Monthly Archives: April 2013

Why Platinum and Palladium Should Continue To Outperform

Why Platinum and Palladium Should Continue To Outperform
This pullback in the metals complex may give an opportunity for investors to diversify into platinum and palladium, which have both a practical use as a monetary hedge against inflation and as a critical industrial component for clean automobiles. In addition to automobiles, PGM’s are used in cell phones, jewelry and computers. Supply for Platinum group metals may be at an all time low, while increasing demand for clean automobiles, investors and consumers will need addition platinum and palladium projects in stable mining jurisdictions. Recycling can not fill the supply gap.
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Some Junior Gold Producers May Be Safer Than The Senior Miners

Some Junior Gold Producers May Be Safer Than The Senior Miners
Barrick's $8.5 billion Pascua Lama Project has been a disaster with soaring costs and jurisdictional disagreements. It is an albatross and Barrick must cut their losses. They should look to invest in Nevada where their properties especially in the Cortez Trend have some of the highest margins in the business. Over the past year, Barrick's risky moves into questionable projects and jurisdictions have hammered down its share price. Sometimes well managed juniors may actually be safer than some of the majors. Remember there are smaller but more efficient junior producers who could compete with the clumsy larger players in terms of its ability to expand their gold and silver production and at the same time reduce costs. Keep this growing junior producer with cash flow to grow.
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The Worse Things Were For The Mining Sector, The Better They Will Get

The Worse Things Were For The Mining Sector, The Better They Will Get
Gold and silver may see physical shortages hit and that is when attention will be paid to the growing gold producers significantly expanding cash flow. Demand for precious metals have soared on this pullback. We should witness a powerful bounce after the recent shakeout. This should boost the beaten down large producers and eventually the early stage explorers.
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Short Covering After a Bear Attack on Gold and Silver

Short Covering After a Bear Attack on Gold and Silver
It appears Goldman Sachs is covering its short on gold as it rebounds above $1400. Meanwhile, they have helped confuse and misdirect the investment community out of gold. This was a classic shakeout and bear trap which is going to start major short covering. Be ready to see increased short covering combined with record physical demand. These are the elements for a price spike and breakout higher in both gold and silver.
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Caveat Venditor: Gold and Silver Investors Beware Of Selling Shakeout

Caveat Venditor: Gold and Silver Investors Beware Of Selling Shakeout
The Venture is cheap priced at $400 au/oz. This is a ten year low testing 2003 levels. Gold is more than 50% higher than its pre credit crisis highs, the S&P 500 is now breaking through 2007 highs and the Venture is still discounted more than 70%. The Venture appears historically mispriced and discounted indicating its buying time for long term value investors, definitely not selling time.
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Major Bear Market Low Forming In The Junior Miners?

Major Bear Market Low Forming In The Junior Miners?
One of the ways to look for a bear market low is to look for panic selling and capitulation after an extended downtrend. Since 2013 began the Venture has had 3 months of losses compared to the Dow Industrials. Remember that just as parabolic rises forecast major tops, cascading waterfalls, capitulation and panic selling usually marks major bear market bottoms. Value investors try to buy near a major low and look for panic selling where fundamentals and balance sheets are disregarded. This may be exactly what is occurring in the junior mining investment arena.The resource area may be in the midst of a three month capitulation and major rotation. Old, tired players are trying to sell at any price making room for the next fresh group of value investors and entrepreneurs picking up discounted assets.
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Top Discounts In The Junior Gold Mining Sector

Top Discounts In The Junior Gold Mining Sector
Investors unsure of which way to turn in this market need only watch the "smart money," says Jeb Handwerger, the editor and publisher of GoldStockTrades.com.Billionaires like John Paulson and Carlos Slim are plucking up mining investments on the cheap... Investors are going to seek out alternative hedges against the deterioration of currency and financial repression worldwide. This isn't just happening in Cyprus, but all over the world where there are citizens losing money in their banks and are experiencing negative real rates. Investors need to look for the assets that will protect and grow their wealth in case public policies continue to destroy wealth and savings.
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