All the signs seem clear. The American greenback is in a state of freefall. Meanwhile, an alarming U.S. credit crunch has undermined investor confidence in the financial sector.
Nobody’s quite sure how far this crisis might extend. But many of the world’s best-informed commodities analysts concur that we’re witnessing unmistakable symptoms of a fiscal malaise that threatens to undermine the foundations of North American economies.
In short, there’s no better time to stake your claim to a safe, prosperous future by placing your confidence in gold, silver and uranium, investments for all time. They can’t be printed, manufactured or duplicated. And never forget: global demand for all three of these precious metals is so high that each is being consumed more rapidly than new sources can be mined.
Knowledgeable analysts are convinced the price of all three still has plenty of room to climb.
There are many ways to prosper under current conditions. One attractive option is the purchase of gold bullion through a respected dealer such as Advantage Precious Metals of Toronto. Or you can purchase undervalued shares of CanAlaska Uranium Ltd. (TSX.V-CVV), a publicly traded team of first-class exploration professionals who are currently scouring their leased properties in Saskatchewan’s Athabasca Basin, where the world’s richest uranium deposits lie in wait.
These aren’t empty words, by the way. A chorus of authoritative voices from the world’s financial capitals has been hammering away at this theme for months.
Most agree that a target price of US$1,000 for gold (it closed below US$800 late last week) is well within reach. Silver and uranium are also good bets for powerful upward trends.
Now, let’s tune in a few of those voices:
• Jim Sinclair, a professional analyst and proprietor of a commodities website known as jsmineset.com, recently shared this advice with subscribers: “One day soon gold will take off like a rocket to breach $1,000. This is the real thing. Sell only if you have a defined need for the cash. Otherwise stand pat and ignore the daily madness.”
• High profile gold watcher Dennis Gartman, editor of the Gartman Letter, remains
enormously bullish on gold. Recently he forecast that China’s growing interest in the acquisition of gold would keep prices buoyant for years to come.
• Paul McLeod, VP of precious metals for Commerzbandk Securities in New York, echoes many of these sentiments, saying, “gold is gearing up for another rally.”
But you don’t need to travel to New York or Los Angeles to plug into sound advice about commodities futures. Danny Kroll, Toronto-based president of Advantage Precious Metals, has his own handle on the
markets.
In fact, silver prices have more than doubled since Kroll urged Business Edge readers to consider investing in precious metals three years ago. At that time, he argued that silver was seriously undervalued and time has proven him 100 per cent correct.
Now, what about uranium?
The large high-grade uranium deposits in the Athabasca Basin produce the richest uranium mines in the world.
The Cigar Lake and McArthur River mines of Areva and Cameco each hold resources exceeding 200 million pounds, grading between 17 and 25% U3O8 (uranium oxide). These deposits have gross values of $20 to $39
billion. Uranium ore mined from McArthur River or Cigar Lake is worth in excess of $50,000 per tonne as compared with approx. $67 – $325 per tonne in other uranium production areas around the world. CanAlaska has positioned itself for the discovery of one or more of these “mega” uranium deposits.
CanAlaska’s exploration team comprises seasoned geologists with many years of uranium exploration experience.
It is headed by Mr. Peter Dasler, P.Geo., President, and Dr. Karl Schimann, P.Geo., V.P. Exploration. Dr. Schimann spent 20 years with uranium-giant Cogema/Areva, where he participated as a member of the exploration team that discovered and developed the giant Cigar Lake uranium mine.
Since 2004, CanAlaska has expended over C$30 million dollars in the exploration of its projects and the company has defined numerous targets on its properties. The Company is currently drill-testing
targets across eight separate projects and is well-poised for discovery success.
Led by Mr. Emil Fung, V.P Corp. Development, CanAlaska has secured over $50 million in exploration funding commitments from domestic and international strategic partners. Mitsubishi Development Pty., a subsidiary of Japan’s largest conglomerate Mitsubishi Corporation, will provide $11 million in exploration funding towards the West McArthur Project to earn a 50% interest in the project. At the Cree East Project, a Korean consortium led by conglomerate Hanwha Corp., and comprising KEPCO, KORES and SK Energy, will similarly invest $19 million to earn a 50% ownership interest. CanAlaska continues to seek and nurture strategic relationships globally to bring world-class exploration partners to the Athabasca Basin.
For information on gold or silver call Advantage Precious Metals toll-free at 1.866.901.0600 or get in touch via email, at info@advancedpmc.com.
To learn more about uranium investments, please visit the CanAlaska website (www.canalaska.com) and contact Investor Relations via this toll-free number: 1.800.667.1870.
Add bullion bars to your portfolio
By Danny Kroll
I have always been fascinated with gold, particularly gold bars.
Being involved in the bullion business, I have gotten the opportunity to see how many people are fascinated with gold.
I enjoy seeing people’s reactions when I hand them a gold bar or a solid gold Maple Leaf coin. I have witnessed people’s eyes light up and, sometimes they even resemble school children when they hold a gold coin or bar; and not just for the first time. Even children are fascinated with gold. People love talking about gold. There are almost always questions and many have their own stories. Gold has changed the lives of people that I have met and people that I have known for years. One man told me that the only reason that his family was able to sneak out of Vietnam during the war was the small gold bars that his mother had stashed away and then used for bribes to get past check points.
Another example is my neighbour growing up. He told me years ago that he was able to purchase his home as a result of buying a bar of gold prior to 1980 and selling it during the gold boom. Or the former navy pilot who told me he had a small bar of gold which was to be used as currency if he was shot down behind enemy lines. The stories are endless and always interesting. I often find myself smiling while listening to these stories. Wars have been fought, and kingdoms have been built by riches of gold. Gold has been cherished for thousand of years.
As an investment, gold bars are often overlooked. Often portfolios have mining stocks, but bullion bars are usually missing.
Unlike any individual paper stock, these bars will always have value. They will not fall in price as the result of accounting errors or fraud by the directors. Bars are portable and they are a tangible, hard asset.
Gold and silver have gotten some attention recently. In the last few years both metals have doubled in price. All prices, eventually are the result of supply and demand; simple economics.
In this case supply has not kept up with demand. For more than 10 years, the demand for gold and silver has been greater than the mines are able to produce. Stockpiles have also been shrinking. Some believe that Fort Knox is empty of gold.
Adding to this shortage, and raising demand, China has been accumulating millions of ounces of both gold and silver. The Shanghai Metals Exchange recently opened its doors to private citizens after years of being illegal for them to own gold.
I also love bars of gold and silver. I believe the bull market in precious metals is just beginning. In a time when there are many uncertainties, gold and silver bars shine brightly. My predictions for the end of 2007 are gold $900 per ounce, silver $20 per ounce, and $500 per ounce of palladium.
Daniel Kroll is the Operations Manager for Advanced Precious Metals in Toronto.
The precious metals markets are not suitable for all investment portfolios. Purchases in precious metals could result in substantial losses; therefore ONLY USE RISK CAPITAL.
