Tag Archives: precious metals

Look For Rebound In Undervalued Producing Coal Miners

Look For Rebound In Undervalued Producing Coal Miners
For many months, I have alerted you that capital will flow from bonds/equities/fiat currencies into precious metals, commodities and junior mining stocks as we begin to enter the inflationary cycle which historically follows deflations.  Central Banks are fighting economic contractions with quantitative easing which they are reluctant to end.  Our metal and mining sectors have been leading the markets over the past three months. Currencies are declining rapidly most notably in India, Turkey and Brazil.  Hyper-inflation may start rearing its ugly head like I predicted many months ago.  The U.S. dollar is also looking like it is on the brink of a major decline to break 2012 lows as it breaks down from a bearish rising wedge.
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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.
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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.
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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.
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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.
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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.
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Worldwide Interest Rate Cuts Could Spur Second Half Rally In Gold and Silver

Precious metal investors appear to be optimistic as the European Central Bank and the People's Bank of China concurrently will ease interest rates to stimulate global growth in the depressed Eurozone which is experiencing record unemployment. So optimism is returning to Europe while the U.S. which has heretofore been a safe haven is beginning to show signs that unemployment may be lurking higher.
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Gold, Silver and The Miners Bottoming While Facebook Is Busting

Gold, Silver and The Miners Bottoming While Facebook Is Busting
Take a look at Groupon, Zynga, LinkedIn, etc. Their vogue will not last forever. Sentiment for the social media sector may be reaching an euphoric extreme, while the mining stocks have fallen into public disfavor. The miners are bottoming at historic low valuations while the initial public offering of Facebook is valued at 100 times trailing earnings. This eerily reminds us of the dot-com bubble in 2000. Recall a company such as “theglobe.com” which made the largest gain in history on the day of its IPO only to be bankrupt two years later. The CEO was also in his twenties. The brokers were able to find myriads of buyers beating at their gates. As the French say, “The more things change, the more they remain the same.”
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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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