Monthly Archives: July 2013

Uranium Miners Are The Hottest Spot In The Resource Sector

Uranium Miners Are The Hottest Spot In The Resource Sector
For over two years now the uranium price and the uranium miners have been in a correction as the market factored in an oversupply of uranium from Japan and Germany moving away from nuclear power following the Fukushima Disaster. Long term investors realize this may provide a discounted buying opportunity as Japan and Germany now face the consequences of those knee-jerk political moves, slowing economies and rising electricity costs. The anti-nuclear Party in Japan has been relegated to a powerless minority. Could Germany make a similar move to oust Merkel this September as electricity costs and air pollution skyrocket from burning oil and dirty coal? Japan is about to turn on twelve nuclear reactors that have been idling since Fukushima. Don’t be surprised to see Germany do something similar this fall. Uranium is trading at seven year lows. Recall what Joseph told Pharoah thousands of years ago, that there would be seven fat years followed by seven lean years.
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Major Short Squeeze Coming In The Uranium Mining Stocks

Major Short Squeeze Coming In The Uranium Mining Stocks
Nuclear power (NYSEARCA:NLR) is the best option for clean base-load power generation, according to Gold Stock Trades editor Jeb Handwerger. As proof, he points to signs that even environmentalists are beginning to favor it. Meanwhile, uranium stocks (NYSEARCA:URA) are rising and large nuclear construction programs overseas should keep upward pressure on them. But as Handwerger explains in thisinterview with The Energy Report, the future of nuclear power generation may lie with small modular reactors, and the U.S. is leading their development.
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Turning Point In Precious Metals and Miners?

Turning Point In Precious Metals and Miners?
Recent waterfall declines in gold and silver below 5 year trailing moving averages and hitting historic oversold valuations are indicative of a major once in a generation bottom. We are hitting thirty year lows in the resource arena. Eventually, the precious metals sector will turn back higher and hit new inflation adjusted highs. Look for a break above the 50 day moving average which on the GLD is right now $129.08 and on the SLV at $20.40.
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Nevada’s Cortez Trend: Where Gold Mining Is Still Highly Profitable

Nevada’s Cortez Trend: Where Gold Mining Is Still Highly Profitable
Production and cash cost numbers from the mines of the Cortez trend are extraordinary. The carlin-type gold systems in the Cortez Trend are very large, relatively high grade (2-4+ grams), near surface; therefore open pit-able,oxidation is fairly deep, so processing of the ore is relatively inexpensive.  Plus the fact that Nevada generally is a great place to mine, great infrastructure; paved roads, electricity,trained work force; truck drivers to engineers to geologists,tax rates are good,  permitting, although rigorous, is straight forward.  Nevada is a great place to operate a mine profitably even at these lower gold prices.
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Prepare For The Coming Clean Energy Boom In Uranium and Rare Earth Miners

Prepare For The Coming Clean Energy Boom In Uranium and Rare Earth Miners
A recently released documentary, "Pandora's Promise" explores the transformation of staunch anti nuke environmentalists into believers of the benefits of nuclear power. This is a must watch film as these activists believe that nuclear energy could really transform the world.Governments around the world including most recently President Obama have been discussing strategies to address the climate crisis. Nuclear is the only source that can provide additional supply of base load power without hurting the atmosphere. These environmentalists are seeing a major gap between fossil fuels and renewables like wind and solar. Renewables are unable to make up the gap alone. Coal, natural gas and oil demand is still growing. Being anti-nuke is a dangerous policy in light of the rising demand for fossil fuels. Do not be surprised to see more mainstream environmental organizations support the development of next generation nuclear technologies that are safer, more efficient and cleaner.
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Platinum and Palladium Outperforming Gold, Silver and Copper

Platinum and Palladium Outperforming Gold, Silver and Copper
The geopolitical instability from South Africa may have a significant impact on the supply demand equation for Platinum Group Metals. These metals are crucial to reduce noxious emissions from vehicles as they are used in catalytic converter to lower tailpipe emissions. No suitable economic replacements for PGM’s have been found. Vehicle sales are increasing worldwide especially from emerging economies. Emission standards are being implemented in emerging economies. Demand for PGM’s is skyrocketing as we are seeing a rebound in the North American, Japanese and Chinese automobile sector. Supply is extremely tight from South Africa. Major strategic consumers could be actively searching for safe and secure supplies of platinum and palladium. Palladium is the only metal that is higher over the past year. Palladium is up over 14% over the past year while platinum, copper, gold then silver are still in negative territory. Palladium and platinum are showing great relative strength in this precious metals correction.
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