We regard gold as the only reliable standard by which all other paper currencies are measured. We reject the notion that gold is simply a commodity. Gold is the ultimate store of value for humanity as it always has been historically, and always will be.

Gold's recent rapid rise to the levels of today from below $300 an ounce in the late 90's is a reflection not only of the devaluation of the U.S. dollar and other currencies, but also of the twin ideas that gold is in increasingly short supply due to the diminished global inventory of large economic deposits, and investors everywhere grow increasingly skeptical of the integrity of the currency based monetary system.

MidasLetter.com keeps track of and comments on global economic developments from this perspective.

The global liquidity crisis currently unfolding is, ironically, largely due to the reckless fiscal management of the world's number one foreign reserve currency, the U.S. Dollar. The Fed's reaction to all crises in the financial realm is to cut interest rates and print more money, resulting in the further devaluation of the dollar in an apparently perpetual cycle. The effect on all U.S. dollar-denominated assets is continuous devaluation. The result for consumers is inflation.

These days, with the purchasing power of the dollar under siege, and the cost of goods continuously rising, investors need to focus on yield as much as capital preservation. Today, a 7% return on invested capital can be viewed as flat performance in the fact of these realities.

Our goal is to find companies that are going to increase in value over time, delivering relatively high yields with an acceptable modicum of risk. We aren't trying to find stocks that investors can get in and out of in a hurry. We are value investors. The companies herein identified are expected to increase in price by 100% or more over the course of 3 to 5 years.

Typically, we don't look at pure exploration plays, and thereby seek to avoid the risk associated with exploration. The majority of companies in the resource sector waste substantial quantities of investor dollars before disappearing into obscurity.

We're looking for companies that have a known discovery or source or product, and will deliver shareholder value by developing the commodity or source or product through responsible investment of time and money.

The Midas Letter Premium subscription is intended to provide value to subscribers by identifying companies that, in the opinion of publisher James West, have above average potential to deliver investor value through the execution of their stated business objectives.

Our process for evaluation prior to recommendation includes:

• Review of management's credentials and employment history, with a particular focus on past success in the same or similar business of the company under consideration; Has the management team put mines into production? Have they participated in significant discoveries? Have they delivered substantial shareholder value to prior companies in past affiliations?
• Thorough evaluation of financings to date, with a strong emphasis on financing practices. We look for management teams who enter into financings when the company's shares are at higher valuations and that avoid dilutive features such as flow-through, super flow-through, long term warrants that encumber the share price going forward; we avoid companies with a pattern of financing when the stock is low, running it up, letting it drift, refinancing at low prices again, and again, and again...
• Review of institutional investors and investment banking participants to identify entities with a known track record of position exit that seriously undermines the company's market valuation;
• Review of all technical documents, with emphasis on authorship, breadth of data from which assumptions are drawn,
• Evaluation of insider, management and major shareholder share positions and trading. Is management buying, selling or flat? Is the company granting itself exorbitant option positions when the share price is depressed, or before anything of value for shareholders has been accomplished?
• Interviews with company management and key directors to isolate discrepancies in business direction or conflicts within management teams, which is a common source of share price depression over time;
• Evaluation of political and market conditions in jurisdictions where the company is operating; What is the risk of appropriation? What price risk for the commodity being produced might affect the future ability of the company to operate profitably?
• Extensive review of company financial disclosure for the purposes of assessing capital efficiency. How much progress is being made for every dollar spent in comparison with peer group companies?;
• Assessment of the competitive landscape within the candidate company's sector. Is the company going to have solid and long term demand for its products? Will the space become crowded and undermine margins due to enhanced competition? What are the barriers to entry?

The publisher of the Midas Letter, James West, is not a registered securities professional and as such is not qualified to give personal or individual investment advice. Subscribers to the Midas Letter Premium Edition are cautioned that while we select companies based on the quality of management, projects and capital structures, there is always the risk when investing that you could lose a substantial portion of or even your entire investment.

My qualifications in recommending these companies are based solely on my status as an independent capital markets entrepreneur and investor. I have spent years working in capacities such as corporate finance advisor, corporate development officer, investor relations officer, media relations and business development officer for companies involved in mining, oil and gas, alternative fuels, healthcare, internet technology, transportation, manufacturing, and housing construction.

My ability to bring retail investors and financing to public companies has made me much sought-after, thus providing me with an insider's view. I get closer to the companies I talk about in the Midas Letter than most virtually any of their investors, and can get a meeting with most CEO's at a moment's notice.

I do not now, nor will I ever, accept any form of compensation for recommending companies in the Midas Letter Premium Edition. Any position I have with any company discussed will be disclosed clearly.

Investors are encouraged to consult with a registered and licensed securities professional in your jurisdiction prior to making any investment.

The Midas Letter Team

James West - Publisher and Editor
James is an independent capital markets entrepreneur and investor. He has spent over 20 years working in capacities such as corporate finance advisor, corporate development officer, investor relations officer, media relations and business development officer for companies involved in mining, oil and gas, alternative fuels, healthcare, internet technology, transportation, manufacturing, and housing construction.

Eric Pratt - Writer
Eric has been actively writing about mining and oil and gas companies since 2000, and has contributed frequently to magazines such as Resource World, Resourcex Investor, etc. Eric lives in New York and is often traveling to various resource projects around the world in search of opportunities for investors.

Darryl Kelley - Editor, Webmaster
Darryl was previously editor of Resourcex Investor, and affiliated news and information site catering to mining investors. Darryl covers emerging companies in the natural resource sector and specializes in developing web copy.