Category Archives: Latest Commentaries

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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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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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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Shorts Covering In Resource Sector Rally

Shorts Covering In Resource Sector Rally
The time to accumulate undervalued resource assets is waning as prices rebound rapidly. The time to buy is when they are priced at major lows with massive short positions. Now the public is concerned about declining gold prices. But that concern may be coming to an end. The shorts may have already begun to cover in the junior mining resource sector as M&A increases.
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Technicals Finally Reflecting Fundamentals In Resource Sector With Bullish Breakouts

Technicals Finally Reflecting Fundamentals In Resource Sector With Bullish Breakouts
It may seem like a confusing time to be a mining investor, but Jeb Handwerger, of Gold Stock Trades, insists it doesn't take a rocket scientist. "Stick to the fundamentals," he says. "The technicals will eventually reflect the fundamentals." In this interview withThe Mining Report from early December, Handwerger talks about what companies have the right foundation to shine after the market dusts itself off and starts to climb. As Jeb said in the interview, "Some people are thinking about leaving the sector. That's not the right approach. Gains could be exponential in the coming weeks. The right approach is to rotate into situations that will outperform, even if gold and silver stay flat. Stick to advisors who are finding the most compelling situations. Corrections take longer than people expect—the longer and the deeper the base, the more powerful the eventual upswing. It could be huge with the record amount of cash on the sidelines and the large number of shorts who may need to cover their position." Since this interview was published the Venture Index has jumped close to 100 points and broke the 200 day moving average.
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Western Canada’s Alberta May Be The Strongest Economy in the World

Western Canada’s Alberta May Be The Strongest Economy in the World
Currently, there is an explosion of economic growth in Western Canada most notably Alberta. Due to the increased demand for energy coming from Asia, Western Canada may be one of the best economies in the world right now. Unemployed Americans and Europeans with technical skills are already finding high paying jobs. Alberta's economy based on oil and gas is one of the strongest with a low unemployment rate and over 3% real GDP growth. Over the next decade, hundreds of billions of dollars will be invested to build LNG facilities and major pipelines in Western Canada in order to transport petroleum to the emerging economies in Asia. There are already five major pipeline proposals. In addition, see all of the proposed LNG facilities and pipelines that should be built over the next decade.
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Resource Sector Starts 2014 With A Boom Higher: TSX Venture Up 11 Consecutive Days

Resource Sector Starts 2014 With A Boom Higher: TSX Venture Up 11 Consecutive Days
Eventually, these downturns end in the resource sector and when they do massive rebounds begin. When you see record shorts like we are seeing now in gold it usually signals a major bullish turning point imminently ahead. The taper is not a signal to sell gold but to possibly buy. Inflation should start to pick up. Notice gold and silver are still holding the summer 2013 lows and the TSX Venture is breaking above the 200 day moving average. The TSX Venture is up 11 straight days. The small miners are a leading indicator and may be signaling the smart money is expecting gold to hold the $1200 bottom. This technical reversal may forecast increased interest of smart capital into the sector. This improving technical landscape in our featured companies and the TSX Venture closing above the 200 day moving average while gold and silver is basing may signify that the recent taper and improving economy may actually be the beginning of a coming boom to the entire resource complex.
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U.S. Defense Department Conducting Research With Junior Rare Earth Miner

U.S. Defense Department Conducting Research With Junior Rare Earth Miner
The Pentagon just released an encouraging report that says that The West is making progress in breaking the Chinese Monopoly on heavy rare earths. The U.S. Department of Defense is hoping to build a domestic rare earth supply chain that can provide the rare earths for the military and industrial sector. Prices are basing indicating that the market believes that additional supplies of rare earths will come online. These critical rare earths are important for some of the top soaring stocks such as Apple, Tesla, Vestas, Raytheon, GM and Boeing. Closely watch the rare earth sector as the U.S. flies B-52 bombers into disputed zones with China. Escalating tensions may have major implications on the price of rare earth oxides in the West. China controls 99% of heavy rare earth production which is critical for the West’s latest military technologies. The Chinese just announced a major cut in heavy rare earth exports.
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