In 1978 and 1979 gold stocks rose into the stratasphere before peaking and declining. It happened long after gold bullion had been in an uptrend for a few years. During that time frame good "majors" rose 200%, 300% and more. Good "juniors" rose 300%, 600% and many did even better. Quality "explorers & developers" rose by 1,000%, 2,000%, with a small number unbelievably going exponentially higher yet. Interestingly, even some of the bad, the poor or undeserving mining companies made significant unwarranted gains as well. But those who had the gold did the best.

Those who bought shares in good exploration and development companies, prior to the parabolic rise were obviously fortunate to have done so. Many were able to promptly retire while others, such as Doug Casey, et. al., remained in the investing game. Given the kinds of sovereign debt related problems this time around many feel that mining share price increases, as was experienced in 1978 and 1979, will not peak and then decline as it did before. More likely, they say, gold and their shares will eventually peak and then level off. But, that is a discussion for another time.

Regardless, I can only wonder how PEM will fare if we experience something similar to the last huge increase in the bullion mining sector. While some of us legitimately wonder, suggest, even dream of possible longer term share prices such as $5.00, $10.00, or even $20.00, might we see unimmaginable numbers, as in the late 1970's? We may well know the answer to that tantelizing question in the not too distant future. We may now be about to embark for the ride of a lifetime, a hoped for prosperous journey, regardless if the ultimate destination is $4.00 or $400.00 a share, and regardless if history is generous enough to repeat itself, once again.

marwal