Vancouver Resource Investment Conference (THE BIGGEST STORY IN THE WORLD) What a show, and what a time to be there! 28 January 2003 * by Richard Lancaster

Vancouver was amazing; the turnout was great - although next year it'll be outstanding. There were two thousand assorted gold bugs, stock boosters, newbies, newsletter writers and idealists, milling around the trade show area and attending the excellent panel discussions and presentations. With gold going to new highs during the day and the Dow sinking below 8,000 for the first time since last October, the Monday session that Michael Nystrom and I attended was the perfect setting for reinforcing what we believe and how we see the future developing.

There was palpable tension over geo-political issues in the air; there was some excellent discussion on this topic in the second to last panel of the conference last night, where the most amount of passion was displayed in terms of "controversial issues." But I'll get back to this later.

Michael and I were mainly there to see Bill Murphy speak, and to meet folks who are of a like mind - in terms of how they see the economy developing, their views on sound money and market manipulations. We also wanted to learn about mining stocks, how people see the current valuations of these stocks, and who trades them, and why.

First, let's summarize the day's gold related stock information:

There was a huge amount of data given to the audience regarding very specific stocks, mainly gold exploration companies - but other metals and diamonds stocks were mentioned sporadically throughout. One of the big "take homes" for me was just how this advisory industry works in and of itself. There is a lot of boostering in the mining & exploration business, and investors need to beware (paranoid may be the best term actually!). Learning how to apply visceral instincts to deciphering what is being said by whom and why - is possibly one of the investors' most important tools in this space. Of course investors also need to do their homework, and thoroughly. Gold exploration and mining stocks are hugely speculative.

It is very easy, having lived through the entire Internet phenomenon as CEO of my own company, from 1994 to 2002, to see a new speculative bubble inflating in the gold industry. The new dot.bombs will be mining stocks in the years ahead. Some of these stocks will return 1000% +, and many of them will be pure hype with absolutely no substance. If you are entering into this space for the first time as an investor you really need to go and study the history of financial markets, the "bubble phenomenon" and how to navigate your emotions through the quagmire of constant change, uncertainty, elation and devastation - I experienced all this, and more, as an entrepreneur in the greatest financial bubble of all time! This time around, I'm much better prepared, but I studied hard and soaked up information from all sources to reach this point - don't be lazy. Learn how to think for yourself.

Anyway, for the precious metals investor I think some of the very best advice came from Paul van Eden (Co-editor of Doug Casey's International Speculator). He basically said, "Invest in people not projects." He was very aggressive with his opinion - which I liked, his self-assurance was very comforting, and the logic he used was impeccable. His perspective was that solid business managers within the mining industry are rare; once you find them, follow them. Solid managers will find the right projects! More on Paul's opinion's a little later.

I also enjoyed the presentation by Bob Bishop (here he is on the Big Screen). Bob is one of the "old school tie" guys from San Francisco, reminds me of the Bay Area investment bankers I used to work with - very polished, slight air of superiority, but quite passionate about his stock picks. He had some very sound advice for traders; "Take some profit, take money off the table when the stocks spike upwards, don't be caught holding the stocks through the top and then riding them back down." There was much more to Bob's presentation than this though, he articulated a global financial picture that is long term unfriendly to the stock markets - and very gold-friendly. He spoke with great depth and authority, and I would suggest his newsletter is well worth reading if you have a lot to invest and need sage advice.

At the end of Bob's presentation I was lucky enough to ask him the last question. Here is how it went (the edited version):

Me: "Where do you see the US Dollar going by the end of the year, where do you see the POG (Price of Gold) ending the year, and where do you see the POG topping out"

Bob: "….it's just guess work…I think we go $1,000+ in the next 3 years. I think its going to go in fits and starts and I think its important to know the back story of gold right now…..the hedge situation, the derivative situation in this market. In the last gold cycle the word was, "The Gold is there," whereas in this cycle "The Gold is gone." I really don't think the central banks have the gold, its gone!" Bob said more than this, but this was the most important aspect of what he said. The central banks of most of the industrialized world have sold their gold, later I'll discuss a little about GATA and why. Bob did not give a number for the US Dollar at year-end - he is not a currency trader, but he said we are very early in a "big picture swing."

John Kaiser, editor Kaiser Bottom-fishing, then spoke about Canadian Diamonds; his diamond mining presentation was so data intensive, and dry, that Michael and I both took a quick nap! John is clearly the Canadian expert on diamond mining - his assertion that Canada could be producing as much as 50% of global diamond output in the years ahead was an eye-opener though - woke me right up! Especially when you consider that Canada produces approximately 5% today. Of course John's presentation kept referencing De Beers throughout - as the diamond cartel holds sway ultimately over the industry - needless to say this "acceptance" so readily of the monopoly nature of the industry, especially in times like these, was a little nauseating for me. John's analysis was expert by any definition, his integrity was apparent and I would suggest that if you are in to diamond investing that he might be your man to follow. Personally, I do not believe in the investment value of diamonds, it's just not my bag!

The Coffin brothers both presented during the day on various panels. Their primary investment advice echoed Bob Bishop's - "Take profits." One particularly powerful statement by David Coffin, which resonated with me, was "all gold stocks are trading stocks." In other words, gold stocks are subject to peaks and troughs based on breaking news. Trade the news, buy the dips, sell when you hear of a story being broken in the news that will pop the stock temporarily. Pick the top, sell and take some profit, then buy the dip.

Various other presenters strutted their stuff throughout the day's sessions. Below are some of the most interesting stock picks that were provided by some of the best gold analysts in the world today. These are the recommendations of a panel of newsletter editors who were asked to pick their "somewhat risky and then crapshoot" stocks - so these are the companies that the experts feel are highly speculative - that could go to the moon - or crash. Perhaps a diversified portfolio of all of these would be the way to go? Hey, maybe Michael and I will start a mutual fund of all of these stocks, hand's up investors who would like to participate!!

Altius Minerals Aurizon Mines Candente, Resource Cusac Gold Doublestar Resource Freegold Ventures IAMGOLD Minco Mining Minefinder, NovaGold Resource Orezone Resource Pacific Northwest Capital Redhawk Resource Virginia Gold Mines Navigator Almaden Nevada Pacific Radius Eagle Plains Odyssey Maximus