The charts of many gold companies are giving strong long term buy signals and are very bullish. In many cases technical indi-
cators in the weekly charts are the most oversold that they have ever been. This portends significant price gains. The monthly
charts are not yet giving buy signals, but they will, as the upside price move gathers momentum. This bullish run could last 2
years or longer and prices could see multipile gains, particularly in the junior sector.

The economic and financial mayhem that is the Kondratieff winter is very bullish for gold.

In his January 1985 Newsletter, Donald Hoppe referenced the following five phases of investment that followed the world
credit crisis initiated by the stock market crash of October 1929. It is easy to see the similarities between then and now.

Phase 1- “A flight from questionable securities into strong securities.” This occurred during the initial stock market crash in
1929. The stock market recovered 50% of its losses into April 1930. Then as the bear market resumed, all securities, except
for the gold shares, were sold regardless of quality. Following the stock market peak in October 2007, this flight from question-
able securities into strong securities gathered momentum into November 2008. Following a probable stock market partial re-
covery into April 2009, all securities, except for gold shares, will likely be sold, as the bear market resumes with a vengeance.

Phase 2- “An intense liquidation of inventories and commodities” Then, 1930-1933; now, starting in July 2008 and continuing
into a deflationary bottom, perhaps by 2012.

Phase 3-“The liquidation of commercial real estate, houses and farms, both through foreclosures and sacrifice sales at a frac-
tion of prior values.” Then-1930-1939; now, houses-starting in July 2007; commercial real estate just beginning; and farms to
follow.

Phase 4-“The flight from banks into cash and gold (which ultimately caused the whole US banking system to collapse.)”-Then-
1930-1933; now, mid-2008, perhaps until mid-2009; by which time US T-Bills are likely to become suspect monetary invest-
ments, which would make gold the ultimate store of value.

Phase 5-“The flight from the dollar to gold.”-Then, October 1931-March 1933. In 1933, President Roosevelt stopped the flight
to gold by suspending gold convertibility for the dollar and confiscating all privately held gold. Thereafter, the only way Ameri-
cans could own gold was by investing in gold company shares. Nevertheless, the value of Homestake Mining shares had al-
ready tripled prior to the confiscation. This 5th stage is still pending, awaiting the demise of the dollar.

Hoppe Donald, Donald Hoppe Analysis, January 1985, P.11.
BUY SHARES IN GOLD AND SILVER COMPANIES AND HAVE A
HAPPY NEW YEAR
January 2, 2009

merci linda