(Read the SUMMER/99 UPDATE & OUTLOOK just below first. )

Since the last update/outlook, my prediction of mining shells "going into the Internet business" turned out to be right on the money. There have been some amazing rides (most recently Greenhope Resources, GRH).

The only problem is identifying the best time to sell. The greed of this market is frenzied, so the old "greed-then-grief" cycle is skewed -- no longer do I necessarily sell after a "mining-to-Net" stock goes from a dime to forty cents. The hype has the ability to carry many of these stocks well into the dollars range. Mining-to-Net has been a powerful ally for PennyGold -- actually, it has multiplied its profit potential by several fold.

What's the outlook for 2000? Much, much more of the same. Now for the bad news...

Since the last update, PennyGold has sold out. The 1000th and final copy was issued in September, 1999. In order to maintain a vital community, PennyGold owners recently decided (in one of 20+ newly launched PennyGold Forums, open only to PennyGold owners) to start a strictly controlled buy-back program for inactive owners.

There is already a waiting list to buy. For more info on this, please click here.

On January 25, I wrote, "Uh-oh. It's starting..." (see below) -- since then, feedback has been absolutely ecstatic -- no wonder, PG really works!

Here are just a few recent comments (click here).

But do you know the most amazing part? The junior markets have not yet turned around! Know what the so-called junior mining gurus are doing? The very best of them is down 10% for the year, the worst losing 30%. Of course, they're at a big disadvantage to PennyGold owners. They're "too big" to get into the really lucrative little corners that we fit into. What's more...

Since they have to recommend more heavily promoted, heavily capitalized stocks, there's a lot more downside. And subscribers always buy in after the price blip caused by the recommendation. One PennyGold owner once told me, "PG is like owning the best newsletter in the world, except that I buy safer stocks, with more potential, and BEFORE anyone else does!"

So, what should we expect this summer? And what does the falling price of gold mean to junior mining stocks?

The answers -- "not much"... and "nothing!" OK, OK, here are a few details... :-)

As I said last summer...

"Summer is a time when the 97% (who lose money regularly) give up and sell their "#?$!@ losers. " Since not much else happens in these markets in summer, stock prices tend to slide. So it's a great season to accumulate a nice little basket of carefully selected stocks.

This is still true, with one wild card thrown into the bag. PennyGold owners know that there's almost no limit to the variety of ways these dead puppies come back to life. If you do your homework with PennyGold well, you minimize the downside. If you do that, the promoter's self-interest will maximize the upside.

Well, 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. No suffering through price collapses -- take healthy profits. Use the extra cash to go back to the well, and find more little super-cheapies.

Did we know that was about to happen? No, that's impossible -- no one will ever tell you juicy stuff like that. But PennyGold finds the stocks which are inevitable to go. Then you buy, and then you simply wait. Sooner or later.... boom!

Anyway, aside from the fact that any little PennyGold stock could suddenly "go Internet," summer remains a nice, quiet time to slowly accumulate. If you own a well-chosen diversified basket of junior mining stocks by autumn, you will be well placed for the usual "fall frenzy." I expect a lot more good movement in the juniors this year. Which brings us to the question of gold...

I've been saying this for a year...

"We're leaving the industrial age. As we enter the electronic age, things "that have always been so," like gold-as-a-store-of-monetary-value, will be affected in totally unexpected ways. Gold will eventually become just another industrial metal. When the central banks understand this, their inventories represent several years of production ... a bad scenario for gold."

And I usually go on to say, "You know what? That doesn't matter to PennyGold." Buy a diversified portfolio -- a platinum stock, a silver one, two or three cash-rich stocks, and maybe even one of the incredibly overkilled gold stocks (remember, there may very well be a big gold blip when the Y2K scare hits). If any single stock dies, no problem -- when the others all triple or better, you're still way ahead.

PennyGold is, first and foremost, about reducing risk. Find the very safest of stocks, then reduce risk even further by diversifying among different kinds of junior mining stocks. Pennygold shows you how to do that.

Bottom line? We've seen some terrific results through the first half of 1999. We'll see many more through the last half -- the junior mining market has not yet begun it's huge move. And there's that wonderful "Internet wild card" to make it all the more fun. The way to play Internet stocks is not to buy incredibly overpriced stocks hoping there's a "greater fool" down the road. It's to buy them before they're even born!

Have a great summer!

Uh-oh. It's starting... (read the longer-range forecast below, written on January 6)

There are definite signs that the junior mining market is waking up. See today's Update (Jan. 25) to the PGOLD XPRESS for full details.

But here's the most exciting sign...

I've had so many exciting e-mails from PennyGold owners who've profited. PGPers have been profiting throughout 1998 (while the gurus lose!). But there's been a definite increase in the last two weeks...

Here are two more that I received just this morning (January 25, 1999).

I love getting up in the morning and receiving these e-mails!...

Anyway, the world of penny mining stocks is starting to show its first signs of life. Things promise to get interesting...

Oops, one more super letter tonight...

Written January 6, 1999.

Tax-loss selling season is over, and junior mining stocks have hit another all-time low. More and more great stocks fall into our buying zone... stocks that I would never have dreamed could fall this low.

This last wave of selling has cleared out the last of "the 97%." Geez, even my neurologist buddy has dumped the last of his penny mining stocks! ;-)

So what's left? A hard core of smart penny mining stock holders, and even smarter buyers. And a group of incredibly undervalued junior mining companies. Naturally, many of these little companies will not live to see another major cycle upwards....

And that's PennyGold's job. It elmimates anything that remotely smells like it could be a loser. Then it finds the very best of the best (or the crème de la crème" as we would say here in Quebec, Canada).

When the next junior mining market rally comes, there will be a lot of money made in this sector. And it will come. Why?...

First of all, mining exploration will never go away. We will always need precious metals, oil, etc.

Secondly, with Y2K looming, it's only a matter of time before the amazingly overpriced "Internet Stock Bubble" bursts, taking with it the blue chips as well. At that time, just a small percent of that money will flow into, and explode, the junior mining markets. Why?...

Because the Y2K panic will cause a flight to cash and gold. All the Y2K gurus recommend the same thing... have a horde of cash and gold on hand to weather the storm. A Y2K panic will be building by mid-year, and this could be the big impetus that shoots up the junior markets.

Of course, there's a dozen other major events that could cause penny mining stocks to shoot up. Until then, PennyGold owners keep building their diverisifed portfolios of solid, overkilled stocks.

Even though PennyGold owners have been making money, it's nothing compared to what will happen when these markets turn around. Now that we're at that bottom, it's just a matter of time...

Tax-loss selling season has indeed begun (see Autumn/98 note below). Amazingly cheap little stocks get even cheaper!

This winter will clear out the last of the amateurs, the losers -- they'll sell to generate tax losses this year-end. And after year-end, the market is unlikely to do much for at least a couple more months. The first real rebound opportunity will be spring/98.

While 1998 has seen the junior mining gurus, newsletter writers and tipsters lose 50-75%, PennyGold owners are making money! And we'll be buying the right little overkilled stocks all winter long.

In some cases, we're literally buying dimes for nickels! As I said in the Autumn/98 update, this situation will not recur for another 25 years.

Summer has indeed hammered the juniors viciously. I'm buying stocks that I never believed would fall into my buying range. I find rock-bottom bargains every time I use PennyGold.

While subscribers to the major mining newsletters suffer heavy losses, PennyGold owners simply sail along, snapping up "bargain basement specials"

Gold has sunk back down to the US$280 level recently. The smell from Bre-X and other scandals will stay around for a while. So continued pessimism will reign for at least six more months. To PennyGold owners, that means better and better bargains.

And the best is yet to come. This coming November and December will feature "K-mart clearance sales" on just about all penny mining stocks!

Why? Because we're going to see the last of the amateurs (the 97%) completely give up -- they'll sell to generate tax losses this year-end. There are already so many incredible bargains out there, but we're going to see many more over the next several months.

The smart people, and I know two serious pros who manage junior funds, are giggling. Right now, they're buying and holding for their own personal accounts. When the next big bull comes for the junior mining markets, the smart money (the 3%) will once again be the ones who profit at penny mining stocks.

Over the next six months, even though the bargains are already spectacular, smart investors who follow PennyGold's strict criteria will be scooping up unbelievable "must liquidate" sales. And when the markets do turn around (they always do), they'll be cashing in huge profits.

This situation will not recur for another 25 years.

The low price of gold and the Bre-X scandal have absolutely battered junior mining stocks since early 1997. Since PennyGold selects extremely carefully from the very cheapest penny stocks, it continues to do well while major newsletter writers take a beating.

Summer is a time when the 97% (who lose money regularly) give up and sell their "#?$!@ losers. " Since not much else happens in these markets in summer, stock prices tend to slide. So it's a great season to accumulate a nice little basket of carefully selected stocks.