ClusterGains

POB 339
6301 Highway 58
Harrison, TN 37341
ph: 423-344-3855
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Gold

Gold is a fascinating way to invest in the stock market. It is going through an uptrend just like oil in 2009. The best way to make money is by finding quality companies. This can be somewhat difficult. One way to do this is by looking at the gold value of their properties.

Gold is measured in grams rather than ounces. This can be confusing when gold is sold in ounces. However, one ounce contains approximately 28 grams. You want to buy a company which has a high percentage of gold per ton of rocks and dirt. If you find a company that holds land with 7 grams of gold per ton of earth, you have found a great buy. This means that if gold is selling at $1,000 per ounce, this company is making $250 for every ton of material that they process.

The internet has several free websites with quality information on gold mining companies. One website is www.mineweb.com. It is a great place for gold news and analysis, silver, platinum, base metals, diamonds, uranium, lithium, and junior mining companies. You can learn a lot at this website by reading the information and by clicking on company links.

One company that I have been watching for around seven years as of July 2010 is Liberty Star Uranium and Metals. I lost money initially because the company had trouble getting enough financing for its projects. Then, Northern Dynasty invested in Liberty Star in 2010, and the company's fortunes were completely reversed. I started buying stock in the company again when it was around a penny a share. I quickly doubled that money and bought over 100,000 more shares.

If an investor is familiar with mining exploration companies, he or she will know that a promising company is worth at least one dollar per share. Thus, my 100,000 shares in Liberty Star may one day be worth $100,000!

On January 14, 2010, Hecla Mining (HL) reported a record production year. They made enough money to pay off all of their debt, and they still have $100 million in cash on hand. 2010 will probably be another good year for Hecla, and the stock is definitely worth buying.

Scott Nystrom has an outstanding blog that I recommend. It is called The Gold Stock Strategist. He gives stock picks, and he analyzes various gold companies and trends.

NI-43-101 Gold Reports