San Gold shareholders will benefit from current market conditions through year end and into 2014

San Gold should be on your radar this fall.

The Canadian Province of Manitoba does not have a history of great gold discoveries.  That fact is changing at this writing, and maybe just an interesting footnote in the coming years.

  Last year, San Gold Corp reported a record production for the company in Q3 of 27,084 oz.  at it's Rice Lake gold Complex near the town of Bissett, Manitoba. (photo)

SanGold also announced a "50%" increase in it's gold resource base.  This was from it's 007 zone, a zone not even in the equation only two years earlier.

 This company continues to grow its production and its resource base, in the largest gold field discovery in Manitoba history. 

However, 2013 has been a very trying time for Sangold investors as the stock has plumetted from $1.11 to as low as .09c this summer. It traded this morning at 14c per share. The market cap is now at $47m

  Great investors from Sir John Templeton to Warren Buffett have often said that the time to buy is when there is "blood in the streets" and for long suffering Sangold shareholders, it certainly seems there is blood in the streets. I have been buying SGR shares all summer, tripling my investment in what I see as a solid, mid tier miner, with first mover status and a solid operation, in a safe and stable country with a history of supporting such mining endeavers. This, at a time when gold and gold miners are finding strong support in every market on the planet.

San Gold does not currently pay any dividend, as management continues to grow its operations, its production and its resource base in this growing mining district.  New gold discoveries in it's 007 zone (photo) should add significantly to it's bottom line and this stock should be trading much higher by year end. Estimated reserves are now at 2.5 million oz

Having regard to the gold majors propensity for taking over such growing operations, It would not surprise me to see Sangold swept up should merger mania strike the majors as the price of gold spikes into year end 2013.  Majors mostly increase their production and resource base through acquisitions as it is often cheaper for them to buyout such operations than it is to find and develop them.

Disclosure:  I own San Gold stock and I continue to average in on dips.

If San Gold is not on your precious metals stock radar, maybe it should be.

HP

About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba, approximately 235 kilometres northeast of Winnipeg, Manitoba, Canada. The Rice Lake Project has a permitted, modern gold mill currently processing ore at a capacity of 2,500 tons per day, modern surface infrastructure including a licensed tailings management facility, and is connected to the Manitoba power grid system. The Company employs more than 400 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
For further information on San Gold, please visit www.sangold.ca.

India and China are buying up Gold at a record rate. This will no doubt affect your retirefund.

Image via Wikipedia

This week, India purchased 200 metric tons of gold from the IMF (International Monetary Fund). It amounted to half of all the gold the IMF placed for sale. India bought it to bolster it's foreign reserves account. China is strongly expected to buy up the other half. What does that tell us about gold prices and the decreasing value of the U.S. Dollar. Well, it tells us a lot, and many Americans are not going to like the answer.

The United States dollar has been the worlds reserve currency for the past 50 years, even before the gold standard was dropped. That gold standard, or some form of it, is creeping back into the international psyche as governments and individual investors buy up gold and gold miners in record numbers. There is a very basic, common sense reason for this. The United States dollar is headed lower, maybe a lot lower. It has to. Here's why.

At the start of the George W. Bush administration, the U.S. economy was in the black. Bush was handed a "surplus", the first one in 30 years. During the next 8 years of his administration, the U.S. went into debt to the tune of $10 Trillion by the time Obama took office. In the midst of two wars being fought on two different fronts, W. did what no other U.S. president had ever done at such times of crisis. He cut taxes. Not only that, he did it twice. The result is the debt and deficits the United States have to this day and unless there is a sea change in spending and the tax regime, it will get a lot worse.

This year alone, the U.S. will add $2 Trillion more to their debt. If there are no changes, economists predict that by 2015, the United States will be $23 Trillion in debt. Even the powerful American economy can't take a hit like that. A devaluation in the dollar is probably one of the few ways the U.S. can pull itself out of this mess. In the mean time, other countries, and the citizens of other countries, looking for a better store of value, are turning to the one currency that has been in place for over 6,000 years. No fiat currency has ever replaced gold, although the USD tried very hard, becoming the reserve currency for the world and replacing the gold standard. That gold standard is creeping back, in some form, at this writing.

China has doubled it's gold reserves over the past few years. India just did the same and they both will no doubt continue to buy as their foreign exchange reserves shrink with the U.S. dollar. They want to hold value, not lose value! The Hong Kong government recently moved it's entire gold reserve to a domestic location from London where it was held. China is not only investing in gold, but it is telling it's citizens to do the same. India's citizens have long done this and are the biggest buyers of gold jewelry in the world.

As the U.S. dollar dives, it's stock market is gaining daily. After a recent pullback last week, the U.S. market is again going gang busters. It has to. As the dollar drops, people are investing in good companies as stores of value and their stocks are going up correspondingly, with the dollars demise.

Publicly traded Gold miners have a unique position in all of this. They are stocks and they produce pure gold, thereby gaining from both sides of this gold buying bull market.

Over 95 % of the worlds entire gold supply is now above ground. No wonder, after 6,000 years of mining. Canada, however, is one of the few countries with a number of producing gold mines.

Here are our top picks of these gold miners in order.

1. Apollo Gold Corp - U.S. company mining in Canada (APG-TSX or AGT-Amex)
2. Barrick Gold (ABX - TSX or NYSE)
3. Kinross Gold (KGC-NYSE)


If you don't already have gold in your portfolio, then I suggest you do so soon.

Previous articles:

1. An American Fox in Canada's gold hen house.
2. The argument for gold.

Other sources: Could Gold go to $5,000 per ounce?

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