Yearly Archives: 2014

Why Capital May Be Flowing From Equities to Junior Miners in 2014

Why Capital May Be Flowing From Equities to Junior Miners in 2014
The gold (GLD) and silver (SLV) price may be reversing over the next couple of weeks. The junior miner gold ETF (GDXJ) is reversing above the 50 day moving average and breaking above its recent three month downtrend. When the huge cash positions waiting on the sidelines or taking profits in the equity market rising on low volume return to the ignored resource sector the gains could be huge. Already the volume in GDXJ in 2014, has jumped outpacing 2012 and 2013. On the other hand the S&P500 has been rising on light volume which is often a warning sign that the extended rally is getting exhausted. This indicates to me that possibly the large institutions are accumulating the juniors after all the retail investors jumped ship. Prices could jump rapidly in the Toronto Venture Exchange where most of the legit junior miners are traded. These small cap juniors could gap higher as the major institutions are hardly exposed to the mining sector at all. It appears that some of my charts are showing a potential reversal in the precious metals. Get ready for an incredible bounce higher in precious metals. Here are five reasons why.
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The Lower The Uranium Price, The Higher The Rebound

The Lower The Uranium Price, The Higher The Rebound
These are the best times for contrarians some of who are doubling down at these levels. They realize that big money continues to wait on the sidelines to enter the spot market. Uranium Participation Corp (URPTF) raised $58 million to buy spot uranium. There has not seemed to be much buying since this raise which may mean they are looking for a time to enter. When the buying begins look for the uranium spot price to gap higher. This recent capitulation in the uranium spot price to below $30 may signal the shorts are exhausted. After arguably seven years of basing, uranium has all the characteristics for a sector about to bounce off a major bottom.
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Top 10 Reason To Invest In This Junior Gold Miner in Nevada

Top 10 Reason To Invest In This Junior Gold Miner in Nevada
I recently spoke to Bob Kramer last Wednesday and he was so excited about the drilling program this summer. Unfortunately, Bob Kramer will never be able to see the results of what he worked so hard to achieve these past few months as he suddenly passed away over the weekend. Bob worked so hard over the past few months to raise the capital from a strategic investor to fund this year's drilling program. Family came first to Bob. I would like to send my deepest condolences to Bob Kramer's family and all his loved ones.In January of 2014, I worked with Bob up in Vancouver to create the top 10 reasons to invest in Canamex Resources as I believed this should go in the front of the presentation. Here are the reasons Bob and I both came up with:
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This Junior Gold Miner is Trading at Less Than One Third of its Book Value

This Junior Gold Miner is Trading at Less Than One Third of its Book Value
Gold and silver mining stocks are going through a pullback after jumping considerably in the first quarter of 2014. Despite the correction in gold mining equities, I have searched for undervalued gold situations with large deposits and the financing to advance the project. Eventually, the junior gold and silver stocks will rebound magnificently from these historic oversold levels. Value investing contrarians look at this junior gold miner trading at less than one third of its book value.
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Ucore Rare Metals Marches Closer To Production On Alaskan Bond Approval

Ucore Rare Metals Marches Closer To Production On Alaskan Bond Approval
Attention must be paid to the heavy rare earth sectors which is dominated by the Chinese. Tensions are increasing between the West (US, Europe and Japan) and the East (China and Russia) over trade, territories and natural resources. No where is this more apparent than in the rare earth metals. These metals are critical for our high tech military applications, permanent magnets and green energy. The U.S. imports close to 100% of this material from China. This may soon change as the Alaskan Legislature unanimously approved a $145 million bond which will allow Alaska to issue bonds for Ucore Rare Metals (UCU.V or UURAF) Bokan Heavy Rare Earth Deposit. All 38 Alaskan representatives in attendance voted in favor of the bill which would allow Alaska to fund the infrastructure and capital costs at the mine.
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Why Niocorp (NB.V or NIOBF) Is Soaring Over 230% in 2014

Why Niocorp (NB.V or NIOBF) Is Soaring Over 230% in 2014
Niocorp is soaring 230% in 2014 and has reached a short term overbought condition. New investors should look for a healthy pullback or consolidation to the 20 or 50 day moving averages. See my recent interview with CEO Mark Smith. Mark built Molycorp (MCP) from hardly nothing to a billion dollar company...Niocorp (NB.V or NIOBF) may be his next major project he brings into production.
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Palladium Breaks $800 As Economic Sanctions Stifle Russian Miners

Palladium Breaks $800 As Economic Sanctions Stifle Russian Miners
For weeks, I warned you that palladium was on the verge of a breakout past $800. Now it is hitting new two year highs as the U.S. threatens Russia, the world's largest supplier of this precious and industrial metal used to control pollution from automobiles. In addition, strikes from miners in South Africa, the second biggest palladium producer is putting strain on the supply side. Demand for automobiles is growing most notably from China who needs palladium desperately to reduce toxic air emissions in their smog filled urban areas. Demand is exceeding supply now for several years.
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Why These 2 NYSE Gold Producers are Buying This Junior During a Bear Market

Why These 2 NYSE Gold Producers are Buying This Junior During a Bear Market
Gold is gaining strength as it may soon close above the 50 day after reversing above the 200 day moving average after falling below that level last week. That may have been a shakeout of weak hands below the 200 day as it appears in 2014 money has been moving from the overbought equity market into the undervalued commodities in the form of junior miners. Look for a close above the 50 day at $1310. Investors may be preparing for the eventual reinflation, which may have been sparked by Yellen's taper. The U.S. dollar and general equity market appears to be forming a rounding top while gold, silver and the junior miners are seeing increased accumulation a higher lows typical of new bull market moves. The key now is asset preservation in a rising interest rate, inflationary environment. I still believe gold, silver and the industrial metals specifically PGM's, nickel and uranium could soar. These are the areas that I believe are the safest to be when interest rates are negative and when Central Banks are continuing to fire up the printing press engines. The overbought social media and marijuana stocks with no earnings could be just beginning to bust. Look at all the IPO's in social media and pot stocks reminding us of the Dot.Com craze. While these stocks come back to earth the junior miners could actually soar as The Fed may have to reverse their taper moves and actually increase quantitative easing to deal with the aftermath of the tech/marijuana bubble bursting.
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Look for Leverage to a Rising Gold Price with this Undervalued Junior Miner

Look for Leverage to a Rising Gold Price with this Undervalued Junior Miner
Smart gold investors such as Toqueville Gold, Anglogold Ashanti and Paulson are still holding onto their shares of this stock and we actually may be witnessing increased accumulation over the past five months. Since the release of the Feasibility Study the stock has soared over 180% outperforming the GDXJ and the GLD. Why was there an increased share price despite the sell recommendations of the banks and brokerage houses after the Feasibility was published? Because Ithe Project offers one of the best leveraged vehicles to a rising gold price.
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