Again, know this well: Most brokers at the major North American banks and brokerages are not permitted to solicit purchase orders for small cap exploration stocks (“juniors”) and for most small cap stocks as well. They can only execute buy orders if the orders are requested by the clients themselves.  We recognize that it doesn’t make sense but brokers or bank and brokerage employees cannot solicit orders for stocks that are not covered on a comprehensive research basis by their own firms’ research departments. Yet that restriction offers tremendous opportunities to patient value oriented investors-if they will do the necessary research. Few will do it though.

Quick points on the precious metals..

1-Are gold and silver exploration and mining companies undervalued? Yes in many cases, not all-but there are many that offer exceptional capital gains potential.

2-The vast majority of companies do not have comprehensive research coverage which means that the private investor and in many cases institutional investor must do it for themselves.

3-By fundamental valuation gauges, the precious metals stocks are extremely undervalued.

4-The liquidity in the market can be very poor, buying and selling in size can be difficult for many exploration and mining stocks…so keep your ideas to yourself.Yes, keep your mouth shut.

5-The officers and directors of the precioius metals companies have been and still are large shareholders and heavy buyers of the precious metals mining and exploration stocks. We check the insider transactions every week if not every day.

6-As for gold bullion, the largest buyers and holders of gold bullion are the world’s central banks. The Central bankers are knowledgeable and experienced and take advantage of corrections and bear markets to accumulate their choices in the precious metals stocks.

7-An important sign that the gold/silver stocks offer significant opportunities for capital gains is the fact that few brokerage type investors are investing in them. (For now).

8- Cyclical Analysis…The cycles suggest that we are in a long term bull market in precious metals.

9-Money supply growth is literally out of control and will increase inflation even more..

10-Silver and silver stocks should offer an even greater opportunity.