split equivalent of about 50 cents - and saw their investment zoom up a hundred-fold. These subscribers saw $12,500 become $1.27 million! It was the windfall of the century. A 100-for-1 moon shot. Pretty nice. But Casey knew that buying low is only half the trick to making a fortune. The toughest part can be figuring out when to sell. In June 1996, he decided it was time. As other mutual funds were rushing in to buy Bre-X, Casey advised investors to lock in their profits.

Its even better than that. Not only did investor who listened to Casey sell at the top. There was almost no way they could lose! Remember; they had bought for just 50 cents a share at post-split valuations. And even after the stock collapsed, you could still sell for $2.50. Casey's followers bought Bre-X at a price so unbelievably low that they would have made a five-time profit even after the stock collapsed. As Fools Rushed In, Casey Cashed Out Many credit Casey with a "sixth sense." But in this case it was really simple math. As Doug explains it, "The stock got expensive." He added up the numbers and calculated that this tiny, undeveloped company had a market capitalization of over 4 billion dollars. That's larger than some huge mining companies with enormous, proven deposits, and fully developed plants and equipment. He realized that the Bre-X had simply become overvalued, no matter how much gold they might be sitting on. The same investing discipline that has brought Doug Casey such high profits on other stocks convinced him that Bre-X had reached its speculative peak. Of course, this begs the question of why so many precious metal fund managers bought at such high valuations! Where Is He Headed Next? Oh, one more thing. Some of the same fund managers that bought Bre-X at the wrong time look to be compounding their mistake. There's some panicky selling going on and some perfectly sound mining shares can be purchased in the near future at fire-sale prices. This is a wonderful window of opportunity for investors who know what to be shopping for. Find out where Doug Casey thinks the biggest bargains may be found.

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15
16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24

Home | Previous | Next | Order