A Government Target in Plain Sight…….You and Your Savings!
Grocery prices continue to rise and there’s no end in sight
Anybody that has been following world events over the past several months knows we are living in a world gone crazy. And, it’s a world within which the bad guys are winning. The Taliban has taken control of Afghanistan once again, with aims to turn it into a terrorist breeding ground for future attacks against the West.
But, at this exact moment, the biggest attacks on the West and on your savings are from within. This is, in military terms, “friendly-fire”. In the last 72 hours, one emboldened leader of a supposed democracy not only put 5 million people in lockdown but actually instructed people to no longer speak with neighbours. The excuse for this campaign against citizens was a single Covid case in the country.
In the meantime, the United States has just seen a trillion dollar plus stimulus package passed through the Senate while at the same time, small businesses are closing or operating under reduced hours due to lack of employees willing to work. As one business owner recently noted, “Our biggest competitor for employees has now actually become the government. We are used to competing with other businesses and that’s fair game, but now we are going toe to toe with our largest foe yet……a competitor that we fund with our own tax dollars. It’s crazy.”
Meanwhile, Quantitative Easing (QE) Infinity, unprecedented fiscal and monetary stimuli and paper money printing taking place with reckless abandon along with the upward wage pressure brought about by government largesse has resulted in a wildly inflationary environment.
Government officials take turns alternating between the complete denial of inflation and calling inflation a transitory phenomena. This “dumb and dumber” comedy routine is a charade….but nevertheless a charade that threatens your financial future.
Inflation- a Tax Many Don’t Know They Pay
Inflation, of course, is a tax without representation. It is an attack on savers. Savers who have been prudent their entire lives and who have saved a certain amount of capital to fund their retirement years now see inflation resulting in their hard earned and well saved dollars becoming worth less and less every day. And, this isn’t something I have to tell you…..as you just need to go outside and buy gasoline, real estate, groceries, or a car to know that the dollars in your bank have less value today than they did yesterday.
Fighting Back
For thousands of years, only one currency has stood the test of time. While many paper currencies have come and gone, only one has been store of value, a hedge against uncertainty and money for 5,000 years……..
If we look at currencies as competing against one another, it’s easy to understand why gold is the only currency that has prevailed. It’s the only currency that the government and big central bankers can’t print, they can’t make more of at the will of political leaders…..in other words, they can’t create it out of thin air. Therefore, while the imposter group of other competing currencies grows in quantity every minute of every day, gold is finite and therefore inherently is becoming more and more valuable. One thousand years ago, an ounce of gold could buy an amazing men’s suit. Today, an ounce of gold can buy an amazing men’s suit. This statement would be absolutely untrue if you inserted the name of any other paper currency into the sentence.
Golden Torque Better Than Gold Itself
(20 year spot gold)
When gold goes higher, history has told us that companies that own gold move at an even greater velocity than the price of gold itself. It makes sense, as gold equities give investors leverage on the price of gold. And while, producers of gold move the earliest in these gold bull cycles, there is no greater torque than gold discovery situations. And while exploration and development always have inherent risk that can’t be avoided, the torque makes for a potentially very lucrative component of a balanced investment portfolio.
Next Door to the World’s Highest Grade Gold Mine…..A Tiny Company With Significant Potential
The Fosterville Gold Mine is located in Victoria, Australia. It has had the rare honour, during various years since discovery of being the highest grade and lowest cost gold producer on planet earth. Its not just high grade, its not just low cost….but has held the mantle as the best of the best.
While the owner of the Fosterville Gold Mine (Kirkland Lake Gold, now a multi-billion dollar entity) was having early initial success, a local Australian geologist was quietly amassing the premier exploration land package in Victoria….long before today’s modern day gold rush.
These land holdings, now approximately a huge 3214 square km of exploration tenements and tenement applications, became the foundation of Fosterville South Exploration which has now floated publicly as FSX on the TSX Venture and as (FSXLF) in the United States.
After this (FSXLF) land assembly process that was completed over multiple years and after the past year of geochemical fieldwork, drill permitting, access agreement completions and building out logistical infrastructure, Fosterville South is now drilling. And early results, have been spectacular.
Just in the past few days (as you can see, in full detail within the latest Fosterville South (FSXLF) News Release), the company intersected an 11m intercept of high-grade gold, assaying 11m at 31.34 g/t gold including 4m at 80.05 g/t gold. And the most amazing part of this big hit……it was done during the very initial reconnaissance RC drilling of an area of their Providence Project (the Reedy Creek Golfield) that has never been drilled before. This recon program (often referred to as “poking around”) was being conducted in preparation of a larger phase of intense drilling. For (FSXLF) to have a key hit like this right out of the gate is incredibly rare and speaks to the potential of this high-grade area.
Fosterville South (FSXLF), due to the leadership team of successful mining entrepreneurs with a track record of wealth creation in the space and the commanding land package afforded to the company due to first mover status, has significant financial backing. The backers include, as announced by the company early on, some of the world’s most successful mining investors. Due to this, despite having a very small float of only 68 million shares outstanding, has $25 million in cash on hand. This will allow Fosterville South (FSXLF) to immediately and aggressively ramp up drilling on the back of their big hit – without the need for any near term capital injections.
Tight share structure, huge land package of premier projects, drilling accelerating, proven leadership and a big cash balance with no debt –(FSXLF) has all of the ingredients for success.
Soon, more and more people in the general public may come to learn what the savviest geologists and mining engineers already know about Victoria….that it is one of the premier places on earth to look for ultra high-grade gold. (FSXLF) has started off with exceptional results and as the drills turn, the experienced geological team on the ground looks to create a golden future.
Regards,
Andrew Friedman