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Wednesday, June 10, 2009
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Volume 3, Issue #49
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The Cheapest Way to Buy Gold
with Huge Upside Potential |
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-- By Dr. Steve Sjuggerud, Editor,
Daily Wealth |
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How does paying $15 per ounce of
gold sound? Dr. Steve Sjuggerud -- editor of Daily
Wealth -- has uncovered a mining company that is sitting on
61 million ounces of gold, making it one of the largest
undeveloped gold mines in the world. And if that weren't enough,
it's also a takeover target, meaning the shares could easily
double overnight. (Full Story Below) |
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Also in
Today's Issue... |
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The
media has Obama's coal story ALL WRONG |
While the media has
everyone thinking Obama's out to bankrupt coal, I've
uncovered a startling twist to the story. His plans for
the coal industry are actually a shot of adrenaline
straight to the spine for a small subset of the
industry.
Obama's "Cap and Trade" system is essentially going to
FORCE UP the share prices of two little-known "oxy-coal"
stocks!
Click here for the whole story. |
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We're Putting $50,000 into These Picks |
We're so confident in
this strategy that we're putting our money where our
mouth is... $50,000 worth of it in fact! That's how
much we've put into a brokerage account to fund the
real-money portfolio for the new StreetAuthority
Stock of the Month newsletter. Editor Amy Calistri
just made another purchase, but it's not too late
for you to join in and follow along with everything
she does.
Don't be left on the sidelines,
go here to learn more. |
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The Cheapest Way to Buy Gold
with Huge Upside Potential
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We're up over 1,000% in shares of
Seabridge Gold since I first recommended it to a few thousand
subscribers back in 2005.
Even if you didn't buy back then, shares of Seabridge could
easily double from here. Let me explain...
Last month, I spoke with Seabridge President Rudi Fronk.
Seabridge has come a long way since I first recommended it. Back
then, it was trading for less than $10 per ounce of gold in the
ground. Gold was selling for around $650. You could hardly go
wrong...
The idea had problems, though. Seabridge's gold was "uneconomic"
to mine. In other words, it would have cost Seabridge more to
mine the gold than the company could sell it for. The gold price
had to rise by a few hundred dollars and Seabridge had to find
more gold in the surrounding area to really make it worthwhile
for a major gold mining company.
Since then, everything has gone right for Seabridge...
The price of gold has soared. And little Seabridge Gold has
grown its gold resources exponentially. The company's KSM
project is now the "largest undeveloped gold mine in the world,
if you remove the projects that are more copper-dominated,"
according to Rudi. With 61 million ounces of gold in the ground
and 11 billion pounds of copper, Seabridge is now "the largest
gold deposit ever found in Canada."
At the current price of gold and the size of the deposit now, it
is "economic." It's worth it to get the gold out of the ground.
This is a big deal... But the stock is still cheap. Seabridge is
now trading for around $15 per ounce of gold in the ground. Even
though the company has significantly more value, the shares
aren't a whole lot more expensive than they were when I first
recommended it, based on the dollars you pay for an ounce of
gold in the ground.
Rudi is looking to 2010 to be Seabridge's "endgame." Seabridge
will complete its pre-feasibility work then, which takes out all
the guesswork for a potential acquirer. The ideal situation for
us would be a simple buyout by a major gold company like Barrick
or Newmont.
"The majors are up against a wall
right now," Rudi says. "Majors are now actively looking for
advanced-stage projects which provide a number of
characteristics." Here's what he had to say about what the
majors are looking for:
* Size. "Companies like Barrick and Newmont need size. KSM is
about as big as it gets."
* A safe jurisdiction. "Canada is probably the best place to be
to develop projects in today's world."
* Mine life ? that's how long a mine will continue to produce.
"Our current mine life is expected to be 30+ years... but that
could increase."
* Low cash costs. "The average cost for majors is $400+ per
ounce. KSM will be below $300 per ounce."
* Reasonable paybacks. "Majors want projects where they can get
their money back in less than one-third of the mine's life.
We're easily able to demonstrate that at current commodity
prices."
If gold stays at current
levels or higher, I expect someone will buy out Seabridge
for at least $50 per share ? nearly twice the current price.
Hopefully, that will happen in 2010. In the meantime,
Seabridge is busy dressing itself up for sale. It's been
selling off "non-core" assets, increasing its resources, and
converting resources to reserves.
If you own Seabridge Gold, continue holding. If you don't
yet own shares and you're looking for an inexpensive way
(yes, inexpensive... you're buying gold in the ground for
$15 per ounce) to own gold with significant upside
potential, consider buying Seabridge Gold today.
Your upside is roughly 100%. If the price of gold keeps
going up, it's even higher than that.
Good investing,
Steve
P.S. I recently put together a report on why you should own
gold today and the three best ways to buy into the gold bull
market. All three investment are easy to buy and have huge
upside potential.
To learn more, click here.
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Additional Investing Ideas
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Dial Up Big
Gains with This Unique Telecom Fund
In the U.S., we can't do without our cell phones,
making some wireless communication companies a
defensive play in tough economic times. But don't be
misled by the leisurely pace of telecommunications
in developed countries. In emerging markets, mobile
phone use is expected to double in the next five
years. You can capture the gains from these
fast-growing telecom markets without having to
invest in dozens of stocks or trade on far off
foreign exchanges. Nathan Slaughter, editor of
The ETF Authority, tells you how. |
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GM
Bankruptcy Sends the Ultimate Buy Signal
You've heard the news about General Motors, not the
largest but perhaps the most significant bankruptcy
filing in history. You know the back story -- you've
driven it. But with all the historical context,
hand-wringing and harrumphing, do you know what GM
means for you as investor? |
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Get Safe
Reliable Income from this Little-Known Oil Play
Most
experts say that the market is beginning to look
fairly valued from a fundamental perspective. And
even setting aside the fundamentals, there's clearly
a limit to how far stocks can advance before the
investors start to stumble over psychological
barriers. That's the ball game for a lot of
investors. It doesn't have to be. In fact, income
investors don't have to worry about any of it. |
Visit this
link to read additional articles from today's
leading market experts!
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 Paul Tracy
Co-Editor
TopStockAnalysts Digest
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P.S. -- If you're not already a subscriber to one of
StreetAuthority.com's premium investing newsletters, which include a wealth of
additional information and specific investing guidance that you
won't find anywhere else, then please visit the following
page to learn more: http://www.StreetAuthority.com/subscribe.asp
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