The Five Reasons Why Now’s the Time to Buy Junior Miners

Gold could be ready to end the summer doldrums even before summer begins.

The most relevant area of resistance in the way of this outlook is the 30-point range between $890 and $920. If gold can break through and find support at these values it will be poised to rise for the summer.

With that said, I think we’ve had our seasonal low and now it’s gold’s turn to shine…as the most preferable commodity…and better yet, to become money again.

Just writing that makes me realize how early in the game it still is. Who today would believe gold will become money again? Yet, at the top of the market everyone will.

Here is the best opportunity for us right now…

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Get Filthy Rich While You Sleep

Doing nothing while collecting royalties has to be one of the best — and easiest — ways to get rich. For instance, David Sengstack does nothing and collects royalty paychecks of $2 million per year…just because his dad was smart enough to buy the commercial rights to a song you’ve sung a hundred times, “Happy Birthday to You.”

Michael Jackson does nothing and collects royalties every time a Beatles song plays on the radio (he bought the rights years ago). But Paul McCartney — now a billionaire — does nothing and collects even more on the 3,000 song rights from other artists that he owns.

Today, you can do the same…and you don’t have to buy song rights. We got something even better. Check it out here…

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The Five Best Reasons to Buy Good Quality Precious Metal Juniors

Most of the small-cap and junior resource market has been in decline since gold first broke the $700 level back in 2006. But that’s all about to change, I have five reasons why you should buy juniors now before the window closes — lets get started…

Reason #1, is that, several depressing factors have come together to produce an early seasonal low, at least for the precious metals sector.

Reason #2, as implied in the introduction, gold has lagged the commodity cycle because the market is infatuated with the growth in developing countries, and has inferred a “realness” to their demand for commodities. I’ve never disputed that the growth exists… just that there is a lot more inflation, and that inflation is what drives prices higher.

I believe the gold market is at a bullish inflection point — a point of recognition of sorts.

Reason #3, the precious metal juniors have hardly benefited from the bullish trends in these commodities to date, especially since 2006, never mind the future.

Lots of money found its way into the junior segment over recent years, to be sure, but this expansion in capitalization has been dilutive. The Canadian Venture Exchange (CDNX) has had a hard time keeping up with gold itself, and is at its lowest level relative to gold since 2002. Simply put, the juniors should be tracking gold — and right now they have a lot of catching up to do. The result is a widening gap between the values of majors and juniors. In my mind, that gap will soon contract.

With that said I think it’s the best buying opportunity in this segment since 2002.

Reason #4, The money that has poured into the junior precious metals segment over the past few years has been soundly invested. I am impressed with the value that I’ve seen many juniors create throughout this cycle — the development of assets discovered back in the nineties has been astonishing.

Finally, the best reason to own these juniors now…

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Why Has Oil Surged?

Dwindling value in the dollar, a crisis in U.S. credit, rising demand from overseas. These are all explanations for the recent surge in oil prices. But that’s not the whole story.

There are more dangerous and deadly reasons for the rise in oil prices, and the real truth explains why we can expect this surge to last for a long time to come. Click here to read about the “bloody backlash.”

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Reason #5, the next takeover wave!

Many of the large-cap producers are priced for growth, and they know that if they want to sustain those multiples, they’ll have to buy or find reserves. That’s the incentive.

Meanwhile, the juniors spent lots of investment dollars proving up their assets, and the market has ignored them. So they are ripe for acquisition.

And, the majors have plenty of cash, thanks to the latest run in gold prices.

Some, such as Agnico Eagle have said they’re on the hunt, while others like Gold Fields are obviously in need of assets outside of South Africa. Corrections in the price of gold won’t discourage them.

There’s your ammunition, five Solid reasons to make sure you are small-cap and junior miners. These miners won’t remain at these levels long, so now is your chance to get in!

I’m working on a more comprehensive target list as we speak. I see a window of opportunity between now and the end of this gold price correction to buy the good quality small-caps and juniors before they take off. The window could close earlier than you think.

Regards,
Ed Bugos

P.S.: So now you know the reasons why you should be in the small-cap and junior miner game. There has been a recent downtick for gold, but that should not last. Readers of my Gold and Options Trader service have seen not only the reasons to buy junior miners, but they’ve gotten my personal recommendations instructing them which miners to buy and when. Want to know what I told them? Click here to find out…

Source: Small Cap and Junior Miners

Tonight, after nearly four months of competition and thousands of possible contestants, the winner of American Idol will be announced on live television. This year’s contest, seen by hundreds of millions of viewers who accounted for even more votes via phone calls and text messages, has been one of the most popular of the show’s successful seven-season run.

So after all that, America will choose between 17-year-old wide-eyed wunderkind David Archuleta and 25-year-old Kansas City rocker David Cook. While the chance to win the competition looms large for both contestants, both will undoubtedly enjoy lucrative careers.

Over the past seven seasons, American Idol contestants have posted as many as 71 singles on the Billboard Hot 100 chart. The show has produced successful recording artists, multiple Grammy winners, and even an Academy Award winner. There is no denying the overwhelming achievement of what some consider nothing more than a glorified karaoke contest.

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Why Has Oil Surged?

Dwindling value in the dollar, a crisis in U.S. credit, rising demand from overseas. These are all explanations for the recent surge in oil prices. But that’s not the whole story.

There are more dangerous and deadly reasons for the rise in oil prices, and the real truth explains why we can expect this surge to last for a long time to come. Click here to read about the “bloody backlash.”

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Since becoming one of the most successful reality television shows of all time and the flagship program of the Fox network, American Idol has established itself as a marketing monster and moneymaking machine. With lucrative sponsorships from companies like Coca-Cola and AT&T, along with millions of dollars pouring in from other miscellaneous sponsors, American Idol has made many people very rich.

One of the ways Idol has been able to generate viewership and buzz is through the songs the contestants are able to perform. Over the years, performances on the show have evolved from classic standby numbers your grandmother may even strain to recall to many of today’s chart-topping hits. Even the elusive Lennon-McCartney songbook was opened for this season’s show.

The success of the show has opened up a dual incentive and revenue stream between the show’s producers and the owners of the songs they sing. The simple reason for this is royalties. Each time a song is performed on American Idol, the show’s producers pay the owner of that song’s rights a royalty fee. This creates a mutually beneficial, symbiotic relationship between Idol and the songwriters and recording artists who lend their work to the show.

The concept of royalty fees is simple, while the application is quite complex. But for our uses, simply imagine already incredibly wealthy musicians and writers sitting back and collecting checks for seemingly doing nothing. On last night’s finale performance show, popular songs by artists such as U2, Elton John, and John Lennon were performed. These performers have (or had) an unimaginable amount of wealth and fame, and last night’s performances simply added to that. Not only that, but recordings of the Idol contestants performing the songs are then sold as downloads in the Apple iTunes music store. You can bet that Bono, Elton, and Yoko will be picking up checks for those sales, as well.

The relatively new relationship between American Idol and Apple has generated even more money in royalty fees and more exposure for the original artists. This season, popular performances of Leonard Cohen’s biblical ballad “Hallelujah” and Lee Greenwood’s patriotic anthem “Proud to Be an American” boosted the sales of the original recordings on iTunes, as well as millions of downloads of the Idol versions.

For doing nothing, Cohen and Greenwood collected handsome royalty checks thanks to the popularity of American Idol.

For many people, the concept of royalty fees is exclusive to the entertainment field. We’ve all heard the story of Michael Jackson outbidding Paul McCartney for the rights to The Beatles recordings and the amount of money he has been able to make from the royalty rights alone.

But did you know that regular, everyday investors like yourself could also get in on the royalty game? It may not be as glamorous or public as sales of your song on iTunes, but you can still mint a pretty penny from collecting royalty fees.

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Double Your Money — While Wall Street Is Tanking

While others are losing their shirts as the stock market crashes, you have the chance to come out ahead.

There’s one service that will help you during the turbulent markets 2008-2009 markets ahead…

Find out how to stay safe and profitable while others sweat out the recession here.

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The royalty fees I’m talking about are not in the entertainment sector at all, but rather from the same oil and natural gas, gold, silver, and resource stocks we discuss all the time. These fees are paid by royalty trusts companies, and many investors have made a lot of money by, in essence, doing nothing.

With a royalty trust, you, essentially, own a piece of land that is rich in oil, gas, or any of these resources if you become a shareholder. These companies then rent that land to developers and miners who do all the dirty work of extracting the resource from the ground. The royalty fee is paid back to the trust, and a share of that money is then passed on to you.