Yearly Archives: 2014

How To Find The Junior Mining Winners During a Historic Bear Market in Natural Resources

How To Find The Junior Mining Winners During a Historic Bear Market in Natural Resources
Despite the TSX Venture being down over 25% this year, three of our featured stocks had great gains. Niocorp (NB.V or NIOBF) is up 387% on the year, Western Lithium (WLC.TO or WLCDF) soars 127% in 2014 and Canamex (CSQ.V or CNMXF) rose 108% this year. In a historic bear market, 9 out of 10 stocks fail. As the old adage states, "When they raid the house, they get them all." However, I have been blessed in that most of our featured companies are hanging in there and two of them more than doubled and one almost quadrupled in one of the worst years in resource history. This indicates to me that our system of research and due diligence is improving and should show outsized gains once the 200 day moving average begins sloping higher.
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Junior Miner Up 38% This Week on Record 2014 Volume

Junior Miner Up 38% This Week on Record 2014 Volume
The Holiday Season is here and a volatile 2014 is coming to a close. Be prepared to pick up quality situations during tax loss selling season. Yesterday we heard the comments from Fed Chairwoman Yellen which appeared to be dovish. Declining commodities and a rising US dollar will put a halt to any interest rate increases. Equities are rallying and following tax loss selling season the TSX Venture which is hitting decade lows may experience a major bounce due to the January Effect. The January Effect often benefits small cap beaten down situations as large investors reposition for 2014. It was interesting to see the reaction after the Fed Meeting going into tax loss selling season. This down period in the resource sector in prior years was followed by a very powerful first quarter. Late December buying has provided some excellent buying opportunities in the resource sector in the past.
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Junior Miner Up Over 500% In Past Two Years Despite Venture Collapse

Junior Miner Up Over 500% In Past Two Years Despite Venture Collapse
For years I have highlighted a strategic metal called niobium. Recently Iamgold sold Niobec, one of the largest niobium mines in North America for $500 million cash and an additional $30 million once it comes into production. This could be a huge boost for one of our long term featured companies up over 536% the past two years while the TSX Venture has lost close to half its value.
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Gold Breaking Five Month Downtrend: Monitor For Powerful January Effect in Junior Miners

Gold Breaking Five Month Downtrend: Monitor For Powerful January Effect in Junior Miners
In a recent article I wrote, "Gold and silver could gap higher by the end of 2014 and the top notch juniors could skyrocket." I expected a breakout at $1205. It appears gold may be breaking that downtrend today.For a couple of years metals were knocked out of favor and now oil is on its knees with a major three month deflationary selloff that came out of nowhere. This black swan may be due to increasing tensions between the West and East. Japan and Europe are turning on the printing presses to prevent deflation causing investors to flock to US dollars and the S&P500. Don't be so quick to chase them into the overbought markets. The Fed needs to see more inflation and a cheaper dollar before raising rates. Once investors wake up and realize The Fed can't tighten in this environment, the dollar parabolic rise will pop. Once the dollar rally fizzles out investors should once again return to the beaten down junior gold and silver sector which is testing 2008 Credit Crisis All Time Lows.
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Swiss Vote Could Be Catalyst For Gold To Break Above 5 Month Downtrend

Swiss Vote Could Be Catalyst For Gold To Break Above 5 Month Downtrend
Its not just me that sees the value in gold, but entire nations. The Swiss voters on November 30th will decide to back the Franc with a 20% gold reserve with a pledge never to sell its gold again. If the Swiss approve this they would have to purchase 1,500 tons of the yellow metal. This is a significant amount considering the Russians bought close to 19 tons in October. Demand in China and India is still strong as evidenced by record coin sales and numismatic premiums rising. If the Swiss decide to back their currency it could be a shot heard around the world and could spark a global rush to buy physical gold and silver by other nations. Eventually, that change in psychology could affect our junior mining positions trading at pennies on the dollar to see explosive gains. Many Central Banks around the world have a zero or negative interest policy. This expansion of fiat currency on the market has never occurred before yet investors are flocking to the US dollar in record proportions. However, smart investors are already positioning ahead of the masses. When the US dollar bubble pops and follows other currencies lower, then gold and silver may appear as the new safe haven. It is at this time where our junior miners which are trading at pennies could be trading for dollars.
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Majors Focus On Acquiring Large Polymetallic PGM Projects In North America

Majors Focus On Acquiring Large Polymetallic PGM Projects In North America
For weeks I highlighted that the low valuations in the junior resource space will attract large miners especially in the platinum and palladium (PGM) space which has a huge supply demand imbalance. This past week Antofagasta offered $.45 per share for junior miner Duluth Metals Twin Metals Ni-PGM deposit in Minnesota. The Twin Metals Deposit is similar to this junior in the Yukon. Dundee put out a research note after the transaction which showed if this junior was bought out at the same valuation as Duluth it would be priced at $1.85 share. Today's price in the mid fifty cent range is quite cheap especially as we see the growing interest in Platinum and Palladium sources outside South Africa.
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Breakout Alert: Junior Gold Miner In Nevada Discovers Impressive New Gold Zone

Breakout Alert: Junior Gold Miner In Nevada Discovers Impressive New Gold Zone
For several weeks I have been expecting a major secular bottom in precious metals and I told you to watch for the accumulation after capitulation.For about the two past months, we have witnessed panic selling in precious metals and junior miners the capitulation. However, on November 7th and 14th we saw major accumulation in gold futures on high volume. This may signal the beginning of a major short covering combined with value buying or the accumulation after the capitulation. This junior may breakout as it discovered a new gold zone.
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Record Volume In GDXJ Junior Gold Miners Could Indicate a Bottom

Record Volume In GDXJ Junior Gold Miners Could Indicate a Bottom
In a recent landslide election, Republicans took back control of the Senate and House. President Obama's approval rating is very low.  Although there a few making money in the stock market, the majority of the American people are fed up with close to 100 million people not working.  Welfare and entitlement spending is out of control.  The debt is still soaring close to $20 trillion and the dollar is rising making it even harder for politicians and banks to avoid default. Somehow irrationally despite billions of dollars being printed under the guise of QE, the US dollar is rising. The question I ask is how long do you really believe this dead cat bounce in the US dollar will last? It may be just a bounce in a long term downtrend and is only relative to the other fiat currencies in fast decline.  Smart investors should be accumulating gold and silver coins and high quality junior mining stocks trading now at historic lows.  It should be noted that coin sales are picking up especially mint grade numismatics.
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Game Changing Technological Breakthrough in Heavy Rare Earth Sector

Game Changing Technological Breakthrough in Heavy Rare Earth Sector
In my premium service last week after the US Election, I told my readers to keep a close eye on the heavy rare earths especially Ucore (UCU.V or UURAF), which has significantly outperformed the beaten down and ignored rare earth sector by a wide margin. Ucore has been the major winner in 2014 and this relative outperformance may be just the beginning as they announce today a major breakthrough in rare earth metallurgy. Ucore released results from recent testing of Molecular Recognition Technology (MRT) which produced a 99%+ HREE Concentrate from the ore from Bokan Mountain in Southeast Alaska. The first step to separation into salt is by producing a pure concentrate which was conducted by IBC Advanced Technologies. The company is testing to see if MRT can produce and separate the individual heavy rare earth oxides.
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Institutional Buying Sends Uranium Miners Soaring on Major Volume

Institutional Buying Sends Uranium Miners Soaring on Major Volume
A few days ago I penned an article entitled "Uranium Spot Price Breaking Out, Junior Uranium Stocks Ready To Bottom?" In the report I said, "There is a lot of buying in the spot market and it should be soon reflected in the performance of the junior uranium miners (URA)... Look for a breakout." Now only a week later, the uranium mining etf (URA) is up 11.5% and Uranium Participation Corp (U.TO) up 5% on triple average volume. Some of our favorite uranium miners are flying such as Uranerz (URZ) up 15%, Pele Mountain (GEM.V) up 14%, U3O8 Corp (UWE.TO) up 33.3% and Laramide (LAM.TO) up 20% and Fission (FCU.TO) up 12%. It seems as if all the institutions are jumping in after the recent capitulation of some major funds in Toronto.
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