Yearly Archives: 2012

QE3 or Operation Twist 2: How Will This Impact Gold and Silver?

QE3 or Operation Twist 2: How Will This Impact Gold and Silver?
We believe that these decisions may become baked into the pie during this Federal Reserve Meeting. Gold and silver traders are betting big money on buying contracts expiring in July that become profitable if gold should reach $2000 by that date. Based on what we know is smart money expecting a golden or silver swan?
Read more

Greek Election and Fed Decision Should Boost Gold, Silver and The Miners

Greek Election and Fed Decision Should Boost Gold, Silver and The Miners
Silver (SLV) and gold are forming a descending triangle for many months but has not violated 2011 lows. After QE2 we saw a massive move into silver when it outperformed gold...could QE3 be a catalyst to start something similar? Markets reacted negatively to the Spanish Bailout of a $125 billion as they keep a close eye on a Greek election this Sunday and the Federal Reserve Board meeting on June 19th and 20th.
Read more

Are Graphite Mining Stocks Giving Investors a Second Chance To Buy?

Are Graphite Mining Stocks Giving Investors a Second Chance To Buy?
There is increasing talk of an additional round of quantitative easing, China has lowered interest rates for the first time in three years, and Europe is about to bailout Greece and Spain. All these factors will benefit industrial metals especially the ones that are already in a supply shortfall such as large flake, high purity graphite.
Read more

Correction In Precious Metals and Miners Creates Buying Opportunity

Correction In Precious Metals and Miners Creates Buying Opportunity
Recently the gold and silver miners have been outperforming the S&P 500 indicating that we may be seeing the rotation from overvalued equities into the undervalued miners. This is occurring on large volume indicating major investors are beginning to enter the deeply undervalued sector. The gold miners appear to be reversing on high volume indicating that we are seeing major accumulation at these price levels. A few bullish, high volume reversal days within a couple of weeks indicates that we could be very close or near the bottom of this consolidation.
Read more

Cameco Looking To Acquire Undervalued Uranium Miners

Cameco Looking To Acquire Undervalued Uranium Miners
We believe major sovereign funds and miners will continue to make strategic investments in this beaten down sector. Cameco already had sufficient cash to operate and this raise may indicate that they are ready to make major moves. Cameco’s CEO Tim Gitzel recently said, We are making deals and we continue to scour the world and if we see something that fits for us, we’ll move very quickly.”
Read more

Gold, Silver and The Miners Bottoming While Facebook Is Busting

Gold, Silver and The Miners Bottoming While Facebook Is Busting
Take a look at Groupon, Zynga, LinkedIn, etc. Their vogue will not last forever. Sentiment for the social media sector may be reaching an euphoric extreme, while the mining stocks have fallen into public disfavor. The miners are bottoming at historic low valuations while the initial public offering of Facebook is valued at 100 times trailing earnings. This eerily reminds us of the dot-com bubble in 2000. Recall a company such as “theglobe.com” which made the largest gain in history on the day of its IPO only to be bankrupt two years later. The CEO was also in his twenties. The brokers were able to find myriads of buyers beating at their gates. As the French say, “The more things change, the more they remain the same.”
Read more

Why Canada’s Athabasca Basin Uranium Explorers May Soar On Foreign Investment?

Why Canada’s Athabasca Basin Uranium Explorers May Soar On Foreign Investment?
Canadian producers can now compete with Kazakhstan, Australia and Russia to sell uranium to China. Canada produces about 20% of the world’s uranium and exports over 80% of annual production. The fast growing nuclear industry has never been open to China and will create a boom in the Athabasca Basin for uranium explorers. This deal will allow Cameco, the largest publicly traded uranium company to deliver 52 million pounds of uranium to China by 2025. The contract is worth about $2.5 billion in sales. China is hungry for nuclear with dozens of reactors planning to be built over the next 10-15 years. Relating to financing and corporate development, Athabasca Uranium recently announced the appointment of Kim Goheen to its Professional and Technical Advisory Committee. Mr. Goheen recently retired from Cameco, the largest publicly traded uranium producer as Chief Financial Officer, where he played a pivotal role in Cameco's growth.
Read more

Will A Euro Breakup Boost Gold and Silver Prices?

Will A Euro Breakup Boost Gold and Silver Prices?
Support for gold is at $1600 and $27.50. We may see an initial correction in US dollar terms but gold and silver are near key support levels, oversold and possibly just about to takeoff. We are reaching extremely negative sentiment indicators indicating a bottom both in precious metals and the extremely undervalued miners. When indicators reach this level a bottom reversal may occur sooner rather than later. Operation Twist is set to expire in June. If we don't hear word of a QE3 or additional stimulus then we can see a downward move in U.S equities. We saw this in the summer of 2011 as QE2 expired and in the summer of 2010 as QE1 expired.
Read more