Category Archives: Precious Metals

Investors Preparing For QE3 As Gold and Silver Skyrocket

Investors Preparing For QE3 As Gold and Silver Skyrocket
The Fed may follow China and other countries around the globe in making accommodative moves. This summer China began cutting interest rates for the first time in years. Do not forget two years ago at the end of August, Bernanke announced QE2, flooding the markets with $600 billion. Silver soared from $18 to $50. It seems that investors have already prepared for such a move as gold and silver stage technical breakouts, while the miners are just beginning to play catch up. In this article we highlight a potential takeout target which has shown incredible resource growth.
Read more

Precious Metals Breakout: Royalty Companies Outperforming Major Miners

Precious Metals Breakout: Royalty Companies Outperforming Major Miners
For several weeks, we have been attracted to silver due to rising demand as a monetary metal and declining supply due to the lack of new discoveries. Silver (SLV) is beginning to outperform gold (GLD). We are beginning to see major breakouts throughout the mining sector (GDX). The precious metal royalty companies are outperforming led by Royal Gold (RGLD) and Franco Nevada (FNV), some are making new 52 week highs.
Read more

Gold, Silver, Mining Stocks: Breakout Time, Not Bubble Time

Gold, Silver, Mining Stocks: Breakout Time, Not Bubble Time
Admittedly, for over a year and a half precious metals investors have been going through a time for testing of our essential position in wealth in the earth equities and bullion. Investors were experiencing pain and panic at a time that it was easier to throw in the towel as the technical charts appeared to be broken as gold (GLD) and silver (SLV) went below the 200 day moving average. We advised patience and fortitude despite an onslaught from fellow analysts and media coverage which were attempting to shake out our readers. Now precious metals and miners appear to be making constructive and powerful breakouts.
Read more

Breakout Move In Silver Forecasting Global Hyper-Inflation

Breakout Move In Silver Forecasting Global Hyper-Inflation
Turmoil in Peru, Mexico, Argentina and Bolivia is adding to the world’s already existing shortage of silver. This supply crunch is combined with rising political uncertainty in Egypt, Syria and Iran and economic malaise in the EU and the United States which is causing investment demand for silver to rise exponentially. China is flexing its muscles in the South China Seas and is covertly importing silver to hedge against major declines in the U.S. dollar. Recently we called a major top in treasuries in late July and a breakout move into silver for several weeks.
Read more

Double Bottom Breakout In Junior Mining Stocks Before Labor Day

Double Bottom Breakout In Junior Mining Stocks Before Labor Day
The junior gold miners are breaking out ahead of bullion staging a double bottom breakout and rising above the 50 day moving average. It appears that the juniors may have bottomed in Mid May. The junior are beginning to outperform bullion and may be forecasting that the small miners may outperform bullion over the second half of 2012.
Read more

Look For The Silver Lining: Silver Swan Ready For Takeoff

Look For The Silver Lining: Silver Swan Ready For Takeoff
After QE2 silver soared from $18 to close to $50 outpacing other commodities. If QE3 is carried out, silver could experience a similar type of move. In such an event, the specter of inflation may trigger silver’s rapid ascent into new all time highs. We regard silver as a long term holding which may be ready to move into new all time highs past $50 depending in part on the Fed’s next move at Jackson Hole.
Read more

A Major Turning Point For Gold, Silver and U.S. Treasuries

A Major Turning Point For Gold, Silver and U.S. Treasuries
This is the summer doldrum selling season during which reason is thrown to the winds and stock prices descend below support. There is an old teaching that sometimes a chart will exceed support on the downside to shake out the weak hands as it reverses to the upside. Sooner rather than later, wounds may heal and present us with astonishing bargains to buy winter coats in the heat of the summer.
Read more

Gold and Silver Breaking Out Before Fed Meeting: Will It Hold?

Gold and Silver Breaking Out Before Fed Meeting: Will It Hold?
The markets do everything they can to throw us off course regarding precious metals. It reminds us of the street hustlers on 42nd St, who are experts at tromp l’oeil or “tricking the eye” as they play the old game of finding under which shell the pea is hidden. As a veteran of the precious metal wars, one day does not abort a multi-year trend just because it is lagging for a few months. Indeed, these intermittent reversals have signaled excellent buying opportunities along the precious metals long term upward path. The path of the precious metals will be reestablished despite venerable experts who proclaim the continued decline in wealth in the earth equities.
Read more

U.S. Debt Reaching Bubble Like Territory

U.S. Debt Reaching Bubble Like Territory
Recently Bill Gross, one of the top fund managers in the world echoed what we have been saying for many weeks, "that real assets such as commodities, energy, precious metals and mining stocks are a “better bet” amid negative real interest rates." China seems to be taking his advice and has established a friendly relationship with Canada to acquire natural resources. This was evidenced by CNOOC's acquisition of Nexen for over $15 billion. Maybe the smart investors are already exiting the dollar and treasuries as the investment herd crowds on in to the U.S. Debt bubble.
Read more

Major Miners Looking To Acquire Undervalued Junior Explorers

Major Miners Looking To Acquire Undervalued Junior Explorers
We have long maintained that capital will move from fiat currency to conservative bullion to productive miners then to explorers that will significantly outperform the staid metal. Overtime, the mining stocks have eventually outperformed bullion, which is the sector well chosen to provide jobs and major, upward moves for investors. Thus we are looking at this as a transitory pullback in miners and precious metals in the historic long term move upward which will eventually continue.
Read more