Gold has hit an 18 month high. It exploded through $1000 an ounce Friday, September 11th and has now risen over $60 dollars an ounce since we released our newsletter titled, "Don't Forget About Gold" in mid-August.

The US dollar is plummeting against all major currencies and the Fed continues to encourage stimulus, refusing to withdraw any of the capital injected into our monetary system over the past 9 months.

Industry reports expect gold to average close to $1000 an ounce for the remainder of 2009 and higher in 2010. The profit margins already being achieved by gold miners are unprecedented and are creating a very unique situation for junior miners and investors looking to capitalize. The majors have money to burn. The juniors, whose management teams are aware of this fact, which have the goods, are beginning to get a very smug look on their face.

A significant amount of capital is set to flow into the junior gold resource sector as majors are knocking on doors, evaluating deposits and most importantly, the feasibility of near-term production.

The feasibility of near-term production is the first and most important question our team asks during our due diligence process on potential Featured Companies.

The vast majority of top analysts from around the world have been touting gold for months. We share in their opinion that gold and gold investments are the best way to hedge yourself against inflation or worse, a very possible, hyper-inflation.

The world doesn't have to come to an end for gold to reach $1500 an ounce. No matter what happens, inflation fears will remain strong for the next few years and make the right gold companies a very sensible and potentially profitable investment.

Our team has long talked about what we look for in junior gold resource companies. Juniors with viable, proven assets and near-term production goals will have the potential to show the greatest gains. Most of the majors have already risen 100% or more and the upside is questionable at this point. Sure, if gold increases to $1500 per ounce, Miners' profits will increase by 50% and their share price will likely reflect that; however, their returns likely won't compare to the select dozen or so juniors which have their deposits bought out during this historic gold run.

Rest assured there will be juniors bought out for amazing multiples of their current share price in the coming months. Juniors which have long-term working relationships with majors (joint venture agreements) could have a huge advantage.

Typically, majors are more likely to invest significant amounts of money in properties they already have a stake in - and have already invested in prior. Remember this point, as it was fundamental in the selection of our new Featured Gold Company set to be released this coming Friday.

MAJOR NEWS IN THE GOLD SECTOR
Barrick Gold Corp., the largest producer of gold in the world, announced an equity offering that would total roughly $4 billion dollars. If approved, it will be the largest offering in Canadian history. Barrick has reported that underwriters have exercised, in full, their option to purchase an additional 14.21 million shares at $36.95 per share. The offering is expected to close on September 23rd. The individuals and funds involved in this offering are some of the most educated gold analysts and fund managers in the world. If this doesn't prove their confidence and the markets confidence in gold, nothing will. This is an example of the smart money getting in for the long haul.

With major analysts expecting gold to average $950 this year, and higher in 2010, the profits for many majors will be astronomical. It has never been easier for top quality gold companies to raise money in the current environment. Development in this sector will come fast and continuous until the threat of inflation is dealt with. There is a 2 to 3 year window that by no means is wide open yet, but with gold over $1000 the opportunity to purchase cheap shares of quality gold companies will soon be behind us. Juniors with a secure deposit and a proven low cost method of mining will be the most favoured when buyout season arrives.



Next week our team at Pinnacle will be announcing our new Featured Company and pure gold play. The Company's greatest strength is its working relationship with a major gold producer and its close proximity to a gold mine increasing production rapidly. It has two fundamental advantages few companies can compete with.


The only Featured Gold Company we delivered to you this year went up nearly 100% - Houston Lake Mining (HLM:TSXV). In June 2009 we introduced them to you when the stock was trading between $0.165 and $0.18. Since then the stock has traded as high as $0.33 per share and never once dropped below $0.20 per share.

This coming Friday, September 18th, we will be putting our reputation on the line again and announcing to our exclusive community, our second and last Featured Gold Company of 2009.


All the best with your investments,