Bre-X was a junior gold exploration company that perpetrated the largest "gold discovery scam" in the history of the world.

The stock went from pennies to $286.50 (pre-split basis), at which time the gold reserves of this company supposedly amounted to 200 million ounces (a value of $70 billion) ... 8% of the entire world's gold in one deposit!

The stock went right back to pennies when the scam was finally discovered. For those who don't know, it turns out that two or three of the Bre-X geologists merely sprinkled gold onto the drill cores! That simple crime created THE most extreme example of the "greed-then-grief" cycle that you will ever see in your lifetime.

Way before this incredible story unfolded, Bre-X looked like just another "PennyGold type of stock." Founded in 1988, here is its high-low trading history:

-- and onwards up to $286.50 (NOT a typo!), before the deception was finally discovered.

At its peak, the market put a $6 billion valuation on a company that:

• owned a piece of undeveloped jungle in Indonesia
• had provided NO independent verification of its drill results
• BEFORE it could pour its first ounce of gold, would have to spend $1.5 billion in a country where you are subject to the whim of a corrupt and greedy government
• was headed by some rather questionnable characters with generally poor reputations.

There are many lessons to be learned from the "$6 billion" greed side of Bre-X. Suffice it to repeat that Bre-X will stand forever as the ultimate example of the excesses of the "greed" part of the "greed-then-grief" cycle.

But for PennyGold Practitioners, the lessons lie NOT in the years of 1994 and after, but in 1993 and before. Because, while PennyGold does not create these cycles, it DOES recognize and exploit them.

From 1989 to 1993, the Bre-X stock systematically yo-yo'd in price. Several times, Bre-X was an "over-killed" stock that APPEARED dead, but was actually in no danger of delisting. Each year, the Prez worked hard to develop a new promotion. Notice how you could have bought Bre-X for as low as 4 cents in 1991, six cents in 1992 and 12 cents in 1993.

Yes, from 1989 to 1993, Bre-X was just a typical "penny dreadful." But you could have tripled (or better your money) each year by following PennyGold strategies ... and that is BEFORE the really big move even occurred!

The big fraud that occurred post-1992 is merely the most extreme (and illegal) version of what causes these movements ... ruthless promotion ... rumors of rumors ... exaggerated stories .... endless hype ... greed. Then, quiet ... disillusionment ... fear ... panic ... grief ... anger.

And the cycle happens over and over. How can that be? Believe it or not, the 97% of penny stock investors who lose money simply forget ... because "this time it's different." And those who finally give up are replaced by new "players" with a zero knowledge base.

PennyGold puts you into the ranks of the 3%. It will show you how to find those "over-killed" stocks, how to make sure they are not about to delist, how to find the ones with the most upside potential, and how to buy and sell them.

It is infinitely more powerful than what I used to do by hand. For example, while I did not track Alberta actively at the time of Bre-X, today's electronic version of PennyGold would certainly have identified this stock as a PennyGold buying opportunity. Of course, I would likely have sold it at 40-50 cents and then kicked myself for the next decade, so I'm better off ;-)