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Time to Buy Junior Potash Mining Stocks?

Time to Buy Junior Potash Mining Stocks?
Potash is a fertilizer that is critical for emerging economies with rising populations that need increasing amounts of food. Most of the supply is controlled by a handful of companies such as Potash Corp. of Saskatchewan (POT) and Mosaic (MOS). These companies control pricing and some of the large consumers may want to secure more affordable long term supplies from quality juniors. If demand increases, the majors may not be able to boost mine output. The large caps may be ready to break out as prices find support at decade long trendlines and the juniors are all beginning to show signs of life.
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A Junior Gold Mining Survivor In Nevada and Colombia

A Junior Gold Mining Survivor In Nevada and Colombia
There is no doubt about it. Junior gold mining companies are going through a time of testing. Gold and silver prices are basing at multi-year lows. Financing markets are tough for junior precious metal miners. Many of these companies will not succeed in these difficult times without a strong treasury and shareholder support to weather the storm. These corrections separate the quality junior miners from the weak ones as the smart management teams pick up quality assets for pennies on the dollar and actually build value during these cyclical corrections. This is the evolutionary way of the markets to weed out the weak entities. Junior mining investors especially during these trying times must constantly reevaluate and make sure their junior mining investment has the ability not only to survive this market, but to possibly thrive in this environment by picking up quality assets on the cheap. Instead of exploration capital being put into the ground, there may be opportunities in undervalued assets, if you are connected to the right technical team.
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Is The Uranium Price Forming A Potential Double Bottom Breakout?

Is The Uranium Price Forming A Potential Double Bottom Breakout?
While most of the resource market has been in red, I am witnessing one of our sectors, the uranium miners (URA), solidly in the green. They are being led by one of our long term uranium recommendations. Recently one of our long term recommendations announced good news that they were granted $20 million from the State of Wyoming to fund completion of construction at Nichols Ranch. In today’s market environment where resource capital is hard to come by, to see this form of support through non-dilutive and low interest rate loans is truly remarkable. This is a testament to the quality of the companies assets and the management team.
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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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Some Junior Gold Producers May Be Safer Than The Senior Miners

Some Junior Gold Producers May Be Safer Than The Senior Miners
Barrick's $8.5 billion Pascua Lama Project has been a disaster with soaring costs and jurisdictional disagreements. It is an albatross and Barrick must cut their losses. They should look to invest in Nevada where their properties especially in the Cortez Trend have some of the highest margins in the business. Over the past year, Barrick's risky moves into questionable projects and jurisdictions have hammered down its share price. Sometimes well managed juniors may actually be safer than some of the majors. Remember there are smaller but more efficient junior producers who could compete with the clumsy larger players in terms of its ability to expand their gold and silver production and at the same time reduce costs. Keep this growing junior producer with cash flow to grow.
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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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