In this issue...

- Editorial/Comment on Gold Stocks

- Podcasts

- Company News

- Premium Sample

Editorial...

We are working on a piece for Monday but wanted to mention a few things. First, consider this great piece from Adam Brochert on the HUI/Gold ratio. Hugh Hendry, a successful and outspoken fund manager who likes to hear himself talk, recently said he was long Gold but short the stocks. The problem with that trade is the shares are now showing more strength than the metal and in a time of market weakness. The shares always lead the metal and I happen to think this trade performs quite poorly over the next year and I don't see the rationale for it at current prices.

Sure, the gold stocks have pulled back here and now. Yet, the following chart should provide the proper context.

Podcasts...

Christos Doulis,CFA is an award winning analyst for Stonecap Securities. He won the StarMine analyst award from ThomsonReuters in 2011. He packs quite a few thoughts into this 12 minute interview. Here his thoughts on junior miners, development projects and he names two company's he thinks are turning things around.

Click Here for the interview.

Company News...

Huldra Silver announced that its testing its mill as it readies for processing. Huldra has already stockpiled one year's worth of ore, so production is essentially imminent.

Corvus Gold announced a new discovery at its new Gerfaut project in Quebec.

Premium Info...

Today we sent out update #277, a 16-page update consisting of a report on an exploration company (which is very high on our watch list), 3 pages of commentary on six of our model portfolio positions, as well as short-term analysis on Gold, Silver, GDX, GDXJ, SIL, etc.

We also made some changes to the model portfolio, which is up 32.7% year to date even as GDXJ is down 6.0%. We've been fortunate this year but we continue to work very very hard to 1) uncover the 5% of companies which produce 95% of the profits in this sector (as a company CEO told me second hand) and 2) to get into the best names at opportune times.

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Wishing you health and profits,

Jordan