Customer Service 1 (888) 261-2693
Please enter Search keyword. Advanced Search

The Golden Country

By Matt Badiali, editor, S&A Resource Report
Tuesday, June 6, 2006

Benny Hollinger’s discovery is the story of dreams. 

Benny was prospecting for gold in Ontario, Canada in early 1909.  He was pulling moss off of rocks when he came across a quartz vein. This particular vein had a strange pattern... almost like candle wax melted along it.  Except that the "wax" was pure gold!

This vein of “jewelry rock” was 6 feet wide and 60 feet long... on the surface.

Benny’s discovery turned out to be the largest find in one of the single richest gold regions in the world... the Superior Province of Canada.  Home to the Abitibi Greenstone Belt, the Superior Province hosts 7 deposits that contain over 100 tons of gold... and 4 that contain over 500 tons!

Canadian mining giant Goldcorp (GG) has a mine in this region that produces extremely rich ore.  Goldcorp earns $2,500 for every ton of rock pulled out.  I’ve moved a lot of rocks in my day and nobody ever paid me even 1/100th of that...

Canada’s giant gold deposits occur in orogenic belts.  These are hard rock deposits associated with special geologic events called orogenies.  These deposits occur all over the world, although only 23 contain more than 500 tons of gold.

I bring up Canada’s huge ore deposits for one reason: Because high commodity prices make governments greedy.

It’s an unpleasant fact.  If you’ve read the paper or watched the news, you’ve seen story after story about nationalization of assets or increased taxes.

The hunger for resource profits has caused several South American countries to nationalize their oil fields or jack up taxes on oil companies.  This, along with instability in important oil regions such as Nigeria and Iran, has put a $20+ fear premium on the price of oil. 

But let’s get back to gold...

Since gold prices rose so quickly, I’m concerned.  Nationalization might happen to gold mines too.  Gold is produced in many of the same South American countries that recently snatched oil concessions away from international players. 

That’s why I recommend gold investors keep the bulk of their resource dollars in stable, business friendly countries like Canada, the U.S., and Australia.  In many cases, you can still buy incredible mining assets cheaply... and avoid the risk of government theft.

I especially like Canada in the gold sector.  Canadian companies are some of the world’s best miners.  Canadian gold regions are similarly world class... and I’m still finding value in this region of the world.

Next time you go shopping for a safe mining investment, I encourage you focus on Canada...

If gold continues to rise as I expect it will, owning the right companies - companies that won’t be robbed by dictators - could literally pay for your retirement.

Good Investing,

Matt Badiali





Market Notes


HIGH COPPER PRICES BRING OUT THE CRIMINALS

Gaining 375% in the past three years, high copper prices are driving a huge wave of copper theft.

Easily recycled and present in plumbing and wiring, copper is an easy target for desperate thieves.  A report in USA Today even mentioned how a man was electrocuted in West Virginia while trying to steal copper power lines.

Whether it’s stolen by governments or by private enterprise, expect high commodity prices to lead to more looting…

Copper: A favorite of thieves everywhere



Recent Articles


  • Are You Contrarian Enough for This Trade?
    By Dr. Steve Sjuggerud
    Tuesday, February 20, 2018

    Eleven billion dollars... That's how much money two major funds lost in combined market value over the last few weeks.

  • Porter's Latest Prediction Just Came True
    By Justin Brill
    Saturday, February 17, 2018

    Last summer, Stansberry Research founder Porter Stansberry warned that a significant stock market correction was now certain for the first time in years. Surely, Porter is even more bearish now? Not exactly...

  • The One Secret to Thriving in 2018
    By Chris Mayer
    Friday, February 16, 2018

    We all have the same questions: What awaits us this year? What dangers lie ahead? What opportunities? What should we do next?

  • Why Inflation REALLY Matters to Investors
    By Dr. Steve Sjuggerud
    Thursday, February 15, 2018

    Was it a coincidence that inflation soared at the same time the stock market crashed? To find out, let's look a little further back in history...

  • Why the Crypto Correction Is a Good Thing
    By Tama Churchouse
    Wednesday, February 14, 2018

    In the world of crypto assets, a fire is raging right now...