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Gold and Silver Red Hot PDAC for Syndication

Gold and Silver Red Hot PDAC for Syndication

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Published by TravisGrier1
PDAC is the Prospector and Developers Association of Canada and they held their annual show in Toronto over three days, March 6-9. I didn’t attend, but reports show that the event was surreal. Over 27000 people attended this trade show. When gold was trading for $260 dollars back around the turn of the century the attendance was fewer than 2000. Nobody cared about natural resource stocks back then! This should tell you something.
http://www.whatisgold.net
PDAC is the Prospector and Developers Association of Canada and they held their annual show in Toronto over three days, March 6-9. I didn’t attend, but reports show that the event was surreal. Over 27000 people attended this trade show. When gold was trading for $260 dollars back around the turn of the century the attendance was fewer than 2000. Nobody cared about natural resource stocks back then! This should tell you something.
http://www.whatisgold.net

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Published by: TravisGrier1 on Apr 14, 2011
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Gold and Silver Red HotIs 2011 PDAC Conference One Indicator of Near Term Top?
4/11/2011Travis Grier
 
Gold and Silver Red Hot: Is 2011 PDAC Conference One Indicator of Near Term Top?PDAC is the Prospector and Developers Association of Canada and they held their annual show in Toronto over three days, March 6-9. I didn’t attend, but reports showthat the event was surreal. Over 27000 people attended this trade show. When goldwas trading for $260 dollars back around the turn of the century the attendance wasfewer than 2000. Nobody cared about natural resource stocks back then! This shouldtell you something.If hoards of people are interested in buying an asset, the price of that asset will behigher than if nobody is interested in buying the product. Basic supply and demand:more buyers than sellers make the price go up. This absolutely applies to gold miningstocks. In fact, it relates to gold and gold mining stocks very vividly.Gold mining stocks, especially the tiny exploration companies have very small marketcapitalizations and are thinly traded. This means that very few shares trade on anaverage daily basis and the price to buy all of the stock in a given exploration companymight be very low compared to other assets. The reason these exploration companiesare cheap by comparison is most of them have nothing!These little companies are often nothing more than a few men who have convincedsome other men to give them money so that they can spend it at a very fast rate. I likewhat Mark Twain said, “A gold mine is a hole in the ground with a liar standing next toit.” Most of the companies at the PDAC conference have nothing but a piece of near worthless bush land and hope. This is very dangerous for your investment dollar.These ‘penny stocks’ may seem cheap compared to other industries, but the reason is,they have nothing. If you buy 10000 shares at 50 cents in any one of the hundreds of worthless companies, such as what the serially successful natural resource investor Rick Rule of Global Resource Investments Ltd. calls, Amalgamated Moose PastureMining, you could easily see your investment drop by over 75% when the hype diesdown.Sure, penny stocks can make some smart investors, like Rule, 10 times their moneyover and over, but good companies are as rare as needles in a haystacks and thepeople who can identify them, are even rarer.When the attendance of a mining show like PDAC rises by more than 10 times inaround 10 years and the gold and silver price is white hot, it may be an indicator thatmany of these shares are at least due for a correction; meaning, they have risen too far too fast and will likely fall to a level that is well supported by the market.

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