Hello everyone,

I haven't posted in a while for two reasons:

a) I am currently overseas in Afghanistan, working for a technology company supporting operations at a military base.

b) Posting became very difficult on this site last fall due to the overwhelming pessimism that was prevalent in the gold market and amongst Tyhee shareholders.

I feel that there is a sea-change about to occur in the gold market, and I want to explain my rationale.

The Bubble Generation

I am a young professional who grew up in a Bubble World, as I will call it. Throughout my life, I was told that stocks and real estate always went up in the long run, and that was all one needed to become wealthy.

I was a product of the Bubble Generation. Upon graduating college earlier this decade, I joined a mass of new young professionals who were brought up to expect that if they just got a good job at a financial institution and contributed steadily in their 401(k), life would be easy. My friends were overwhelmingly caught up in the real estate bubble. Many bought condos they could not afford a few years ago and are now underwater or worse.

It was in 2004 that I began to suspect that something was seriously wrong. If all that was required to get rich was to buy as many leveraged condos as possible, why did anyone even work? Something was not right. I began to study financial history, which led me to study the history of fiat currencies, and debt, and the Federal Reserve, and inflation, and finally gold and silver. It all came together when I just took off my Bubble Generation glasses.

Based on my study, there are two things I decided that would result from the Bubble World that is all I have ever known:

1) We will eventually, whether one or five years from now, have much higher inflation as the Federal Reserve endlessly prints fiat money to bail out their various preferred institutions and fund the US unfunded liabilities.

2) The only people that benefit from high inflation are those with:

a. Knowledge that it is coming beforehand, and

b. Disposable income to invest in something that will benefit from it.

With these points firmly in my mind, I had a decision to make. I could continue spinning my wheels for years, and get WIPED OUT by the coming inflation wave when it hits... or I could come over here to Afghanistan for a while where I save every penny I make. I chose the later: and I have been buying gold, silver, major and junior miners for the last year, including the entire length of this massive sell off. I have been steadily accumulating Tyhee, of course.

Why am I writing this story? The Signal.

Here is where things get interesting. As I said, almost all of my generation grew up in the Bubble World. It was a land of make-believe, where our parents could withdraw equity from our houses to pay for a new car, college, or a vacation. Work didn’t matter, and many of us grew up to believe that. Housing was our god.

I have not mentioned my investments into precious metals to any of my friends, because they would consider me to be crazy. I consider my friends to be a signal. And that signal is flashing now.

Over the last couple months, two of my friends who also grew up in the Bubble World have woken up. They have begun to understand what the government is doing, what will be the result, and how to prepare. They have independently asked me for information on precious metals investments, which I have provided.

What I am saying is this: I think we are about to enter the next phase of this Gold Bull market. There is an increasing recognition amongst my generation that something is wrong and that we cannot rely on the government to save us. If we agree that there are four phases of a bull market, being: 1) Pessimism, 2) Skepticism, 3) Optimism, and 4) Euphoria... I think we are on the verge of Phase 3. That is, when a new class of informed investors begins to understand how to protect themselves from what is coming.

Could this be a contrarian signal, and perhaps we are really closer to Euphoria, since my friends are now interested in gold? I don’t think so. Of perhaps a dozen close friends my age, I would say six of them still think they can get rich just by buying a condo, four are just trying to save as many US dollars as they can, and only these last two have expressed just a hint of interest in precious metals. We are not at the end yet.

For full disclosure, I consider that I myself got on board this Bull in Phase 2. I believe we are now on the verge of Phase 3, and that this could be a very exciting time. I do not trade these shares: this is my safety boat that I intend to ride down and up the waves of this storm until I see that it has fully passed.

I will keep a mental tally of where my generation is investing now that some of us are finally out of school and making some money. When I sense that the majority are into gold in a few years or so, it will be a good contrarian signal... the DOW will probably be close to 1:1 with gold by then... and we will all be looking to lighten up our positions at that point.

Or, we will all be down in Argentina having a celebratory glass of Malbec.

Until then, I look forward to the continued excellent contributions of this forum. To all those who kept your cool over the last six months, I congratulate you. We may not be out of the storm yet and the waters may still be rough... but from my view on the Front Lines of the Bubble Generation, my signals are flashing that we are on the verge of the next phase.

Hysteria