This Gold Mining Upstart Is Set
To Claim Its Share Of The World-Famous MOUNTAIN OF GOLD
| A Potential Half-Billion-Dollar Discovery Is Why You Could Expect Brazil Gold (BRZG) To Quickly Jump From Pennies To A 2,860% Gain |
 Dear Natural Resources Investor, As promised, I am about to reveal to you gold’s dirtiest secret. It is the secret that could power your big gains on a company called Brazil Gold (BRZG)… which has just signed a letter could give it access to one of Brazil’s most legendary gold-mining areas – the Morro do Oura (Mountain of Gold) in Paracatu. As you have seen, I am convinced that the moment Brazil Gold starts mining a slice of the Mountain of Gold, its shares could fly from around 33 cents to $5.92… or beyond. That result would translate into huge gains in the neighborhood of 2,860%... but only for agile investors who get in at, or near, BRZG’s current low… There’s a good chance you’re one of these success-driven investors… but before you make the slightest move on Brazil Gold… there’s something about the gold mining sector you need to know now… Something the aggressive salesmen in the media and on Wall Street live in fear you’ll discover. How To Leverage Peak Gold Into Your Personal Fortune It all has to do with the fact that the world is running out of gold… It really is… but that’s not one of those really scary things like running out of oil or water. Still, as you’ll see, the fact that the mining industry can no longer keep up with the massive demand for gold should create a classic squeeze that send gold prices flying beyond $5,000 during the next three years… and dare I suggest it… perhaps on to as high as $10,000 an ounce.
Peter Schiff: As President & Chief Global Strategist of Euro Pacific Capital, Schiff correctly called the current bear market before it began. As a result of his accurate forecasts on the U.S. stock market, economy, real estate, the mortgage meltdown, credit crunch, subprime debacle, commodities, gold and the dollar, he is becoming increasingly more renowned. He recently was reported in Business Week as saying that “People are afraid of the debasement of all the currencies. What’s surprising is that gold is still as low as it is … Gold could reach $5,000 to $10,000 per ounce in the next 5 to 10 years.” |
And, by the way, I am not a lone voice predicting $5,000 to $10,000 gold… my voice is just one of the many authoritative and respected voices making such a claim, as you’ll see. And, there is a specific reason behind why the world is running out of gold… it’s the dirty secret Wall Street hopes you don’t learn… because you’d NEVER BUY A MAJOR GOLD STOCK AGAIN… EVER! You’d only buy junior gold miners such as Brazil Gold. Gold’s Dirty Secret Revealed So here it is… Like I said, despite record gold prices, gold miners just can't crank out enough of the stuff. Between 1997 and 2001, miners "high-graded" (mined ore with the highest grades) just to keep the lights on, as gold prices bottomed and the yellow metal was reaching the peak of its long bear run. Ever since then, as gold prices steadily climbed, these miners have shifted production to lower grade ore, leading to ever-lower output. Why? Because there is virtually no high-grade ore left on the planet… and certainly not enough to keep up with the current massive demand… by the way “high-grade” only has to do with the ore… gold is gold, as you’ll see. Gold Is Now Harvested Like Potatoes During the past five years, the average recovered ore grade has declined a full 30% - dropping from 1.8 grams per ton down to 1.3 grams per ton. In other words, dig a ton of dirt (ore) out of gold-rich ground and you’ll get about 1.3 grams of gold after you’ve washed everything else away. As a reference point, there are 28 grams to an ounce… so it takes about 25 tons of dirt to yield one ounce of gold…
David Rosenberg: Rosenberg, the former Merrill Lynch North American Economist and current Chief Economist and Strategist for Gluskin Sheff, an independent investment firm for high net worth individuals, believes that “$3000 an ounce on gold may yet prove to be a conservative forecast.” He also says… - “If the gold price to world GDP ratio were to ever scale up to the peak three decades ago, it would imply an ultimate peak for gold of $5,300 an ounce. - “If the relationship between gold and the M3 money measure where to revert to the 1990 high, then gold would move to $5,700 an ounce. - “If gold were merely put on the same footing as the CPI, and head back to the previous peaks in this ratio, it would suggest $2,300 as the peak in gold — only a double from here. - If the gold price-M1 ratio was used then gold would go to$3,100 per ounce under the proviso that prior highs get re-established.” |
But – again – there are just about no 1.3 gram-per-ton gold properties around right now. So, the grades of replacement ore being found are now averaging about 0.50 grams per ton, meaning twice as much ore has to be found just to replace gold being produced at current grades. $1,375 Gold Makes It Super
Profitable To Dig For Gold Gold has become so valuable that millions of tons of what was formerly considered waste rock are now being recategorized as gold reserves. Economic theory tells us that as demand increases, so does supply, which helps to contain prices. In the case of gold, however, that just isn't happening. There's simply not enough new gold being found to replace consumed reserves and to allow for higher production levels. In fact, over the past year, gold production has only managed a 3.0% increase, despite a 20% spike in price. Demand Is Crazy…
Supply Is Shrinking So this is the major reason why gold is headed for stratospheric prices… $5,000 and ounce and higher. And, of course, if it is profitable to mine 0.50-gram-per-ton ore at today’s price of about $1,350 an ounce you can imagine how profitable it will be as gold passes $2,000, $3,000… $5,000. This the big reason why you must look carefully at Brazil Gold and its potential to bring 448,000 ounces of gold to the market. Because, while Brazil Gold’s potential holding could be worth nearly $700 million today… imagine two years from now when gold is at $5,000… How does $2.2 billion sound to you? Why Brazil Gold Is A Must Buy At Around 33 Cents And you know what that would do to Brazil Gold’s share price… which you can acquire for about 33 cents today. Now, in just a second I’ll go into great detail about Brazil Gold and its massive potential in Paracatu, Brazil… BRZG’s access to Paracatu’s famous Mountain of Gold. But, before we get there, let’s quickly look at the other important factors driving up the price of gold… World Events Are Spiking Gold’s Price I’ll be brief because, whether you listen to FOX News or read the New York Times… one thing they both agree on are the economic factors driving gold. You see, beyond Peak Gold – the fact that we’ re running out of gold – there are three other specific trends that promise to keep gold prices on an upward trajectory. I'm referring to the fact that:
 | Ongoing global stimulus initiatives will likely ignite inflation, which is highly bullish for gold. |
| Global demand is burgeoning as wages rise in such newly emergent markets as China and India – a trend that's not going to quit. |
| Global investors remain dramatically under-invested in gold. |
Brazil Gold PRICE DRIVER #1 The Stimulus: |
Alf Field: Alf Field has been called the “world’s best gold analyst.” He is well known for his many spot-on predictions in the precious metals market and these are some of his determinations regarding the future price of gold; “In the 1970’s bull market, gold increased from a low of $35 to a peak of $850, a massive 24.3 times the low price. If the current bull market was to be of the same order, then one could project an ultimate peak of$6,221 (gold’s low price in the current cycle of $256 x 24.3). In a November 2008 article on the Elliott Wave and the gold price, Field wrote, “The world, and especially the USA, is heading for a major financial crisis that would be so powerful that it would overwhelm all other factors… “I anticipated that [this] would give rise to the risk of a systemic meltdown, which would result in the authorities ‘throwing money at problems’, bailing out all the banks and large corporations that got into trouble. This would lead to the [eventual] destruction of the currency…The consequence of the systemic meltdown would be a vast increase in newly created money which would result in a massive rise in the price of gold” culminating at “$10,000” [which] “can really only be possible in a runaway inflationary environment, something which many thinking people are suggesting has become a possibility as a result of the actions taken during the recent crisis.” |
In the past two years alone the U.S. Federal Reserve, the European Union, and central banks in China, Japan and a host of other nations have chosen to "stimulate" their economies by ramping up spending and cranking up their printing presses. Multi-trillions of dollars of liquidity have been injected into the global economy. That's going to lead to inflation. It already has in the "volatile" food and energy segments that the U.S. government conveniently leaves out of its twisted consumer price index (CPI) numbers. The U.S. central bank's $600 billion "QE2" initiative will fail to boost the economy and/or lower unemployment in any meaningful way. Instead, that "hot money" is making its way to emerging-market economies where it's being plowed into hard-asset resources such as gold. Even so, if there's one likelihood we can rely on, it's that U.S. Federal Reserve Chairman Ben S. Bernanke will continue to do the one thing that he seems to excel at – printing money. Eventually, inflation will take hold like a nasty virus – and it will be near impossible to halt. The Fed's plan is to just raise interest rates to tame inflation and mop up the massive liquidity. Don’t Wait For The Fed To Flinch…
Buy BRZG Today, While It’s
Still Around 33 Cents But our central bankers are likely to be taken by surprise and end up moving too late. If you doubt this, just remember how the Fed dragged its feet in the subprime mortgage crisis, and then Lehman Brothers debacle. A severe loss of confidence in the greenback could push bond prices lower and cause yields to soar virtually overnight, beating Bernanke and company to the draw. And a badly weakened U.S. dollar will devastate millions of savers… and shoot gold to the moon. If that doesn't scare you, consider this: At its current pace, every 18 days, the U.S. government issues debt equal in value to a full year of gold production. Every year, the United States borrows the equivalent of a full one third of all the gold ever mined. Yes, owning physical gold is a hedge… but don’t forget gold stocks race up four to five faster than the price of gold. It why you need gold stocks that can out race runaway inflation… a company such as Brazil Gold with it huge potential 2,860% near-term upside could offer you a way better hedge again inflation than physical gold.
Brazil Gold PRICE DRIVER #2 Global Demand Is Burgeoning |
Forextraders.com: a) “As gold keeps breaking new records…the fundamental factors behind the trend remain clear: - Increased worries about the solidness of U.S. public finances - The lack of any serious government plan to resolve long standing issues related to the future of the social security system - Eroding credibility of the U.S. motto about a strong dollar - The general weakness in the fundamentals of the global economy” “Gold has some powerful dynamics behind its rise, and it doesn’t seem outlandish to imagine a target of $3000 - $4000, if, as anticipated, economic activity goes for a second dip once the impact of government stimulation and private speculation and bubble-building lose their dominant effects in the markets.” b) The ten-year long correlation between gold and the Euro has broken down recently [and it is] “our expectation that gold will generate a super-bubble in the next 2-3 years, and perhaps longer, provided that policy accommodation remains in place even as investor confidence evaporates completely.” |
Chindia (China and India) - with 35% of the world's population - has turned into a big fan of gold. India is the world's largest gold consumer. In 2009, Indians bought just under 500 tons of gold... 16 million ounces. Last year, 2010, results indicate an 11% jump. Worldwide, investment demand for gold will be up, too, led by China, India, Russia, and Turkey. "Bar hoarding" is on the rise, as well, increasing 44% over 2009 as investors increasingly take physical delivery of their merchandise, reports the World Gold Council. In fact, net retail investments in gold bullion in 2010’s third quarter set a record at $9.6 billion - a staggering 60% increase over the same quarter in 2009. Refusing to be left behind, jewelry and industrial demand have also posted year-over-year third-quarter increases of 8% and 13%, respectively. Look Who Is Stashing Gold What's particularly fascinating, though, is the level of buying also driven by central banks, mostly in the Middle East and Asia. In the past year, we've seen India, Sri Lanka, and the Republic of Mauritius buy a total of 212 tons of International Monetary Fund (IMF) gold at $1,050 per ounce, followed by Bangladesh, which purchased 10 tons at $1,275 per ounce. Russia absorbed a full 63% of its own 2009 production, amounting to 130 tons. Even Iran announced that it is converting $45 billion into a mix of euros and gold. In fact, a smaller (unnamed) Middle Eastern nation has indicated that it is converting 200,000 barrels per day of oil production into gold, the annualized equivalent of 140 tons of gold yearly at the current oil-to-gold ratio. This is why physical gold is disappearing. It will be up to small companies such as Brazil Gold to pick up the slack… and, while 448,000 ounces of gold seems like a speck… demand will continue to be so crazy BRZG’s potential has could turn it into a $2 billion company… One you can buy today for around 33 cents.
Brazil Gold PRICE DRIVER #3 Investors Remain Under-Invested in Gold |
Egon von Greyerz: von Gruyerz, Managing Director of Zurich Switzerland based Matterhorn Asset Management and founder of precious metals investment and storage company GoldSwitzerland.com commented in an interview with CNBC Europe’s Squawk Box recently that the nominal high of $850 per ounce gold price, when adjusted for “real inflation” as per shadowstats.com, is equivalent to approximately$7,200 in today’s prices. Accordingly, “gold could easily go up 6 times from the current price of $1,220 and still be within normal parameters.” He went on to say that at current prices, “There will be nowhere near sufficient gold to satisfy demand.” As a result, his firm is expecting the gold price ascent to be “relentless during the remainder of 2010, with very few major corrections but with high volatility. Moves of $100 in one day could easily happen. So gold is likely to make a top in the next few years between $5,000 and $10,000.” |
All this said… the scary fact… the fact I am writing you today about… is that… As it currently stands, the average U.S. investor, both retail and institutional, is sorely under-invested in gold-related holdings. Just after the gold prices hit their peak in their last secular bull run, gold and gold-mining shares represented 26% of global assets. In 2009, investment levels in these same subsectors represented a microscopic 0.80% of global assets. Clearly, gold has a long way to go just to become a significant allocation within the average portfolio. So if you've been asking yourself that burning question: "Is gold in a bubble?" - rest assured that the answer is still a resounding "No!" So, you need to take action now: With gold prices projected to hit $2,000 an ounce by the close of 2011 – and as high as $5,000 or more an ounce over the long haul, gold should be in virtually every investor's portfolio. And a good low-priced way to load up is with an inexpensive junior gold explorer such as Brazil Gold. It has just signed a deal that could give it access to a plot of land that holds as many as 448,000 ounces of gold… And, you can buy as much Brazil Gold as you want today for about 33 cents… So, IS BRAZIL GOLD A MIRACLE WAITING TO HAPPEN… Once you’ve seen what I am about to show you… your answer could be a resounding YES! Here’s why. BRZG’s Access To The Mountain of Gold
Could Lead You To A Huge 2,860% Gain In recent days Brazil Gold signed a letter of intent to buy an historic gold property called Luziana… it is, as I have written… located along the famous Mountain of Gold in Paracatu Brazil. Tests done by Brazil’s National Department of Minerals indicate that there are at least 448,000 ounces of gold on the property… Remember, at today’s prices, that makes the find worth a bit more that $600 million dollars… in the next year or so… if predictions hold true… the property’s gold could be worth more than $2 billion. And that the property’s gold content is 0.51 grams of gold per ton… so, as we’ve seen… THIS IS A SOLID DISCOVERY. Legally Vetted
Peter Cooper: Cooper, author of a book entitled, appropriately, “Dubai Sabbatical: The Road to $5,000 Gold,” maintains that “Governments around the world have forced interest rates to artificially and unsustainably low levels to combat the global financial crisis. Low interest rates mean high bond prices. Ergo, as soon as interest rates go up – as they will have to sooner or later – bond prices will fall…and if you want to keep your money out of bonds…then precious metals and/or cash are the best options. The real kicker for gold is in the supply and demand position. Precious metals are in limited supply – that indeed is their great strength as a store of wealth – so once the shift out of bonds accelerates so will the price of gold and silver. Now government bond markets are far bigger than global stock markets while precious metals are amongst the smallest of major asset classes. Pouring this quantity of money into a very narrow precious metals market will send gold and silver prices through the roof. $5,000an ounce for gold is a very conservative forecast under these circumstances.” |
What’s better about this property is that the Brazilian government (The Environmental Agency of Goias) has already issued the property a preliminary environmental license #16/2005. The National Department of Minerals has issued it a Mineral Exploration Permit, #2770/1986. On top of that, there is easy access to this fat gold via two-lane paved roads (Highways BR-40 and GO-425). So, this looks to be about as perfect a deal as you could find… but there is more good news, too. Better Than Its Neighbors Unlike its future neighbors on the Mountain of Gold, Brazil Gold will not have to totally rape the land to harvest this deposit. That is very unlike Kinross Gold, which has rattled foundations and dug a missive pit as it dynamited it way to its 0.41 grams per-ton gold deposit in Paracatu. Brazil Gold, on the other hand, has it comparatively easy. Its potential deposit lies within an estimated maximum depth of 24 feet below the surface. So, Brazil Gold would, quite literally scrape the earth to harvest this rich deposit. And, that has created a phenomenal situation. You see, scraping the earth is a low-cost way of mining gold… How To Get From 33 Cents To $5.92 Because of that, it’s estimated that it will only cost about $220 an ounce to bring this property’s gold to market. In other words, the could be as much $492 million in pure profit at today’s gold prices… that would increase dramatically as the price of gold spikes. When you consider Brazil Gold’s share structure – 83 million outstanding shares – you’ll happily discover that the $492 million divided by the shares outstanding yield a stunning future value for Brazil Gold of $5.92 a share… Of course, Brazil Gold would not just jump from 33 cents to $5.92… so should things unfold the way I imagine they could… there would be plenty of time to grab some significant short-term gains as well.
Rob McEwen: von GruyMcEwen, Chief Executive Officer of US Gold Corp. and founder of Goldcorp Inc., believes global gold prices may increase to $5,000 an ounce between 2012 and 2014 as rising U.S. government debt weakens the dollar. He said recently in a Bloomberg Television interview, “Money supply has expanded so rapidly that there are a lot more dollars looking for a steady home. Governments cannot help themselves. They want to help the economy. They are printing money. They are going into debt on a horrific scale, and that will depreciate the value of the dollar.” He says his forecast for gold represents a “once-in-every-300-years” phenomenon and holds by his previous forecast that gold will rise to $2,000 an ounce by the end of this year. |
Risk Reward Factor Of course, in a fabulous story like this… there is always a “BUT.” And the “but” here is that Brazil Gold does not yet own this amazingly gold rich property I have shown you to today… It only has a letter of intent to purchase the property for about $12 million. But, I simply don’t envision BRZG’s management squandering this opportunity. BRZG’s Top Management The company’s CEO is a smart man named Thomas E. Sawyer, Ph.D. He served as a senior advisor to Presidents Nixon, Ford and Reagan. And the company just added Leigh Freeman to its Board of Directors. Mr. Freeman is CEO of El Condor Minerals, a co-founder of Orvana Minerals Corp., which operates the largest gold mine in Bolivia and today has a market capitalization of $437 million. And, he served as Chief Geophysicist for Placer Dome, a NYSE international gold mining company, which was acquired by Barrick Gold. These are serious gold miners. So, in the end, I believe the case for Brazil Gold is crystal clear… There are not too many times in your life when you can latch onto a 33-cent stock from a company like Brazil Gold. One poised to accomplish real things… such a brining 448,000 ounces of gold to the market. Follow A Global Leader You have also seen that I am extremely accomplished when it comes to finding small, out of the way companies that suddenly take off… Remember what The Wall Street Journal and USA Today said about my exploits.  The Wall Street Journal said that I have an uncanny knack for discovering companies... “that fly below the radar screens of most Wall Street analysts,” and that I “Dig up information on companies Wall Street can’t be bothered with.” Then there was USA Today. It said that I… “Predicted one stock winner after another.”And, USA Today went as far as to put on the public record that my... “October pick went up 267% in 28 days... November's pick was up 85% in just 17 days... and that the December recommendation went up 129%.” And that... “Within days, sometimes hours, the companies Carpenter recommended soared.” BRZG Looks Perfectly Ripe For The Taking The global newspapers gave me great ink even though I do the one thing that the establishment hates… I zero in on speculations… Small companies that the blue bloods and Wall Street elites can afford to dismiss… Yet, I deliver results on these micro cap speculations time and time again… I’ve had so many successes that the establishment newspapers couldn’t ignore me… because when regular guys makes money once or twice, the elites don’t care… But when we do it over and over again – they take notice – now you wouldn’t believe the CEOs that read my newsletter. So, let’s be frank… with Brazil Gold – we’re still talking about a speculative play… one made more speculative by the fact that BRZG does not yet own the amazing gold property I have shown you today. Bet On BRZG Snagging Its Share
Of The Mountain of Gold I think it will buy the property… and that is what your will bet on as well. So, I am not going to pressure you to rush out and buy BRZG… I won’t threaten you with regret or recriminations for missing out. That is a bush-league tactic used by people who can’t stand behind their ideas. No, instead, I am going to demand that…
YOU MUST TAKE ACTION
So, Here Is What To Do Now |
 | Call your broker immediately and discuss Brazil Gold (BRZG) with him… after all, he has access to the same regulatory filings and corporate information as I do. Run my revenue projections by him too. Remind him that BRZG currently trades around 33 cents. When your broker agrees that my facts are current, discuss with him how large a position in BRZG you should take and still be able to sleep at night. |
 | If you take care of your money yourself… go online now to your account and check out my facts. Go to SEC.gov and examine the BRZG’s filings. Once you are satisfied that I am correct, buy as much of Brazil Gold (BRZG) as you want this one time… remember, smart people don’t treat a speculation the same as a longer-term plays… they don’t buy on dips or on growth. Get what you can afford today when you buy Brazil Gold at the market. And... |
 | Save this email and take another look at BRZG a couple months from now. I believe it could be up as much as 916% from where it is right today… on its way to what I predict will be a huge 2,860% gain. At that point... My hope is that you will have other no option but to subscribe to my newsletter The Carpenter Global Stock Advisory. A 12-month subscription costs $24.75 a quarter. When you subscribe you’ll also get access to these hot new Special Reports we just published: BIG SCRATCH IN THE OIL PATCH – Junior Energy Explorers Poised To Deliver Between 87% and 312% in 2011 SLEEPING DRAGONS – Four Overlooked Chinese Stocks Set To Fly This Year THE ONE BIOTECH STOCK YOU NEED TO OWN NOW – A Baby Blue Chip Stirs Subscribing is easy, just call the Toll Free number below and have your credit card ready: |
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