SOURCE: InvestmentPitch

December 14, 2010 16:02 ET

Gold and Silver to Continue Record Breaking Streaks in 2011 - Midas Letter's James West Interviewed by

VANCOUVER, BC--(Marketwire - December 14, 2010) - James West, publisher of the Midas Letter ( said today the winning streaks in both gold and silver would continue in 2011. In an exclusive interview with Nathan Pearson of, West gave his outlook and reasoning for precious metals in the coming year.

"There's absolutely no doubt that gold and silver will both continue to power higher throughout 2011, as the crumbling U.S. Dollar, expanding sovereign debt crises, general economic deterioration in the G7 nations induces even more demand for the safe haven monetary metals," he said.

When asked where he sees prices heading in 2011, he said, "Gold will likely break through $1,700 an ounce by the end of 2011, and silver will likely see $35, and may even go through $40 an ounce."

That's quite the statement. Though West has been right more often than he has been wrong, a look at the Midas Letter archives reveals.

Not only did West correctly predict the demise of Lehman Brothers and Bear Stearns months before the events happened, but West's annual gold price forecast has stunned market watchers with their uncanny accuracy since 2008 when he first launched the Midas Letter.

"We're very focused in our approach to making money for our subscribers," he said. "We spend our days sifting through the relatively small universe of emerging companies listed in Canada looking for gold, silver, copper and other commodities, and when we see one that's got the right set of circumstances, we know its going to make a major move upward, and we tell our subscribers as much."

The Midas Letter portfolio returned 237% in 2009, and West says that's more or less what he expects for the 2010 selections.

"Our value proposition for subscribers is very simple. We deliver a 100% or better win on 9 out of ten stock selections within 12 to 18 months. We give subscribers 7 days warning before we buy, (so they can get in ahead of us and at a better price than us) and 7 days notice before we sell (again, so they get the better price). The financial interest's of our subscribers always is put before our own."

When asked why the TSX and TSX Venture Exchanges were the only exchanges he worked with, his answer was blunt and straightforward:

"They're the only ones with a regulatory framework geared specifically towards mining. They are the most transparent exchanges in the world, and they are the most fair. Canada is a place where corruption is at a minimum, and there is a general environment of fairness and integrity. You just don't see that on any other exchange in the world. Oh, and did I mention they are also about the best performing markets in the world?"

West's comments are underscored by the recent numbers generated by both exchanges, which are heavily influenced by the resource sector.

TSX Venture Exchange established new monthly records in volume and number of trades in November 2010. Monthly volume was 8,052,951,367, surpassing the previous record of 7,123,747,586 set in October 2010. The number of trades was 1,224,432 in November 2010, exceeding the earlier record of 976,439 set in March 2000.

The TSX Venture Exchange rose since June of 2010 from 1,350 to over 2,100, an increase of 55% in just under 6 months. Compare that to the NYSE, which saw the Dow Jones Industrial Average rise by only 9.2% in the same time frame.

"The TSX Venture will continue to be the best performing market in the G7 throughout 2011," said West. "There's no other exchange in the world where you can maximize leverage to the gold and silver prices through exploration and development investment among precious metals companies."

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Source: InvestmentPitch via Thomson Reuters ONE


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