And these are just the numbers for the hard assets of the company, the book value if you will

And these are just the numbers for the hard assets of the company, the book value if you will.

We haven’t even talked about how high the company’s stock price could climb as more and more investors figure out the beauty of this banking model.

And one more thing to sweeten the entire proposition…

The one million ounces of gold we’ve been talking about? That’s the amount of gold already under contract.

But it can run higher. Much higher, in fact.

You see, not even the sharpest geologist with the fanciest equipment knows how big a mine is going to be until they dig deep and begin running down all the veins.

Sometimes there’s less than hoped for. But since we’re gold bankers, that doesn’t hurt us —“ we still get our contract’s worth at the same discounted price.

Sometimes there’s more than estimated. Quite a few miners have been met with pleasant surprises recently, just like we could be…

As you can see, a Kinross mine had six times the gold they’d projected. A Semafo mine had one and a half times as much. El Dorado was greeted with nearly three times as much.

If history is any guide, our “gold bankers” could be banking $21.12 billion, and sharing that with partners. And if that happens, well, you can bet my readers will be renting a big old boat and taking a victory lap around the world together!

Until then, keep in mind, this is all about maximum profit AND minimum risk.

This gold bank only holds mines that are producing, or about to. There’s very little risk of a mine going bust, or getting red-tagged by regulators. And if one does run into trouble, the bank is the Senior Secured Creditor and first in line for the gold.

And, the mines are located in safe places…

There’s no risk of some crackpot dictator trying to nationalize them. You saw the map —“ these projects are in Canada, Mexico, Brazil, the U.S. —“ as safe as it gets.

So this is one sound investment model, and gold market analysts have taken note. Analysts such as the respected John Doody of Columbia University put the fair market value of a gold streaming bank at 20 times earnings. So let’s do the math…

Let’s say the “bank” sells all the gold they’re scheduled to receive in just the next 12 months at $1,550 an ounce. That’ll bring in $60 million in cash earnings. So we multiply those earnings by 20 and we get a $1.2 billion valuation for the company.

Okay, now the “bank” is trading at a value of $300 million. Again doing the math… a $300 million company… worth $1.2 billion based on sales… that’s four times its current value.

On that basis, the stock should rise from $1 a share to $4 in just the coming year alone.

I can’t find anything to dislike about this company and these numbers we’re seeing!

And these numbers stretch to the horizon. Armored trucks will keep pulling up to the vault and unloading a steady stream of gold for the next 8 to 11 years —“ that’s locked into the contract.

And gold is likely to keep rising —“ up, up, up, down, up, up, down, but long-term up because of the hard realities of the world today…

We know the demand from just China is a powerful driver —“ their purchases of gold doubled again in the first quarter of 2011. The numbers of Chinese becoming middle class is exploding, and they want gold!

And, it’s not just China. The world’s richest and most powerful investors are still buying gold, and buying it in quantity, despite its record price.

Citibank’s precious metals analysts John Hill and Graham Wark said recently, "Frankly, we’re surprised that gold is not already at $2,000 an ounce.”

Britain’s stodgiest old-line bank, Standard Chartered, sees “gold prices rallying up to $4,869” this decade.

And London’s Schroder Group, no slouch with $277 billion in investor money on the line, recently told a Hong Kong audience that gold could reach $5,000 an ounce.

These are not gold bugs or dealers looking to cash in on a craze.

These are people who only get rich when their clients get rich.

They’ve crunched the numbers. As a May 2010 New York Times analysis concluded: “Based on economic expansion as well as price inflation… the gold price could top out at around $5,300.”

So with forecasts like these, this Gold Streaming Bank could rise in 2013 to $6.50 a share and in 2014 to $7.80 a share.

This stock is at $1 now and in three years could hit $7.80 —“ that math works!

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