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never be a better time to invest in junior gold miners
* here may never be a better time to invest in junior gold miners
* Two penny share gold explorers in ‘bonanza’ territory
Dear Reader,
Last week provided an extraordinary demonstration of the power of penny shares to increase your wealth.
It was all about Solomon Gold (ticker: SOLG). Shares in the company, which were trading at just 10p at the start of last Monday, suddenly took off. They reached 85p on Thursday – a whopping 750% gain – before running into some profit-taking and closing the week at 44p.
The reason for this spectacular jump? Mineral samples taken from the island of Fauro in the Solomon Islands have revealed some exceptionally high grades of gold.
That would have been exciting enough. But this came in a week in which the gold price soared to $1,300 – an all-time high. The timing of Solomon’s breakthrough was perfect, landing on a market eager to snap up any crumb of good news from the gold sector.
In a moment, I’ll show you another way you could make some great profits from penny shares in the gold sector.
But first, why is the gold price rising? There is no shortage of theories. China wants to boost its gold reserves. Investors have lost faith in paper currencies. Rising inflation means that bond yields and cash deposit rates offer negative returns. And, as is usual at times like this, there is no shortage of fervent gold bulls, talking up the price to $2,000 or even beyond…
We’ll see about that. When the oil price hit $150, Goldman Sachs famously predicted a $200 price – and not the $79 we see today. It pays to hold tight to your seat at a time like this and not get too carried away.
But the fact remains that gold’s bull run shows no signs of coming to an end. And this has crucial implications for the gold mining sector.
2012-10-19 08:02:52
Source: http://gold-bullion-investing.blogspot.com/2010/09/never-be-better-time-to-invest-in.html
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