Category Archives: Latest Commentaries

Gold Price Will Continue Higher as Rate Of New Discoveries Decreases

Gold Price Will Continue Higher as Rate Of New Discoveries Decreases
Junior mining stocks are at record oversold levels, rarely presented to investors. This may be representing a historic bargain basement buying opportunity. Long term mining investors are aware that the rate of new gold discoveries is decreasing despite record exploration expenditures from the majors. Enter center stage, a rising project generator, who uncovers new greenfield exploration targets...
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Bottom Forming In Precious Metals and Miners

Bottom Forming In Precious Metals and Miners
This is an ideal time to make this move, the U.S. dollar appears to be stronger for the time being, U.S. bonds are selling at relatively record low yields, unemployment remains high, commodities/precious metals have significantly corrected and the risk of inflation has abated. In fact, they may be already printing LTRO 2 to staunch the Eurozone collapse. Just as QE2 was used by the Federal Reserve Board to staunch the bleeding of the Eurozone in 2010, it is entirely possible that they will institute the latest version of can kicking down the road. Let us hope they “follow the yellow brick road” and we may witness a rotation from overbought equities into tangible assets, commodities and mining equities.
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Ambivalence and Confusion At The Fed May Add Fuel To The Coming Precious Metals Rally

Ambivalence and Confusion At The Fed May Add Fuel To The Coming Precious Metals Rally
Do not forget that over the past decade the large miners have outperformed bullion. Since the second half of 2011 we have seen a divergence where the miners have underperformed equities and the underlying bullion. This may be a reversion to the mean as miners drastically outperformed bullion and U.S. equities for more than a decade. We are reaching an area of support and an oversold condition in the miners which has historically preceded a powerful upmove.
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Why Graphite Stocks May Continue To Outperform In 2012

Why Graphite Stocks May Continue To Outperform In 2012
Carbon wears many faces. It ranges in form from precious diamonds such as Elizabeth Taylor’s Hope Diamond to electrolytic anodes found in the new generation of batteries. The word graphite originates from the Greek meaning to write. Now we see that graphite isn’t just found in pencils anymore. Graphite is rapidly earning a new recognition as a component in the latest clean energy technologies such as the Lithium-Ion Battery, Fuel Cells, The Pebble Bed Nuclear Reactors and Vanadium-Redox Batteries critical for green energy, wind turbines and solar cells.
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Are We On The Verge Of a Major Rally In Precious Metals and Natural Resources?

Are We On The Verge Of a Major Rally In Precious Metals and Natural Resources?
This recent correction in gold and silver from record highs has lasted several months. This base building process may be a sign of a more powerful move as many of the weak hands were shaken out. After the next round of QE, it may be too late to move into gold, silver, oil, copper and other tangibles. The geopolitical tensions in the Middle East could further drive up the prices in oil and precious metals. This may be some of the early signs of a flight into commodities and real assets such as rare earths, graphite and uranium.
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The Spark To Invoke The Spike In These Mining Sectors

The Spark To Invoke The Spike In These Mining Sectors
Gold and Silver is undergoing a retrenchment which some observers consider a bearish signal, but we consider a secondary buying opportunity. Notice in 2011, that base metals involved in industry were grossly underperforming gold. Should a spike occur in the Middle East all of these boats might rise in a tidal like move especially critical energy metals such as uranium and rare earths. Remember that the mills of our miners grind exceedingly slow and fine except when exogenous developments such as a surprise eruption in the Middle East.
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Isn’t Inflation Supposed To Be Bullish for Gold and Silver?

Isn’t Inflation Supposed To Be Bullish for Gold and Silver?
We have been witnessing a rotation from risk off treasuries and dollars into risk on oil, copper, US and European equities. Gold and silver may be overlooked for riskier assets which may have been more undervalued. This may be a short term phenomenon as gold and silver will catch up as they are the ultimate hedges against currency debasement...This may be the shakeout before a major move in precious metals.
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Gold and Silver Find Support At Long Term Uptrends, Significant Bargain In Miners

Gold and Silver Find Support At Long Term Uptrends, Significant Bargain In Miners
Gold is pulling back to long term support and is able to be purchased at a discount. Investors may be seeking riskier assets due to fears of inflation and higher interest rates. Right now industrial metals such as copper/ nickel, oil and blue chips are outperforming due to their value of being hedges against inflation and represent the riskier assets. Gold and silver which has in the past represented risk off is still in consolidation mode. Eventually investors will realize that the monetary metals can do well in both a deflationary risk off environment as well as an inflationary risk on environment and the trend will turn significantly higher as it has for the past decade. Gold is actually finding support and presenting a potential discount buying opportunity. It is important to accumulate when the public is disinterested. Right now, Pandora, Facebook and Apple are the current fads, while gold is being overlooked and placed on sale by Mr. Market.
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