Monthly Archives: August 2015

Post Stock Market Crash, Will Investors Look To Junior Gold Miners as a Hedge?

Post Stock Market Crash, Will Investors Look To Junior Gold Miners as a Hedge?
Despite equity markets hitting new highs many of the sectors were already in decline. This historic crash over the past week has been fueled by one of the most overbought markets that I can remember since the dot com bust. After the dot com bust investors sought out value in the deeply discounted commodity sector and junior miners. I expect history may not repeat but it should mimic. After the dot com bust junior mining was the place to be.
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Jeb Handwerger, “Prices for rare earths could be making a comeback.”

Commodities have seen a broad decline, but prices for rare-earth elements are poised for a recovery. That may come as a surprise following the bankruptcy filing by U.S. rare-earth miner and producer Molycorp Inc. earlier this year, and given the uncertainty surrounding metals demand and the economy in China, a country which controls nearly all of the world’s rare-earth market.
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Positive Gains In 2 Junior Gold Miners Despite TSX Venture Meltdown

Positive Gains In 2 Junior Gold Miners Despite TSX Venture Meltdown
In 2014, my readers were blessed in seeing two of our junior mining equities soar higher than the entire small cap market. Now in 2015 despite the worst bear market in junior gold mining history, once again we have seen the great out-performance of two of our select junior gold companies. Its easy to pick outperforming junior miners in a bull market, its much more challenging to find the winners in a historic bear market when the category 5 hurricane winds are blowing against you trying to knock you down. Be careful out there and stick with the stock pickers who can pick winners in a bad market. Take a look at these two junior gold miners on the TSX Venture able to post positive gains despite a record decline in the junior sector.
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Lithium Ion Battery Growth Boosting These Junior Miners Seeing High Volume Breakouts

Lithium Ion Battery Growth Boosting These Junior Miners Seeing High Volume Breakouts
Lithium and graphite are two of the most important materials for lithium ion batteries which have seen a huge increase in consumption over the past decade. Annual growth is around 20% which means demand doubles every five years at this point. The main driver is the increase in use of smartphones, laptops and tablets in addition to the increasing popularity of Tesla's electric cars. Increasing volume and price rises have recently come into some of our featured companies...
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Major Bottom Reversal Follow Through in Junior Gold Miners (GDXJ) and Uranium Miners (URA)?

Major Bottom Reversal Follow Through in Junior Gold Miners (GDXJ) and Uranium Miners (URA)?
On Friday July 24th, the GDXJ made a bullish engulfing reversal on major volume. Then eleven days later a major follow through occurred on high volume. The news that drove interest was China devaluing its currency. The mainstream media and majority of pundits were claiming currency wars were over as precious metals were discarded. I disagreed and maintained that we would see a bottom in our real assets. Now this Yuan devaluation could start the next round of competitive currency devaluations and the beginning of inflation. The Fed may be reluctant to raise interest rates as the strong US dollar curbs growth and makes it more challenging for the US Government to pay back its record amount of debt. This may be the perfect storm for precious metals to once again take center stage and eventually breakthrough 2011 highs at $1900 USD.
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Voisey’s Bay Area Capturing Attention of Junior Mining Investors Once Again

Voisey’s Bay Area Capturing Attention of Junior Mining Investors Once Again
The worse things were the better they will get. This market has led to most companies going inactive. This will dry up potential supply of metals planting the seeds of the next boom. Silence and inactivity is death in the junior sector. Continue to look for companies raising capital and beginning to drill. A new discovery could transform our beaten down sector.
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Ready For The New Bull Market in The Junior Mining Sector?

Ready For The New Bull Market in The Junior Mining Sector?
It is possible we are once again at or near the turning point or bottom in the junior mining sector and near a top in the tech sector. Only a handful of the tech high flyers have pushed the equities higher. Already the transports and utilities have been under-performing. It may be wise to hedge gains made in the S&P500 and Nasdaq and increase accumulation of precious metals and the junior miners near historic lows. July 24, 2015 may have marked an interim low on the GDXJ as it experienced a classic bullish engulfing reversal pattern on high volume. Since this past Monday, support has come into some of our selected miners. If its the beginning of the rally, follow through should occur by the end of this week. I am still cautious as the precious metals rallies have been fake outs in the past. In order to confirm the interim low I would like to see some increased buying before the end of this week.
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