HomePublicGold Fever : a True Story

I am Sharing an email conversation I just had with Rambus with all you brave souls who have taken the leap of faith and joined Spock . I commend each one of you. You never know how something like this unique little site will pan out. But I  ,  like you all , really like the prospects (pun intended) :

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Fully :

Dave what do you think of Armstrong’s prediction we probably drop to 875 before the real Bull begins

Rambus:

Gary I don’t read Armstrong anymore as it’s counter productive. It’s always after the fact that he says that was the bottom or top. If the bull market really began in the PM stocks on January 19th he’ll find a way to say he called it. So far he’s basically not participated in the bull market. Down here is where you get the leverage if you’re right. Anyway I know a lot of people put him on a high pedestal wait for every word he says but he’s just too confusing for me.  Thanks again. Brother Dave in the Ozarks

Hopefully this is only the beginning of the bull market in the PM complex and especially the little guys. To be able to get in close to the bottom on some of these juniors trading under.50 or so can easily become a 10 bagger or a 100 bagger in the end. I wasn’t around the last time the juniors had that massive rally back in the 1990’s. I read about it but never experienced it. You did correct? What was it like? There is no fever like gold fever. 🙂

Fully:

Dave :I agree about Armstrong 100%

Yes I cut my teeth in the ’94 to ’96 PM Miner Gold fever .

I had a broker who was somewhat of a friend. He got me interested in PM stocks I knew nothing about nothing but…They were trading on an exchange called the Venture Exchange. This was pre Internet and you actually had to phone a real person to place a trade .

It was around 1994 and They went Nucken Futz ! Immediately after I bought !

Every drill hole announcement added 100% to some of them

I had one…my first ….called Bandore Resources …This was a couple years after I separated from my wife and kids and was going thru the divorce from hell . I thought I died and went to heaven .

He got me in at $1.40 which was up from like 14 cents….I had a boat load and kept buying and it doubled then doubled again then split and doubled again and again…all in about 10 months or so.

The mine was in Timmins  Ontario about a couple hundred miles up the road .I took a ride to see my Property 🙂 There were hundreds of others like this one too . I had 10 or so others .

I don’t know what caused the spark but it was wild.

Gold only went from like 400 to 440 during this time !

Anyhow My broker kept saying sell your house and wife and kids  and buy more…I didn’t sell the house and already sold the wife and kids. but I held what I had and Bandore then relisted on a “real” exchange  Toronto.. and topped out at $14 ( a 10 bagger for me and a 100 bagger for many)…then it just stopped  going up. Word came that some insiders were selling .

Meanwhile , Brex was found out to be a scam..the head geologist jumped out of a helicopter…everything just crashed ….the Whole Sector figuratively jumped too .

I had no idea it was over so I held on …down down  down from $14 back to 14 cents.yes a reverse 100 bagger !! where it was bought out by Lakeshore Gold . I was crushed , devastated , demoralized ,ashamed  you name it !

I held Lakeshore all the way thru the Gold bull  of the 2000s and didn’t sell till I hooked up with you and one day sold all my 50 PMs in like 2012 or so. So I basically held Bandore for 18 years ! If not for you I would have held it till now !

True story !

This very well could be a repeat. I have been waiting and waiting to see this again. I never dreamed it would take this long.  It is now exactly 20 years later and it has taken all this time for the memory of that boom and crash to dissipate. A whole generation has gone by and now it could be time again . 1996 was the year Brex Crashed…It went from pennies to $280 and there was still heavy buying .

I never owned it on the way up . but I took a flyer at $2 on the way down and it went to Zero. I actually had share certificates LOL

It is possible gold will go to say 1350-1400 this year and then flame out while these things go 100 baggers  and then flame out as well . There are very few even on our site who experienced this Incredible gold fever .

Of course selling is HARD….they drop off the top by half in a few days then pop back up to a higher top and then kaboom…no one gets out alive .

Some day when I have some energy I will post this experience …I haven’t really heard anyone else talk about that wild 2 year event which was essentially smack dab in the middle of a 20 year Gold Bear Market

Also notice ….as you have often pointed out …the XAU:Gold Ratio has been dropping since 1996 !

The Majors also went up during that period but not nearly like the tiny spec stocks did .Sort of like Now . Spock is warning stay away from the majors . He is THE MAN for cherry picking these potential 100 baggers.

But come to think of it the  Brex Mania was the top of the PM Stocks vs Gold Ratio . It is incredible that all thru that Gold Bull from 250 to 1920 the ratio was dropping ….

In hindsight I believe it had a lot to do with all the fraud and lax regulation by the exchanges in this sector…People just didn’t trust it anymore . Brex of course was a salting scam. The head geologist had some crushed gold  in his pocket he sprinkled in to all the core samples from their property in Indonesia.

This translated to what was believed to  be the largest gold deposit in history  …And NO ONE figured it out for about 3 years .The assays were done by a reputable company SNC Lavalee and they missed the salting too.

The More I think of it the more I believe we may be there again . Some Aussies like Northern Star are already 100 baggers !

The famous quote from that era  endures :

“What is a Gold Mine ?

It’s a hole in the ground with a Liar on top !”

Have a good night my mountain brother …sweet dreams

Your Northern Valley Brother Fully


Comments

Gold Fever : a True Story — 8 Comments

  1. Ah, yes, the challenge of hitting the sell button. A good story, Fully, and one I share with you. Perhaps not as wild a ride, but darn close to it. This time it really is different as I don’t hesitate to hit that “get rid of it” button. I’ve only waited 6 years for this train to come back to the station, and will get right, sit tight, and then SELL.

  2. The line a gold mine is a hole in the ground with a liar standing on top of it actually is attributed to Mark Twain, quite some time ago. When you say we are there again are you saying we are destined to drop now to lower lows?

    We will let the markets speak and go by what they say, however my “opinion” is gold is in a secular bull market. It started in 2001 and the decline from 2011- Dec 2015 was a cyclical decline within the context of the secular bull. Now we will have to let the market confirm this opinion, but that is what the context of other market factors signals me.

    Oh, by the way you mention above that you “sold you wife and kids” I would guess its more accurate to say you paid for them a second time in the divorce.

  3. Me too on the Armstrong. I like Marin and have been reading him for 10 years now since he was deep in the hole putting out hand written missives, but as far as trading I find him mainly an distraction. I can think of no one who has made anything going with these nebulous concepts. Let’s stick to Rambus’ charts and Weinstein principles

  4. Spock,
    A friend was divorced in the 2003/4 time frame and only had $100K left to his name. I suppose he found someone to invest the money and it was shoved into penny gold and silver stocks as a hail Mary/whos gives a sht at this point trade.

    I don’t exactly when but in the 2006 -7 time frame he told me 100K turned into $2.5 million. A great retirement. His guy did sell him out and did not get greedy. So those of us who have not experienced this are in for a real treat.

    Great work! I look forward to seeing this correction unfold.

  5. Can’t believe I’ve been a SpockM member for a month, and just now saw this “must read” post. Thanks for sharing Fully and Rambus, and everyone else who commented!
    p.s. I can relate to the pain of divorce… mine happened in 1998. Came out of it basically broke. Had to do a bankruptcy filing that same year, so double-wammy
    divorce and BK within a few months of each other. Been a long slow climb back up from that hole, both financially and emotionally, but in a good place now

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