Category Archives: Latest Commentaries

Three #InterestRateHikes Then “Stumble” into #Gold #Silver #JuniorMiningStocks

Now that the Fed has met and increased interest rates for the third time, I expect more capital to rotate from overvalued stocks to the junior miners similar to what we saw after the dot com crash. This bubble in stocks could be on the verge of a precipitous fall which could abruptly wipe out the capital chasing stocks higher into nosebleed levels. Bitcoin and paper currencies are losing favor while gold and silver may come back later this year and certainly in 2018 when many of the major producers are set for a supply shortfall. As stocks correct and treasury yields rise with rising inflation more investors will flock to our illiquid junior mining sector seeking tangible assets for protection and a hedge against hyperinflation.
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Zinc Hits 5 Year Highs: Is This Canada’s Next Zinc Producer?

An exciting metal breaking into 5 year highs is zinc at $1.30 per pound. Its still way below its pre credit crisis highs at $2 but it looks like it could be headed there later this year. Smart investors are scrambling around for the top zinc assets which can get into production in mining friendly stable jurisdictions. At the end of December I saw some of the smartest mining investors the Lundin and McEwen Family putting seven figures into this new zinc company whose Chairman built Blue Pearl, Thompson Creek, Wheaton River... in the last commodity cycle. He has over 35 years of experience. These stocks he built went from pennies to ten+ dollars per share with a billion market cap. I believe this could be one of the top zinc assets in North America. This asset has 4+ billion pounds of zinc at a time when producers were shutting down.
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Trump Wants Investors To Buy American Mining and Manufacturing

I just read Trump's inaugural speech and it can be summed up in the following sentence, "Buy American and hire American". This policy could have a great impact on some of our US natural resource holdings including our investments in US precious metals, rare earths, graphite, lithium, uranium...which have been forgotten about for nearly twenty years as large mining companies sought mines in foreign jurisdictions which had less regulatory burdens then the US. For years I expected a renaissance in this abandoned mineral sector as a country can last only so long before people realize that their jobs have been sent overseas.
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Prepare Your Stock Portfolio For President Trump with Strategic Metals and Minerals

The markets are pricing in inflation following the Trump US Presidential Election Win. US stocks are soaring to record highs and the Dow is on verge of breaking 20k a major psychological level. Investors should be prepared for volatility as President Trump will counteract a lot of Obama's moves over the past eight years and this could accelerate moves in many markets. Notice already US bonds are breaking down as capital is flowing to riskier assets most notably stocks and recently copper and energy. This is signaling to me inflation, rising interest rates and major policy changes which is already having dramatic effects on the average portfolio. Continue following the tensions in the South China Seas with the recent stealing of the Chinese of a US military drone. Could China have taken that drone to see what rare earths the US in using to power and guide the advanced drones? All the metals which China has control of should be watched and you should get exposure. Focus on rare earths, graphite and other strategic battery technology metals such as scandium, graphite and cobalt. Trump has put in Peter Navarro as a trade advisor with China and the Chinese are already threatening a trade showdown. Hopefully Trump will move fast to help secure our own supply chain of critical metals as that is how the Chinese can squeeze the West.
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Why Trump Will Be Good For Precious Metals and Junior Miners

This strong US dollar in relation to other collapsing currencies has made it very difficult for miners and explorers over the past few years. The dollar is hitting a 15 year high making it very hard and expensive for our mining and manufacturing sector. That could change quickly under Trump as he has already committed to taking on other nations who have been devaluing their currencies to gain a competitive edge with trade.
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3 Junior Miners Attracting Interest as Gold and Silver Finds Support at 200 Day Moving Average

Due to Hurricane Matthew and the Jewish New Year I was unable to post updates on the current gold market. However, it is important to note some important developments in our sector. It appears that there was distribution in the precious metals this week during light holiday trading with Hurricane Matthew affecting the Southeastern US where there are a lot of precious metal investors which exacerbated losses taking gold, silver and the junior miners to oversold levels like we have not seen since late 2015. I expect to see a basing around the 200 Day Moving Average which gold and silver have been hitting. This could be great news as that may signal a major secondary buy point for what I believe could be the next major bull market in precious metals fueled by a weak slowing economy combined with soaring government debts and negative interest rates.
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Gold and Silver Pulling Back To Support, Could Fed Meeting Next Week Boost Junior Miners?

It appears that gold broke its downtrend and 200 Day Moving Average in early 2016 forming a bullish golden crossover in February. Then in June gold broke 2 year highs and has since consolidated to the breakout point at $1300. Its quite normal after making such bullish breakouts to hold at that level before the next leg higher. This summer gold has taken a breather pulling back to uptrend support. It may still base until the Fed decision next week providing what may be looked back upon as a secondary opportunity for those who missed the Brexit breakout in June.\ Gold and silver both have rising 50 and 200 day moving averages which are bullish showing an upward trend. Notice rallies have been on increasing volume showing possible accumulation. It broke out into new 2 year highs in June following Brexit and has since consolidated returning to the breakout point. This past week it made a weekly bullish engulfing pattern which may signal a short term reversal to the breakout technical target of $23.50. The move may accelerate higher after the Fed announcement next week.
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M&A Signaling Market Bottom in Agriculture and Fertilizer Stocks?

Big news hits the fertilizer sector as Bloomberg reports that Potash Corp (POT) and Agrium (AGU) are in advance M&A discussions. If Bloomberg is true then this could be a major catalyst for the sector. Potash Corp is the world's second largest producer and a merger with Agrium could mark a bottom in the agricultural sectors which has been declining for years. Both companies are struggling cutting dividends and taking losses as emerging economies such as India and China have been waiting on the sidelines to sign contracts. Today's action may be signalling the end of this downtrend.
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Precious Metals Pullback To Uptrend Provides Buying Opportunities in New Bull Market

This is turning out to be one of the most powerful rebounds in gold and silver's recent history. For a long time I have advocated patience and fortitude with respect to wealth in the earth assets and continued to find the top performers in the junior gold mining sector. Those that have stuck with me are positioned now for this great run as I believe that this is the beginning of a major new bull market. I have warned you for weeks now that new investors in juniors should wait for pullbacks to rising moving averages rather than chase. The miners were beaten so low in this bear market that like a compressed spring bounced so hard so fast that a healthy pullback to upward sloping 50 and 200 day moving averages like we are seeing now is quite healthy and restorative. Here are three top junior gold miners to watch.
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Uranium Market Bottoming Five Years After Fukushima as World Heats Up From Carbon Emissions

We should invest in this forgotten sector when it is dirt cheap and in the midst of a bust as the long term forecast for nuclear is very strong. Climate change and global warming concerns will not go away and I believe America will continue to build and update its nuclear fleet over the next 5-10 years. Investors may wise up to this soon that nuclear is not on its way out, but waiting for a new beginning. The next nuclear renaissance will be with next generation small modular reactors in the battle to fight climate change.
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