For many months, I have alerted you that capital will flow from bonds/equities/fiat currencies into precious metals, commodities and junior mining stocks as we begin to enter the inflationary cycle which historically follows deflations. Central Banks are fighting economic contractions with quantitative easing which they are reluctant to end. Our metal and mining sectors have been leading the markets over the past three months. Currencies are declining rapidly most notably in India, Turkey and Brazil. Hyper-inflation may start rearing its ugly head like I predicted many months ago. The U.S. dollar is also looking like it is on the brink of a major decline to break 2012 lows as it breaks down from a bearish rising wedge.Read more
Leaders in Graphite Mining Sector Poised For Bullish Reversal
For more than a year and a half I have been investing and following the graphite sector, as I believe there is incredible growth in this material over the longer term as it's use in our latest technologies has risen exponentially in the past decade. Graphite's use is growing in high tech materials used in smartphones, jets, high efficiency lighting and steelmaking. Take a look at Graftech (GTI), which is one of the world's largest manufacturers and providers of high quality natural and synthetic-graphite products. The chart appears like it may be on the verge of reversing higher. This could be due to the steelmakers increasing output as demand is rising for automobiles and construction materials.Read more
Could We Be Witnessing The Bottom In Potash Stocks?
The major potash miners such as Potash Corp (POT) and Mosaic (MOS) were sold off as investors believed this could impact profits and margins with a major gap lower. Many of the junior miners were hit incredibly hard as panic selling and capitulation hit the sector. However, smart money may be adding to their positions and the gap may begin to be closed to the upside. To sell based on Uralkali may be exactly the wrong time to panic and may actually signal a bottom as investors rush to the exit. Analysts across the board cut their ratings on the potash sector and one bank went as far as expecting a major exit by investors. However, we may see just the opposite, major buying could come back into this sector.Read more