Category Archives: Precious Metals

Gold, Silver and Platinum Near Major Breakout Points

Gold, Silver and Platinum Near Major Breakout Points
We are approaching the end of the year where investors are facing a confluence of mixed signals such as tax loss selling, fiscal cliff discussions, the Greek bailout, future Fed actions and Middle Eastern geopolitical turmoil. Short term shakeouts like yesterday's early morning drop in precious metals should be expected...Nevertheless, we ignore the daily volatility and stick to the long term technicals and fundamentals which may be signaling that gold, silver, pgm's, uranium and heavy rare earths may reemerge as sectors where opportunity lies in 2013.
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Gold and Silver Outperforming General Equities For The First Time Since 2011

Gold and Silver Outperforming General Equities For The First Time Since 2011
We have become a nation of debtors. Between mortgage, student loan and credit card debts the average citizen owes over $50,000. To a certain proportion of our nation free and easy fiat money may well be the way to go in the short term. Eventually, the piper must be paid. We may have to face one day that the party is over. Our large creditors such as the Chinese are already looking to diversify away from U.S. debt and the dollar. Our critics have felt that our patience with precious metals positions are not buy and hold, but buy and hope. So far our long range charts signal that gold and silver are in a continuing bull market, which are sometimes obfuscated by a concentration on the short term tactical decisions. The technical picture reveals the opposite. Gold is outperforming and may continue to decouple from the equity markets. Remember inflation and uncertainty is bullish for precious metals and bearish for the general equity market. Are we beginning to witness this phenomenon?
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Corrections In Gold And Silver Could Provide Buying Opportunity Before Election

Corrections In Gold And Silver Could Provide Buying Opportunity Before Election
This volatility in precious metals and mining equities while striking panic is just a test to shake us out. This is precisely a time not to be concerned. The more sophisticated buyers may be taking advantage of the situation to hold on and indeed add to positions for those who were not able to get in before this summer breakout. Remember, bull trends in gold and silver rise on walls of worry. Healthy pullbacks afford secondary opportunities. We may be basing and bottoming right now. A powerful reversal could occur after the election.
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Why The Large Miners May Acquire Near Term Gold Producers In Europe

Why The Large Miners May Acquire Near Term Gold Producers In Europe
Greece is focusing on revitalizing the mining sector by fast tracking four mines that are in development. Athens hopes to be the biggest producer of gold in Europe by 2016. The politicians realize that the mining sector has great potential to create high paying jobs and revitalizing a moribund economy. For years prior to the economic crisis, mines in Greece were help up and permits were delayed by red tape and bureaucracy. Now that has changed as witnessed by Eldorado Gold's (EGO) $2.4 billion takeover of European Goldfields, which prior to the acquisition received critical permits. Similarly now in Spain, The Galician Government has labeled this Gold Asset as a "strategic industrial project" crucial for economic development and numerous high paying jobs for a region hit by record unemployment. The implications of this decision is significant as the company may receive permits imminently as Galicia needs investments in the region to accelerate sooner rather than later.
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Why The Miners May Outperform Gold After The Election?

Why The Miners May Outperform Gold After The Election?
The miners are already beginning to outperform both bullion and the S&P 500 and we believe this trend will continue due to favorable fundamentals and seasonality. For the past six months, the silver miners (SIL) and gold miners (GDX) have outperformed. We expect this trend to continue as investors see possible weaker earnings and slowing growth in the large caps yet rising inflation and commodity prices, which benefit the miners. Notice that even during this pause in the rally both the gold and silver miners are holding up well versus the S&P500 and are outperforming bullion. The miners may be forecasting a coming breakout in gold at $1800 or a rotation from large caps to miners. After this breakout look for the large miners with rising share prices to make deals with the cheap junior gold miners for large premiums.
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Why The Chinese May Buy Undervalued Junior Miners

Why The Chinese May Buy Undervalued Junior Miners
At this very moment, Chinese investors are utilizing a novel approach buying natural resources as the U.S. dollar and long term treasuries are possibly on the verge of a major decline, leaving the Chinese overweighted in this risky sector.
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Platinum Price May Outperform Gold and Silver As Strike In South Africa Intensifies

Platinum Price May Outperform Gold and Silver As Strike In South Africa Intensifies
We have serious supply concerns as the majors delay large mines and South Africa one of the largest producers of gold, platinum and palladium is facing the worst and most violent labor crisis in decades. This will not end quickly and may continue to plague the South African mining industry. This will not only put pressure on the supply of gold, but could cause platinum to spike as more than 80% of the world's supply originates from this questionable jurisdiction
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Junior Miners (GDXJ) Are Outperforming Gold Bullion (GLD)

Junior Miners (GDXJ) Are Outperforming Gold Bullion (GLD)
Since the expiration of QE2, gold outperformed silver, the large producers and the small miners. However, that trend appears to be reversing as the cash strapped junior miners are getting more interest from the cash rich majors and royalty companies who need to look for resource growth. Notice the major royalty deals that Silver Wheaton just recently signed for the first time since 2007.
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Gold and Silver Miners Breakout As Open Ended QE3 Announced

Gold and Silver Miners Breakout As Open Ended QE3 Announced
It must be noted that the spinmeisters know that when the general equity markets rally to new highs, then the probability favors the incumbents who usually win by a landslide. The S&P500 and Dow Jones is breaking into new two year highs which may make the voters feel that the economic storm has passed and good times are here again. These accommodative moves will be quite painful to investors who are sitting on a record level of cash and U.S. debt and have been shaken out of their gold and silver holdings.
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