Note: Some of the comments come from Doug Casey, but I have made some minor modifications to its contents including my personal comments at the end of this missive.

Secret Gold Investment That Goes up Significantly after gold prices rise

Gold is up 70% in the past three years — but a secret investment from Toronto can return 10 times as much after gold prices rise. The last time conditions were this good, returns from the best junior gold companies varied from 971% to over 13,025%. That's why The New York Times recently told American investors to "pay attention to Canada." ---why Canada: because that is where the majority of junior mining exploration companies reside.

The secret is that Small gold "explorers," always produce the biggest gains in gold bull markets.

And remember: The biggest gains in small exploration companies come AFTER the price of gold rises.

Believe me; you have not missed the biggest gains. It's still very early.

During the last big gold boom, during the 1970s, gold and silver went up more than 20 times in price. So you see, the increases we've seen in the past few years are just the beginning. Between 1976 and 1980, gold went from $104 to $850... 725% gains.

For similar gains today, the price of gold would be over $2,000. If you adjust the 1980 high price for gold for inflation, gold would have to be selling north of $2,500. Yes, all of these things are up... but the mania stage taking us to a blow-off is still in the future.

In the late 1970s, for example, the price of gold skyrocketed, from around $200 in 1979 to over $800 in January 1980. But it wasn't until AFTER the price of gold peaked that the best exploration companies saw their biggest gains.

What kind of profits am I talking about?

A simple $500 invested in each of these companies would have given you $172,585. $1,000 invested in each of these companies would have given you about $350,000.

Something similar happened in the early 1980s. After a brief run-up in the price of gold, the best exploration companies saw unbelievable gains:

And it happened again more recently, in the mid-1990s. Look at the graphic below. A handful of discoveries and a run-up in gold prices were followed by tremendous gains for the best exploration companies:

The total gains these companies made over a span of several years is simply amazing:

If you had put $10,000 into the worst of these companies, you would have walked away a year or so later with $150,000.

If you had put just $500 into each of these companies, you would have made an incredible $271,650.

The current bull market is well underway, but only one in a hundred U.S. investors know it. It's like the Internet stocks in the early 1990s.

Every time, like clockwork, AFTER the price of gold jumps, the mania begins. Investors are willing to pour tons of money into the companies that are best at FINDING new gold: the explorers.

IMO, In the coming months we could see gold reach in interim top near the $1,250 mark, then a pause, and finally an assault on Jim Sinclair’s $1,650 upside target by Jan 2011 or sooner. If history is any guide as to what you may expect to happen on the future price of the better junior gold companies, like Victoria Resources, we should see appreciation at levels that few people feel possible.