I am quite please to finally get 1 or 2 readers who are interested in gold investment.
Jenny asked me to write something like gold investment 101, a layman term so people who has not invest in gold would understand. Bee asked me where she can buy e-gold. And BE think it is hard to buy French gold.

After reading a lot of wise men and women’s writings, I finally come to a conclusion that as we move deeper into hyperinflation, gold will become more attractive as a hedging tool towards super hyperinflation. An English guy on his blog wrote something like our salary cannot match with increase of house price. I made a comment on his blog that nothing beat gold price the last 5 years and I believe gold price of US$1000/oz is just round the corner. If you use increase % on major cities houses say in America, it still could not match the increase in price of gold and certain gold stocks. How many of you have a return of 400% increase in any of your investment ? Gold and gold stocks did !! Never mind, this is not the first time people called me crazy or eccentric. But, when gold goes up US$1000/oz, please don’t say I have not warn you !

This is my 1st newsletter I have written a couple of years ago and that might be the 1st step to educate you why I invest in gold. I have checked most of the links, they are still intact. I do not believe there is any short cut in any kind of investment you want to do. It takes me years (at least 3) to finally have a hand on gold/silver investment. I spend many hours reading why, how and what on gold/silver investment. So, please do not think it is an easy work and that you will become a millionaire in an instant. Might be when gold is in mania stage, you might become instant millionaire over night but right now, gold is still in its infant stage and you need to read a whole lot before you can invest right !!! The best time to invest in anything is when not people know about it, by the times when the shoe shiner boys tell you to invest in gold, you should sell on the first selling price when market opens !!

So enjoy and follow the links that I provide, they are my treasures !

2006-1 Gold Newsletter For Friends

Jamy Seay

Jan 04, 2006

As I have promised a few friends to write what I know about gold investing. This is the first such newsletter I have put together.

I was exposed to gold investment in 2001 by a missionary friend, Mr Gil Prost. Over the last few years, I have read a number of good articles and authors and they have been great benefit to me.

I am a big picture person and whenever I start an endeavor, I always like to have an bird-eye view of the endeavor. In the case of gold investment, I wanted to know why is gold investment appropriate during this period. I found Mr Jay Taylor articles particularly helpful in understanding the historical perspective in relation to gold investment. In addition, he also have many articles on global and America economy.

His articles can be found in this link. He also has a business web

After I got the big picture, I want to get into the bolts and nuts of gold stocks investment. And one of the bolts and nuts about stock investment is understand what the expects called technical analysis. I found this web site has a lot of useful technical analysis on specific stocks and timing to buy/sell. The main author used to be Adam Hamilton but apparently Scott Wright is doing most of the work now. Their articles can be found in this link. They also has a business web

Besides gold stocks, I also invest in silver stocks. The person’s essay whom I would highly recommend silver beginners investors to read is non other than (Jason Hommel). His works can be found in this link . He also has a business web. He offers free newsletter in his business web.

Besides reading these people articles and essays. I found a lot of useful information from this gold forum . Though not all the forum contributors show the same level of profession ism but a few whom I would highly recommended are namely : Half-Monty, Goldrunner (GR), TQ, Grininbarrett and North. Half-Monty gave perfect exit call in 2003. After that call, gold stocks went through a correction period of about 2 years. In 2005, Goldrunner(GR) gave excellent entry call which helped many forum readers made a lot of money. TQ often gives chart analysis on the forum and his works are excellent. The amount of knowledge in this forum is incredible. When I started reading the forum, there were not many gold companies that advertised on the web site . However, over the last few years, I noticed that the web site has hardly any free space for gold companies advertisement. The traffic hit on the web has reached millions per day.

In a simple term, gold companies can be classified into 3 basic categories. Big and established companies that are already producing gold and the production cost is very low. These are what we called tier-1. One of such company is GG. GG has been paying 11 straight months of dividend in 2005, which is a very unusual for gold companies. And the second category is med-tier, such as GSS. Then there are the junior minors or exploration companies. They believe they have gold but yet to be explored. A lot of times, the tier-1 companies will buy out the junior if they believe the juniors do have gold in ground. The old guys (tier-1) do not want to get their hand dirty and of course they would have to pay a premium. A lot of times if you buy the juniors that are take-over targets by tier-1, you find yourself gold mines !

Like any investment sectors, gold also has its own gold-index, they are HUI and XAU. The companies that made up of the gold-index stock can be found in this web site. – . You can click on the HUI link and it will tell you all the companies that make up of gold-index. The web site that I use often to check gold/silver prices is at this site . There are also gold-funds that you can buy. I have not investigate or study any gold funds and would not be able to give you any head-ups here.

There are free charting tools that you can use to help you understand stocks charting, one particular that I like to use is : http://www.stockcharts.com/

There are a number of on-line trading companies that you can use to buy/sell gold stocks. Over the last few years, I have used Ameritrade on line trading company.

I personally found that there’s always once or twice in a year for the last few years (2002-2005) when you can make some profits by buying and selling gold/silver stocks. The last note I would like to add is I have not subscribed to any gold/silver stocks investment letters except goldletter . The reason I subscribed goldletter was its attractive price. It was $99 when I subscribed and it was for a life time subscription; a price that I could not resist -. As gold is entering into its bull season, there are many gold writers and it is a challenge for new comers to differentiate snake-oil sellers and the seasoned writers.

God Bless,

Jamy Seay

Disclaimer: This article represents the opinions and personal views of Jamy Seay and is not intended to be investment advice. If you choose to use this analysis for your personal trading, Jamy Seay assumes no liability for the direct or indirect losses you may incur due to using this article to make your investment decisions. You are totally and completely responsible for your own investments. At any given time, Jamy Seay or her friends and relatives may have positions in gold/silver related investments that may or may not follow the recommendations contained in this article. The information in this article may not be completely correct and accurate. Even though Jamy Seay has done her best to review the content and accuracy of this article, she is in no way liable or responsible for any mistakes or omissions. Jamy Seay is not being paid for recommending the web sites that are mentioned in the article.

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