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Big pick GSML. Stock to Watch
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Monday, 19 November 2007
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An article just came tonight stating that Opec have expressed interest in converting their cash reserves into a currency other than the depreciating U.S. dollar, which he called a "worthless piece of paper."
The depreciating dollar has forced many countries to sell the dollar and get into something more stable and appreciating such as gold.  China has already started already sold 2.4% of their greenbacks for gold and I believe the trend will continue.

Matt Frailey from Breakpointtrade, stated that GSML has a resistance of .23 and the first major target after that is .42.  Well GSML is right near the resistance and could see a breakout any day!!

GSML has recently entered into a Joint Venture agreement with Tara Gold Resources on the La Millonaria property and rights to Nido De Aguilas Gold Prospect.


La Millonaria, located in Mexico's highly prolific Sierra Madre Occidental gold-silver belt in SW Chihuahua, consists of 4 mining concessions totaling 875 hectares, including formerly producing gold mines and current gold/silver exploration projects.

There are approximately 29,698 tons of surface ore ready to be exploited. Ready available material grading at 9.7 grams Gold and 23 Grams Silver per ton is expected. This will give GSML the potential for near-term cash flow.

Here are the top 6 reasons why Alxander Green Director of the Oxford Club likes Gold right now:

The U.S. dollar is weakening. That makes the metal, typically denominated in dollars, cheaper to buy in other currencies. (Euro-denominated investors think gold still looks cheap.) Gold traditionally rallies as the dollar falls.

2. Inflation fears. Only a few months ago, Bernanke was openly fretting about the possibility of higher inflation – and saying the Fed’s bias was toward tightening rates. Yet he has cut rates dramatically to lessen the credit crunch resulting from a meltdown in mortgage-based securities. Needless to say, the Fed’s action was inflationary. And gold is an excellent inflation hedge.

3. The emergence of China and India. A flourishing middle class in both emerging giants is increasing the demand for gold. (Jewelry fabrication was up more than 50% in India alone last year.) People everywhere like gold watches, gold coins, and gold wedding bands.

4. Supply constraints. Around the world, discovery rates are falling. Mines are being depleted and mining companies are producing lower grade base metals.

5. Geopolitical instability. There are plenty of hotspots around the world today. But gold is viewed as a safe haven during times of political or economic calamity. (That’s one good reason we own it in our Oxford Anti-Terror Portfolio.)

6. The trend is your friend. Good traders know better than to fight the broad trend in an asset class – and clearly gold is on the rise right now.

Put GSML on your watch list and do your own research.  The chart looks really positive and the trend is up!
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