Category Archives: Latest Commentaries

GDXJ Breaks 50 Day Moving Average For First Time in Four Months

GDXJ Breaks 50 Day Moving Average For First Time in Four Months
Investors should specifically watch out for breaks of critical moving averages such as the fifty day moving average (50 DMA). A break above the line indicates a potential change in trend. The junior gold miners (GDXJ) have broken above the 50 DMA for the first time in four months. This means the probability of a change of trend has increased. Confirmation of a major bottom would be a break of November highs at $30.
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Uranium Miners M&A: Top Uranium Pick Acquired For $150 Million

Uranium Miners M&A: Top Uranium Pick Acquired For $150 Million
For over 4 years I have been telling my subscribers that Uranerz is one of the best takeout targets in the whole junior uranium industry. I always considered Uranerz a top takeout target in the junior uranium mining sector. Earlier this morning, Uranerz (URZ) reached a deal that it would be acquired in a friendly all share deal by Energy Fuels (UUUU).  Uranerz shareholders should receive .255 common shares of Energy Fuels.
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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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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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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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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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Uranium Spot Price Breaking Out, Junior Uranium Stocks Ready To Bottom?

Uranium Spot Price Breaking Out, Junior Uranium Stocks Ready To Bottom?
The commodity equities are selling off as The Fed halts QE3. Commodities, metals and the junior miners are hitting multi year lows and falling below 2008 credit crisis levels. This is not a time to panic but continue to accumulate as the bear market may be reaching the final capitulation stage. This decline may be a sign that the quantitative easing may have lifted stock market indices, but it did little to improve demand and growth in the economy reflected by demand for energy and metals. I just returned from the New Orleans Conference which was headlined by Alan Greenspan the former Federal Reserve Chairman from 1987 to 2006. It is interesting to note that Greenspan has become bullish on gold. He believes that quantitative easing did not accomplish what it was designed to do. It helped lift the stock market and stabilize the real estate market, however it fell short as the US economy is not really recovering like it should have. Gold is the best hedge against this uncertainty.
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Chart Shows A Potential Double or Triple in the TSX Venture

Chart Shows A Potential Double or Triple in the TSX Venture
Clearly, the strong global economy purported on CNBC has not yet been reflected on the TSX Venture Exchange yet. However, that may change over the next 3-5 years and now may be the time to buy up the best resource assets at historic lows. Over the past decade, The TSX Venture has at least doubled or tripled from these historical low levels where it is currently trading.
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Gold and Silver Still In Major Uptrend On Long Term Charts

The Chinese and Russians were some of the largest acquirers of physical gold. Also large hedge funds some managed by industry giants such as Paulson, Soros, Rogers and Einhorn began buying ETF's and junior miners. This led to a parabolic and overbought move in precious metals, which I cautioned my readers about in the referenced article above. It should be noted a few days after this article was published silver topped at $50 and gold rolled over a few months later at $1900.
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