“Three Gold Plays for the Secret Gold Standard” and a new Sandstorm deal

Sniffing out a Crisis and Opportunity teaser for the Friday File -- and updating with a personal Sandstorm trade and some thoughts on their new "big deal."

By stock, September 21, 2012

It’s like sweet, sweet music in the ear of the gold enthusiast:

“The Secret Return to the Gold Standard

“A silent conspiracy will make gold a new currency on January 1st 2013. Central banks and governments are buying gold by the metric ton…

“If you hold any dollars, here’s what you must do now to prepare — and earn a 670% windfall as gold soars to historical highs.”

You can be forgiven if you read that January 1st, 2013 date and said, “My Aunt Fanny.” No, the world is not going to switch to a gold standard in three months.

But yes, gold is in the crosshairs of investor attention again recently as the next wave of Federal Reserve punishment is delivered to savers everywhere, forcing them out of bonds and savings accounts with ultra-low money-losing rates in an attempt to inflate asset values and make everyone feel rich again. That benefits stocks most immediately, but it also makes people worry about the potentially declining value of their paper money — and historically, when people are worried that their money isn’t stable, they buy older money in the form of gold and, increasingly, silver.

This tease that we’re looking at today, by the way, comes in from Brian Hicks as he tries to sell Christian DeHaemer’s Crisis and Opportunity newsletter — we’ve noted that DeHaemer has had some good runs in picking oil stocks in godforsaken, war-torn or simply new places around the world (some picks that did well for just a shorts spike, like Petro Matad before it had some bad drilling results, some that have been really off to the races like Africa Oil) … I don’t know if he’s got any skill in picking gold miners, but he’s teasing some of ’em so we’d like to know what they are.

And there is a regulatory change underway for gold, or at least a potential one — though I expect we’ll continue to hear plenty of debate about exactly how big a deal it is and how long it will take to have an impact. That’s the adjustment of the liquidity ratios under the new international banking rules, called Basel III, that allows gold to be included as a part of the “liquidity buffer” held by banks (instead of only counting “safe” assets like bonds and cash in that regulatory baseline), and, at least in the ...

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