On Monday morning we started an advertising campaign for PSC on CNBC in regional markets like NYC, NJ, LA and Chicago.

The deal for us on CNBC is huge. IT IS ATTRACTING A HUGE AMOUNT OF NEW MEMBERS.

The team @ PSC reviewed a series of picks that would synch with the CNBC launch. Our goal was to get a company that we could run with for at least a month, if not more. We wanted a stock which would appeal to all the new members and existing members on PSC.

BLVI came on to our radar screens because the company can execute and will deliver big upside for shareholders.

We alerted members to BLVI @ .066 on Friday. BLVI jumped 80.3% on Monday to a close of .119. This is just the start of a solid move driven by news.

We have profiled many companies in the past with amazing upside. WE THINK BLVI STANDOUTS ON OUR LIST OF PICKS.

BLVI has got the goods and we are going higher on the price per share. THEY WILL DO NORTH OF $5 MILLION IN SALES IN 2010.

This company is very credible to us because they are doing business with Heineken and they have an ad budget which is being spent on showing ads during NFL games.

NFL ADS + AMAZING PRODUCT + A1 PARTNER’S LIKE HEINEKEN = $$$$$

The NFL deal is focused in the South Eastern, US. This was done intentionally by BLVI management. If you click this link, you will see the targeted states are big beer consumers on a per capita basis.

http://www.myconfinedspace.com/2009/07/15/american-beer-consumption-per-capita-by-state/

Smart management decisions like the targeting of the NFL advertising package tells us that management is thinking many steps ahead.

http://www.stockwatch.com/newsit/newsit_newsit.aspx?bid=U-i0536351-U:BLVI-20090911&symbol=BLVI&news_region=U

We have spoken to BLVI management and we think more big deals are to be announced on the advertising front. BIG AD DOLLARS WILL ESTABLISH THE BLVI BRAND AND MAKE ALL MEMBERS MONEY.

That $5 million sales number for 2010 could be on the small side if you take into account the big ad deals these guys are doing and looking @ putting together in 2009-2010.

NOW IS THE TIME TO PICK UP BLVI CHEAP.

We think BLVI could run like a racehorse. A move to .50 or more could be in the works.

Please remember to do your due diligence on BLVI.

For more information on BLVI, please join us @ www.pennystockchaser.com

THIS WEEK WE LIKE BLVI WHICH IS IN THE BEER BUSINESS.

BLVI is on radar screen @ .066. The stock was up 15% on Friday and looks ready to go crazy this week.

We think BLVI can move 200% to 300%.

The chart on the stock shows that the stock has firmed up and the big burst higher is coming based on big news.

BLVI HAD BIG NEWS ON FRIDAY. THEY HAVE A DEAL WITH THE NFL.

Black Art Beverage Establishes Marketing Agreement

2009-09-11 16:10 ET – News Release

FORT LAUDERDALE, FL — (MARKET WIRE) — 09/11/09

Black Art Beverage, Inc. (“Black Art”) (PINKSHEETS: BLVI) is pleased to announce it has established a marketing deal for Black Art Beer commercials to air on Comcast cable during 2009 – 2010 regionally aired National Football League games, commercials will air throughout the season in select markets during Monday Night Football. These commercials will debut in the Southeastern United States market and will be viewed by over 27,000,000 households. The Southeastern US beer market includes Florida which was ranked third in per capita consumption in the United States. This campaign will be expanded to other markets as distribution is achieved in those territories.

Ras Moses, President of Black Art Importers, commented “As previously stated in our communication to shareholders, it is the goal of our team to focus on our objectives for success. We are very pleased to be able to have established this relationship and created an avenue to communicate Black Art’s existence in the United States. We intend to continue to grow Black Art brand awareness by any means available to us. Having visibility at events sponsored by the National Football League, Major League Baseball, and other professional sporting events is part of our plan going forward.”

About Black Art Beer

Black Art Beer is produced in Germany and exported to the United States exclusively through Black Art Importers. Black Art’s current products include the flagship Black Art beer, a dark premium pilsner, and Black Art Gold, a smooth and light pilsner. Other styles and draft keg beer is forthcoming. For more information, please visit: www.blackartbeer.com.

About Black Art Beer Importers, Inc.

Black Art Importers is a Florida corporation engaged in the business of distributing the Black Art brand. Black Art Beer Importers, Inc. is a wholly owned operating company of Black Art Beverage, Inc.
About Braustolz Brauerie AG.

Black Art pilsner beers are brewed and bottled by Braustolz GmbH in Germany. Braustolz has been in operation since 1868, brewing beer according to the German Purity Laws of 1516, which results in superior quality. Braustolz is a wholly owned subsidiary of a Brewery Group headed by Kulmbacher Brewery all based in Germany.

For further information regarding Black Art’s business, please refer to the “Information and Disclosure Statement” available on www.pinksheets.com. Additional information about Black Art is available on the World Wide Web at www.blackartbeer.com.

Media Contact:
Melonie Burke
(786) 371-4371

This is a great opportunity for members to buy some cheap stock.

PSC will be on BLVI for a month or so and we think the stock will do very well.

Once PSC gets behind BLVI, we can pretty much insure that BLVI will double or triple.

The chart on BLVI says that BLVI will do very well. The last resistance point on the chart is .31.

If you need more information on BLVI, please join us on our website
Please do your own due diligence on BLVI.

GREEN REALLY DOES EQUAL GREEN !!!!

We picked BEHL @ .0078 on July 02 and it jumped to .155 on August 4. Investors interest in the stock was incredible. During that period the stock traded hundreds of millions of shares and it recorded a massive gain of 1887%.

TTEG jumped on to our screens on April 16 and it moved to .895 on August 25. This was another huge gain for members who followed our alert on TTEG. TTEG scored a gain of 1178%.

If you bought $1000 of stock on our alert of BEHL, you would have $8077 at today’s price. If you bought $1000 of stock on our alert of TTEG , you would have $8571.
That is right!!! For a $2000 investment you would have $16648 of stock today.

The team @ PSC thinks members should pick up some positions in BEHL, AWSL, and KNDR. These three companies could make members 400% to 1000%. They are all in very hot green energy sectors. BEHL is an algae into bio fuels stock, AWSL is in the wind energy space and KNDR is a cutting edge solar technology company.

WE LOVE GREEN STOCKS AND WE THINK THESE THREE GREEN PICKS WILL MAKE MEMBERS BIG MONEY.

BEHL roared back to life this week with a gain of 26%. It traded over 78 million shares this week as investors scooped up cheap stock. This stock traded as high as .155 during our last alert. The news on BEHL has only gotten better. They issued press releases on three new deals last week and the public sat up and paid attention. BEHL knows how to execute on their business model and shareholders who buy in at these levels will be rewarded when the stock price heads north.

THIS IS THE START OF A NEW LEG UP FOR BEHL.

If we bust the old high, members will make 146%. We expect that the company will deliver more hard news in the next couple of weeks. Owning this stock will put a big smile on your face by month end.

AWSL is another stock that our members need to own in the green energy space. The company was first alerted by us on August 4th @ .84. We closed @ $1.50 on Friday. Members who followed our alert are up 78%.

We spoke with AWSL management last week and they tell us that there is a lot of good news coming down the pipe. The action on the stock last week seems to tell us that some of that good news might come sooner than later. Volume on Friday was 5 times as large as the volume on Thursday. SOMETHING IS UP !!!

The stock has almost no float and on Friday it moved up 13% on just $48,000 in buying. That is INCREDIBLE. When big news comes , AWSL’s trading volume will explode. Once volume ramps up the stock could easily double or triple in price. Picking up some shares at these prices would be a really smart move.

KNDR is the new kid on the block for PSC. This company needs to be in your portfolio. In the past month alone the stock is up 100%. The stock closed @ .25 on Friday and recorded a gain of 11%. Volume is very healthy @ just over 600,000 per day according to the ten day moving average.

Someone is accumulating a ton of stock. KNDR looks like it is getting primed for a BEHL type of run. The company releases steady news flow and the right kind of news could be the spark to really get KNDR running hard.

SOLAR STOCKS ARE REALLY HOT.

If we get an FSLR type of run on KNDR, our members could make a fortune. We will be sending members some in depth DD on KNDR this weekend.

As members can tell we are really hyped on our green picks.
The best way to play these picks is to get positions in all three. If you put $1000 in BEHL, AWSL, and KNDR, you could see 5 to 10 fold increases in all these positions.

These are great stocks for both short and long term investors.

This is going to be a great week and month for our green picks.

LOCK AND LOAD GUYS AND GALS, we love these stocks and we think you will as well.

Please remember to do your due diligence on BEHL, AWSL, and KNDR.
For more information on BEHL, AWSL, and KNDR, please join us @ our website.

On Thursday we also had a deal with Gruppo Oil & Energy

Friday @ the close they announced another deal with a US based public company

BioCentric Signs a Master Services and Teaming Agreement With a California Based Publicly Traded Company

2009-09-04 15:35 ET – News Release

SAN JUAN CAPISTRANO, CA — (MARKET WIRE) — 09/04/09

BioCentric Energy Holdings, Inc. (PINKSHEETS: BEHL) today announced the following shareholder information:

The company today released the execution of a Master Services and Teaming Agreement between a California based publicly traded “Green” orientated technology company and BioCentric Energy Holdings, Inc. The company who operate a number of “Green” technologies for alternative power and fuels worldwide has requested a non disclosure of the name and ticker symbol until the comprehensive development plan is delivered by BioCentric Energy.

Along with the executed agreement BioCentric Energy has received an earnest money deposit that will be held in escrow until BioCentric delivers an inclusive, and comprehensive Plan of Action for the initial ten acre Algae Pro Photobioreactor in Malaysia. BioCentric will also receive onsite management and VPN management fees as well as a royalty payment for achieved results and a commission in the event of BioCentric securing the offtake agreement, additionally BioCentric shall also retain a small ownership percentage of the facility.

Mr. Dennis Fisher, CEO of BioCentric, stated today, “Now that Mr. Shen has returned from China, it is my primary function within this company to bring all sales in house and develop a VAR Program to solicit business globally. The next steps with this newly contracted company are pivotal in our market to profitability. Our team looks forward to providing a complete education of our products and services with Envirotek and other VAR to adequately capture market share for our niche.”

Relevant Links

http://vodnewswire.com/vodnewswire/news/envirotek-20090903/

www.biocentricenergy.com

www.biocentricenergyalgae.com

www.iimsam.org

About BioCentric Energy Holdings

BioCentric Energy Holdings, Inc. is dedicated to the development of new technologies as well as acquiring and fostering companies with innovative technologies designed to provide unique and effective green energy solutions for the 21st century. Along with the cultivation of important relationships and partnerships with synergistic entities, BioCentric Energy has devoted substantial time and effort in research and development in order to bring a range of innovative green alternatives to the marketplace.

Investor Relations, Contact:

Dale Baeten
BioCentric Investor Relations
Office: 920-273-7941

We think could easily move back to the old high of .155. BEHL’s share price has legs. The run higher has started and more news from the company will equal big profits for shareholders.

If you need more information on BEHL, please join us @ www.pennystockchaser.com
Please do your own due diligence on BEHL.
To ensure delivery to your inbox, please add newsletter@pennystockchaser.com to your address book.

We give back to our members!

It’s been a great year for our site. IN FACT IT HAS BEEN AMAZING. Our members have helped us build the internet’s hottest penny pick website. The site has an alexa.com ranking of 132,424. We also have 16,335 people following our site on twitter. Our picks have been on fire and our members have been spreading the word.

We want to give back to our members, both new and existing.

We want all our members to be in the game.

We are giving away 50,000 shares of SOCI. You can win 50 000 shares of SOCI if you can correctly guess the closing price of their stock on September 30th 2009. No purchase necessary.

If you can guess the closing price of Southern Energy Co. Inc (SOCI) on September 30th you can win 50 000 shares.

50 000 shares of SOCI is worth over $35,000 today. Inflation fears and a weak USD are giving gold prices new life. GOLDMAN SACHS forecasts gold will hit 1000/oz this year.

Tell your friends about this GOLDEN OPPORTUNITY. You can get in on the action by signing up to our site. Becoming a member is FREE. Join today, you have nothing to lose and EVERYTHING TO GAIN!

PSC consistently calls winners that beat the S&P 500. SOCI could be our big winner.

Some of the winners include: BEHL up 2300%, TTEG up 972%, AVOE up 2230% HYGN up 2525%, CVRG up 1922%, USCN up 3800%.

If you don’t win the shares you can win by joining and investing in some of our picks.

HOW TO ENTER

One vote per registered email up until 3:59 on September 30th 2009

ELIGIBILITY

Open to everyone who signs up for OUR FREE MEMBERSHIP at http://pennystockchaser.com/category/soci-contest/

With the exception of employees, professional staff, as well as their immediate families, of Penny Stock Chaser. Also excluded from participation are employees and immediate families of marketing firms providing services to Penny Stock Chaser. All federal and local laws and regulations apply and the winner is solely responsible for any applicable taxes. Void where regulated or prohibited.

ODDS OF WINNING

Each entry has an equal chance to win the Penny Stock Chaser Sweepstakes, and the odds of winning a tie breaker are dependent upon the number of eligible entries received.

SELECTION OF THE PRIZE WINNER

The guess that comes closest to the closing price of SOCI wins. In the event of a tie, the winner will be selected through a tie breaking random draw. The winner will be notified by email on September 30th after the close of the market.

PRIZE

50 000 shares of Southern Energy Co. Inc stock!!!

Good Luck!

IFUS jumped back on to our radar this morning @ .06 thanks to big news last night from the company. IFUS traded as high as .09 today and closed @ .075 for a gain of 25%. Volume was solid with 756,600 share changing hands.

We like the stock for a move of 200% from these levels. This is a pick you can hold and make money on short and long term basis.

The news last night shows the commitment from the company to build real value. Their latest sales production order will support $1 M per month in sales.

This proves that their product line is getting traction and we think investors will recognize the value and bid up the stock.

Impact Fusion International Places First Production Orders for Intact Nutrition Brand Products That Will Support $1M per Month in Revenue

2009-09-01 18:18 ET – News Release

DEERFIELD BEACH, FL — (MARKET WIRE) — 09/01/09

Impact Fusion International (PINKSHEETS: IFUS) announced today it has placed its first production orders for Intact Nutrition Brand Products that will support $1m per month in revenue. The Company anticipates delivery of its newly branded Intact Nutrition products with its proprietary blend of the Nutri-Mastic(TM) formula within 15 days. Orders can be placed this week, for shipment when the inventory is in place at our fulfillment center Mercury Fulfillment. A call center has been established that will go online this week to support phone order processing. The first production run will also showcase the Company’s new labels for Intact Nutrition, Intact Sports and Fitness, Pet Intact and Equine Intact. This will include our dynamic Intact Sports and Fitness powdered drink Intact Protein+ and the accompanying product Intact Endurance sold as a system called Intact Complete. “This will allow us to proceed with the Anti-Drug campaign with Ken Davidson retired NFL star as announced in previous press releases,” stated Marc Walther, CEO.

“Intact Digest is now available at www.intactnutrition.com as well as through our distributor network at such sites as www.lef.com and www.heavenlylifespan.com,” stated Marc Walther, CEO. “Upon delivery of our first production run we will be on target to generate monthly sales of $1M per month. Our gross profit on these products will be in excess of 90% of retail sales. We are on target to generate a revenue stream that is expected to make the Company profitable in a very short time frame as laid out in our three year business plan.”

“Our second production run will be comprised of Intact Complete Capsules for various target markets which also contains our dynamic delivery system, the Nutri-Mastic(TM) proprietary blend. We will launch these products on a time line basis and will be targeting each product with a specific marketing plan. The Company’s media consultants are preparing a comprehensive marketing campaign which will include magazine, internet, co-op advertising with wholesalers, radio and television, infomercials and trade shows.”

About Intact Nutrition Brands

Intact Nutrition with Intact Minerals is in a liquid form of Ionic Trace Minerals formulated with Mastic Gum. Although the body manufactures some vitamins, it cannot manufacture a single mineral. All tissue and internal fluids contain quantities of minerals which are vital to our physical “Health and Wellness.” Muscle and nerve functions are electrical and we need the right mix of minerals to support that activity. With minerals in widespread distribution throughout the metabolic workings of the human body, trace minerals are integral to the functioning of one of the body’s largest organs systems, the muscles. Without these vital nutrients, it would be impossible for the muscles of the human or animal body to function. The stomach muscles rely on these minerals for the electrical impulses that enable them to perform at their best. The pharmacology and medicinal use of mastic is diverse. It is thought to have anti-microbial properties and Columbus believed it was a cure for cholera. The Gum Mastic Grower’s Association lists over 60 uses for mastic including its use in the treatment of duodenal ulcers, heartburn, its anti-cancer properties and extolling its aphrodisiac effects. Studies also document its use as an antioxidant, and for treatment of high cholesterol, Crohn’s disease, diabetes, and hypertension. However, clinical trials to support these uses are limited. The Egyptians are known to have used Mastic resin as a preservative and a breath sweetener. Mastic oil was mentioned by Dioskourides in ancient Grecian times and by Christopher Columbus in 1493. Mastic resin is still used as a flavoring in some Greek alcoholic beverages (eg, retsina wine) and in chewing gum from Chios. Mastic Gum aids in the conversion of ammonia to the urea filtering system in the blood and promotes the formation of Bifidius bacteria in the digestive system.

About Impact Fusion International Inc.

Impact Fusion International Inc. is in the business of marketing products in the “Health and Wellness” sector of all international markets. It is the company’s mission to invent, develop and market these proprietary products worldwide for the health and well being of humans and animals.

VOD Newswire Video Format: http://vodnewswire.com/vodnewswire/news/impact-fusion-20090901/

Contacts:
Impact Fusion International Inc.
1-866-716-6668
www.impactfusionintl.com

Premier Media Services
Kelly Black
President
480-649-8224

We expect more big news from the company after labor day. Members should accumulate stock at these levels.

If you need more information on IFUS, please join us @ www.pennystockchaser.com
Please do your own due diligence on IFUS.
To ensure delivery to your inbox, please add newsletter@pennystockchaser.com to your address book.

Our website is holding a contest so members can win 50,000 shares of SOCI. SOCI trades on the pink sheets and is a mining exploration company with gold and coal projects in South America.

All readers have to do is join http://pennystockchaser.com/category/soci-contest/ and guess the closing price of SOCI on September 30, 2009.

SOCI has moved from .26 to .63 in just two trading days. THIS IS A 142% MOVE FOR MEMBERS WHO FOLLOWED OUR ALERT.

Today the volume was 896% higher than the 10 day moving average.

The company has aggressive plans to further the development of the gold and coal projects they own in Chile and Argentina.

We are told to expect good news flow in the coming weeks.

The stock had an old high of $1.23 and we think the next run could be the past the old high.

That would make the prize of 50,000 shares worth $61,500.

That is real money for members and HUGE MONEY FOR ENTERING A CONTEST.

We like the company’s upside and we think members should like the news flow.

Today’s news shows the huge upside for SOCI.

Southern Energy Announces Negotiations to Acquire Coal Deposit Near Concepcion, Chile

2009-09-01 16:52 ET – News Release

SANTIAGO, Chile, Sept. 1, 2009 (GLOBE NEWSWIRE) — Southern Energy Company, Inc. (Pink Sheets:SOCI) (Frankfurt:8CE), a publicly traded resource exploration company, is pleased to announce that it has commenced negotiations on an additional coal deposit located near Concepcion, Chile. The deposit is in relatively close proximity to the Company’s current coal concessions in Lota Bay, Chile. The Company expects to negotiate and acquire this additional coal deposit over the next 60 days.

The Company plans to become more aggressive in its acquisition of known coal deposits in this region due in part to the recent announcement in a Santiago, Chile, newspaper by a major Korean industrial company of its development of a $2.5 Billion coal-fired electrical generation plant in the Concepcion area of Chile.

About Southern Energy Company, Inc.

Southern Energy Company, Inc. is a publicly traded resource exploration company. From 2007 to the present the company has been active in seeking out resource opportunities in North and South America to explore, develop, and produce. The Company is currently focused on the acquisition, exploration and development of coal, gold, copper and silver properties throughout South America. Currently, Southern Energy owns the Catalina Silver and Gold Property northwest of Santiago, Chile, and the two Lota Bay Coal Concessions in Lota, Chile. The Company has entered into a joint venture agreement on the Condoryacu Gold, Copper and Silver Property located in Salta Province, Argentina.

Please visit http://www.southernenergycompany.com for more information.

CONTACT: Southern Energy Company, Inc.

Ricardo Munoz, President

530-845-5001

info@southernenergycompany.com

Please remember to do your due diligence on SOCI.

WE ALERTED EWRC AT .0013. EWRC TRADED AS HIGH AS .0024 YESTERDAY.

There is more news out today. WE LIKE THE UPSIDE.

Members need to trade this stock to make money.

It is a sub penny so be careful. If you trade this correctly you can profit as the stock moves to .01

eWorld Companies, Inc. Raises Revenue Targets After The Event Division Delivers Detailed Marketing Plan to Generate Millions of New Boomerang Downloads

LOS ANGELES, CA–(Marketwire – 09/01/09) – In the news release, “eWorld Companies, Inc. Raises Revenue Targets After The Event Division Delivers Detailed Marketing Plan to Generate Millions of New Boomerang Downloads,” issued earlier today by eWorld Companies, Inc. (Pinksheets:EWRC – News), we are advised by the company that the first two paragraphs have been completely revised. Complete corrected text follows.

eWorld Companies, Inc. Raises Revenue Targets After The Event Division Delivers Detailed Marketing Plan to Generate Millions of New Boomerang Downloads

LOS ANGELES, CA — September 01, 2009 — eWorld Companies, Inc. (Pinksheets:EWRC – News) announced today that due to the revised actual and projected downloads of its Boomerang Media Station, the company has raised its revenue target to $1 million per month for its Event Division.

According to the company’s current sales, detailed marketing plan and projections, the Boomerang Media Station is projected to have 1,000,000 new downloads on a monthly basis, generating $1,000,000 per month. The downloads of the Boomerang Media Station and its revenue is expected to grow to over 2,000,000 monthly downloads over the next 6 months.

“Our technologies are being well received by the market and we expect to increase our visibility with the introduction of our brand in several special events and many other promotional activities,” said Henning Morales, CEO of eWorld Companies, Inc. “We always knew we had a good product, but the positive response is overwhelming,” further added Mr. Morales.

ABOUT EWORLD COMPANIES, INC.

eWorld Companies, Inc. markets and distributes cutting edge Internet technologies through its International network of Affiliates, users and strategic partners. eWorld’s patent-pending Boomerang Media Station(TM) features exclusive and third-party movies, music videos, webcasts and other streaming video content delivered via its unique state-of-the-art broadcast quality video player. Boomerang is a free software program that streams rich media within the actual application and remains ever-present as the user browses the Internet, offering the user one-click access to limitless entertainment experiences and convenience benefits. For more information visit www.eworldcompanies.com.

Contact:
Henning Morales
CEO
(310) 471-7674

Please remember to do your due diligence on EWRC.

For more information on EWRC, please join us @ www.pennystockchaser.com

Hi beststockreport@gmail.com,

SOCI – This write up from Frank Holmes is the reason we LOVE GOLD AND SOCI – SOCI is headed back to $1.23

SOCI is cheap @ .38 and we think it could run past $1.23 which is the old high. The reason for the run is GOLD.

Frank Holmes like GOLD and we think SOCI is the way you can play gold.

Aug 31 2009 10:47AM

History Lesson: September Is Best Month for Gold

We’re heading into September next week, so it’s a good time to revisit the historic seasonality of gold and gold stocks.

Over the past four decades, September has been the best time for gold in terms of its month-over-month price appreciation. You can see this on the chart below – in a typical year, the price of gold in September rises 2.5 percent above its August price.

The gold price has risen in 16 of the 20 Septembers since 1989, by far the best success ratio of any month of the year.

Source: U.S. Global research

What accounts for this predictable trend?

September kicks off several of the planet’s most potent gold-demand drivers:
? The post-monsoon wedding season in India and Diwali, one of the country’s most important festivals;
? Restocking by jewelry makers in advance of the Christmas shopping season in the United States;
? The holy month of Ramadan in the Muslim world, whose end in late September is marked by a period of celebration and gift-giving;
? And in China, the week-long National Day celebration starting October 1 and the run-up to the Chinese New Year in early 2010.

This could be a challenging September in India, the world’s largest gold consumer. The economic slowdown and gold prices near record highs drove jewelry demand down 31 percent in the second quarter compared to the same period in 2008.

On the other hand, the World Gold Council says India’s bank deposits saw 22 percent year-over-year growth in the second quarter of 2009, so cash is available to be spent if the rupee price for gold weakens even slightly. The WGC also expects the wedding and Diwali season to “underpin a seasonal improvement over the remainder of 2009.”

China, the world’s #2 gold market, actually saw a year-over-year gold demand increase of 6 percent in the latest quarter, with buyers favoring 24-carat gold jewelry for its quality and as a store of value. The WGC says that trend toward the purer form of gold should continue, though the third quarter is usually the low season for this segment of the market.

Source: U.S. Global research

While September is a good month for gold, it is historically a great month for gold stocks as measured by the NYSE Arca Gold Miners Index (ticker GDM), as seen in the chart above. The GDM index comprises a broader collection of gold miners – including more smaller-cap companies – than either the NYSE Arca Gold Bugs Index (HUI) or the Philadelphia Stock Exchange Gold and Silver Index (XAU).

After the typically soft months of June and July, the gold miners start to bounce back with a 2 percent bump in August before shooting up another 8 percent in September. Since 1993, when it was created, the GDM has been up 11 times in September and down just five times.
In September 1998, the GDM had by far its best-ever month (up 54.3 percent) when the bullion was bouncing off a two-decade low price of less than $275 per ounce. A decade later in September 2008, however, amid the severe credit squeeze triggered by the global financial crisis, the GDM fell 10.2 percent.

The strong correlation between the gold price and the value of gold-mining stocks explains much of the average September jump for gold stocks. But the relationship is not lock-step – gold stocks (particularly for companies that do not hedge their production) have historically offered leverage to the gold price. In up markets, earnings growth has tended to exceed the increase in gold price. Of course, the leverage also works in the opposite direction – gold stocks also tend to decline more when the price of bullion is falling.

One of the most consistent correlations for gold is its inverse relationship with the U.S. dollar – when gold is up, the dollar tends to be down, and vice versa. Looking at weekly data going back 20 years, this relationship occurs nearly 70 percent of the time.

Source: U.S. Global research

The seasonality chart above shows that September is only second to December in terms of dollar weakness, the average result for the U.S. Trade Weighted Dollar Index (DXY) being a 0.66 percent decline from August. Looking at the 39 Septembers going back to 1970, the dollar has seen negative performance 26 times, more than any other month of the year.

The Federal Reserve’s massive stimulus spending and the expectation that the current low-interest-rate environment will continue for many more months are additional headwinds for the dollar, and thus tend to be positive for gold.

In our June commentary “Why the Time Could Be Right for Gold Stocks,” we pointed out that gold stocks tend to outperform the overall stock market when the federal government is engaged in deficit spending. This year’s federal deficit is expected to be a record $1.6 trillion, and the White House projected this week that the deficit will grow another $9 trillion between 2010 and 2019. These huge deficits will fan inflation fears and keep downward pressure on the dollar.

Based on the long-term record, this may represent a good time for investors who want to establish or add to a gold or gold-stock position in advance of seasonal demand growth. The guidance provided by historical patterns may improve the chances for investment success, but of course, there are no guarantees that this September will follow the well-established trend.

by Frank Holmes
CEO and Chief Investment Officer
U.S. Global Investors, Inc.

Please remember to do you due diligence on SOCI.

NGHI jumped on to our radars today when it volume exploded to 3,229,074 shares of trading. The stock closed @ .275.

The accumulation this week on NGHI leads us to believe that something is going on. NO ONE BUYS THIS AMOUNT OF STOCK FOR NO REASON.

NGHI has a great portfolio of properties and this just might be what the doctor ordered given the rising price of gold and the distinct risk of a USD collapse.

This is a great play for our members given the huge liquidity. There were 393 individual trades today. You can get in and out of NGHI pretty easily.

For those members who like the upside of gold, NGHI is a good hold for a break of the old price high of .62.

We know how to picks winners.

OUR BEST GOLD PICK EVER WAS CVRG WHICH RAN FROM .022 to .445. Other gold picks include EXP and CNG on the TSXv which both ran 500% +.

Gold is a great safe haven play and NGHI is a great way to make money on the yellow metal.

THE WORLD’S RICHEST INVESTOR LIKES GOLD. NGHI IS IN THE RIGHT PLACE AT THE RIGHT TIME.

Buffet Buoys the Gold Price
Wednesday, August 19

Legendary investor and billionaire Warren Buffet helped to fuel the gold price by sending a warning signal to policymakers regarding the ultra-loose nature of monetary policy. Buffet warned that the enormous budget deficit, slated to reach 13% of GDP in 2009, and debt levels relative to GDP should not be dismissed. He stated that the United States is in “uncharted territory” from a fiscal perspective. Buffet went on to postulate that while the effects of loose fiscal and monetary policy could remain subdued for a lengthy period of time, “their threat may be as ominous as that posed by the financial crisis itself.”

Buffet went as far to say that the massive build-up of America’s debt and deficits could “cause the purchasing power of currency to melt.” The gold price rose $4.86 to $943.02 in today’s trading session as the dollar declined against most global currencies. While the dollar has dropped in recent months versus currencies such as the yen and the euro, the fact remains that these currencies have structural problems of their own. Japan suffers from a consistently underperforming economy and a deteriorating demographic picture. Europe has to deal with a systemic banking crisis potentially worse than that in the U.S. as well as the difficulties that come with managing individual nations under a common currency.

The gold price stands to benefit from the issues that afflict the U.S. dollar, the euro, and the yen, along with the rest of the world’s currencies. While the correlation between the gold price and the U.S. dollar/euro cross and other broad-based indices such as the Dollar Index (DXY) remain fairly high, a flight from other fiat currencies has the possibility of driving fund flows to the gold price and gold-related investments. The best monthly performance for the gold price over the last 35 years has occurred in September, which has shown a mean percentage gain of 2%. The question of timing Buffet’s warning on the state of America’s balance sheet is unknown, however, if seasonality hold true to form, the gold price and gold mining equities could be poised for a strong move over the balance of the year.

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