Gold Reserve, Crystallex Jump on Government Permits

Isn’t it amazing that just when U.S. oil supplies might be threatened in the Gulf Straits of Hormuz, Venezuelan oil looks pretty good, and the Venezuelan government sees fit to approve the gold mining environmental permit of Gold Reserve Inc (GRZ)?

Tuesday evening I figured something was up as I received a number of e-mails on this situation.

As for Crystallex (KRY), I suppose it will soon get its permit as well, and the share price will zoom. I expect it will move even further north after one of at least six mining companies starts to bid for control. But, that’s nothing new.

Early yesterday, Jock had sent along a note that “FYI, re KRY, Financial Times columnist James Altucher reported today that "high quality mutual fund Jennison Natural Resources is accumulating the stock (last year, Yahoo Finance lists their return as 28%).”

By 11:24am ET yesterday, GRZ was up +49 % and KRY was up 19%, with incredible volume on KRY.

Comments

[Nova Law]

Holding this stock is no better than going to the casino and putting down your money on "Red" or "Black." In fact, there is much more transparency in a casino than in this stock, which has fired its senior management and had its auditors quit in the past month, all of which are terrible signs that some kind of malfeasance is at work.

The fact that KRY bounces around on speculation and rumor shows the lack of any true value. Next week Chavez can give a speech about nationalizations, and the stock will drop by a third. This is not investing, it is gambling, pure and simple.

On March 13, Cara announced that he would have nothing further to say about this stock: "all I am saying is this company is dead to me." When it blips up on rumor and speculation, as it did yesterday, he's back to his old trick of pumping it and trying to take credit. A typical dishonest Cara move. I believe that he's doing this in order to give himself a "track record" to attract business to his newly-announced Bahamas-based investment advisory service. If you're sucker enough to entrust this man with your money, then be prepared to lose it all. Give it a nice party before you ship it across the Florida Straits, where it can finance a retirement lifestyle for a blogger with a history of bad financial and market calls.

The "dead to me" quote:

www.billcara.com/archi...

[Nova Law]

I'm going to do something that Cara never does, which is admit a mistake. In my previous post I erroneously ascribed the "dead to me" quote to Bill Cara. It was actually made by a poster using the handle "Big Bill." My mistake.

But Cara's real quote was almost the same thing - on March 13 Cara said "I have written my last blog on Crystallex because I am not going to join the circus."

But the circus is back in town, and the carny named Cara is back at work.

www.billcara.com/archi...

[RW]

Nova I agree with most of what you wrote, I own some of the stock and will point out why.

It is very easy to predict sence 75% is owned by individuals and only 25% by institution. The stock behaves as if mostly owned by new investors therefore making huge gaps on news with large volume. I would wager that I will double my investment when the permit is issued. There is only one key to this stock, buy when nonthing new has happen for a while (like now when it is below $2.5) and sale on the news (such as the permit being issued).

What other penny stock makes it this easy to double in such a short period of time?