Recent Posts by Jeb

Gold and Silver Outperforming General Equities For The First Time Since 2011

We have become a nation of debtors. Between mortgage, student loan and credit card debts the average citizen owes over $50,000. To a certain proportion of our nation free and easy fiat money may well be the way to go in the short term. Eventually, the piper must be paid. We may have to face one day that the party is over. Our large creditors such as the Chinese are already looking to diversify away from U.S. debt and the dollar. Our critics have felt that our patience with precious metals positions are not buy and hold, but buy and hope. So far our long range charts signal that gold and silver are in a continuing bull market, which are sometimes obfuscated by a concentration on the short term tactical decisions. The technical picture reveals the opposite. Gold is outperforming and may continue to decouple from the equity markets. Remember inflation and uncertainty is bullish for precious metals and bearish for the general equity market. Are we beginning to witness this phenomenon?
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New Management Team Assembled To Advance World Class Platinum Discovery

Gold and silver are good investments to hedge against the coming hyper-inflation but a couple of weeks ago we told our readers that platinum may soar more. One company is making rapid progress and has strengthened its management team this November to move forward to production. This is a major achievement for this platinum company to attract this type of management talent with proven experience. They now may have the capability to build and successfully operate the next major nickel-PGM in North America. As the CEO stated in their most recent news release, "...we are putting in place a highly experienced management team to advance the development of the world class PGM-Cu-Ni project in the Yukon.”
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Corrections In Gold And Silver Could Provide Buying Opportunity Before Election

This volatility in precious metals and mining equities while striking panic is just a test to shake us out. This is precisely a time not to be concerned. The more sophisticated buyers may be taking advantage of the situation to hold on and indeed add to positions for those who were not able to get in before this summer breakout. Remember, bull trends in gold and silver rise on walls of worry. Healthy pullbacks afford secondary opportunities. We may be basing and bottoming right now. A powerful reversal could occur after the election.
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Why The Large Miners May Acquire Near Term Gold Producers In Europe

Greece is focusing on revitalizing the mining sector by fast tracking four mines that are in development. Athens hopes to be the biggest producer of gold in Europe by 2016. The politicians realize that the mining sector has great potential to create high paying jobs and revitalizing a moribund economy. For years prior to the economic crisis, mines in Greece were help up and permits were delayed by red tape and bureaucracy. Now that has changed as witnessed by Eldorado Gold's (EGO) $2.4 billion takeover of European Goldfields, which prior to the acquisition received critical permits. Similarly now in Spain, The Galician Government has labeled this Gold Asset as a "strategic industrial project" crucial for economic development and numerous high paying jobs for a region hit by record unemployment. The implications of this decision is significant as the company may receive permits imminently as Galicia needs investments in the region to accelerate sooner rather than later.
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Why The Miners May Outperform Gold After The Election?

The miners are already beginning to outperform both bullion and the S&P 500 and we believe this trend will continue due to favorable fundamentals and seasonality. For the past six months, the silver miners (SIL) and gold miners (GDX) have outperformed. We expect this trend to continue as investors see possible weaker earnings and slowing growth in the large caps yet rising inflation and commodity prices, which benefit the miners. Notice that even during this pause in the rally both the gold and silver miners are holding up well versus the S&P500 and are outperforming bullion. The miners may be forecasting a coming breakout in gold at $1800 or a rotation from large caps to miners. After this breakout look for the large miners with rising share prices to make deals with the cheap junior gold miners for large premiums.
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Why The Chinese May Buy Undervalued Junior Miners

At this very moment, Chinese investors are utilizing a novel approach buying natural resources as the U.S. dollar and long term treasuries are possibly on the verge of a major decline, leaving the Chinese overweighted in this risky sector.
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Why This New Uranium Mine Is Critical For European Nuclear Power

Recently, nuclear giant AREVA became a major shareholder and sits on this junior uranium miner's board as they are interested in the low cost of production and extremely high grade at their project. Areva paid $.35 for the deal so new investors could purchase shares significantly discounted to that placement. This is a major stamp of credibility and prestige as this company emerges from being a junior explorer into a developer of Europe's next uranium mine with the backing of a major nuclear institution.
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Platinum Price May Outperform Gold and Silver As Strike In South Africa Intensifies

We have serious supply concerns as the majors delay large mines and South Africa one of the largest producers of gold, platinum and palladium is facing the worst and most violent labor crisis in decades. This will not end quickly and may continue to plague the South African mining industry. This will not only put pressure on the supply of gold, but could cause platinum to spike as more than 80% of the world's supply originates from this questionable jurisdiction
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Supply Demand Fundamentals Point To Powerful Rebound In Uranium Mining Stocks

Over the next 12–18 months, the uranium sector is going to have a very powerful rebound based on supply-demand fundamentals. So it's very important to watch what the smart money is doing when prices are down and the uranium miners are trading at 52-week lows. Consider the recent deals that have been occurring, including a utility signing an offtake agreement with Paladin Energy Ltd. (PDN:TSX; PDN:ASX) and Chicago Bridge & Iron Co. (CBI:NYSE) buying The Shaw Group Inc. (SHAW:NYSE) for its nuclear building capabilities.
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