Beacon Resources Inc CPLJF

Notes from the Vancouver Show

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Pure Metals: Notes from the Vancouver Show Thursday, January 25, 2007 By Pure Metals Click here for StockHouse Conflicts and Disclosure Policy We just finished three days in Vancouver at the Cambridge House Investor College and Resource Conference. It was exciting to see how many people attended (7,500) and the generally bullish tone overall of investors for the mining shares. I would say most are cautiously optimistic that 2007 could be a very good year. This is not the wild optimism that you would see at a blow-off top, but more like a growing confidence in the precious and base metals for the longer term. Many analysts agreed that uranium and zinc have the best supply demand fundamentals for a very good year. Some analysts were predicting that uranium is on the verge of a major move higher. I have to agree that 2007 should be very good for a higher uranium price, possibly taking yellow cake, as it is referred to, over $100 a pound. Zinc prices should average $2.00 a pound or more for 2007. There was a great panel discussion led by Michael Levy at the conference with Frank Holmes, Frank Veneroso, and Dennis Gartman who debated the state of the world economic picture. While they agreed on a few things, they disagreed on most leaving investors with some good thoughts to consider about the future. Overall my take on what they were saying was that the economy in the U.S. should slow, but not tank. For 2007, real estate prices should head lower along with the dollar. Peter Grandich continued to beat the drum that the only one who doesn't yet know the dollar is dead is the dollar itself. He gave his reasons why gold would be heading higher as this reality is realized. I couldn't agree with his assessment more. Gold will rise as the dollar falls. The only question at this point is the timing and severity of the decline for the dollar. Personally, I see gold moving towards the thousand dollar level this year as more smart money moves away from dollar risk into safe haven assets such as gold. I maintain that since the physical gold market is so small in comparison to most other paper markets, that even a small 1% move into gold from the ocean of paper that exists would be all that is required to take gold over a thousand dollars an ounce. Whether we see that this year or next will be interesting to watch. All of the conference sessions were standing room only in the main speaker hall and investors were richly rewarded with many good talks and discussions. I was on a panel regarding how to pick junior mining stocks. The panelists all agreed that a quality management team is the first place they look when evaluating junior mining companies. The panelists had various opinions on the subject of when to sell a junior mining stock, with some advocating taking 25% to 50% off the table when getting a quick double or triple, while others look for higher returns with the largest portion of their shares. The consensus agreed that it is important for each individual investor to evaluate what their goals are with regards to junior mining stock investing and stick with what they are trying to achieve for their own personal financial situation. The conference had over 300 mining companies exhibiting at the show and was the best conference I had been to in years. It looks like our market is heading in the right direction once again. Greg McCoach