Yearly Archives: 2014

Battery Market Is Powering Up Demand For This Lithium Asset In Nevada

Battery Market Is Powering Up Demand For This Lithium Asset In Nevada
The recent news that electric car maker Tesla (TSLA) is planning to construct the biggest lithium-ion battery plant right here in the USA may be validating our long term buy and hold investment thesis in this once ignored sector. Tesla has announced that they are planning to produce an affordable electric car for the US market within three years. This is a huge catalyst for the North American lithium and graphite miners who will be able to supply companies like Tesla. Battery manufacturing could be a major area of economic growth over the coming decades. Similar to the internal combustion engine, lithium-ion batteries could revolutionize transportation over the coming decades and reduce the world's carbon emissions. Tesla has a market cap of $31 billion and may now be on the lookout for some of our lithium and graphite juniors in North America that we have been writing about for many years that are still trading for pennies on the dollar but are on the verge of major breakouts.
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China Must Look Abroad For Metals and Energy To Support Growth

China Must Look Abroad For Metals and Energy To Support Growth
Headlines about a Chinese economic slowdown may get good web traffic, but the real story is that China is buying up uranium and other resources around the world, says Gold Stock Trades writer Jeb Handwerger. Meanwhile, tensions in Russia highlight the massive country's resource dominance in natural gas, oil, uranium, platinum group metals, rare earths and nickel. Handwerger tells The Mining Report that North America is already acting to develop resources that can meet both domestic and international demand—and this global geopolitical uncertainty is an investment opportunity.
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Nickel Price Breaking Into New 6 Month Highs On Crimean Crisis and Indonesian Export Ban

Nickel Price Breaking Into New 6 Month Highs On Crimean Crisis and Indonesian Export Ban
In late January I told all my subscribers that its time to watch nickel as Indonesia instituted an export ban cutting off possibly a quarter of global supply. Now six weeks later the nickel price powers through the critical $7 mark and Bloomberg writes an article entitled "Nickel Heads for Bull Market..." Its better to be six weeks early, then late. Why is nickel so important and breaking out past $7?
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Gold-Silver Producer In Nevada Outperforming Peers

Gold-Silver Producer In Nevada Outperforming Peers
For many months, I highlighted the rising demand for precious metals from investors looking to diversify away from declining fiat currencies most notably out of Chinese and Indian investors. The new Fed Chair Yellen may be sparking off an inflationary rally as gold and silver appear to breaking above key technical levels. At the end of 2013, mostly no one wanted to own gold and silver bullion and definitely didn’t want the junior gold and silver miners as the price of gold declined from $1900 to below $1200 and silver declined from $50 to below $19. I called it a historic holiday discount buying season. Many who believed prices would continue lower and shorted may now be covering as gold and silver breakout and regain the 200 day moving averages and hit new four month highs.
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Junior Rare Earth Miner Soars On State of Alaska Support

Junior Rare Earth Miner Soars On State of Alaska Support
No other rare earth company I know of has been given the local support like this one has received from the State of Alaska. Shareholders and management are very thankful to the state as the value of this asset should continue to soar on this historic and unprecedented local geopolitical support. This is the first time that I have seen a state actually propose financial support to a rare earth mine. A heavy rare earth project like this could be bring huge economic opportunities and jobs to Southeast Alaska and restore U.S. independence. This may signify that this rare earth miner has regained itself as the U.S. leader in the heavy rare earth race. Look for a bullish golden crossover after this historic and high volume technical breakout.
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Focus on Stable Platinum and Palladium Miners in N. America

Focus on Stable Platinum and Palladium Miners in N. America
The platinum and palladium market has grown substantially in the past generation in its use in catalytic converters to reduce noxious air emissions such as carbon monoxide and particulate matter from automobiles. The use of catalytic converters in the developed countries has reduced emissions drastically. However, demand is rising for catalytic converters in China as the government may be instituting increased regulations to reduce toxic air emissions. There is a major health concern in major cities in China due to thick and dark smog. The large cities are increasing regulations to control air emissions to alleviate this dangerous problem.
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Resource Sector Should Heat Up with M&A in 2014

Resource Sector Should Heat Up with M&A in 2014
The resource sector is heating up with merger and acquisition activity as I predicted only a few weeks ago in this recent article. When the herd was ignoring our sector I positioned my readers ahead of the curve and called it a rare holiday bargain sale. Now only a few weeks later the resource sector is leading the market as evidenced by the outperformance of the TSX Venture Index over the Dow Jones Industrial Average and rise above its 200 day moving average. A huge influx of money has been rotating from the overvalued blue chips, social media, bank and real estate sectors into the junior mining resource stocks. This chart below shows that the Venture Dow Ratio is breaking out above the 200 day for the first time in three years. Look for a bullish golden crossover of the 10 and 40 week moving average for a confirmation of the bottom. Goldcorp (GG) is launching a hostile takeover for Osisko Mining (OSK.TO) for $2.6 billion. Goldcorp is going after Malartic low grade-bulk tonnage Malartic Gold Mine. If Goldcorp is buying a low grade, high production asset then they probably think gold prices are headed significantly higher unlike the pundits on the TV.
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Uranium Miners Spiking Higher in 2014 As Utilities Face Supply Shortfall

Uranium Miners Spiking Higher in 2014 As Utilities Face Supply Shortfall
We are almost at the third anniversary of the once in a millennium Fukushima Disaster. Lessons have been learned from the accident. The nuclear sector is once again rebounding, getting up off the mat and making a late round comeback. The uranium miners are just beginning to breakout forecasting that the uranium price may be on the verge of a reversal off of 8 year lows. Cameco (CCJ) and Uranium Participation Corp. (U.TO), the two major bellwethers for the sector may be just beginning to make a move. Cameco just hit a new two year high.
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Corvus Gold (KOR.TO or CORVF) Makes New 52 Week High: Leading The Junior Gold Mining Sector

Corvus Gold (KOR.TO or CORVF) Makes New 52 Week High: Leading The Junior Gold Mining Sector
I wrote a few weeks ago, “Corvus may now bounce off its 50 day moving average at $1.15 and breakthrough resistance at $1.30. The next target would be all time highs at $1.80.” I also sent out this chart several weeks ago.Corvus is now testing the major resistance of all time highs at $1.80. The next possible breakout is the 2012 high right here at $1.80. If Corvus breaks through that high, then it would be my subscribers second time since 2011 of making a double on this top notch junior gold miner.
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