Bag Of Gold's Penny Stock Arcade & Emporium...

That is definitely one of the big questions that has been on my mind the past year.  Would love to hear the opinion of BOG and Mr. Gneiss.  In the interim, I'll share my own.  It was right in late '08 that I started paying attention, and I was really shocked by the valuations that came about across the mining complex, enough to ditch my old niche and go all in up here in Canada, first in coal, by absolute fluke, and then increasingly toward gold and silver.  '08 was a banking crisis, not a sovereign crisis (even though the sovereigns were well on their way).  Having absorbed the excesses of the banks, this time around the banks will again be the trigger in all likelihood, but it will be a sovereign crisis.  I try as often as possible to think back to late '08 and the general gist of the conversations that were being had, on places like Stockhouse, Facebook, and in the various analyst essays.  What was not talked questioned then, except on the fringe, has moved very much toward the mainstream.  I think folks like myself may be representative - going into '08 I had never thought twice about gold, I had never seriously questioned sovereign solvency, I don't think I had ever really questioned fiat money in the abstract.  I firmly believe everyone over the last 3 years has moved to a different place on the continuum - all in the same direction.  Some may have moved faster, some who were far along may have merely become more confident in the beliefs they already had, but precious few have stayed in place in terms of awareness (I'm ignoring my FB friends who still seem only concerned with Snooky, but they didn't impact the market then and they won't this time either - though I'd suggest even they are at least slightly less confident in the status quo now than they were then.)  My perspective as a convert, having mostly met recent converts as opposed to 10+ year old bugs over the past couple of years, is that the frame of reference is going to be slightly different this time around, and perhaps for a critical mass of folks with money to protect.   Ultimately, its a crystal ball question and will likely be a binary outcome, gold is either going to be widely and finally accepted as money or it isn't.   I think we are all getting close to the point where we have to bet one way or the other. 

On one hand I see the majors that are in the cash building mode waiting for the opportune time to make the next acquisition and I see Jim Sinclair saying 1764 starts the 3rd and final phase of this great bull market. I see 1764 holding and closing above for three consecutive days indicating a confirmation to the start. He also is starting to preach about a time to start considering precious metals equities once again.

I then look back to 2008 and remember a freezing up of the credit markets and the pummeling of most equities and especially those with the need to raise cash in the not to distant future. 2011 looks worse than 2008.

At what point do the banks start acting like the gold companies of the 80's and 90's and the gold companies start acting like the banks of the 80's and 90's specifically related to consolidation and mergers and acquisition activities? When that time comes the pennies that you guys are researching will have the greatest upside potential of them all.

It is a very valid concern.

Couple of things I used to follow and trade Cline, Western and Grand Cache up until last year and then departed for strictly precious metals oils, and agriculture. What is your thoughts on metcoal today?

The one major thing I have taken from the due diligence part of the BOG, MR.G portfolio of companies is to examine and compare working capital or free cash to my other juniors/ microcap holdings. If we have a credit event the majority of their picks have enough on hand to weather a potential prolong storm out. I have had to rethink several of my smaller companies recently wondering if another credit crunch brings some of my non BOG picks to their knees.

Another thing I am rethinking is what are the politically stable and secure areas of the world to commit money into the precious metals sector.

Like you metcoalfan most of my core picks are in the producers/ soon to be producers. Most of the producers of the world can't grow unless they find new deposits on their own or make acquisitions. If history repeats the juniors and microcaps will targeted in the 3rd phase of this bull market and will have the greatest potential of exponential gains compared to probably any sector out there. They will blow the producers away by a large margin. The producers advantage will be the incredible dividend opportunities that lie ahead as the precious metals prices go much higher.

The free markets allowed an incredible ride for high tech companies in the 90's. A manipulated suppressed precious metals market once released will make the 90's tech run look like childs play.

Thanks BOG.  May each of us turn our intention on wisdom and awareness to the world, one another, and penny stocks!

I must admit, I have not looked at *the list* in a while, nor followed this thread.  I have no idea why not (as I have plenty of time), maybe it is psychological resistance... in which I think I know something in which I did not before, but that seems foolish when I am not giving ample time to something in which has taught me so well.  And to be honest, I had much better returns when I invested in "the list" instead of my current returns on some of my interesting stock choices as of late (then again last fall was nice to everyone!). 

With all that said... this may be the time for these little guys to finally have some stellar days!

What are your favorites, Malbex and Alto?  I know you must like all on the list, but which is your favorite story (I will go back and read through but curious to know for now!)

-

Scott

Thanks for your work Bag of Gold and others. Can you please tell me how you feel about Oroco Resources OCO.V ? The newsletter I subscribe to has it as a sell right now as it seems the stock broke strong support @ .28 and it may trend down from there. However, its flagship Cerro Prieto project in Mexico is one you may want to keep an eye on for the 12-24 months timeframe.

Just found a great prospecting/geology website - at first glance it looks really interesting, if you are interested in learning more about such topics.......enjoy:

http://goldminingandprospecting.blogspot.com/

Hey Fired, yes, I'm on an all-expense paid week-long holiday from Kitco.  But I shall return!  I just checked NDR's website and stockhouse blog and can't see any new news nor any reason for the drop.  Probably just the season - but you never know who has inside info about upcoming drill results.  Considering their properties, at $6 million market cap I see very little downside, but I know that's not much comfort if you just lost 20% of the value of your position.

as Henry Ford II was quoted when asked to respond to his critics:

"Fuck 'em. Never complain, never explain."