France is sending in Special Forces into Niger to protect their uranium sources controlled by state owned Areva. France is concerned that the fight in neighboring Mali may threaten neighboring Niger which has been a huge producer of uranium for 50 years. France is dependent on this uranium as nuclear provides over 75% of their electricity. The threat of Al Qaeda in the region is rising and uranium production is being threatened from terrorist groups.Read more
Why This Rare Earth Miner Outperformed in 2012
This miner was possibly the only rare earth miner which was up in 2012 while the entire sector declined. The company was up 45%, while Molycorp was down 67%. This relative strength is remarkable and may be forecasting outperformance if the sector should rebound which I expect may be occurring. We may be in the midst of powerful risk on rally.Read more
Uranium and Rare Earths Should Rebound On China Rally
China recently during the quiet holiday season announced that they were tightening exports again on critical materials. Rare earth export quotas for next year will drop again. China claims that they are cutting back because of the weak global economy. Nevertheless, stealthily China continues to announce infrastructure plans within China and has been stockpiling these critical materials for their own domestic demand. For months, we have been predicting a rebound in China’s economy as iron ore prices began rising. Now we read headlines that China’s exports are very strong even with a rising yuan. Risk assets such as the miners and industrial metals should rally on this news. More smart money from the investment community is realizing that China is far from a hard landing but they may be in the midst of a powerful recovery. Exports have jumped to a seven month highs despite the debt issues in Europe and the United States. This rebound in China may be the spark in the undervalued miners which have been in a downtrend for close to two years as economists predicted a Chinese hard landing.Read more
Is The Critical Rare Earth Sector Making a Positive Turn?
I have just returned from the Vancouver Resource Investment Conference where I presented on the critical need for many different strategic metals. The rare earth sector is beginning to attract interest as the U.S., Chinese and Japanese markets hit new 52 week highs after the changes in leadership in both countries. The rare earth/strategic metals ETF (REMX) has crossed the 200 day for the first time since 2011 and I am monitoring for a bullish golden crossover.Read more
Will 2013 Be The Year For Uranium Miners?
This week we hear that Uranium One will be bought by ARMZ its controlling shareholder for $1.3 billion in a friendly deal. This means the Russians will have an increasing presence in the Powder River Basin. Putin is pushing nuclear power not only for Russia but to export technologies to emerging atomic nations. A few months ago we predicted a growing Chinese and Russian role in developing domestic U.S. assets.Read more
Current Weakness In Gold May Be Buying Opportunity
Despite current weakness in gold around the $1650 area we expect a turnaround in gold with a new leg up to $1800 area and eventual breakout at $2000 in 2013. Despite noises heard in the Fed minutes of a purported exit from quantitative easing, Central Banks around the world have flooded the markets with fiat currency. Around the world gold has outstripped every competitive currency for the past ten years, yet the mainstream fail to understand the importance of owning gold and the gold miners.Read more
Fiscal Cliff Deal May Be Sparking Risk On Rally Into The Undervalued Miners
We may be in the beginning of a hyper-inflationary rally. There is plenty of cash on the sidelines who may be seeking alternatives in the form of the undervalued commodities and miners especially as the dollar is forming a bearish head and shoulders formation and the Canadian Venture is breaking out above the 50 day moving average.Read more
Why This European Uranium Miner Is Turning Higher
The long term downtrend and 200 day moving average has been broken to the upside after basing for more than 22 months. A possible long term trend change could be occurring. The technical chart reflects the fundamental changes in the company. Developing a relationship with both AREVA, the largest nuclear company and the Slovakian Government has been critical in the development of this world class, low cost uranium project. We look forward to developments in 2013.Read more