Brian Hicks - Angel Publishing

Investing in Rare Earth Metals

Today, the heads of Toyota, Honda, and the Pentagon all share a common interest.

It's a small chunk of land, about one-third the size of Rhode Island, located in a part of the world most people know nothing about.

But they're not the only ones watching. Venture capitalists, hedge fund managers, and resource companies from all over the globe are also watching and waiting. . . ready to pour billions into Greenland once they get the green light.

Why?

This coming January, when the Kingdom of Denmark relinquishes sovereign control over Greenland's natural resources, the world's biggest deposit of Rare Earth Metals (or REEs), will fall into private hands. . . for the first time ever.

This single site boasts deposits valued at an estimated $1.3 trillion. . . and yet, REEs are worth more than just money.

Have You Heard of the Conference of Parties?

Only a few have. But those in the know are already turning tidy profits.

The Conference of Parties -- better known as COP-15 -- is a clandestine meeting attended by leaders from 192 countries.

Their goal: to map the world's economic trajectory for the next 50 years.

Those familiar with COP-15 are already aligning their portfolios accordingly. Click here to learn what the meeting's all about, how it will alter the investment world, and how you can get ahead of the profit curve.

Which is why the world's leading manufacturers of hybrid cars, wind turbines, batteries, and yes — even the guidance systems to our most sophisticated air and ground defense missiles systems, are watching the events in Greenland unfold with baited breath.

The elements that fall into the category of Rare Earths include:

Lanthanum - essential in the production of electric car batteries;
Terbium - without this element, high-strength magnets would not exist;
Erbium - makes possible a wide range of light-weight, high-strength metal alloys;
Thulium - makes high-frequency lasers a reality.

And once Greenland takes control of its mineral wealth, this land — totaling barely 500 square miles — is projected to supply 25% of the world's entire REE market. . . for half a century.

To companies like Toyota and Honda, that have virtually staked their futures on the rapidly expanding hybrid/plug-in car market, and to our own defense industry, which cannot perform even the simplest task without highly-involved electronic assistance, this news could not have come at a better time.

Because for the last decade and a half, our greatest and most populous modern rival has been hard at work to corner the market on these vital elements.

And on April 17 of this year, with the signing of a single contract, the Chinese reached a record 96.7% global market share.

China's "Dragon Metals"

That's why we've dubbed these commodities "Dragon Metals," because China literally owns that market.

This is the kind of monopoly that has caused emergency Congressional meetings in the past. . .

Meetings that have ended in government-mandated intervention.

But there is nothing Congress can do to stop the Chinese government from closing its global stranglehold on materials without which the modern world cannot function.

It's part of a plan that Deng Xioping claimed almost two decades ago would: "Do for China what oil did for Saudi Arabia."

Evidently, the People's Republic is wasting no time in putting this advantage to strategic use.

Plans to limit exports and systematically inflate prices have already trickled down from the party leaders, and progressive decline in production has been standard operating procedure for the past several years.

According to Wired Magazine, "China's Ministry of Industry is weighing a total ban on exports of terbium, dysprosium, yttrium, thulium, and lutetium — and may restrict foreign sales of other rare earth metals."

This news is a potential death knell for hybrid manufacturers that have forecast 500% growth in the next 6 years alone. . . alongside a wide spectrum of other cleantech companies whose products depend on magnets, motors, and batteries to create and store energy.

Not to mention a political and economic nightmare for our Department of Defense. . .

However, as Greenland prepares to open its resources to the open market, this Chinese monopoly has finally met a foe it cannot easily topple.

Come January, a single company will control this massive deposit, turning it into the world's second biggest single producer of REEs.

With a stock price just under 60 cents today, this company has already gained close to 30% since the start of September. . .

But the big spike is still just around the corner, with a vast majority of the gains still in the future.

In the next few weeks, we'll be publishing specific approaches to squeezing the most mileage out of this historic stock, as well as more information on an approaching commodities boom that may be the biggest we've seen in decades.

Profitably yours,

Brian

P.S. Rare Earth Metals and other commodities vital to the developing electric car and battery markets and Uncle Sam's own defense industry should be on every investor's radar. And as current energy prices continue to rise, we find ourselves in the early stages of the greatest commodities bull market in history. . .

Wealth Daily's Ian Cooper has closed 93 winning trades with his resource and energy stock picks this year alone! Since November 2007, readers of his Pure Asset Trader service have enjoyed gains of 3,124%. You won't want to miss out on these kinds of profits. Click here to read more.

The Best Way To Beat a Rigged Stock Market

Dear Wealth Daily Reader,

In the Fall of 2007, my partners and I had a series of tense meetings on the state of the economy. We were convinced that the whole thing was about to come unglued.

In fact, things looked so bad to us that we spent a good deal of time talking, in detail, of what to do in the event of a complete economic and societal breakdown.

Yet in a sense we were also hesitant.

Hesitant because, although our alarms were ringing loud and clear, there was hardly a whiff of concern coming from DC, from the FED, or from the mainstream media. After all, the stock market was sitting near record highs.

In fact, all of these institutions were actively engaged in a chorus of cheerleading on just how healthy the economy was.

Our research led us to the exact opposite conclusion.

Clearly, someone was very wrong.

Fed chairman Ben Bernanke was consistently touting the strength of the economy, and even went so far as to say the housing market was a minor issue, at the very moment the foundation of the housing market was crumbling.

This man either lied outright, or was simply too dim to understand what was happening. I don't have to tell you, neither option is acceptable from a man of his responsibilities.

Worse still, no one I'm aware of in the mainstream media ever questioned any of this. Instead, we were treated to constant party-line, bull market rhetoric. Look, passing on unchecked data and flat-out rumor as fact doesn't count as useful information.

Luckily for our readers, we don't rely on any of these institutions for hard analysis.

Right on cue, our own Ian Cooper went short, calling for the market to drop to 6,500... over two months before it happened.

While most market participants watched in horror, Ian and his Options Trading Pit readers made a killing in only 60 days' time, including one 338% gain, closed in 2 days.

Sadly, the vast, unwashed majority aren't so lucky. They drove into the teeth of the worst recession in 50+ years without even a hint of apprehension. And they'll be paying for it, literally, for quite a while.

"When you see that trading is done, not by consent, but by compulsion — when you see that in order to produce, you need to obtain permission from men who produce nothing - when you see money flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed."

—Ayn Rand, Atlas Shrugged (1957)

In the 16 years I've been in this business, I can't think of a time when there's been more distrust, more graft, and more uncertainty surrounding the world of finance and politics.

I also can't recall a time more perfectly suited for robust investment gains, provided you've got your ears on.

The reality is that those two worlds—finance and politics—have essentially merged. And it's no secret there's a revolving door between DC and New York.

Worse still, the media has been actively collaborating, perpetuating the myth that we can spend our way to prosperity, that if we just buy and hold we'll get wealthy some day, and a thousand other idiotic ideas that now rival the hollowness of the phrase "Change we can believe in."

It's incredible to me how many of these talking heads remained on air, despite the fact that they couldn't have been more consistently wrong if they'd known in advance how things were going to turn out.

No matter which way you look, you get the sense that you're being gamed. And you're right.

The plain fact is, no one in politics, in the media, or in mainstream finance cares about you, aside from your value as a "useful idiot."

Think I'm kidding?

The public's assessment of the accuracy of news stories is now at its lowest level in more than two decades of Pew Research surveys, and Americans' views of media bias and independence now match previous lows.

Just 29% of Americans say that news organizations generally get the facts straight, while 63% say that news stories are often inaccurate. In the initial survey in this series about the news media's performance in 1985, 55% said news stories were accurate while 34% said they were inaccurate. That percentage had fallen sharply by the late 1990s and has remained low over the last decade.

The Socialization Of Risk

Banks: Too-big-to-fail banks take too-big-to-believe risks, receive too-big-to-fathom bailouts, and hand down too-big-to-believe bonuses.

Wall Street: Like banks, Wall Street takes on huge risk, and takes a percentage of the gains on the way up, and the way down. And it gets a bailout. Risk gets socialized, yet profits are privatized.

The Fourth Estate (The Press): On the sidelines, foaming at the mouth, totally unaware.

Brokerage Houses: Their interests aren't aligned with the small investor.

Your 401k: Gone.

529 Plans: The single biggest hoax on college-bound families.

There's a vague sensation taking hold, a feeling that American capitalism is rigged. And as that feeling of angst manifests itself, a wealth of money-making opportunities will be suddenly on the table.

Yet most will be too blind with rage, or simply too slow, to act on them.

Here at Angel Publishing, we've become known for being years ahead of major trends. And as a result, our readers profit from being in early.

Whether it's the Green Revolution, Peak Oil, precious metals, options... you name it, we cover it. And that means we profit from it. Again and again.

I want you to be there with us.

Think about it... Obama's been president for about 8 months now. Yet today it's even more apparent that powerful lobbyists and the wealthiest few still run America.

Somewhere along the line, the deal was broken. You may feel betrayed. But what you shouldn't feel is helpless.

When I think about the out-of-control $23.7 trillion in new Treasury and Fed debt dumped on the backs of my children and grandchildren, frankly, I get a little pissed off.

But I realize that the best way for me to protect myself, and them, is to become as wealthy as possible.

Consider that our mission statement.

Our business model runs contrary to an independent newsletter industry that's quickly becoming a corporate, revolving-door newsletter selling system.

Our philosophy is... If our readers make money from our research, our business thrives.

Truth is, we've consistently shown the way to profits before, during, and after the economic meltdown. But we're just getting started.

For example, our newest analyst, Christian DeHaemer, just went on record... recommending his readers buy put options on the Russell 2000.

He's up 59% in 2 days.

(Christian brings with him 14 years in the financial publishing industry, along with an incredibly accurate track record. He'll launch his new advisory, Crisis & Opportunity, in January. Stay tuned.)

And there's this, which just came over the newswire: "President Obama Pledges $3.4 billion toward a 'smart' power grid.

Jeff Siegel has been covering the Green Energy sector — and talking about this very development — years before it became as trendy as wearing the "Free Tibet" t-shirt.

And his readers have been crushing it.

He's even got a short list of companies poised to reap these government contracts. Take a look for yourself here.

Members of Nick Hodge's Alternative Energy Speculator have racked up over 45 winning trades in 2009. And they're on course to close another 20 before the year is up.

And it doesn't end there.

Ian Cooper's Pure Asset Trader — one of the best commodities and resources trading services in business today — has its readers enjoying a 94% win rate in 2009. (37 winning trades in 39 tries.)

Precious metals expert Luke Burgess has been right on 95% of the trades in his Hard Money Millionaire advisory.

The $20 Trillion Report has closed 20 winning trades in 22 tries this year, capitalizing on a number of unconventional oil and natural gas plays. And with oil moving north again, the gains in energy are just getting started.

And I haven't even mentioned the gains delivered by the likes of analysts Steve Christ, Sam Hopkins, Greg McCoach and Keith Kohl.

So here's a quick look at Angel Publishing's family of investment advisories, and their latest research.

I hope you'll join us.

To your wealth,

Brian Hicks
Publisher, Angel Publishing Investment Research

Renewable Energy:

Green Chip Stocks

Green Chip International

Alternative Energy Speculator

Alternative Energy Trader

Precious Metals:

Mining Speculator

Hard Money Millionaire

Greg McCoach's Insider Alert

Energy - Commodities:

The $20 Trillion Report

Pure Asset Trader

Wealth Building & Options Trading:

The Wealth Advisory

Options Trading Pit

The Wealth Trust

China's Rare Earth Metal Supply

When the news broke in Tokyo, it was said that the "Head Freds" at Toyota and Honda literally fell out of their chairs in shock.

According to a UK Times report from March 2009, "[It] has triggered what government sources in Tokyo told The Times was an invisible tsunami of panic in Japanese industry."

Oddly enough, the same event happened five months earlier — in November 2007 — with the same result. . .

Here's What Every Wealthy Energy Investor Already Knows...

The U.S. Department of Energy has indicated that enough electric power for the entire country can be generated by covering about 9% of Nevada with solar power systems. This is a plot of land roughly 92 miles by 92 miles.
According to M.I.T., there are over 100 million quads of accessible geothermal energy worldwide. The world only consumes about 400 quads.
The Institute for the Analysis of Global Security has stated that if all cars on the road were hybrids, and half were Plug-In Hybrids by 2025 -- U.S. imports would be reduced by 8 million barrels per day. That's about 80% of our daily consumption!

Want a million more reasons that renewable energy investors have become some of the wealthiest in 2009?

Click here for all the proof you'll ever need!

According a piece from The Straits Times published on November 23, "Japanese government officials are scrambling around the world while companies are nearly on their knees begging foreign governments to sign partnerships."

What had the Japanese in such a state of panic?

Its old foe — China — had just served some revenge.

In a stunning turnaround, the Chinese Communist Party announced further export restrictions of a vital group of commodities. Without access to these commodities, the Japanese automobile industry would come to a screeching halt.

Why?

Toyota's hottest selling car — and quite frankly, its future — is the hybrid Prius.

Inside the Prius are roughly 40 to 60 pounds of a unique commodity group known as rare earth metals.

But we're calling them "Dragon Metals" (DM) because the Chinese account for 97% of global production. They literally own the market.

Take a look:

Source: New York Times

According to MarketWatch, "China is the Saudi Arabia of [Dragon Metals]. And like oil, [Dragon Metals] will flow to the highest bidder."

In fact, Deng Xiaoping said that these metals "will be for China what oil was for Saudi Arabia."

Japan's tech economy depends on these metals. They have identified 31 Dragon Metals, including lithium, that are vital to the future of the tech economy.

Dragon Metals are a group of elements in the periodic table: namely scandium, yttrium, and the fifteen lanthanoids. The use of Dragon Metals in modern technology has spiked significantly over the past years.

For example, dysprosium has gained significant importance for its use in the construction of hybrid car motors. Terbium and dysprosium are also used in small amounts.

Since Toyota plans to double the Prius's fuel economy, each car will require MORE rare earth metals than it does now. And Toyota plans on selling 1 million Priuses yearly by 2012. . . and 2 million to 3 million by 2014.

Other hybrid/electric cars made by other manufacturers use rare earths in differing amounts — vehicles including the popular Ford Escape Hybrid and Honda Insight.

It all adds up to tremendous demand. And unfortunately, this new demand has squeezed supply. . . and there is mounting concern that the world may soon face a shortage of the materials.

No wonder the Chinese are trying to corner the market!

This is where the investment opportunity unfolds. . .

Dragon Metals are essential to new technologies such as iPhones and flat screen televisions; green energy technology such as wind, solar, and geothermal; and critical to the future of hybrid and electric cars.

Recently, China has been limiting exports of DMs, which could lead to declining worldwide supply and skyrocketing prices. This has Western governments worried, as DMs are also key to high-tech military applications.

An article from The Telegraph reports on plans in China to restrict exports of rare earths:

Beijing is drawing up plans to prohibit or restrict exports of rare earth metals that are produced only in China and play a vital role in cutting edge technology, from hybrid cars and catalytic converters, to superconductors, and precision-guided weapons. A draft report by China's Ministry of Industry and Information Technology has called for a total ban on foreign shipments of terbium, dysprosium, yttrium, thulium, and lutetium. Other metals such as neodymium, europium, cerium, and lanthanum will be restricted to a combined export quota of 35,000 tonnes a year, far below global needs.

This explains why the Japanese are panicking. . .

The Toyota Prius uses 2.2 lbs. of neodymium in the hybrid's electric motor and 22-33 lbs. of lanthanum in the car's battery pack.

Without these Dragon Metals, the Prius would cease to exist. And the thriving hybrid industry in Japan would come to a screeching halt — bringing Toyota and Honda to their knees.

But with every crisis comes an opportunity.

And as an investor, this is where you can make a legendary fortune.

In fact, on August 26, I told you how to play the lithium market by buying Western Lithium for $1 a share. Today, Western Lithium trades for $1.25. . . and has gotten as high as $1.50 since I first told you about this opportunity.

But there are other ways to play the rare earth market.

And I've pinpointed two ways to play this situation:

1) To invest directly into China's electric car market; and
2) To invest in Dragon Metal exploration outside of China.

You see, I can almost guarantee the world isn't going to sit by and become dependent on a vital resource like it did with oil and OPEC.

As you read this, mining companies are scouring the earth, looking for new supplies of Dragon Metals.

And one of the most promising places is Greenland.

In fact, recent estimates show that Greenland could supply 25% of global demand of Dragon Metals.

In the weeks ahead, we will show you specific ways to invest in this opportunity.

In addition to that, we will also bring you a unique way to play the Chinese Dragon metals market as it relates to electric cars.

Stay tuned,

Brian Hicks

P.S. Dragon Metals and other commodities vital to the electric car market should be on every investor's radar — the companies that supply these commodities to auto giants like Toyota and Honda could mean some serious gains for investors. Not to mention, as current skyrocketing energy prices are proving — we're in the early stages of the greatest commodities bull market in history. . .

My colleague, Ian Cooper, has closed 93 winning trades with his resource and energy stock picks this year alone! Since November 2007, readers of his Pure Asset Trader service have enjoyed gains of 3,124%. Click here to read more about how you, too, could start enjoying this kind of profit-taking.

The Best Biotech Stock for 2010

In my business of stock picking, one of the more successful and traditional strategies is to spot a crisis. . . then invest in the solution of that crisis.

I think I've spotted a crisis in recent news: senior citizens getting lost.

I'm serious. . .

Do a Google search for "Alzheimer's patient found" and see how many news stories are yielded in your search results.

"The # 1 Oil Play in the Country"

With the rest of the nation in recession, one state is enjoying a real live oil boom.

It's all happening in North Dakota, where the Bakken -- a massive oil formation -- has already become a major force in our domestic energy picture.

And now, geologists tell us, we may be looking at a "second Bakken"... one that could easily double the Bakken's 4.3 billion barrels of recoverable oil.

Read on to learn more about what's being called "the #1 oil play in the country"... and the profit-making stocks behind it.

Just last Saturday, an 80-year-old man was found in the woods of Kansas after wandering off from his home on Friday.

So many elderly folks are getting lost that U.S. Senator Charles Schumer introduced legislation this week that would create a "Silver Alert System" to help locate missing adults afflicted with Alzheimer's and or other forms of impairment.

According to the report:

The National Silver Alert Act is modeled after the AMBER Alert system, which helps find missing children. The bill would "create a nationwide network for locating missing adults and senior citizens with Alzheimer's, dementia, and other mental impairments."

"When a person with Alzheimer's wanders from his or her home it can be a truly frightening time for that individual and their family and friends," Schumer said. "Statistics show that, with timely notification, the chances of finding a missing person are greatly increased."

More than 60 percent of those suffering from Alzheimer's either wander or get lost while suffering from it, according to the Alzheimer's Association. In addition, 50 percent of those are at risk for a serious illness or even death if they are not located within 24 hours.

"This bill will provide funding for states to set up Silver Alert systems to put more people on the lookout when an adult goes missing to make sure that more families are reunited with their loved ones in New York City and across the country," Schumer said.

The proposed legislation, which has already passed in the House of Representatives, would enable the Department of Justice to create a communications system for Silver Alerts. Along with providing support to Silver Alert programs already in existence, the bill would also "encourage states to develop additional Silver Alert plans."

The Silver Alert system comes on the heels of a recent report I wrote on the creation of a "National Alzheimer's Czar" at the federal level.

You might ask yourself why, all of a sudden, the Federal Government is so interested in Alzheimer's disease.

Look no further than the abundance of gray-haired individuals among the House and Senate.

A majority of Congress is comprised of senior citizens and baby boomers about to become senior citizens.

To say they have a vested interest in Alzheimer's research and treatment would be an understatement.

Within the next 12 to 24 months, Congress is going to throw billions upon billions of dollars at Alzheimer's disease.

On September 30, my favorite play on Alzheimer's — Anavex Life Sciences (AVXL) — selected FORENAP Pharma as the contract research organization (CRO) for Phase I clinical trials of ANAVEX 2-73, the company's lead Alzheimer's drug candidate.

FORENAP has been involved in pre-clinical and clinical research for 20 years and is renowned for its expertise in Central Nervous System (CNS) studies — including Alzheimer's disease.

This is a huge milestone for Anavex. . . and it couldn't come at a better time, as the government and media alike are focusing on this disease.

And who is paying for all this progress? Don't worry about it. . .

The company has been able to raise funding easily, which is telling in itself. I don't have to tell you how stingy market professionals are with their money. If they can't see a clear path to profits, they don't invest — period.

Yet Anavex has had no trouble whatsoever raising cash. Up to this point, the company has been able to finance its needs on an ongoing basis, just a little at a time.

But in the near future, I expect Anavex to announce a larger financing on the order of $5 or $10 million, in order to take it through the Phase I process and well into the next stage.

This news alone will show a big vote of confidence in the company. And it'll also prove it can carry itself beyond this critical juncture.

Even though it was the Alzheimer's drug that caught our eye, the company has several other compounds that are at least as promising. In fact, I wouldn't be surprised if one of these compounds leapfrogged the AD that I'm so excited about.

Fact is there are many good stories in the biotech space. But very few are good enough to actually attract the capital required to come to fruition.

In the biotech industry, the platform — or the depth of the business — matters most. Anavex is small company that has a big platform. . . and it is amazing for such a small, new company to have such depth.

What it means for us is that we could see the company surprise the market from any number of angles.

I continue to rate Anavex a strong buy at current levels. And I continue to hold on my long position.

Profitably yours,

Brian Hicks

P.S. My colleague, Steve Christ, has been writing about the brewing bull market in biotech for over a year now. Since then, his winning picks have meant big gains for Wealth Advisory subscribers.

In fact, he met with the CEO of a company yesterday that he says could completely change the way we think about vaccines — which sounds to me like he's found his next big winner. More on that from Steve in the next Wealth Daily. Meantime, to learn more about The Wealth Advisory, click here.

Investing in Lithium Mining Stocks

Editor's Note:

While Western Lithium remains a buy, the Pure Asset Trader team tells me they have 2 rare earth trades — and possibly a third — they're looking to issue over the next two weeks... with an opportunity to double if not triple your money in mere months.

Ian Cooper heads up this team. And when they talk energy, our readers are all ears. That's because they've closed 33 winners in 35 tries this year. The gains have been exceptional.

For more information on the Pure Asset Trader's next move, click here .

For now, here's the lithium piece I wrote a few months ago. This market is just heating up. And as you'll see below, it's a call that's already made readers a quick 30% gain.

——————————————————

Warren Buffett stunned the market back in September 2008 when he announced that he was investing $250 million in a Chinese electric car company.

I say stunned because Warren Buffett seemed to violate one of his own rules of investing: Invest in companies you understand.

He admitted that he doesn't know a thing about electric cars.

So why did he invest?

Because maybe, just maybe, he knows that electric cars are a guaranteed winner.

I'm not recommending GM, Nissan, or any other automobile stock that's developing electric cars. . .

Instead, I'm going to recommend the commodity that is vital to the battery technology that'll be used in electric cars: lithium.

My play is a tiny mining outfit called Western Lithium (WLC.V: WLCDF). The stock currently trades for about $1.08 a share.

If you're skeptical or concerned that fuel efficiency alone is not enough to entice Americans to buy electric cars, consider the Silicon Valley company Tesla Motors (pictured above). While their roadster is the first production automobile to use lithium-ion battery cells and travel more than 200 miles per charge, it is also capable of going from 0-60mph in under four seconds.

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Not only will the Roadster leave most sports cars in the dust, the car recently set a distance record in April 2009 when it completed the 241-mile Rallye Monte Carlo d'Energies Alternatives with 36 miles left on the charge.

Even though the Roadster is probably too pricey for the average consumer at just over $100,000, Tesla has taken more than 1,000 reservations for the car and expects to begin production of an all-electric and more affordable sedan starting in late 2011.

But just remember, the Tesla - as well as every other electric car - needs lithium. And demand for lithium is skyrocketing.

Lithium prices have nearly tripled over the past decade with 22% compound annual growth since 2000 for use in laptops, cell phones, and other electronics.

Demand is expected to continue rising, the recent lithium mania has been ignited by the fact that electric cars require about 3,000 times the lithium needed for an average cell phone, or 100 times the lithium used in a computer battery.

This huge spike in demand should propel lithium prices much higher over the next few years.

The best way to profit from the lithium boom is Western Lithium, which owns the largest known lithium deposit in North America. Take a look. . .

According to a recent investment report:

The near surface lithium clay deposit is located in Nevada, USA and was initially discovered by the US Geological Survey and Chevron USA in the 1970's. Engineering work completed by Chevron, and later by the US Bureau of Mines in the 1980's, is now being advanced by Western Lithium.

The company's flagship Kings Valley property has a National Instrument 43-101 resource estimate for the initial stage of development and in total hosts a historically estimated 11 million tonnes of lithium carbonate equivalent (LCE). The project has a well developed local infrastructure and Nevada has a long history in the metals and industrial mineral mining industry. The company plans a scoping study during Q3 of 2009, a pre-feasibility study with results from additional drilling during 2010 and projected production by 2013. A chart with the world's largest lithium deposits is below.

While brine is usually the cheapest to mine and process, followed by clay and then pegamite (hard rock), it really depends on the quality of the material and presence of contaminants. It can be cheaper to develop a good rock or clay than a low-quality brine. Access to roads and infrastructure also play important roles in a project's economic feasibility. Western Lithium has a clear advantage to competition in this regard as their clay deposit is touted as high-quality (99% commercial quality) and the project already has all of the necessary road access and infrastructure needed to begin construction and production.

Western Lithium is well-funded and debt free, with $7.3 million cash on the books. They recently completed a $5.5 million private placement in May of this year and have a market cap of 70 million.

Yes, the stock is up a lot this past year. . . but I believe the lithium bull market is just getting started.

I think we'll witness something similar to a uranium-style bull market that lasted several years.

I personally own Western Lithium around $1 per share. I will continue to add to my position on dips.

Profitably yours,

Brian

P.S. Like I said, the lithium bull run is on. And no investment advisory can jump on the coming gains like our own Pure Asset Trader team. Just follow this link to get started.

Jim Grant on the U.S. Economy

"Somebody is monumentally wrong here. . . but who?"

So read the e-mail I received from the old Phantom Trader on Monday.

He was referring to a piece in the Wall Street Journal, written by perma-bear Jim Grant.

If you've never heard of Jim Grant, let me just say this: he makes Ebenezer Scrooge look like a party animal. That's how pessimistic Grant has been. . . for as long as I can remember.

Gold's Most Precious Secret

One little-known gold investment could make this your most profitable economic crisis ever.

Financial institutions and governments want to keep this venture under wraps. But you can find all the details on this censored gold investment right here.

In the September 19 article titled "From Bear to Bull," Jim writes:

The deeper the slump, the zippier the recovery. To quote a dissenter from the forecasting consensus, Michael T. Darda, chief economist of MKM Partners, Greenwich, Conn.: "[T]he most important determinant of the strength of an economy recovery is the depth of the downturn that preceded it. There are no exceptions to this rule, including the 1929-1939 period."

Growth snapped back following the depressions of 1893-94, 1907-08, 1920-21 and 1929-33. If ugly downturns made for torpid recoveries, as today's economists suggest, the economic history of this country would have to be rewritten.

Bears and doom-and-gloomers the world over could always count on Grant as their sage on Wall Street.

And while Grant has always been and will continue to be counted on to be a bear, he's also an astute historian of Wall Street.

In his heart of hearts, Jim wants to be a bear. But even he can't reject precedent.

And for those bears that are arguing that this time is different. . . let me remind you that that argument has been used in every bull or bear market. During the dot-com mania of the late 1990s, every bull was arguing that technology has made obsolete the business cycle.

Party on, Garth!

Nobody knows if a robust recovery is coming. Even Grant will admit that. But if past economic downturns offer clues for future recoveries, there's reason for optimism.

Grant writes:

Our recession, though a mere inconvenience compared to some of the cyclical snows of yesteryear, does bear comparison with the slump of 1981-82. In the worst quarter of that contraction, the first three months of 1982, real GDP shrank at an annual rate of 6.4%, matching the steepest drop of the current recession, which was registered in the first quarter of 2009. Yet the Reagan recovery, starting in the first quarter of 1983, rushed along at quarterly growth rates (expressed as annual rates of change) over the next six quarters of 5.1%, 9.3%, 8.1%, 8.5%, 8.0% and 7.1%. Not until the third quarter of 1984 did real quarterly GDP growth drop below 5%.

I'll bet you dollars to donuts that if we go back and read the newspapers of the 1981-82 downturn, the negativity would be as prolific as it is today.

But there is a silver lining in all of this, as Buffett points out: "Buy when people are fearful."

That's what I did last December. I bought stocks.

I was a nervous wreck putting cash back into the market. . . but I look like a genius now.

Truth be told, I was just plain lucky.

As Grant concludes. . .

I promised to be bullish, and I am (for once)-bullish on the prospects for unscripted strength in business activity. So, too, is the Economic Cycle Research Institute, New York, which was founded by the late Geoffrey Moore and can trace its intellectual heritage back to the great business-cycle theorist Wesley C. Mitchell. The institute's long leading index of the U.S. economy, along with supporting sub-indices, are making 26-year highs and point to the strongest bounce-back since 1983. A second nonconformist, the previously cited Mr. Darda, notes that the last time a recession ravaged the labor market as badly as this one has, the years were 1957-58 -after which, payrolls climbed by a hefty 4.5% in the first year of an ensuing 24-month expansion. Which is not to say, he cautions, that growth this time will match that pace, only that growth is likely to surprise by its strength, not weakness.

And that is my case, too. The world is positioned for disappointment. But, in economic and financial matters, the world rarely gets what it expects. Pigou had humanity's number. The "error of pessimism" is born the size of a full-grown man-the size of the average adult economist, for example.

For once in my investment career, I hope Grant is correct.

Party on, Jim!

Profitably yours,

Brian

P.S. As this recovery ensues, one of my colleagues has been closing winners with almost startling accuracy. His new system has closed a winner — or more — every week so far this year. And he tells me the next one could be his biggest yet. Take a moment to read about this new way of trading. I'm confident it will work for you, as well.

China's Electric Car Market

As you read this, the future of transportation is taking place in a convention hall in Frankfurt, Germany.

It's called the Frankfurt Motor Show. . . and insider reports indicate electric cars are taking over the world like an army of robots, hell-bent on revenge against their flesh masters.

Every company represented at the show is featuring their version of an electric/hybrid automobile. Even high-end brands like Porsche and Ferrari are going electric.

But while SAAB, BMW, and Mercedes size-up each others' electric motor, the Chinese are the ones that are the talk of the show.

The bottom line: China's car market is the Holy Grail.

While the U.S. and European dealers have to create tempting incentive plans to get cars off their lots, Chinese dealerships literally have waiting lists of customers who want to buy cars and are willing to take a spot in the queue.

The potential numbers are mind-boggling.

In China, only 2.9% of the population owns cars. That's only about 38 million cars on the streets of China's cities and villages.

Compare that to the United States, where 238 million vehicles are on the road.

Catch my drift now?

The growth in China is going to be awesome.

According to a Wall Street Journal article on September 9:

China's auto industry continued to post strong growth, with sales of passenger vehicles rising 90% in August.

Passenger-vehicle sales in China rose to 858,300 units in August, up 90% from a year earlier, the China Association of Automobile Manufacturers said in a statement Tuesday. China's overall auto sales rose 82% in August to 1.14 million units.

Mr. Liu said he expects sales of small cars to continue to outperform the industry. . . "Customers right now are becoming younger," he said. They only need and can only afford smaller cars, he said.

As the breakneck pace in sales growth eases, it will help to spur consolidation in China's auto industry, which currently has more than a hundred vehicle manufacturers, Mr. Liu said.

You read that correctly. . . 100 different car manufacturers!

And this brings me now to draw readers' attention to the real opportunity from this electric car bull market: rare earth metals.

Rare earth metals are vital in the clean energy markets of electric batteries for cars, solar panels, wind turbines. . . even weapons!

Metals like neodymium, indium, lithium, dysprosium, and terbium are essential to green energy technologies.

Without these metals, there would be no Toyota Prius.

According to Jack Lifton, a commodities analyst and leading authority on rare metals, "The Prius automobile is the biggest user of rare earths of any object in the world."

How much are we talking?

Lifton says there is 1 kilogram (2.2 lb) of neodymium in the Prius hybrid's electric motor between 10 and 15 kg (22-33 lb) of lanthanum in the car's battery pack. Those figures would likely rise if the car were fitted with a larger battery pack and motor for higher fuel efficiency.

And guess what? China accounts for 97% of global production and about 60% of consumption of rare earth metals.

In a recent article titled "China's Plan to Dominate Rare Earth Metals," Sean Brodrick writes:

China plans to curb its exports of the metals. China has announced that export quotas for the first half of 2009 are being reduced by approximately 34% over the same period last year.

Not surprisingly, Toyota is said to be searching for additional suppliers of these materials outside China.

But it might not help. You see, the Chinese are on a buying binge for rare earth properties.

According to Brodrick. . .

Two Australian companies, Lynas Corp. and Arafura Resources, are planning to open mines in the next couple years that have combined production equal to a quarter of annual global production of rare earth metals.

But then the global financial markets collapsed last year. Both companies lost their financing. Guess who stepped in with new financing?

The Chinese, that's who!

Mining companies wholly owned by the Chinese government showed up with the cash needed to finish construction of both companies' mines and ore processing factories. In exchange, the Chinese companies received 51.7 percent of Lynas and 25 percent of Arafura.

And that's not all. . . Remember when Chinese oil company CNOOC tried to buy U.S.-based Unocal a few years ago? Unocal owns is the Mountain Pass mine, a potentially rich rare earth mine in California.

China's Unocal bid fell through, and Chevron bought the company instead. Who shows up at Chevron's doorstep but the Chinese, cash in hand, asking Chevron to sell them the Mountain Pass mine separately from Unocal.

Instead, Chevron sold the mine to Molycorp Minerals, a private American group, which plans to reopen the mine by 2012.

Rare earth stocks are rallying . . . and will continue to rally for years to come.

My research team will be releasing a report on the investment opportunities in this tight space.

But if you want to play rare earth metals now, you can play my favorite junior mining stock: Argentex (AGXM - OTCBB).

I recommended Argentex nine months ago. . . and the stock has done nothing but go up for my readers.

Argentex has a potentially significant indium resource. . . but this past Monday, the company released its silver estimate that blew away its original estimate.

Argentex's first-ever Pinguino mineral resource estimate yielded 180 million ounces of silver equivalent.

Argentex announced the completion of the first-ever mineral resource estimate for Pinguino, the company's 100%-owned polymetallic property in Argentina's Santa Cruz province.

The mineral resource estimate reports 180 million ounces of silver equivalent in the inferred and indicated categories. Specifically, the inferred resource of 35.4 million tonnes is estimated to contain 141,600,000 ounces of silver equivalent. The indicated resource of 7.3 million tonnes is estimated to contain an additional 40,150,000 ounces of silver equivalent.

Mineralization at Pinguino remains open in all directions and only 15 of more than 47 veins mapped on the property have been tested by drilling. There is excellent geological potential for the delineation of additional mineralization, which would be reported and modeled to increase and upgrade the resource estimate.

I had a chance to talk to Ken Hicks (no relation), CEO of Argentex, on Monday. His exact words to me were, "We've just scratched the surface. Less than 10% of our Pinguino property has been worked on. This is huge. . . we have a lot of work to do. . . "

Argentex is going to $2 a share by the start of 2010. Buy it on the dips.

Rock it out,

Brian

P.S. Metals essential to green energy technologies are starting to taking off — but they're not the only members of the metal family that are set to skyrocket. Silver is moving to the investment forefront, as a buying frenzy of a little-known silver stock shifts into high gear. This stock could return an instant 33% — and in the next 18-24 months — over 450%! The likes of JPMorgan, Goldman Sachs, and Barclays are sinking millions into this particular silver stock. . . Click here to read more about the greatest silver rush Wall Street's ever seen.

Portfolio Allocation Strategy

This time last year wasn't fun, especially if you were long the market.

The Dow was looking like a bobbing dinghy on the Niagara River, about to go over the Falls:

Stake Your Claim in the Stimulus Goldmine

With $787 billion in pork now sloshing around Washington D.C., one industry in particular stands to grab the lion's share.

And for the investors that get there first, this moneymaking opportunity is one that may just turn out to be the mother lode.

To learn more about the Stimulus Goldmine that could easily double when all of that pork gets spent click here.

I was nearly 100% in cash. Some of it was in my house in a safe guarded by a Sig-226 and two Remington 870s.

In the months prior to September, I had accumulated enough rice to last my entire neighborhood for about a week.

You see, we were staring into the abyss. . . only days away from the local ATM telling you to come back in a week or two to get your withdrawal cash.

All the dire predictions by Greg McCoach about toxic derivatives were about to come true.

When I warned my friends and family to take cash out of the bank and hide it in their house, they literally thought I was nuts.

"C'mon, it can't be that bad. Besides, aren't our savings insured by the government?" they would say.

I had no idea how far indoctrinated the America public had become. But then again, nearly 80% of Americans believed invading Iraq was a good idea. The other 20% thought the United States and Israel were behind 9/11!

A year later. . . the markets have stabilized.

In December of last year, I started to put a lot of capital to work in stocks. Probably 50% of my cash holdings went into oil stocks like Baytex, Kinder Morgan, small junior miners like Argentex. . . and macro trades, like the ETF SPDR S&P Biotech (NYSE: XBI).

My readers and I are up big. In fact, some have doubled their portfolios this year alone.

But I'm not taking any chances. And I'm concerned that everybody is too optimistic on this perceived "recovery" while the smart money continues to be cautious — if not outright fearful.

My New Portolio Allocation Strategy

In the past week, I've been reallocating my portfolio. I don't want to get caught with my pants down, heading into — historically — the two most volatile months of the year.

I have initiated several short positions to protect the profits I already have.

Here are my new positions:

1. UltraShort Dow30 ProShares (NYSE: DXD)
2. UltraShort FTSE/Xinhua China25 Proshares (NYSE: FXP)
3. Direxion Daily Financial Bear Shares 3X (NYSE: FAZ)

I'm also looking to go short on commercial real estate.

According to a recent San Francisco Chronicle article on the coming commercial real estate crisis:

Perhaps even more troubling is the fact that about $814 billion in outstanding commercial real estate loans nationwide are scheduled to come due between now and 2011, mostly on loans originated five years prior. In San Francisco alone, 75 percent of the city's top-end downtown office buildings traded hands in the past four years.

Commercial mortgage defaults are tied directly to employment. Persistent and high unemployment, along with companies' reluctance to hire back workers despite signs of a recovery, has meant that much of the office space that emptied during the past year — about 1 million square feet — will probably not fill up anytime soon.

Read this article in its entirety, here.

One way to short commercial real estate is UltraShort Real Estate ProShares (NYSE: SRS).

I will probably build my position in a week.

Profitably yours,

Brian

P.S. When it comes to the commercial real estate bubble, Steve Christ and Ian Cooper have called this one from the very start. So when I read all about it on Monday in the Wall Street Journal, I just had to chuckle. You see, Steve and Ian had beaten them to the punch on this one by a long shot. In fact, if you want to know how to really profit from this brewing debacle, click here. Steve has this one down cold.

Western Lithium Stock

Warren Buffett stunned the market back in September 2008 when he announced that he was investing $250 million in a Chinese electric car company.

I say stunned because Warren Buffett seemed to violate one of his own rules of investing: Invest in companies you understand.

He admitted that he doesn't know a thing about electric cars.

So why did he invest?

Because maybe, just maybe, he knows that electric cars are a guaranteed winner.

I'm not recommending GM, Nissan, or any other automobile stock that's developing electric cars. . .

Instead, I'm going to recommend the commodity that is vital to the battery technology that'll be used in electric cars: lithium.

My play is a tiny mining outfit called Western Lithium (WLC.V: WLCDF). The stock currently trades for about $1.08 a share.

Bull Market. . .

Bear Market. . .

It doesn't matter!

No matter which way the market is heading, this is the only place to land

20 double-digit gains in one year - GUARANTEED!

Click here now. . .

But just remember, the Tesla — as well as every other electric car — needs lithium. And demand for lithium is skyrocketing.

Lithium prices have nearly tripled over the past decade with 22% compound annual growth since 2000 for use in laptops, cell phones, and other electronics.

This huge spike in demand should propel lithium prices much higher over the next few years.

The best way to profit from the lithium boom is Western Lithium, which owns the largest known lithium deposit in North America. Take a look. . .

According to a recent investment report:

Western Lithium is well-funded and debt free, with $7.3 million cash on the books. They recently completed a $5.5 million private placement in May of this year and have a market cap of 70 million.

Yes, the stock is up a lot this past year. . . but I believe the lithium bull market is just getting started.

I think we'll witness something similar to a uranium-style bull market that lasted several years.

I personally own Western Lithium around $1 per share. I will continue to add to my position on dips.

Profitably yours,

Brian

Investing in Lithium

If you haven't noticed, there is a group of six stocks that's been on fire this year.

The best performer is up 3,233% since its December 2008 lows. Yes, you read that correctly. . . +3,233%.

Another one is up 990% in that same time. Three other stocks — all microcaps — are up 1,100%, 2,125%, and 1,999%.

The worse performer of the bunch, a large cap, is up just 21% since December.

The six stocks have just one thing in common: all produce or mine lithium.

Lithium is being touted as the next primary fuel of the 21st century. Hybrid technology and electric cars are thought to be a viable alternative. I have no idea how long it will take to fully transform the U.S. economy from a fossil-based energy complex to a renewable one, but I do know this. . . sentiment is clearly in favor of green energy.

Solar energy, wind, clean fuels, ethanol, run of river projects, and geothermal energy continue to be the hot topic in the energy sector. So if the world moves forward to battery-driven vehicles, lithium will be a high-in-demand commodity, as it is used in electric and hybrid electric car batteries.

The following chart shows the estimated future lithium consumption:

Silver Stock Pays 852% Annually for 9 Years Straight. . .

Early investors made profits as high as 7,667%.

Every $12,875 invested turned into $1,000,000.

And now the same institutions that bankrolled this company are betting millions on another small silver stock. . . One that will increase silver production by 18,339% over the next 12 months.

Read More. . .

According to a report recently published by Research and Markets entitled "Lithium-Ion and Nickel-Metal Hydride Batteries, Lithium, Rare Earth Lanthanum and the Future of Hybrid Electric Vehicles 2009-2020":

The auto industry is about to enter a new era: the electrification of cars. The move to electrified cars will have dramatic, disruptive consequences to consumers, auto makers, input suppliers, battery producers, regulators, mining companies, oil producers, electric utilities, R&D activities and investors, among others. However, from this change will come enormous opportunities, including the reduction in CO2 and global warming, less dependence on oil, more geopolitical independence, technological advancements, very large, new industries and markets, and huge profits.

The economic, regulatory and technological advantages of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs) means that dramatic growth in their adoption and usage will be seen over the next 11 years to 2020, both in the US and worldwide.

Batteries are the key technology enablers for the future of HEVs, PHEVs and EVs. Nickel-metal hydride (NiMH) batteries currently dominate the HEV market, but they soon will be replaced by lithium-ion ones.*

*Editor's emphasis

During the uranium bull market between 2001 and 2007, more than 600 uranium companies either went public or switched their resource business to become a uranium play.

Six hundred companies!

And less than 10 actually mined proven uranium.

Yes, it was mania.

Even though the lithium stocks are up big in the past year, the supply of stock available to investors is severely small.

We could be witnessing the phenomenon of "too many dollars chasing too few stocks."

The lithium bull market is in its infancy. If it's similar to the uranium bull market, we could witness several years of a lithium rally.

In the coming weeks, I will be recommending lithium stocks to you.

Profitably yours,

Brian

2009's Best Biotech Stocks

On November 30, 2007, I presented my thesis on why I thought biotechnology was the next big bull market.

My thesis was simple: a month-and-a-half earlier, a woman named Kathleen Casey-Kirschling was the first baby boomer to file for Social Security benefits.

Little did anybody know this marked the day that the 21^st Century's biggest bull market began.

The numbers are staggering. . .

An average of 10,000 baby boomers is set to file for Social Security every single day for the next 20 years!

To call this a mega-trend would be an understatement.

And to call this one of the greatest moneymaking opportunities in history would also be an understatement.

That's why I'm here today to tell you it's high time to buy biotechnology.

If you haven't noticed, biotech is the hottest sector in the market today. Hotter than oil. . . hotter than gold. . . and hotter than renewable energy.

This is a 6-month chart for the NYSE Arca Biotechnology Index:

Even with Obama pushing for health care reform, the bull market in biotech is running hard. Why?

Because regardless of healthcare reform, older Americans will need constant medical care. Somebody is going to pay for medical care, whether it's the federal government vis-à-vis the taxpayer. . . the health insurance companies. . . or the customer.

And big pharmaceutical companies like Johnson & Johnson and Pfizer know this. . . and that's why they are positioning themselves for the future.

As you read this, pharmaceutical companies — sitting on record cash reserves — are on a biotech buying binge:

Medarex, a small biotechnology company that was trading for less than $4 a share last March, received a $16 tender offer from Bristol Meyers on July 28
Johnson & Johnson bought out Cougar Biotechnology for just under $1 billion in May
Celldex Therapeutics announced its plan to acquire CuraGen for $94.5 million
Novartis and Pfizer also did some international shopping in India and Austria, respectively
And in March of this year, Roche acquired biotech giant Genentech

With the biotech bull market in high gear, I'm going to tell you about three ways to play it. Similar to the Obama infrastructure plays, I will give you a speculative play, a mid-tier play, and a safe way to play biotech.

Stake Your Claim in the Stimulus Goldmine

With $787 billion in pork now sloshing around Washington D.C., one industry in particular stands to grab the lion's share.

And for the investors that get there first, this moneymaking opportunity is one that may just turn out to be the mother lode.

To learn more about the Stimulus Goldmine that could easily double when all of that pork gets spent click here.

Government Proposes an Alzheimer's Czar

This past July, a research report was released that said that Alzheimer's cases are rising at an epidemic pace.

It's easy to see why.

The senior citizen cohort is the fastest growing cohort in America today.

In fact, it's the fastest growing segment of society in the western world.

In the United States, 350,000 new cases of Alzheimer's are diagnosed each year. . . adding to the five million cases that already exist today.

Now here's were it gets really bad: $100 billion is spent in America annually to cover Alzheimer's treatment. . . and those costs are rising fast.

It's gotten so bad that on July 29, Senators Mel Martinez and Evan Bayh proposed a bill that would create a national Alzheimer's Office in the White House. . . with the creation of an "Alzheimer's Czar."

The whole goal of this policy is to "accelerate the development of cutting edge medical treatments and drugs to fight Alzheimer's. . . "

My favorite play in the Alzheimer's space is also my most speculative play: Anavex Life Sciences (AVXL - OTCBB).

Anavex appears to be the one of the only — if not the only — company pursuing the most promising path to an Alzheimer's cure. It is countering oxidative stress by targeting sigma receptors.

If you read my previous reports on Anavex, I explained that receptors are protein molecules that exist in or near the surface of cells. These molecules are vital in receiving cell expressions.

It's been confirmed that sigma receptors play a role in a vast number of conditions and offer as many therapeutic opportunities. Some are involved in pain control, going back to sigma receptors' roots. Others have oncological value treating cancers. Anavex has 30 solid candidates in varying states of development.

Anavex is a microcap stock with huge upside potential: either a pure play on Alzheimer's or as a takeover candidate. It's one of those plays that offers true 100-to-1 profit potential. I rate Anavex a strong buy at current levels.

All You Can Eat Biotech Buffet for $55

My mid-tier play on biotechnology is the S&P Biotech ETF (NYSE Arca: XBI; $55). This gives you broadbased exposure to the biotech sector. This ETF holds giants like Amgen and Genzyme to smaller biotechs like Regeneron.

This ETF has rallied in lock-step with the biotech sector, as you can see by its chart:

I personally own this ETF and will be adding to it on weakness. I consider XBI a good way to participate in the growth in biotech this century. . . and I recommend it at current levels.

Big Johnson

If you're looking for a safe play in biotechnology, look no further than Johnson & Johnson (NYSE - JNJ; $60).

JNJ does over $60 billion in annual revenue and has $13 billion sitting in the bank. . . and pays a dividend of roughly 2%.

Their broad product line is second to none. They sell everything from Aveeno. . . to liquid stitches. . . to the cancer drug Procrit.

And last month, JNJ paid $893.7 million for Cougar Biotechnology, a development stage company that is testing a potential treatment for prostate cancer.

JNJ trades at a market cap of about $160 billion, so it's a big cap stock. But if you're looking for steady gains without a lot of risk exposure, JNJ is the way to go.

Profitably yours,

Brian Hicks

Junior Mining Stocks

Seven months ago, I was having dinner with a group of Vancouver stock brokers and venture capitalists at a tragically hip club in South Beach.

When the check came... everybody had "penguin arms." In other words, nobody reached for their wallets to pay for the group's overpriced meal.

A year prior, that probably wouldn't have happened.

The Vancouver Stock Exchange is the birthplace of the junior mining sector. . . and in 2007, it was sitting at record highs.

But in December of 2008. . . with the Vancouver stock market getting killed, promoters and investors, who once were on waiting lists for Porches and Audi R8s, were now getting busted out by bone-crunching margin calls that would literally send them into bankruptcy.

Only one guy in the group was smiling. He had gone short in September. . . and was now covering.

Champagne for everyone!

This same guy was also the one who said now is the time to buy junior mining stocks. His favorite was Argentex, trading for just $0.11 at the time.

It still is today. . . now trading for nearly $0.70.

I recommended Argentex in these very pages eight months ago. If you followed my recommendation, you're up big.

But in the update below, I will explain why there's even more upside to this junior mining stock.

Argentex Mining (ATX: TSXV, AGXM: OTCBB) is currently in the dark before the inevitable dawn. Within 12 months, I expect Argentex's valuation to reflect a 100 million ounce silver resource on their Pinguino property in the Santa Cruz Province of Argentina.

Win Big When the Next Domino Tumbles

First there was housing... then the banks. And after that it was the automakers that came crashing down. Next up is a Commercial Real Estate Crash.

And unfortunately - just like the rest of them - the government's last-ditch efforts to prop up this domino are all doomed to fail.

But a 372-year-old investing technique is the answer to it all. And it might not only save your portfolio during this $1 trillion crisis... but also make you a fortune!

To learn more about this moneymaking opportunity click here.

My 12-month target valuation for Argentex is $70 mil - $90 mil, or $2.00 - $2.70 per share.

Based on an analysis of 98,000 feet of core from a 45-mile vein system, Argentex's management has commissioned a 43-101 compliant engineering report.

I expect the report to describe a 100,000,000 oz. near surface silver deposit with additional gold and indium credits.

Our 24-month target valuation for Argentex is $135 mil - $155 mil, or $4.00 - $4.50 per share.

Due to the ‘shovel ready' nature of Argentex's deposit, I expect cash-strapped Argentex to begin production sooner rather than later by taking advantage of proximity to local producers to extract and refine ore in a joint venture agreement.

AngloGold Ashanti (ASX: NYSE), Coeur d'Alene (CDE: NYSE), Pan American Silver (PAA: TSX), Minera Andes (MAI: TSX), and Hochschild Mining (HOC: LSE) are each active in the region and may provide a local source for Argentex's production and refining and a potential exit for shareholders.

Why Now?

Junior miners have picked up steam since PDAC, and Argentex is very much a hot timing play. By acting now, an investor takes advantage of five years of invested capital and a still depressed market for junior miners.

Argentex's management has already conducted extensive drilling programs and I believe that they have identified a near-surface silver deposit in the magnitude of 100,000,000 ozs.

Canadian investor protection laws require an independent engineering report compliant with National Instrument 43-101 to be filed with regulators, to be disclosed to the public before management can describe any aspect of their resource to the public.

Argentex's management has recently commissioned an independent engineering firm to complete a 43-101 compliant report. Results are expected by the end of summer 2009.

I believe that Argentex will appreciate significantly in value when the report is filed and the results are disclosed to the market.

Following the definition of the resource, it is likely that Argentex will expand the definition of the resource with additional drilling— more drill holes along strike might show a continuation or an expansion of the trend—and that Argentex will move towards surface extraction and refining using local third-parties within 24 months.

If you don't have a position, now is the time to take immediate advantage of weakness in the stock and in the market for juniors to capitalize on anticipated catalysts that may drive Argentex up three to four times its current valuation in 12 months, and to eight times its value in 24 months.

I view the Argentex Opportunity in 3 phases:

1) Management has identified a near-surface silver deposit in the magnitude of 100,000,000 ozs. (approximately $1.2 billion, at current prices)

2) I expect Argentex's valuation to increase 250% - 350% when the engineering report is released, based on a 100-million ounce resource and comparable company valuations.

3) With minimal capital expense and impact, Argentex can move from exploration into production within 24 months by initiating surface extraction and refining in an arrangement with either, or both of, AngloGold's Cerro Vanguardia mine (22 miles away), or Coeur d'Alene's Marta mine (50 miles away).

Good investing,

Brian Hicks
Publisher, Wealth Daily

The Shrinking Value of the U.S. Dollar

Publisher’s Note: If you peruse CNBC, Bloomberg or even the Drudge Report on a daily basis like I do, then you’ve undoubtedly noticed an emerging market theme: The U.S. dollar is dead!

It seems like every day we hear calls from the leaders of India, Russia and China to create a new world reserve currency to replace the weakening dollar.

Will it happen?

Nobody knows.

But I do know this: America is printing so much money, and it's going into so much debt, there’s absolutely no way the US dollar will rebound anytime soon.

And for the morons who think that Obama knows what he’s doing by spending trillions of dollars to jump start the economy, just remember this: Bush started this spending spree. In terms of the economy, Obama is no different than Bush.

In the article below, the newest member of the Angel Publishing team — Alex Koyfman — explains why the dollar may never return to its status as the world’s reserve currency.

Enjoy,

Brian Hicks
Publisher, Wealth Daily

______________________________________

The US government and Federal Reserve would like you to believe that the US dollar has inherent value. . . that it's stable. . . that it's a store of value. . . that it is, and will always be, the world's preferred currency.

But, as more and more people are learning everyday, that is all just a fairytale. . . a fantastic misrepresentation of reality. The truth is. . .

The Value of the US Dollar is Gone

A 1928 $1 Silver Certificate

A dollar, once redeemable for physical gold or silver, is only backed today “by the full faith and credit of the United States government.”

That means the US dollar is given credit and strengthened by the government's ability to levy taxes or borrow from a separate entity, like the Federal Reserve or a foreign government.

Think about that for a minute.

First of all, no entity, not even one as large as the United States government, has unlimited credit.

The American government, just like you or me, is limited by how much it can borrow. And with the national public debt already approaching $11.5 trillion — and growing by an astonishing $3.8 billion per day — the nation must be quickly reaching its credit limit.

Perhaps more frightening is the government's guarantee to back the US dollar through its ability to tax the American people.

If you don't pay your taxes, you may be fined, your paychecks may be garnished, your property may be seized, and you may even be thrown in prison. . . federal prison!

In other words, the government's guarantee of the dollar ultimately rests on your fear of incarceration.

What once derived its value from gold now takes its strength from state-sponsored intimidation.

It's true, we've fallen quite a ways from the days when the greenback meant something. And what's really scary is that. . .

The US Dollar's Value Has Eroded in Just a Few Decades

At the close of WWII, with just around 5% of the world population living in the US, the nation nevertheless produced 75% of the manufactured goods consumed globally.

It was an astounding achievement that set the stage for what many historians dubbed “America’s Century.”

That century is now over, literally and figuratively.

Although our economy was once responsible for a constant flow of steel, cars, ships, high-tech equipment, and all varieties of household goods. . . although our nation once fought off the Nazis and supplied the Allies with the goods and capital required to defeat the forces of evil and build the modern world up from the ravages of global war. . . today, America's number one product is debt.

And the mountains of debt we accumulate on a daily basis will only keep growing because our industry and exports simply cannot keep up.

We've all felt it, from the common citizen to the biggest corporations.

Unfortunately, the Fed’s main tactic for combating this mounting crisis is adding to the money supply, which they’re doing at an unprecedented rate today.

"COP-15"

It's shaping up to be the most critical energy summit of the century.

At stake: a global market worth $45 trillion.

This unprecedented meeting kicks off on December 7 in Copenhagan. You can learn exactly how it's all going to go down -- and how our first COP-15 trade could deliver you a tidy 112% -- in our new report.

Click here.

Economist and executive editor of Shadow Government Statistics John Williams began tracking the total supply of money in circulation after the Federal Reserve refused to continue publishing the figures in 2006. Today, Williams estimates the total supply of US dollars — including large time deposits, institutional money-market funds, short-term repurchase agreements, and other larger liquid assets — is approximately $15 trillion.

This is a shocking 250% increase to the supply of US dollars in the past 15 years alone!

Of course, you know the result of this approach. . .

Every dollar the Federal Reserve prints, when not supported by an equivalent growth in productivity, just leads to a devaluation of every dollar in circulation. That includes all those dollars you’ve slaved to put away for your household improvements, your kids’ college fund, and your retirement.

Inevitably, as the Federal Reserve's hunger for capital increases, and the individual value of each dollar decreases, the taxpayer — the true backer of the US Dollar — will be coerced into paying ever-increasing chunks of precious income to keep the machine alive.

Eventually, something will have to give: either your ability to earn or Uncle Sam's ability to take it from you.

You make the call which will outlast which.

There is a way out, however. You can still salvage your savings and secure the value of your assets, as they're valued today, before it’s too late.

But for that, you’ll have to return to the antiquated practice our national economy dropped back in the early 1970s.

You can take your faith out of the future prospects of the US economy and put it back into something inherently valuable. . . something that maintains and even increases its worth just by existing.

The political machine that has ravaged our economy has had its chance, and has blown it every step of the way. Take your financial future into your hands today and learn why now is the best time in American history to invest in the metal that was once the backbone of an empire. . .

Gold!

Good Investing,

Alex Koyfman
Contributing Editor, Gold World

P.S. Let's face it, the only place to keep your money safe is in gold. But today's market offers investors new ways to hedge against a falling US dollar and profit handsomely in the process. Last week, I took a much closer look at Greg McCoach's latest gold investment recommendation, which yields 2x the profits made by gold. It turns out that every time gold goes up 1%, you're paid 2%. . . or every time gold goes up 10%, you're paid 20%. It's a pretty sweet deal any way you cut it. To learn more on how you can profit from Greg's new investment vehicle, just click on this link: http://www.angelnexus.com/o/web/13592

______________________________________

From Gold World's Gold and Guns blog...

Banks to Stop Accepting IOUs from California
...as early as Friday!

Last week, the state of California began issuing IOUs — or “individual registered warrants” — to hundreds of thousands of its creditors. State Controller John Chiang said that without IOUs California would run out of cash by the end of this month.

But now a group of the biggest US banks — including Bank of America, Citigroup, Wells Fargo, and JP Morgan — say that they will stop accepting California's IOUs as early as Friday, adding pressure on the state to close its $26.3 billion annual budget gap.

Meanwhile, Fitch Ratings dropped California's bond rating from A to BBB amid the budget deadlock.

We'll keep you posted as the story develops...

— Luke Burgess

Natural Gas ETF

If you've been keeping an eye on your monthly utility bill, you have probably noticed that it's dropped dramatically.

That's because the price of natural gas has collapsed to a 7-year low.

Here's a chart of the price of natural gas for the past 2 years:

While most commodities have bounced back from their financial crisis lows (like oil, see below), natural gas prices remain below $4 per mcf.

Why?

We now have the answer.

$1.76 Million Per Megawatt

That's the going rate for wind energy.

And in the next 10 years. . . over 446,000 megawatts will be installed.

That presents a market worth $785 billion.

Click here to learn about 3 stocks that will easily double as that happens.

Last week, it was reported that America's natural gas reserves are much larger than previously thought.

That's because of a new technology which has allowed producers to drill for gas in shale rock (like that found in the Barnett Shale). Now, the country's estimated reserves are 35 percent higher than just two years ago and have reached the highest level in 44 years.

The report comes at a time when natural gas is being touted as a way to help reduce U.S. dependence on foreign oil and cut emissions that lead to global warming.

According to the report:

The country's estimated total natural gas resources stand at 2,074 trillion cubic feet, an increase of 542 trillion cubic feet from its last report.

The figure includes 238 trillion cubic feet of proven gas reserves as established by the Department of Energy and 1,836 trillion cubic feet of reserves labeled as probable, possible, and speculative.

The report reinforces a study released last year for the natural gas-backed American Clean Skies Foundation. It found the U.S. had 2,247 trillion cubic feet of natural gas reserves — a 118-year supply. The U.S. consumes about 22 trillion cubic feet of gas per year, almost all of it produced in the U.S.

Natural gas is used to generate about a fifth of the nation's electricity. It emits about half of the heat-trapping greenhouse gas that coal does. Those who are pushing natural gas production the hardest, like Texas oilman T. Boone Pickens, have promoted natural gas as a transportation fuel that could be used to reduce dependence on foreign oil.

According to Pickens, "I launched the Pickens Plan a year ago to help reduce our dangerous dependence on foreign oil, and using our abundant supply of natural gas as a transition fuel for fleet vehicles and heavy-duty trucks is a key element of that plan. On the same day this report is going out, diesel prices are again on the rise, squeezing the trucking industry. Now more than ever we need to take action to enact energy reform that will immediately reduce oil imports."

Thursday's report said shale now makes up one-third of the 1,836 trillion cubic feet of potential resources, much of it from a re-evaluation of shale gas in the Marcellus basin as well as the mid-continent region, the Gulf coast, and Rocky Mountain areas. Reserves jumped 16 percent overall from the group's last report two years ago, and estimates could go even higher because not all areas that have shale have been tested and explored.

Even though natural gas prices are trading at a 7-year low, I'm buying. It's the one commodity that hasn't rebounded from the sell-off experienced during the economic crisis.

My guess is natural gas prices will increase off their lows, as the surge in reserves was already priced into the market.

An easy way to play the rebound in natural gas is the US Natural Gas ETF (UNG). UNG is an ETF I own in my personal trading account.

Profitably yours,

Brian Hicks

No Recovery without a Bottom in Housing

On Tuesday, Deutsche Bank threw a bucket of ice cold water on the "green shoots" believers that the US economy was recovering or near a bottom.

Deutsche's argument, in my opinion, is irrefutable:

Without a bottom in housing, there can be no recovery.

It goes like this. . . The US economy can't bottom until banks and financials bottom (start lending to fuel consumption). . . and banks and financials can't bottom until housing prices bottom.

According to Deutsche, U.S. home prices may fall another 14 percent, led by the New York and Orange County, California, metropolitan areas, before reaching a bottom as an increase in unemployment offsets lower prices.

"Affordability is no longer the driving issue in the housing market, and we believe prices still have a ways to fall in many areas before home prices reach their trough," Deutsche Bank analysts led by Karen Weaver, wrote in a report yesterday. "The bottom is getting closer, but we are not there yet."

Home prices are forecast to fall 41.7% from their peak, Weaver said. That's higher than a forecast she released in March and reflects "the actual declines to date and the expected future impact on home prices from rising foreclosure inventory and unemployment."

I think Weaver has it a little wrong.

Here at Wealth Daily, our analysts believe home prices will overshoot on the downside just like it did on the upside.

Think about it.

Wall Street's Energy Bombshell

Morgan Stanley --and a group of other high-powered Wall Street banks-- just

announced they'll no longer fund fossil fuel-related energy projects.

That means trillions in "new money" will now be created in alternative energy.

And here's where the first round of profits will come from. . .

In order for home prices to go up or to just bottom, there has to be a supply of home buyers that outpaces the available supply of homes.

We're talking about buyers who are employed.

Forty percent of jobs created between 2001 and 2006 were housing related. Whether it was construction, lumberjacks, truck drivers transporting building materials, engineers, real estate agents, mortgage brokers, the construction of Lowe's and Home Depots. . . US unemployment was nil during the housing boom.

That was then. . . this is now.

Most economists now believe that unemployment will hit at least 10%. . . with some suggesting 12% and higher.

Couple that with the fact the US consumer is up to his eyeballs in debt, and what you get is a perfect storm for a destructive downturn that has only begun.

Seriously, let me ask you this: If 70% of the US economy is consumption. . . and the US consumer has no room to consume anymore, where does the economic rebound occur?

Government spending?

But Obama. . . for all his business brilliance. . . cannot buy every single home on the market.

So. . . we wouldn't be surprised to see home prices decline anywhere from 50 to 66 percent from their peak.

In fact, we could be looking at a decades-long bear market in housing as the baby boomer generation try to sell their McMansions to downsize into condos, retirement communities or out of the States altogether.

Profitably yours,

Brian Hicks
Publisher, Wealth Daily

P.S. I'm sure you're aware of the storm brewing in commercial real estate. Here's what James Koury, a senior VP in the Boston real estate firm Jones Lang LaSalle, has to say about it...

"We're at the front edge of this... This is a few drops we're just feeling on our forehead of what's going to be a hurricane."

Make no mistake—We're staring at what could be a catastrophic drop in commercial real estate with damages of more than $1 trillion.

Still, the bust in commercial real estate is also an incredible profit opportunity for Wealth Daily readers. That's because my colleague, Steve Christ (who came to us after 10-plus years in the mortgage industry), has just put together a new report that can help you position yourself to receive large payouts while the commercial real estate market nosedives. You can read Steve's new report right here. But don't waste any time. Steve thinks it's going to pay off in a huge way over the next several months.

Oil Economics

About this time last year, the oil was trading for $137 a barrel.

Speculators were to blame for pushing oil to these unprecedented levels.

At a June 17 Congressional hearing, an assembled panel of "experts" unanimously agreed that speculation is responsible for driving oil prices 50% higher than they would otherwise be.

Congressman Joe Barton (R-Tex), an oil and gas industry advocate, argued high oil prices are purely the result of supply/demand forces and called for increased domestic drilling. The experts listened respectfully and ignored him.

As a result of the hearings, the House on June 26 voted 402-to-19 to direct the Commodity Futures Trading Commission to use all its authority, including the agency's emergency powers, to "curb immediately" the role of excessive speculation in energy futures markets.

The House bill required the CFTC to act against "sudden or unreasonable fluctuations" in energy futures prices and other trading activities that "prevent the market from accurately reflecting the forces of supply and demand for energy commodities."

Six months after the Congressional hearings, oil sank to a multi-year low of $32 a barrel.

This prompted a chorus of morons to sing, "Told ya so."

Some even suggested oil would return to its historic normal level of $22 a barrel.

What a difference half a year makes.

Today, oil is again on the rise. . .

It's up 60% since February?

Are speculators responsible for this move?

No!

Warren Buffett Has Increased His Stake

Some of the world's top investors are swooning over one company. Warren Buffett... T.Rowe Price... even the Obama Administration.

They've all increased their stakes. And you can get in just like they did!

Click here to learn what they're so excited about and how you can profit from it.

The Economics Behind Current Oil Prices

As oil trader Phil Flynn writes. . .

People are finally starting to get what has been moving oil and are starting to get bullish. Instead of blaming speculators or saying that there is no fundamental reason for oil to be where it is, many are finally starting to understand what has been diving oil. Oil has been driven by the credit crisis. Oil has been driven by the dollar. Oil has been driven by the stimulative and inflationary effects of quantitative easing and record budget and trade deficits.

Another reason for the rise in oil is a lack of investment. As energy companies pinch pennies to preserve cash and remain profitable, projects to produce costly oil have been delayed or shutdown altogether.

So, as demand has declined with this economic downturn, so has the supply of oil. In other words, supply is keeping pace with demand.

And when the global economy rebounds, there will be hell to pay as demand begins to increase.

Why?

Because the projects that were shut down were meant to help supply the global economy with oil. It will take months if not years to bring them back.

This will cause a severe disequilibrium. . . and investors who foresee this imbalance are gonna clean up.

In February, I loaded up on energy and gas trusts. I got lucky.

I held my nose and dove in, purchasing trusts like Baytex Energy Trust (BTE - NYSE) for $9.50. Today Baytex trades for nearly $18 a share. . . and at the time of my purchase, was kicking off a dividend of 13%.

It's not too late to get positions in Baytex or in the oil sector in general. In fact, my colleague, Ian Cooper, recently revealed the details behind one of oil's most profitable secrets... a rare opportunity to actually collect at least double the gains oil makes.

Since that 60% price spike in February? Investors following his advice are already up more than 159%. And this run's just getting started.

To find out exactly how it works and - more importantly - how you can take advantage of it, starting today, just click here!

Profitably yours,

Brian Hicks

Classic Government Investment

The Market Maven of Montana sent me this note titled "Classic Govt. Investment."

He writes. . .

"For $41.2 billion, the US Gov't bought 60% of a company (GM) currently worth a bit less than $500 million. They (we) need a 100+ to-1 return to break even.

Anyone willing to take that bet?"

Oh dear reader. . . did you buy any GM stock on May 22 when it traded for the paltry sum of just $2?

If you waited a week, you're a savvy investor because you could've picked up some GM stock for $1 on May 29.

But don't kick yourself for missing the deal of a lifetime because, as you read this, GM goes for just $0.61 a share. And if you didn't buy any, don't worry, Obama bought some with your money. So, you're set.

All you have to do is wait for GM stock to rally to $100 a share for the investment to be in the money.

Obama, in his infinite business wisdom, thinks this is a good investment for your money.

How does that make you feel, Mr. Taxpayer???

I can tell you one thing: Madison and Hamilton are rolling over in their f***ing graves.

Seriously, I want to hear from the clowns who support this crap. And I want to ask you this: are you personally buying GM stock right now in your 401k, IRA, or individual trading account. If not, why not?

Do yourself a favor, forget GM. The stock is sitting at a record low. The company was founded in 1908!!!

Instead, I have 3 stocks you should buy right now that will make you money. And if you purchased these stocks when I recommended them in Wealth Daily 2 months ago, you're already up 50%.

Secret COP-15 Meeting Sparks Trillion Dollar Shift

According to billionaire venture capitalist John Doerr, COP-15 signifies. . .

"Nothing less than the reindustrialization of the whole planet."

There's $45 trillion at stake as that happens. Click here to learn what's going on and how smart investors are already profiting.

A Classic Hicks Investment

On March 18, I released my much-awaited "Obama Portfolio."

In this report, I listed 3 companies that would benefit from the Obama Administration's gut-busting spending spree.

To read the report, you can go here: http://www.wealthdaily.com/articles/obama-portfolio-stocks/1741

The companies listed as the beneficiaries were:

SunPower (NASDAQ: SPWRA). . . Solar play
Argentex (OTCBB: AGXM). . . Indium play for solar, plus a gold play as a hedge against inflation
PowerShares Dynamic Building & Construction ETF (NYSE: PKB). . . Infrastructure play

I recommended each company's stock for immediate purchase. (In the case of Argentex, my initial recommendation appeared in Wealth Daily on December 28, 2008, available here.)

Since my March 18 recommendation, each stock is up 41%, 79%, and 30%. So, the Obama Portfolio is up 50% as a whole in just two-and-a-half months.

Not bad, if I do say so myself.

But it gets even better. . .

If you calculate from the December recommendation, the return on Argentex is even bigger, as AGXM has gained +180% since:

The thing is, the Obama people are spending money like my ex-wife did on QVC. See it, buy it. She was QVC's customer of the month for 3 straight months.

Same thing is happening today.

It doesn't matter if we need all this spending. Seriously. . . politicians are calling for a newspaper bailout, calling them "National Treasures." Are you kidding me?!?

Whatever, it's gonna happen. I can't stop it. And that's the bottom line.

So. . . I will profit from it.

Buy the 3 stocks mentioned above. They'll benefit from the Obama spending boom. But you might want to wait for a pullback, as all 3 stocks have been on a rampage as of late.

Profitably yours,

Brian Hicks

PS. While the three stocks above will certainly benefit, Mr. Obama is doing much to lift the entire cleantech sector. My colleague, Nick Hodge, has guided members of the Alternative Energy Speculator to 23 double-digit wins in the space so far this year. Click here to get in on the next one.

Blame the Federal Reserve

Last April, I wrote an article for Wealth Daily titled "There Is No Free Market in America."

The thesis of the article was simple: The current financial crisis isn't the result of a free market failure because there is no free market. The current financial crisis is the result of a credit bubble created by the U.S. government.

I wrote. . .

The housing bubble was the result of a massive government stimulus plan. Right after 9/11, the U.S. Treasury and U.S. Federal Reserve cut rates to historic lows and increased money supply to obscene levels.

Couple that with the push for more home ownership. . . and what you get is a toxic brew of government-sponsored economic activity.

This raised the ire of every government lover who read my article.

Steven writes. . . "Bullcrap. Read the tea leaves, dude, and leave the Kool-aid alone."

Conner comments. . . "The problem wasn't expanding home ownership to include low income home buyers. The problem was deregulation, which is the fault of the GOP. The Clinton Administration never said do it at all cost. The GOP has always supported laissez-faire. That's the very reason why our food supply and medicine is tainted. Are you going to blame the Democrats for that too?"

Tony says. . . "The heading of your article is to the point; but like many others you are just stoking the partisan debate by pointing out what liberals did wrong instead of what you think a free market should be."

And Susan writes. . . "Fess up. . . deregulation and the free market are to blame. It's time for a change! Only the government can properly manage an industry like housing."

Well, well, well. . .

My article was published on April 1.

The Wall Street Journal ran this on May 12:

MAY 12, 2009 - Geithner's Revelation

He concedes that monetary policy was "too loose, too long."

The Earth stood still, the seas parted and a member of the U.S. political class admitted last week that the Federal Reserve helped to cause the financial meltdown. OK, only the last of those happened, but it's a welcome miracle nonetheless.

The world's 8^th largest economy is about to mandate the use of this company's wind power.

Get in now, and ride it for a quick 112% gain once the law goes into effect

Click here for more. . .

The revelation came from Timothy Geithner last Wednesday with PBS's Charlie Rose, who asked the Treasury Secretary: "Looking back, what are the mistakes and what should you have done more of? Where were your instincts right, but you didn't go far enough?"

Mr. Geithner: "We need a little more time to get full perspective."

Mr. Rose: "Right."

Mr. Geithner: "But I would say there were three types of broad errors of policy and policy both here and around the world. One was that monetary policy around the world was too loose too long. And that created this just huge boom in asset prices, money chasing risk. People trying to get a higher return. That was just overwhelmingly powerful."

Mr. Rose: "It was too easy."

Mr. Geithner: "It was too easy, yes. In some ways less so here in the United States, but it was true globally. Real interest rates were very low for a long period of time."

Mr. Rose: "Now, that's an observation. The mistake was that monetary policy was not by the Fed, was not. . ."

Mr. Geithner: "Globally is what matters."

Mr. Rose: "By central bankers around the world."

Mr. Geithner: "Remember as the Fed started — the Fed started tightening earlier, but our long rates in the United States started to come down — even were coming down even as the Fed was tightening over that period of time, and partly because monetary policy around the world was too loose, and that kind of overwhelmed the efforts of the Fed to initially tighten. Now, but you know, we all bear a responsibility for that. I'm not trying to put it on the world."

Mr. Geithner went on to cite a lack of supervision over bank risk-taking and the slow pace of government response to the problem — both of which are now conventional wisdom. But the real news here is Mr. Geithner's concession that monetary policy was "too loose, too long." The Washington crowd has tried to place all of the blame for the panic on bankers, the better to absolve themselves. But as Mr. Geithner notes, Fed policy flooded the world with dollars that created a boom in asset prices and inspired the credit mania. Bankers made mistakes, but in part they were responding rationally to the subsidy for credit created by central bankers.

We disagree with Mr. Geithner on one point. He's right that monetary policy needs to be considered in global terms, but he's still too quick to pass the buck from the Fed to other central banks. The European Central Bank was much tighter than the Fed throughout this period. The Fed was by far the major monetary player because much of the world was on a dollar standard, with its monetary policy linked to the Fed's. That was true of China, most of Asia and the Middle East.

The Fed's loose policy from 2003 to 2005 created the commodity and credit bubbles that made these countries flush with dollars. Given their low domestic propensity to consume, these countries then recycled those dollars back into dollar-denominated assets, such as Treasurys and real-estate-related assets such as Fannie Mae securities. The Fed itself had created the surplus dollars that kept long rates low and undermined for a substantial period its belated attempts to tighten.

Mr. Geithner's concession is important nonetheless because before he moved to Treasury, he was vice chairman of the Fed's Open Market Committee that sets monetary policy. His comments mark a break with the steadfast refusal of Fed Chairmen Alan Greenspan and Ben Bernanke to admit any responsibility. They prefer to blame bankers and what they call the "global savings glut," as if the Fed had nothing to do with creating that glut.

Mr. Geithner's remarks are a sign of intellectual progress, and they suggest that at least some in government are thinking about their own part in creating the mess. The role of Fed policy should also be at the heart of the hearings that Speaker Nancy Pelosi is planning on the causes of the financial meltdown. We won't begin to understand the credit mania and panic until we acknowledge their monetary roots.

How does this make y'all feel?

Vindicatedly yours,

Brian Hicks

Editor's Note: The government is making the same mistake it did during the housing bubble... loose money supply. Bailout after bailout after bailout means one thing: The government is printing money it doesn't have. And when the bill finally comes due, the dollar is toast. Mark my words. That's why gold is up nearly $250 an ounce in the past year and a half. But 2 years from, gold at $950 will seem cheap. It will most likely be twice that price... as investors head to gold to hedge against the dreaded inflation the dollar will experience. That's why we're recommending a little-known investment vehicle — directly related to gold prices — that pays you double the gains gold makes. And the full scoop on it is right here.

The Pure Asset Trader

Dear reader:

I've got great news...

On Wednesday morning, Bank of America announced they'll only need another $34 billion more from Uncle Sam.

Somehow that's bullish news, according to CEO Ken Lewis.

The truth is, while we're not out of the woods just yet, we are finally starting to see some signs of a slow recovery.

Amex, JP Morgan, and the Bank of New Mellon Corp all got a passing grade on their "stress tests." And to top it off, it seems the Dow's low of 6,600 looks well behind us, and oil prices are starting to charge full steam ahead.

But like I said, we're not in the clear yet.

Want proof?

Just take a look at the sheer number of blockbuster trades that Ian Cooper's made from issuing puts in the Options Trading Pit portfolio recently.

Ian and his team are still cleaning house by safely betting that companies — major companies — will plummet.

And as far as high-profit trades go, they've been spot on for readers who can stomach the fast-paced world of options.

Of course, not many can.

In fact, over the past several months, we've been getting swamped with emails from investors who crave those rapid, reliable profits, but don't want anything to do with the all-or-nothing world of options.

If that sounds like you, trust me—You can't afford to miss this:

You see, after months of scouring the markets and applying many of his own, unique indicators to qualify worthy options plays for his Options Trading Pit readers, Ian Cooper stumbled across another moneymaking trend so astounding, some of his close friends are already talking about early retirement...

... Those very indicators he uses to uncover the +100% options plays have also been - over and over - pinpointing explosive whole stocks as well.

... Stocks that don't quite fit the profile for one of his legendary options trades but still experience share price surges that rapidly and reliably skyrocket upwards of 20% - 50%.

For example, just take a look at the 265% jump that one online gaming software developer made in anticipation of the recent movement to legalize online gaming:

Then there's the 301% explosion his indicators pointed out from National Coal, after the Dow bottomed in early March:

And then there's the 182% jackpot he uncovered from, once again, anticipation of online gambling legalization with YouBet:

And those are just a few. Since Ian started following some of his "discarded" stocks, he's been finding these opportunities left and right.

For example, earlier today, he raced upstairs to my desk to share with me two natural gas stocks and one major oil play that those same indicators tell him are about to go absolutely ballistic!

Unfortunately, these - increasingly more common - jackpots don't fit into the scope of his Options Trading Pit... or any other advisory we offer, for that matter.

And that means that, as investors, we're leaving a lot of easy money (3 near-guaranteed winners even as I write this) on the table...

That is, until now.

In fact, I have a very special invitation I'd like to extend your way.

It's a deeply discounted, sneak-peak into a groundbreaking new advisory Ian recently launched called the Pure Asset Trader.

In it, he shares with you the details behind every single one of these explosive trades he's been uncovering... starting with the oil play that he just recommended, which could hand you rapid double (even triple) digit gains in less than a week or two.

And the two natural gas stocks Ian has been tracking will be recommended in the next two weeks.

One thing you'll notice with Ian's new cutting-edge service is that these powerful trades come from anywhere and everywhere. That's because Ian doesn't like to pigeonhole himself - or you - into any specific sector.

The truth is, at any given moment, somewhere in the market, Ian's indicators are firing on all cylinders about one company or another, whether it be on news, general market trends, overselling, earnings reports, or any of Ian's indicators.

In other words, he's everywhere... but nowhere for too long.

And that's exactly how this unique advisory is geared - for investors like you to take advantage of the scores of rapid-fire gains coming from stocks across the market as our economy slowly starts to recover.

Inside of just a few weeks - even in this market - not only could you recoup some of your losses... You could make fortunes without needing to rely on all-or-nothing options trades!

Plus, if you accept this offer right now, I'll show you how you could secure a test run of this $1,495 service for only $199!

Just click here for more information.

Sincerely,

Brian Hicks

Stock Market Panic

Buy the rumor, sell the news.

That's why I just went short Novavax (NVAX - NASDAQ).

Here are yesterday's headlines, verbatim, from the popular "news" website Drudge Report:

    EU: Don't travel to USA and Mexico...
     US calls EU travel warning unwarranted...
     Russia to check all planes from Americas...
     JANET: NO TESTING OF INCOMING PLANE PASSENGERS...
     STATE DEPT TO ISSUE TRAVEL WARNING TO MEXICO...
     Every passenger arriving in Britain from Mexico screened...
     Has globalization made us more catastrophe-prone?
     'NO EVIDENCE' OF BIO-TERROR...
     PIG SICK: NYC...
     Could mutate to 'more dangerous' strain...
     Flu could boost gov't intervention further...
     Mexico flu scare empties streets, churches, bars...
     Spreads to Europe, markets edgy...

Right now, the world is panicking over confirmation the swine flu is spreading to parts outside of Mexico.

Pandemic is now the buzzword of the day.

And it's easy to see why. The outcome of a full-blown flu pandemic is a grim scenario. . .

At least two million dead.

Hospitals turning away thousands of the sick and dying because there a no available beds. Schools closed for weeks. Hundreds of thousands of empty seats at sports stadiums and churches. A market recovery wiped out.

That's the government's own assessment. (Not that I put a lot of weight in it. See Iraq and WMD. :-) )

But their conclusions, reported by the media, paint a ghoulish picture of what would happen if the swine flu cascades out of control.

According to the report. . .

A full-scale pandemic — if it ever comes — could be expected to claim the lives of about 2 percent of those infected, about 2 million Americans.

The government estimates that a pandemic like the 1918 Spanish flu would sicken 90 million Americans, or about 30 percent of the population. Of those, nearly 10 million would have to be admitted to a hospital, and nearly 1.5 million would need intensive care. About 750,000 would need the help of mechanical ventilators to keep breathing.

So again, it's easy to see why markets are nervous.

35 Recommendations... 1,293% Cumulative Gains... Just nine months...

Pure Asset Trader continues to rack up impressive gains. Since February 2009, they helped readers realize:

62%, 65%, 31%, 24%, 19% and 13% gains on PowerShares DB Crude
84% and 60% on Petroquest
152%, 155% and 40% on Brigham
53% and 18% on Continental Resources
45% and 22% gains on Petrobank

And while we could easily go on, we think you get the point. Isn't it time you made similar gains?

Click here for more.

In fact, once the news broke about the spread of swine flu, it produced mini-Black Swans in the biotech sector. (See "Biotechs and Black Swans.")

Investors and traders alike, looking for an easy score, were buying every pharmaceutical and biotech stock that had exposure to a flu vaccine.

Gilead Sciences was up nearly $2. . .
Glaxo was up nearly $2 too. . .
But small biotech Novavax was up more than $1.90 intraday. . . representing a gain of more than 120%.

Check out this chart of Novavax. . .

I love going short panic buying.

And I think you should too.

Novavax's "pandemic" flu vaccine is currently in Phase I/IIa clinical trials. It'll take years before it hits the market. Once the swine flu panic subsides, Novavax's stock should revert back to the mean.

That's why I went short Novavax yesterday.

Profitably yours,

Brian Hicks

P.S. A perfect example of trading the rumor comes from my colleague, Ian Cooper. He's just directed his readers to trade the growing momentum behind legalizing online gambling in the U.S. So far, his readers have pocketed gains of over 20% on two stocks. And Ian's confident the news that's about to break will push these two plays much, much higher. To get all the details on his two trades, just click here.