Yearly Archives: 2013

Why The Smartest and Richest Minds Are Buying Mines

Why The Smartest and Richest Minds Are Buying Mines
I observe large hedge funds making bullish bets on the juniors such as SAC Capital. SAC Capital with over $20 billion under Stephen Cohen's management placed a $240 million dollar bet on the miners. In addition, John Paulson, hedge fund manager and one of the smartest minds in the business continues to be bullish on the undervalued gold miners and especially one of our long term GST recommendations. Do not forget the world's richest man, Carlos Slim made a $750 million bet to buy a Mexican gold miner. Similar to Cohen, Paulson and Slim, I believe we are headed into a period of gut-wrenching inflation where the U.S. dollar could move into new lows and gold could continue soaring into new highs led by the high quality junior miners.
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Keep Your Head When Others Are Fearful of Precious Metals

Keep Your Head When Others Are Fearful of Precious Metals
"If you can keep your head when all about you Are losing theirs and blaming it on you...And---you'll be a Man, my son! " -If by Rudyard Kipling Today a news item from the Wall St. Journal crossed my desk entitled, "A Fearful Time For Gold". Then I read another article entitled, "S&P500 In Longest Winning Streak Since 2004." These articles are an indication of what the majority is thinking and may be a contrarian buy alert for my readers. The majority of investors are usually wrong at turning points. Many investors are becoming impatient with gold selling into an oversold panic in the miners and looking for the latest fast money scheme in mortgages or real estate. Be careful of following this emotional move where investors take on too much risk in banks and housing and overly fearful and pessimistic in mining equities.
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The Search Is On For Antimony Deposits In Atlantic Canada

The Search Is On For Antimony Deposits In Atlantic Canada
Keep a close eye on antimony which is used in batteries and in many manufactured materials as a flame retardant. China is the top producer with control of close to 90% of the world supply. China is followed by South Africa, Russia, Bolivia and Tajikistan which are far from mining friendly jurisdictions.The Chinese are finding it difficult to find new antimony deposits domestically. In 2011, the British Geological Survey ranked antimony as the main metal at risk of a supply shortfall. Production in China is falling and the Chinese have had to mine antimony right here in Atlantic Canada.
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Early Stage Gold and Silver Opportunity In A Mining Friendly Jurisdiction

Early Stage Gold and Silver Opportunity In A Mining Friendly Jurisdiction
Gold and silver prices are set to rise this year as the demand increases from Asia where we are witnessing an economic rebound. Right now, inflation fears may be increasing which may support a breakout for gold and silver prices after a long basing process. Look for a break of the recent 4 month downtrend as gold and silver both find support at the 200 day moving average.
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Platinum Breaking Higher Versus Gold On Supply Shortfall

Platinum Breaking Higher Versus Gold On Supply Shortfall
Platinum is breaking out compared to gold as South Africa which supplied three quarters of world production continues to struggle with labor issues and possible nationalization.The world's largest producer of platinum, Anglo American Platinum (AMS), reported a major loss for 2012 and warned of a potential supply shortfall as labor protests and nationalization fears continue to increase. South Africa has become increasingly volatile and demand for platinum is picking up due to increased sales for new automobiles. A supply shortfall in platinum and potential price spike could happen in 2013 as a major deficit in PGM's could be developing.
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Uranium Price May Spike On Geopolitical Tensions In Africa

Uranium Price May Spike On Geopolitical Tensions In Africa
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.
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Why This Rare Earth Miner Outperformed in 2012

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.
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Uranium and Rare Earths Should Rebound On China Rally

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.
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Is The Critical Rare Earth Sector Making a Positive Turn?

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.
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Will 2013 Be The Year For Uranium Miners?

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.
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