Sean Roosen Wins Gold for Falco
I hate admitting I am wrong. Lucky for me, I don’t have to do it more than a few times a day. About five weeks ago I wrote a piece suggesting that we had seen the bottom in gold and shares. In it, I said, “Right under our noses, the XAU over Gold has gone up 21% in less than two weeks. It’s a major bottom similar to that of 2000 and the climb higher will be similar as well.”
Boy did I get that call dead wrong.
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I have never seen a rally similar to what we have seen in the past seven weeks. We didn’t have anything like that in 2000 or 2001 when shares bottomed before.
The XAU, that index made up of the most boring gold shares, rocketed higher by 85%. The more interesting HUI, but a laggard this time, only went up 84%. For all the guys who wanted to slice their wrists because gold and gold shares were never ever going to go up again I have few words of advice. Put away the rusty razor blades.
Now I’m getting down on my knees and praying for a bloody correction. Even the manipulation/conspiracy freaks are screaming about having the bastards on the run. When that happens we always seem to have a brutal correction. None of them have ever heard of the word correction but it’s God’s way of plucking the pockets of the fools who want to jump on the train way after it left the station.
The opportunity for picking up $100 bills lying all over the sidewalk was December, January and February, not after an 85% move higher. But when we get a correction and we will get one, the train will be back with another bunch of boxcars loaded with opportunity.
When you compare the price of gold to commodities in general gold is higher in relative terms than ever before. Last week the premium of gold over platinum got to $320 an ounce. That’s an all time record. Platinum almost always holds a premium to gold.
Silver was running a ratio of 84 ounces to one ounce of gold. That’s near an all time record. When oil touched $26 in mid-February gold was an incredible 48 times higher. Even during the great depression the oil/gold ratio only hit 40 to 1. The price of gold relative to anything else is flashing a giant warning about the health of the world economy.
Nobody ever went broke taking a profit.
Sean Roosen finds gold and creates value for his shareholders. Last time he was really pissed was when the company he built off his sweat and blood only sold for $3.9 billion. He knew it was worth a lot more.
So he’s back with a new company named Falco (FPC-V). Sean Roosen is the Chairman of the Board. Falco owns 70% or 74,000 hectares of the Rouyn Noranda Mining Camp. In January the company announced a new resource for the Horne 5 deposit of 6.5 million AuEq ounces in resources. That’s about $7 an ounce for gold equivalent ounces in the ground. And that’s after the share price doubled since January.
You should be praying for gold and silver to correct. Bulls hate riders and when it gets really really easy to make money, you are at the top. Falco is cheap today by any historical measure but those who were buying at $.205 in mid-January will be taking some profits if they have any sense at all. The gold market would be better off with a pause for breath. It’s not unusual for PDAC time to be the start of a correction.
But when the correction is over, things are going to get interesting.
The bull market started over 15 years ago. Everyone has had a wonderful opportunity to show what they are made of. I’m betting Sean Roosen will not be selling this company for $3.9 billion when the time comes.
Falco is an advertiser. I am biased. I don’t own any shares but in a correction I would be a buyer. Do your own due diligence.
Falco Resources Ltd.