Sunday, March 27, 2011

Important Logic From The Great Jim Sinclair

Commetary: Martin Armstrong just wrote an paper on gold titled, "How and When"

My question to this article is WHY?

Why in the world, if you believe that the gold price can go to $5000 and $12,500, as the article says, do you give a flipping damn about the next 90 days.

You must realize that the economic and political damage is already done.

You must realize that the mountain of OTC derivative paper is not going away.

You must realize that all the old Legacy asset, (broken OTC derivatives) demand to be adjusted at each market turn in order to maintain any sememblence that they are serious contracts.

You must realize that this adjustment means adding on new OTC derivatives.

You must realize that this means the mountain of OTC derivative weapons of mass financial destruction can only grow.

You must realize that it is not if, or not, QE will continue, it is what it already has done to the Western Economies that much higher gold prices will reflect.

You must realize this is not a business problem, but rather a debt problem as it applies to the gold price.

You must realize the monumental change in the Middle East is NOT positive for the West in any manner, shape or form.

You must realize that the change in the Middle East is from some form of government to Chaos.

You must realize that the beneficiaries of Chaos in the Middle East is Iran and Russia.

You must realize that the main product of the establishment of a no fly zone in Libya is to benefit the Rebels.

You must realize that the rebels are an unknown factor in Libya.

You must realize that a second product of the no fly zone is greater hatred in the Middle East for all things West.

You must realize that the Peak Production of Energy is behind us.

You must realize that the production of energy in chaos will be less than under some form of rule.

You must realize that this combination of monumental Middle East change and the Peak Oil means Peak oil is no longer a consideration for 10 to 15 years from now, rather it is now.

You must realize that the Angels, gold prices, are not simple talk but rather a method used by the great market mavin Jesse Livermore.

You must realize that on the next trip to $1444, that price will FALL to the long term bull market on gold.

You must realize that $1650, a place where gold will trade is so low as to be comical looking back from 2015.

You must realize that "QE to Infinity" is not a choice but all there is the left in the tool box of US Fed.

You must realize the truth of today’s comment by Dallas Federal Reserve Bank President is true.

You must realize that what the President of the Federal Reserve Bank fear will occur.

You must realize no sovereign country needs to go broke.

You must realize they simply refer to QE as policy.

You must realize that it is the currency that breaks, not the country.

You must realize that the point of correctness in the article How & When that is true is his $5000 to $12,500 and not prognostications of the next 90 days.



Thursday, March 17, 2011

Clifton Mining Consolidates Gains, Offers Another Excellent Entry Point

After finally breaking through resistance at $0.30 and $0.35, CFTN shot up to $0.52 on heavy volume.  Now, CFTN is back down to $0.35 and testing the breakout.  This looks like an EXCELLENT time to go long if you haven't done so already.  Check out the chart below.

Updated 11:23 A.M. AZ time:

One more view of CFTN at excellent entry point right now.

Sunday, March 13, 2011

Clifton Mining Company (CFTN) Shares Jump 23% In One Day On Heavy Volume

I have been writing about Clifton Mining Company (CFTN) on this blog recently as I have been expecting a move higher. You can take a look at my most recent Clifton Mining Company (CFTN) Posts and see for yourself. On Friday, CFTN surged higher by 23% to $0.48 per share on the heaviest volume this stock has seen in over 2 and a half years!

As noted in this post, Clifton Mining & Partner Desert Hawk Gold Start Production, Clifton Mining is about to see a new revenue stream from mining operations which should have a positive effect on their cash flow and net income.

This is fantastic news for Clifton's shareholders who have been waiting for this moment for a long time.  On February 23rd I asked "When Will Clifton Mining Pop?" I mentioned that I thought that this was the final shake out near strong support level around $0.25 to $0.30 and expected CFTN to head higher soon.

The real good news is that Clifton is set up like a mining royalty company.  The way the Clifton Mining Agreement is set up with Desert Hawk Gold Corp makes it that Clifton gets a Net Smelter Royalty on all precious and base metals mined from the joint venture properties.  For a small company like CFTN, I expect this will have a tremendous positive impact on earnings and cash flow and will be reflected in much higher stock prices down the road.

The next hurdle for Clifton Mining Company common stock will be the 50 cent level.  After that look for $0.75 and then over a dollar.  Remember, Clifton Mining also owns a large percentage of American Biotec Laboratories and they receive positive cash flow from this investment each year and it continues to grow as well.

If Clifton can punch through the $0.50 level, I would wait for a pullback and then go long if you haven't already.

Although Clifton's properties are not currently 43-101 compliant, it has been rumored that Clifton's properties may hold up to a billion ounces of silver in addition to huge amounts of gold, copper and other base metals.

As always, do your own due diligence, make your own investing decisions and consult with your own financial adviser before making any investment decisions.  Especially, with penny stocks like Clifton Mining which are thinly traded and highly volatile.  Good luck and good investing.

Wednesday, March 9, 2011

Clifton Mining Company - Desert Hawk Gold Corp Start Production - More Coming

Clifton Mining (CFTN) has announced that Desert Hawk Gold Corp. (Desert Hawk), completed the overhaul and renovation of the Gold Hill mill in September of 2010.

They also said that initial production has started at a mine site identified as the Yellow Hammer Mine. Current production includes the recovery of copper, gold, silver and tungsten. The average ore being processed by Desert Hawk is running 4-6% copper with gold, silver, and tungsten by-products. High grade zones have exceeded 17% copper. The first copper, gold, and silver concentrate has been shipped to the smelter and the first payment is expected in April.

Most importantly they have noted that filings have been made with government agencies to construct a large heap leach pad near the Kiewit properties. This pad is being engineered to accommodate not only the gold resources from the Kiewit properties, but also silver and gold material from surrounding mine sites. It is anticipated that the government approval will be granted later this year and that construction will begin thereafter. We expect this to be the largest and most profitable project for the Company.

I personally have communicated with Rick Havenstrite who is the president of Desert Hawk Gold Corp and he informed me that they have spent approximately one Million Dollars working on getting the Keiwit project approved and up to speed. He expects it to be ready to roll this year.

Get ready Clifton Mining shareholders, your time is coming.