Category Archives: Latest Commentaries

Turning Point In Precious Metals and Miners?

Turning Point In Precious Metals and Miners?
Recent waterfall declines in gold and silver below 5 year trailing moving averages and hitting historic oversold valuations are indicative of a major once in a generation bottom. We are hitting thirty year lows in the resource arena. Eventually, the precious metals sector will turn back higher and hit new inflation adjusted highs. Look for a break above the 50 day moving average which on the GLD is right now $129.08 and on the SLV at $20.40.
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Prepare For The Coming Clean Energy Boom In Uranium and Rare Earth Miners

Prepare For The Coming Clean Energy Boom In Uranium and Rare Earth Miners
A recently released documentary, "Pandora's Promise" explores the transformation of staunch anti nuke environmentalists into believers of the benefits of nuclear power. This is a must watch film as these activists believe that nuclear energy could really transform the world.Governments around the world including most recently President Obama have been discussing strategies to address the climate crisis. Nuclear is the only source that can provide additional supply of base load power without hurting the atmosphere. These environmentalists are seeing a major gap between fossil fuels and renewables like wind and solar. Renewables are unable to make up the gap alone. Coal, natural gas and oil demand is still growing. Being anti-nuke is a dangerous policy in light of the rising demand for fossil fuels. Do not be surprised to see more mainstream environmental organizations support the development of next generation nuclear technologies that are safer, more efficient and cleaner.
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Value Investors Entering Junior Mining Sector?

Value Investors Entering Junior Mining Sector?
Turn off the negative news that is broadcasted to misdirect and confuse investors. Follow the capital to quality situations like these few examples which are building value during challenging times. It is during these difficult times in the resource sector when the greatest opportunities are discovered. Remember American Barrick Resources started off as a 16,000 ounce producer in the 80's down market in gold and grew to be Barrick Gold Corp, the largest gold producer in the world.
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Insider Buying May Indicate A Comeback For Coal Stocks

Insider Buying May Indicate A Comeback For Coal Stocks
I have recently written about a potential rebound in coal. It is a hated sector by fellow analysts and the investment community as the consensus believes that coal is dead. Hardly anyone covers this sector right now, which provides astute investors with discounted situations. Incidentally, a Barron's article highlighted the insider buying in the coal sector at a time of extreme negative pessimism. This could indicate a bottom for the coal sector.
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Turning Point For Uranium and Rare Earth Miners?

Turning Point For Uranium and Rare Earth Miners?
This recovery in the large rare earth miners may prove to be a turning point for the junior rare earth developers of critical and heavy rare earths. In 2010, rare earth prices exploded as diplomatic tensions built up with China. The demand for these metals are rising exponentially as they are used for smart phones and TV’s which is just entering the emerging world. In the Western World, there are more than seven screens per household. In China there is less than one.
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Look For Bullish Reversal In Uranium Miners As Electricity and Air Pollution Rates Soar

Look For Bullish Reversal In Uranium Miners As Electricity and Air Pollution Rates Soar
The uranium price is down 40% percent since the Fukushima disaster in March of 2011 as Japan and Germany made a political, knee-jerk reaction to shut down reactors and rely heavily on natural gas. Many investors continue to look backwards, contrarians like us take a look forward. Natural gas is above $4.25 and rising. It has doubled over the past year. The Fukushima reaction may have been a boom to natural gas in the short term, but utilities are passing on the high costs to consumers. Japan and Germany who have relied on importing natural gas now have some of the highest electricity costs in the world and this is causing a major backlash from domestic industries. Consumers are being crippled by these high rates. Voters have elected in a pro-nuclear government in Japan and may oust Germany's Merkel as the economy is on the brink of recession.
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Why Platinum and Palladium Should Continue To Outperform

Why Platinum and Palladium Should Continue To Outperform
This pullback in the metals complex may give an opportunity for investors to diversify into platinum and palladium, which have both a practical use as a monetary hedge against inflation and as a critical industrial component for clean automobiles. In addition to automobiles, PGM’s are used in cell phones, jewelry and computers. Supply for Platinum group metals may be at an all time low, while increasing demand for clean automobiles, investors and consumers will need addition platinum and palladium projects in stable mining jurisdictions. Recycling can not fill the supply gap.
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The Worse Things Were For The Mining Sector, The Better They Will Get

The Worse Things Were For The Mining Sector, The Better They Will Get
Gold and silver may see physical shortages hit and that is when attention will be paid to the growing gold producers significantly expanding cash flow. Demand for precious metals have soared on this pullback. We should witness a powerful bounce after the recent shakeout. This should boost the beaten down large producers and eventually the early stage explorers.
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Short Covering After a Bear Attack on Gold and Silver

Short Covering After a Bear Attack on Gold and Silver
It appears Goldman Sachs is covering its short on gold as it rebounds above $1400. Meanwhile, they have helped confuse and misdirect the investment community out of gold. This was a classic shakeout and bear trap which is going to start major short covering. Be ready to see increased short covering combined with record physical demand. These are the elements for a price spike and breakout higher in both gold and silver.
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