Is Charlie Munger a Moron?

"Civilized people don't buy gold....I think gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939, but civilized people don't buy gold, they invest in productive businesses."

I just posted a comment to an article at the Motley Fool titled "A Civilized Rebuttal to Charlie Munger" by Christopher Barker. I strongly urge you to read this article and to follow Mr. Barker at the Fool. He has done a great service to the blog community over there and, in my opinion, is one of the best gold analysts out there today.

Here is my remark:

"Civilized people don't buy gold" - So basically China and India is full of uncivilized people. 

"I think gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939..."

Both of these comments are pretty offensive to a lot of people.

Gold is money.... Gold's value is in its rarity and in the effort it takes to get it out of the ground. It takes a lot of manpower, time and money to do this. It's not easy. And to do it profitably is even harder. Just watch that stupid Alaska show on the Discovery channel, although they are clearly gold mining amateurs, it's funny to watch. 

I have a simple question for people to ask: If you had the choice to hold your savings in the US Dollar or in gold coins, which would you choose? It's a simple question. 

I just think this is all common sense and would think people as "smart" as these two would understand the multiple reasons for owning gold. but JRS is probably right on the mark with the "Rothschilds agents" remark."

The fundamental reasons for owning gold are stronger than they have ever been. Gold is money, and will always be. You can't print REAL money. Gold will continue to rise in price (AND IN VALUE which is more important to understand) as long as the currencies continue to fall in value (which they will). It is crucial to understand this. Good luck to all.
Steve

Endeavor Silver Reports Record Production in Q1 2012

" Endeavour Silver Reports Record Production in First Quarter, 2012; Produces 1,072,491 oz Silver (Up 19%) and 6,321 oz Gold (Up 26%); Final NI 43-101 Reserve and Resource Report Results in Minor Adjustments to Reserves and Resources

Silver production was up 19% to 1,072,491 ounces (oz) and gold production was up 26% to 6,321 oz compared to the First Quarter 2011. Revenues were up 39% to US$49.0 million thanks to both the higher metal production and higher realized gold prices."

Here is definitely something to take note of below. The company and management are doing something very smart here in my opinion:
 

"Note: In January and February, 2012, gold and silver prices enjoyed a significant rebound from their lows in December, 2011. Endeavour therefore elected to sell most of the precious metal inventory it accumulated in Q4, 2011 in order to capture the higher gold and silver prices. However, gold and silver prices corrected sharply once again in March 2012 so Endeavour management once again chose to accumulate its precious metal production in Q1, 2012 rather than sell at depressed prices. Management plans to monitor precious metal prices closely and sell some (or all) of the silver and gold inventory at appropriately higher metal prices, or if the need arises for more cash."

Source: www.edrsilver.com. 

I am long EXK.

 

Gold Stocks News for Thursday

Lots of news flow today for the juniors.

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"Sandstorm Gold Announces Proposed Share Consolidation  Vancouver, British Columbia, April 5, 2012 -- Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (TSX-V:SSL) is proposing a consolidation of its issued and outstanding common shares ("the Common Shares") on the basis of one (1) post-consolidation Common Share for up to every five (5) pre-consolidation Common Shares (the "Consolidation"), with the final consolidation ratio to be set by the Company's Board of Directors within the range approved by the shareholders."

Fine with me. The company wants to open up to the US markets and bigger investors. The warrants will not be affected negatively.

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"Brigus Gold Hits Q1 Production Target
Halifax, Nova Scotia; April 5, 2012 (NYSE Amex: BRD; TSX: BRD) – Brigus Gold Corp. (“Brigus” or the “Company”) is pleased to announce that it produced 16,922 ounces of gold at an average grade of 3.04 grams per tonne (gpt) in the first quarter of 2012 – hitting the top end of its guidance."

*This is also good for Sandstorm! Great job by the team at Brigus to turn this around. Only expect better things on from here.

-----

And finally....

Vancouver, April 5, 2012 – Luna Gold Corp. (TSXV-LGC) (LMA-LGC) (OTCQX-LGCUF) (“Luna” or the “Company”) is pleased to announce its gold production update at the Aurizona Gold Mine for the quarter ended March 31, 2012. 

Aurizona Gold Mine produced a quarterly record in Q1 of approximately 16,000 ounces.

Sandstorm owns a 17 percent stream. Luna Gold is an interesting story as well.

Gold Juniors Will Outperform the Next Leg

 Something amazing has happened from October of 2011 until present day - The Dow has actually been outperforming gold (the HUI, the GDX and the GDXJ, as pictured below). Do not expert this divergence to last long. As you see, the juniors (GDXJ) outperformed all from 2010 to 2011, hitting $44 at one point.

The Dow and the S&P (GSPC) started the divergence early December of 2011. It is in my strong opinion that the GDX and GDXJ are in very oversold territory - both are trading near 52 week lows. And it is in my opinion that the Dow is very overbought!

In the long run, it is not even close...gold has been king.

I also believe that, whether it's in 2 months, 6 months, a year, that gold stocks will start outperforming physical, especially the juniors.

From 2005 to 2008, the GLD and HUI traded virtually side by side...the crash of 2008 changed that and GLD has outperformed since then....

I do expect them to meet again, I just do not know when. I will say this - the miners pay dividends and will most certainly be increasing them in the coming years. The miners are all pretty undervalued at the moment as well. Maybe its when people finally realize this, will the gap start to close. Or maybe when they realize the GLD doesn't really have any gold! I do believe the investment mentality on gold stocks will change, it is only a matter of time. Just keep buying at these insane valuations and buy the dips!

I am long GDX and GDXJ. 

Charts courtesy of Yahoo! Finance

How Much is 78 Million Ounces of Silver Worth?

"SOLTORO REPORTS NI 43-101 COMPLIANT 77.4 MILLION OUNCE IN PIT SILVER RESOURCE AT THE EL RAYO PRIMARY SILVER DEPOSIT IN JALISCO, MEXICO

Soltoro Ltd. (SOL:TSX-V) has received an in pit measured and indicated resource estimate of 77.4 million ounces silver on its 100% owned El Rayo silver project in the State of Jalisco, Mexico.

The NI 43-101 compliant Mineral Resource was estimated by Roscoe Postle Associates Inc. (“RPA”), and includes an updated estimate for the Las Bolas and Highway Zone structures and an initial estimate for the La Soledad structure. La Soledad is a newly discovered deposit where drilling is ongoing with the objective of extending silver mineralization along strike and at depth.

To date the Company has only tested a 600 metre section of the La Soledad structure where an associated series of airborne magnetic anomalies has been traced for over six kilometres. The current resource does not include any estimate for the La Catarina mine area where seven holes were recently completed to confirm a historic resource."

Source: www.soltoro.com

My Top Mutual Fund Pick for 2012

I've scoured all the mutual funds available to invest in and I am convinced that one mutual fund will outperform all the rest in 2012: the Tocqueville Gold Fund.

 Yahoo!Finance

The fund is comprised of gold stocks, but physical gold itself, which I expect to rise to $2,500 in 2012.  Political chaos in Europe (and even here in the US) will continue, and so will rising inflation, plus increased concern over the US national debt, which is now over $15 trillion and 100 percent of our GDP.

Check out the full story here.

I am long TGLDX.

My Top Books on Gold and Silver Investing

There are a bunch of books out there on personal finance, money, investing, and of course, gold and silver investing. It can certainly be a daunting task to find a good starting point.

So I hope I can help you out here. I have read almost every gold and silver investing book out there, and here are what I consider to be my top picks. 

Read more: http://www.infobarrel.com/Best_Gold_and_Silver_Investing_Books#ixzz1ginsRfEC

Yup, this is on the list! 

The Most Important Video You'll Ever Watch?

Check this out ASAP:

The Top 5 Investing Books Ever Written

Here is my list for the top five books on investing and money ever written. I've read nearly every book on the subject and came up with this list.

I'm sure many out there may disagree with the selections, and probably the order, maybe there is a book or two on the list you have not read and will check out.

If you think I really messed up and left one out, please comment!

Cheers,

Steve

What number is this book on the list?