~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ PGOLD XPRESS UPDATE #005 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ >"I get the facts...I study them patiently...I apply imagination." -- Bernard Baruch (1870-1965), legendary financier and adviser to U.S. presidents ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ July 14, 1999 This is the fifth "irregular" update of PGX since terminating its regular publication schedule. >-----UPDATES----- Gold is going ever lower. Everyone is lined up to pronounce the DEATH of gold. So what do we have for you in this issue?... OUR TWO FEATURE PRESENTATIONS... 1) A well respected analyst who builds a solid case for gold. 2) A brief reminder (from me) about the new kind of "gold" prospecting that is going on. Be among the first to catch on to this unique set of circumstances. ----- But first, a couple of news items... ---PennyGold Price Increase--- PennyGold has increased in price today, from CAD $587 to CAD $697 -- from here on in, as we close in on #1,000, the price will rise quickly. As usual, I'm holding the price for PGX subscribers (that's you!) until the end of this week (Friday). To order, call the Order Line, 1-888-98-PENNY, and leave a message for Janice to call you back -- leave your phone number(s) and the best time period(s) for her to call you. She might be a bit slow getting back to you because of our second venture, which is overwhelming us right now (we're in the midst of staffing up)... ... which brings us to the next news item! --- Last issue, I told you about our new site... >> http://www.sitesell.com/ If you missed that article about the Make Your Site SELL! book, please go to the back issues section of the PennyGold site... >> http://www.goodbytes.com/pennygold/pgoldxpress/index.html >> http://www.goodbytes.com/pennygold/pgoldxpress/PGX-update004.txt As I said in the last PGX update, Make Your Site SELL! contains all the hard-earned lessons that the PennyGold site has taught me. Since that article, accolades have poured in from all corners of the Internet (does the Net have corners?)... ... from major Web authorities and from readers alike... >> http://www.sitesell.com/testimonials.html If you have ever thought of starting your own biz on the Web, MYSS! contains all you need to know. Please take a look at the site today... >> http://www.sitesell.com/ The price is so low that we're almost "giving it away." If you have the least bit of interest in selling products or services on the Web, don't miss the free trial download. Many readers have said it's better than most other full books! And now, one more important development. We have just launched an affiliate program. No, not just "an affiliate program" -- it's more like THE affiliate program. The 5 Pillars Program has been called "the most important development in affiliate programs this year" and the "perfect Affiliate Program." If you'd like to earn income from the Web, but don't have a great idea for your own product, please take the time to evaluate this carefully... >> http://www.sitesell.com/affiliateprogram.html While you're there, download the Affiliate Info-Package -- it's free. And if you register, you'll receive the 5 Pillar Manual -- it's free, but ONLY to 5 Pillar Affiliates. Affiliates e-mail me every day to say that it's better than any other book on affiliate programs AT ANY PRICE (and there are some expensive books out there!). ----- And now, on to our two "FEATURE PRESENTATIONS"... ----- --1-- ----- Penny, junior and mid-tier gold stocks: The next Internet boom! If you have been around for more than 20 years and have observed the sharp and volatile cycles of the mining sector, you know that what lies ahead is a much bigger bonanza than what we got in the 1976-1980 rally when gold reached $850. Back then, total gold inventories (including Central Banks reserves) plus the total market capitalization of all the gold mining companies in the world went for approximately $850 billions. At the time, the US equity market was worth just a notch above the golds or US $1000 billions ($1 trillion). Nowadays, the golds (inventories and stocks) are worth slightly above US$1050 billions ($1.05 trillion) but the US equity total market cap soared to exceed $US 11,000 billions ($11 trillions). In short, when the trigger is pulled, there will be much more money chasing gold and gold stocks than at any time in market history. Remember that there are 4.3 billion ounces of gold in the world and the supply is increasing by only 1.8% each year, whereas there are 5,700 billion US dollars in the world and the supply is increasing by 10% each year. Since 1979, We have gone from a US$/gold ratio of 281:1 to an unsustainable ratio of 1325:1. Surprisingly, gold prices in late 1979 were near $281. But why aren't they near $1325 today ? OK the economy put in some real growth in those 20 years. But check for yourself with this inflation calculator: http://www.westegg.com/inflation/ Enter 281, 1979, 1998 and submit. The price of gold should be very near $700 today when inflation is accounted for. Don't look further there is only one reason to explain this extreme distortion, the anti-gold propaganda of the last 3 years. Don't blame it on the absence of inflation, the numbers are clear: there is a growing demand for gold and the physical deficit is growing as well, despite low inflation: http://www.ormetal.com/goldnum.html The purpose of this article is not to explain why the monetary and debt expansions of the last 20 years will cause a realignment of the price of gold and other metals but just to show the trends that are currently in motion. There is no need to say that despite the largest bull market in history, gold and mining stocks have gone nowhere but down. This again creates a major distortion that will be repaired. In 1979, the total US equity market was worth almost the same as all the gold inventories in the world, today you need only Microsoft and a few Amazon.com to buy all the shares and the gold in existence since the ancients discovered the yellow metal. When you start seeing junior mining companies with several millions ounces of gold in the ground selling for less than $5 per ounce, you know that something is wrong. When producers are closing mines operating with production cost above the current price of gold, you know this can't last forever. Undervalued companies are found in all segments of the industry with a major concentration in the penny, junior and mid-tier stocks. The cycles have already turned in the base metal sectors and some favorite mining stocks are already showing gains of 200- 300% in the last few months. http://www.ormetal.com/mining-stocks.html Zinc and copper are off their recent 20-year lows. Gold and silver will follow soon. Prepare your bets, within the next 12 months, the biggest bull market in the history of mining will be upon us. --------------------------------------------------------------------------- "The Ormetal Report" http://www.ormetal.com Learn about mining and profit from investing in gold and mining stocks. Claude Cormier, Editor goldbug@ormetal.com --------------------------------------------------------------------------- ----- --2-- ----- A New Kind of Gold Mining? Claude builds a convincing case. Visit his site for more information... >> http://www.ormetal.com/ And speaking of gold, there's a second kind of "gold mining" going on... .... Internet Plays! Investor behavior in Internet stocks is strikingly similar to the "greed then grief" psychology of junior mining investors when there's a major discovery (or rumor of such). I guess you could call Internet stocks "digital gold mines." Long-term, just like real penny mining companies, most Internet stocks will die. But there's money to be made if you buy low and sell high in the meantime, right? If you missed my summer update to the Web site... >> http://www.goodbytes.com/pennygold/update.html In that update, I said... "... here's a major "self-interest" trend that I expect to play throughout 1999 and well into 2000... junior mining companies are getting into the Internet business. What do they know about the Internet? Zero. That doesn't matter. Stocks like DEJ and LAT are jumping twenty-fold! PennyGold owners were there before the move. And PennyGold showed them how to take maximal profits during the move up." --- Flash forward---> Well guess what? Since then, two junior mining companies have approached us to "go public." Yes, they wanted to roll "litte old us" into their shell. One convinced me that the stock price would go up by eight fold if we agreed. Now, we do not want to be anybody's subsidiary -- nor is that where I want to take my company. But... This *is* happening folks. Since then, one of the companies has gone from $0.12 to $0.40. Why? Because they announced that they were looking for Internet opportunities! Junior mining promoters understand the "greed then grief" psychology better than anyone. Who better to "go Internet?" Summer's a great time to be loading up on the right junior mining companies. Whether they shoot because of a turnaround in the price of gold, or because they get into other precious metals or diamonds, or because they decide to "mine the Internet"... ... expect good stuff to happen in mid-to-late autumn. :-) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ >\\\\\\\\\\\\\\\\\\\\\\\\\\\\\/////////////////////////// PGOLD XPRESS BACK ISSUES "Thar's gold in them there back issues..." http://www.goodbytes.com/pennygold/pgoldxpress/ >\\\\\\\\\\\\\\\\\\\\\\\\\\\\\/////////////////////////// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ > SUBSCRIBE/UNSUBSCRIBE If a friend forwarded you this e-mail, and if you would like to subscribe to PGOLD XPRESS (it's free), you can do so at this URL... >> http://www.goodbytes.com/pennygold/pgxprs1.html To unsubscribe, go to the following URL and enter your e-mail address. If you use more than one e-mail address, be sure to enter the same one that you used when you subscribed. >> http://www.goodbytes.com/pennygold/pgxprsunsubscribe.html ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ >>POSTSCRIPT DISCLAIMER As you know, I am NOT an investment adviser. Please do not take what I say as investment advice. YOU have to be the final judge in how to best use the information contained in this newsletter (or whether to use it at all). In the final analysis, we all have to be responsible for our own decisions. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Written by Ken Evoy, M.D., President of GoodBytes Information Products Inc. (c) copyright 1999 GoodBytes Information Products Inc. >>>This publication MAY be reproduced and transmitted to >>>others, as long as it has been copied in its entirety. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~