Reinhard Helps Investors with a Schizophrenic Market

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...If you are convinced of gold's future then these are the times to increase gold share positions. Junior gold shares are selling at fire sale prices...

Gold hit an all-time high on Friday, briefly touching US$900 per ounce. Gold is rallying strongly in practically every currency in the world. A stunning 55% gain in 2 years for American gold investors is now starting to get mainstream attention. Gold’s lengthy consolidation period that lasted for over a year and a half is decisively over...So far, gold investors have focused on the big board gold miners trading near all-time highs...It’s been a rush to the obvious big names by the big money, and that leads us to where the opportunities lie – before investors start to scour the ranks where unknown names with little or no analyst coverage offer up compelling value...

The historic record of gold bull markets shows that small gold and silver stocks become major beneficiaries in the later stages of precious metals rallies. Investors start looking for better value as big cap mining stocks become expensive. As the crisis of confidence gets fully factored in (we’re probably there now) positive press releases should start to surprise, and investors will stream in as the cup looks to be half full once again...

If you are convinced of gold's future then these are the times to increase gold share positions. Junior gold shares are selling at fire sale prices. In 2005 and 2006 respectively, with breakouts through $500 and $600, the gold sector rallied dramatically – and on much lower prices. Yes, costs are also rising, but this provides the basis for a higher support level. The most exciting rewards will come from junior mining companies making new discoveries and transitioning to developers and potential takeover candidates. That’s where the leverage is found. Downside risk is exceptionally low today...

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