Wins abound so winningly today that even I — who have not been known for having problems with the art of braggadoccio — am having trouble incorporating them into a proper bombastic theme.

Perhaps I will just recite double digit-winship Jacksons I’ve pushed like IAMGOLD Corporation (USA) [[IAG]] , [[PAAS]] , Silver Wheaton Corp. (USA) [[SLW]] ?

No, perhaps I’ll be more reserved and only mention the Jacksons that were up over 9% today, like [[GDX]] , Eldorado Gold Corporation (USA) [[EGO]] and Royal Gold, Inc. [[RGLD]] ?

Maybe I’ll “take a knee” and mention the Jackson– Silver Standard Resources Inc. (USA) [[SSRI]] — that was only up over 8% today?

No, no… humility demands I mention Thompson Creek Metals Company, Inc. [[TC]] and [[TBT]] — but just don’t cry to me that I didn’t warn you about their risks. I still think TBT goes to $44.90 or so, but I think that’s also a nice place to purchase, fwiw.

As for other “down Jacksons” — Monsanto Company [[MON]] was off a touch, but I think The Andersons, Inc. [[ANDE]] is ready to re-launch again, as early as tomorrow.

All in all today was an EPIC day.   Like freaking Gilgamesh or something.

Please keep in mind that my thesis is “this is only the beginning” on the PM side. So stock up. Don’t forget “non-Jackson” rec’s like Goldcorp Inc. (USA) [[GG]] , Allied Nevada Gold Corp. [[ANV]] , Golden Star Resources Ltd. (USA) [[GSS]] , Rubicon Minerals Corp. (USA) [[RBY]] , New Gold Inc. (USA) [[NGD]] , Northgate Minerals Corporation (USA) [[NXG]] and let’s not forget NovaGold Resources Inc. (USA) [[NG]] .

Stocks I don’t own, but am eyeing include Seabridge Gold, Inc. (USA) [[SA]] , [[LIHR]] and Yamana Gold Inc. (USA) [[AUY]] .

Why meddle about with refiners and earl and even natural gas when the winnings are so laid out like a banquet? I know not.   Perhaps for masochism’s sake?

Best to you all.
___________________________

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I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

Thomas Jefferson, – “O.J.” — the Original Jackson (Attributed)
3rd president of US (1743 – 1826)

______________________________________________

With this quote in mind, I want to again call to your attention that we are approaching the “August to Christmas” gold run, which generally includes a concurrent run in the gold and silver miners, as represented by the [[HUI]] index.   Almost every year in the oughts since 2000 has reflected this run, save of course last year, when we experienced a 28% loss due to a mass liquidation of all assets.

As reflected in the 2007 portion of the following chart, you can see the $HUI broke over 67% in the August to December period.   Note that a return to the old highs ($525) would only require a 44% run from these levels.

____________________
 
I believe we should see a relatively rapid progression when this thing gets moving — from $375 to the June highs (about $405) and then very possibly back to our pre-crash ’08 old highs in the $525 area.  That kind of progression in the $HUI should mean good things for all of our precious Jacksons, including Eldorado Gold Corporation (USA) [[EGO]] ,IAMGOLD Corporation (USA) [[IAG]] , our leveraged royalty play in Royal Gold, Inc. [[RGLD]] and our gold ETF [[GDX]] whose $34 strike options I purchased last week for September expiry.

A strong $HUI will mean even better things for the silver Jacksons, as the price of gold is still well over the historic 40x silver “norm” at nearly 65x today.   Silver Wheaton Corp. (USA) [[SLW]] is my number one pick in this space, but  [[PAAS]] and even relative laggard Silver Standard Resources Inc. (USA) [[SSRI]] should be strong in this coming period.

As for non-Jacksons, I still like Allied Nevada Gold Corp. [[ANV]] despite the recent dilution, and Rubicon Minerals Corp. (USA) [[RBY]] , Golden Star Resources Ltd. (USA) [[GSS]] and [[BAA]] all look good from the junior gold side, and of course [[EXK]]   and [[CDE]] on the silver side.   I will also throw Hecla Mining Company [[HL]] out as a possibility because it tends to jump in “hot” precious markets.   Be warned, however, this last is a “trade only” position, and not one to keep even one day past its expiration date. 

If you want to buy and hold, stick with the Jacksons and a well diversified pool of juniors… one or two of those will be “lotto tickets” and the rest will be largely crap, but you will be happy for the lotto wins nonetheless. 

No excuses, ladies and gents.  It’s “sarious” (sic) time.  See you at the finish line.
_________________________________________

I know I haven’t given you a Jacksonian update in a while, so here’s last week’s results.  Note the bludgeoning in Thompson Creek Metals Company, Inc. [[TC]] due to the UBS (curse them) “bought deal” which means a “sold short” deal to those who are already holders.  No matter, once this overhead is sopped up, TC will move again, as will Teck Cominco Limited (USA) [[TCK]] .  Get these while they are cheap.

Name/			%		Portfolio	Portfolio
Ticker	21-Aug	28-Aug	Change		Value	Impact		Comments
ANDE	$        28.20	$      32.92	16.74%		$             9,940	1.00%		Big volume leap Friday. $33 is break.
EGO	11.02	10.56	-4.17%		$             9,895	-0.25%		Riding 20-day (10.49) on coil now.
GDX	39.30	40.18	2.24%		$           12,161	0.16%		Moving out of consolidation zone (>$40)
GLD	93.65	93.87	0.23%		$           10,796	0.02%		Coming out of coil as well, needs $95.50
IAG	11.93	12.02	0.75%		$           14,821	0.07%		Looks to test new highs (12.36+) this wk.
MON	83.78	83.00	-0.93%		$           13,168	-0.07%		Stuck between 20 and 200 day EMA’s.
PAAS	19.52	19.99	2.41%		$           12,006	0.17%		Breaking out of EMA coils (20/50/200)
RGLD	39.50	39.95	1.14%		$           11,039	0.08%		Closed above 200 day but lagging peers.
SLV	13.92	14.50	4.17%		$           11,779	0.29%		Nice leap on volume Friday, targ: $16.04
SLW	9.37	10.45	11.53%		$           10,150	0.70%		Nice move Friday, over $11 = free air.
SSRI	18.24	18.28	0.22%		$           10,634	0.01%		Still lagging all MA’s, and peers.
TBT	49.55	46.74	-5.67%		$             9,311	-0.32%		Broke below 38.2% fib @ 47.20, 44.90 target
TC	14.29	11.98	-16.17%		$             9,861	-0.96%		Massive dilution effect from secondary
TCK	26.73	25.20	-5.72%		$           24,315	-0.83%		RSI turning back up again, could be time.
Cash (000)	$        8.63	$    12.64	0.01%		$         12,644	0.00%		Added another $4k+ with final NRP sale
AVG (weekly)			0.40%		$       182,520	0.07%
AVG (monthly)			9.91%		Actual cash
AVG (inception)			25.14%		on cash return	21.68%

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We love ya, a whole hell of a lot.

_______________
Aside: I know I’ve been remiss, but it’s been headless cats and dogs here at work since I got back, and I need to get my brain on straight to talk about this market. I think I will be able to refire more than short quippy comments by tonight. For now, on to the next thing….

The farther in you go, the bigger it gets…. — Crowley
____

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Since it is friday night

 and sister mary catherine is off the terminals  and has been counting sheep-angels for hours now;

why shant we enjoy a brief interlude,
with beauty?

“Wha wa Wha wha – What is buh bu buh Beauty?” you stutter.

 

Well, let-me
let-you in,
on this very, well kept secret:
That old cliche you’ve heard a million times…
about beauty

yes –
it is true –

 

 “Beauty is in the eye of the beerholder.”

 

 

 

 

[mine]

 

“]

[yours]

 

 

[mine]

 

 

[yours]

 

 

 

 

” 

 

 

 

 

[mine]

 

 

[yours]

 

 

 

 

“]

[mine]

“]

[yours!]

 

Best –

DMG

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I just ‘hung up’ with my wife and daughter who are over in Europe at the moment. I have been video calling them at least once a day for the past couple of weeks using Skype. Skype (if you live in a cave and don’t know) is a software application that allows you to make calls over the internet. It is free to call another computer and they charge a small fee to call to cell or landlines. If you and that person you are calling both have webcams and mic/speakers, which almost all new laptops have built in these days, you can video chat.

I love this service as i get to visually interact with my girls when talking to them and it makes the distance much more bearbale (again for free). Seeing my wife’s ever-expanding belly is so much better than just hearing about it as she tends to exaggerate ocassionally.

By no means is Skype unique. There seems to be a new, free video chat service popping up daily. Some others that i know about are: gmail video chat, msn messenger, ooVoo and ichat. Grandparents & grandkids, parents and their college age children, old friends once separated by great distances are all re-connecting on the cheap in real time with these services. I recently read that facebook will be adding a video chat function in the near future.

Now these sites are all set up for person-to-person or small group calling; i’m not talking about sexual deviant sites like myballsonyourchin.com or some such ‘chatrooms’, where sexual deviants with a webcam go to show off their bait-n-tackle in group circle-jerks. Though as technology progresses, so too will those types of forums. Everyone needs a hobby, right?

As i’m sure you know, Skype is owned by Ebay and they have been talking about spinning it off as it’s own seperate entity and taking it public in 2010. It has also been in the news recently due to a software licensing dispute with it’s original developers (fargin Estonians ; ) which may complicate the IPO offering next year. I think j commented on that on Fly’s blog last week.

I’d be interested in hearing your thoughts on this upcoming IPO and any other comments related to voice over internet services, pros & cons of said services or any other thoughts that come to mind. Any ideas on stock plays where i can bank some coin?
I agree with The Fly’s 4G/smartphone thesis and am guessing that video calling to the other side of the planet via one of these free internet services will be a lot more mainstream in the near future. You pay ‘x’ amount for the data package of your provider but no other costs would be associated. Long gone are the days of MaBell charging you an arm & a leg to make an overseas call.

Of course, There have been a few times during my 30-40 minute calls where one of our cams freeze up or there is a slight delay in the sound but we simply hang up and call again. I can’t really complain as i think i mentioned, it’s free.

Best
-DMG

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Here’s a very good (imo) opinion piece by John Mackey, the CEO of Whole Foods in today’s Wall Street Journal.

Rather than destroying the best best health care system in the world by handing it over to the muppets who have been so successful running Social Security, Medicare, the USPS, Amtrak, etc., Mackey suggests going the other way and having LESS government involvement.

What a novel idea!
Here are his eight reforms that would lower overall costs – for everyone:

• Remove the legal obstacles that slow the creation of high-deductible health insurance plans and health savings accounts (HSAs).

• Equalize the tax laws so that that employer-provided health insurance and individually owned health insurance have the same tax benefits.

• Repeal all state laws which prevent insurance companies from competing across state lines. [iow a true, free market]

• Repeal government mandates regarding what insurance companies must cover. [i’m really digging this ‘less government theme’, ovah heah]

• Enact tort reform to end the ruinous lawsuits that force doctors to pay insurance costs of hundreds of thousands of dollars per year
[for some reason, the dems never want to discu$$ this one…]

• Make costs transparent so that consumers understand what health-care treatments cost.

• Enact Medicare reform.[hopefully, before that ship sinks]

• Finally, revise tax forms to make it easier for individuals to make a voluntary, tax-deductible donation to help the millions of people who have no insurance and aren’t covered by Medicare, Medicaid or the State Children’s Health Insurance Program. [we know who donates more to charities voluntarily and who throws nickels around like manhole covers when it comes to ‘voluntary giving’ but are very generous with other people’s money]

“A careful reading of both the Declaration of Independence and the Constitution will not reveal any intrinsic right to health care, food or shelter. That’s because there isn’t any. This “right” has never existed in America.” [True dat!]

Yeah, yeah, yeah… I know all about food stamps, section 8 housing, etc. I think that entire system is more ridlled with scammers than the Nigerian Lottery letter writing union. For starters, start drug testing all those who are receiving gov’t handouts. There are too many lazy sacks o’ shite ‘gaming’ the system. I have no problems with helping out the truly less fortunate but do not believe it is the government’s job or responsibility. I spend enough on my own ‘vices’ and don’t need to be supporting Jerry Springer’s fan base’s habits. The entitlement programs in this country are a serious crutch – and in my opinion, stifle any ambition one would have to get off the dole.

No one is saying the U S health care system is perfect, but most now agree handing it over to the gummint would be ‘fucktarded‘ to say the least. Improve on the one we have and do NOT give any more control to the ‘gummint’.

POWER to the PEOPLE

Best,
-DMG

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