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Posts Tagged ‘mining’

Thomas Drolet: Why Now Is The Time To Reinvest In The Uranium Space

December 5th, 2014

nuclearPeter Byrne:  Thomas Drolet has decades of experience in capitalizing on the movement of international energy markets. The chief of Drolet & Associates Energy Services is not sanguine about the long-term potential of fracking, but in this interview with The Mining Report, he tells us why now is a great time to reinvest in the uranium space. Read more…

Investing Guide, Mining, Today's Top News

Rare Earth Elements (REE) Independence Needs Innovation

November 17th, 2014

Coal quarry engineerJT Long:  China’s geology, cost structure and disregard for environmental degradation have led to rare earth world domination. But the landscape is changing. In this interview with The Mining Report, industry expert Jack Lifton shares Read more…

Commodities, World News

Why You Should Invest In Gold And Silver Now

July 29th, 2014

dollar-downMac Slavo: Despite the recent drops in gold and silver from their all-time highs just a few years ago, the fundamentals for owning precious metals as long-term investments have never been better. Read more…

Consumer, Economy, Gold, Markets, Precious Metals, Silver

Monster Sinkholes An Indication That Major Earth Changes Are Coming Along The New Madrid Fault?

December 2nd, 2012

Michael Snyder: The most powerful earthquakes in the history of the United States happened along the New Madrid Fault in 1811 and 1812.  Those earthquakes were reportedly Read more…

Economy, World News

These Mining Companies Will Profit From China’s Good News (VALE, BHP, RIO)

November 11th, 2012

Jeff Uscher: China announced industrial production data for October today (Friday), showing industrial value-added up 9.6% year-on-year, up from 9.2% in September Read more…

Gold, Precious Metals, Silver

The ONE Rare Earth Metals Stock You Should Own Today

May 10th, 2011

The ONE Rare Earth Metals Stock You Should Own Today

It's among the scarcest metals on the planet.

There's only one large above-ground store, a strategic reserve the Soviet Union spent 50 years accumulating. Russia decided to put the stockpile up for sale in 1990 when it was estimated to total 27 million ounces. Since then, buyers have withdrawn about 25 million ounces.

The remaining balance is a state secret. But comments from Russian mining conglomerate MMC Norilsk Nickel indicate the reserve is nearly spent. Most analysts estimate the reserve is now just 2 million ounces — about a three-month supply.

Meanwhile, the metal is exceedingly scarce; annual production rates are less than one-tenth that of gold. About 90% of the world's supply is locked up in just two spots (Siberia and South Africa).

This is exactly the sort of scarcity that can drive up prices. All that's needed is demand. And we're seeing that too…

Mines around the world yielded a total of 6.3 million ounces last year. Meanwhile, post-recession demand rebounded to 7 million ounces.

No, I'm not talking about silver or even platinum. And you know I'm not talking about gold, either. Gold climbed 30% last year. That was bested by silver, but both metals trailed the 97% gain of this one.

It's the reservoir for palladium that's running dry and there's about to be some thirsty buyers.

Congress has authorized a palladium coin. Exchange-traded funds from New York to Zurich now have more than 2.5 million ounces of physical bullion in their vaults.

The versatile metal has a multitude of uses beyond simple investment; most notably in the dental, jewelry and electronics fields. But demand from the auto sector is greater than all of those combined — the metal is used in catalytic converters. And despite decades of research, carmakers have never found a viable substitute.

According to automotive forecaster CSM Worldwide, global auto production is forecast to reach 75 million vehicles this year, 80 million next year and nearly 90 million by 2014. That means a lot more catalytic converters.

As supplies get squeezed, automakers are already doing their best to stockpile. General Motors (NYSE: GM) recently signed an agreement with Stillwater Mining (NYSE: SWC) to buy future supplies of palladium — without fixed floor or ceiling prices. This contract is akin to a blank check. GM just wants the metal, regardless of what it has to pay.

And here's the best part. There are only a small handful of companies splitting this rich jackpot.

One of them is the aforementioned Stillwater Mining. Stillwater is the only palladium miner in the United States. The company plies the Beartooth Mountains of southern Montana, home to the planet's richest concentrations of high-grade palladium ore.

Action to Take –> I think 2011 is poised to be one of Stillwater's most successful years ever. The scarcity of palladium gives the metal what it takes to continue its powerful run, perhaps racing another 25% to retake the $900/oz. mark.

That would be welcome news for Stillwater.

[Note: This is precisely the sort of situation I look for... dwindling supply and soaring demand mean rising share prices. And if you haven't seen it already, be sure to watch my free webcast discussing other areas where scarcity is rearing its head and offering investors an opportunity to profit. Click here to watch.]


– Nathan Slaughter

Disclosure: Neither Nathan Slaughter nor StreetAuthority, LLC hold positions in any securities mentioned in this article.

This article originally appeared on StreetAuthority
Author: Nathan Slaughter
The ONE Rare Earth Metals Stock You Should Own Today

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The ONE Rare Earth Metals Stock You Should Own Today

Uncategorized

Take Advantage Of Dips In Precious Metals and Miners

May 6th, 2011

Federal Reserve Chairman Ben Bernanke will continue devaluing the dollar (UUP) by keeping interest rates at all-time lows and continue quantitative easing as we have not seen a major improvement in unemployment and housing. We are also entering an election year in which central banks do not want to rile the equity markets. Just because the S&P (SPY) has been soaring does not mean the economy is improving. Easy money policies will continue for an extended period of time to fight against current economic weakness. This is an environment in which gold (UGL) and silver (AGQ) will benefit. We are currently seeing a massive inflationary environment globally that has caused political unrest in North Africa and the Middle East, and rising costs in key emerging economies such as China and South Korea.

We must be prepared for these current short-term corrections in precious metals because it will provide additional buying opportunities in gold (GLD), silver (SLV) bullion and mining stocks (GDX). The market will try to make you be complacent when you should be fearful, and make you scared when you should be enthusiastic.

I have mentioned that silver was 70% above the 200-day moving average, surpassing overhead resistance, reaching record levels on the oscillators and surpassing my late January technical targets. Silver has moved much faster and higher than I originally projected. I initially thought the move would last through May, but the speculative buying and short covering has caused silver to reach my target a few weeks ahead of schedule. Whenever these conditions occur, caution is merited as the odds of a shakeout have significantly increased. A healthy correction is necessary to maintain the long-term steady uptrend and provide secondary buypoints.

Major institutions raises cash and began selling into a rising market as the speculative fever reached a climax the last two weeks of April. When the consensus gets greedy, I get fearful. Since late January when my indicators turned bullish on precious metals and mining stocks, we have seen record investment demand in silver and gold bullion combined with short covering. Tremendous record volume in the silver market indicated a short-term buying hysteria. These frenzies in the precious metals markets are often followed by quick and violent corrections which we are currently witnessing to shakeout the Johnny Come Lately traders who get overaggressive in these rising markets. Investors were building up very aggressive and speculative positions. The conditions in silver have been setting up for a painful pullback.

A healthy correction is currently necessary to sustain the long-term steady uptrend in hard assets. Most investors do not realize that precious metals are in a long-term secular uptrend but there will be volatility with ebbs and flows. Silver is an extremely turbulent market which exceeds technical targets and momentum oscillators regularly. Silver blows very hot and very cold exceeding to the upside and the downside.

This is a chart I sent my readers April 22, 2011.

I needed to be careful about this move in silver in late April surpassing my late January target of $40 and the US dollar bearish sentiment which was reaching an extreme in late April. Silver exceeded upper trend channels and saw record volume, showing signs of a shakeout. I was very concerned that silver was overheating as the herd tried to force its way into this trade.

Whenever I have seen these parabolic moves, they have not ended well as the profit-taking begins and the investors who have overleveraged themselves get margin calls. I am not surprised at all about this painful shakeout.

Precious metals investors may be repositioning from bullion into mining stocks. This consolidation may be the catalyst to help the miners catch up with the performance of gold and silver bullion. Mining stocks have not yet seen the speculative levels that bullion has seen. The general public is now realizing that inflation and precious metal prices will be high for some time to come as Bernanke has no plans of exiting, but are reluctant to enter bullion at these pricey levels. Miners, especially junior explorers (GDXJ) are providing a discount to bullion. Inflation will continue for years to come yet this correction in the junior miners (GDXJ) indicates the public is still unaware of the basic fundamental and growth potential of this sector over then next decade especially when gold and silver find support.

This has been no surprise to my readers. I have said that there is no exit plan from the Fed. There is a concerted effort to devalue the US currency to pay back soaring debts. The US is broke and it can’t afford raising interest rates. Savers are getting swindled by leaders in Washington, which has used public taxpayer money to bail out corporations and banks. Americans are getting squeezed by soaring prices of basic goods, while their hard-earned savings are depreciating.

I have urged caution around initiating positions in gold or silver bullion as the trade was very crowded and at the end stages of its short-term move from late January through May. Remember, gold has a historic cycle to provide a sale every six months.

As gold and silver sell off, don’t forget the long-term uptrend will stay intact. Will you be ready for the next turning point in precious metals as the herd sells out during the panic?

I believe junior mining stocks (GDXJ) will catch up. Some people are concerned that some of the mining stocks that haven’t moved yet should be sold while they’re reaching long-term support and basing. I don’t believe so as they all provide leverage to falling currencies and rising demand from emerging economies. As these mining stocks sell off, I begin to look at the long-term fundamentals which have not changed. Perceptions from the herd change but the fundamentals in gold miners (GDX) do not. One must take advantage of sell-offs in gold and silver miners; they are opportunities to get on board the secular bull market in precious metals. I believe it is the best way to protect one’s assets during these times of growing record deficits and currency devaluations.

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Take Advantage Of Dips In Precious Metals and Miners

Commodities

Win with Chinese Coal Stocks

May 3rd, 2011

Rudy Martin

International coal prices hit $124 per ton last week, the highest level in five months, largely due to strong demand from reconstruction projects in Japan. But coal supply is also tight, because of flooding in Australia, Indonesia, South Africa and Colombia.

Perhaps no country is more affected by this development than China, which experienced 9.7 percent GDP growth during the first quarter. According to the country’s National Energy Association, China’s electricity consumption will rise 12 percent this year, which could lead to power shortages. In response, the government is putting restrictions in place as the peak season approaches. Big industrial provinces are already scaling back power consumption plans. These reductions are likely to hinder aluminum, cement, zinc and steel output.

In addition, China’s National Development and Reform Commission called a meeting this week of domestic coal suppliers to ensure stable supplies.
Coal powers the Chinese economy, and China is by far the world’s largest consumer. Coal accounted for 71 percent of China’s energy in 2008 — more than three times the United States’ share. The Electricity Council estimates that the country’s coal demand will reach 1.92 billion tons in 2011, up nearly 10 percent from last year.

Demand for electricity is exploding due to China’s rapid urbanization and rising middle class. Emerging wealth means powering new refrigerators, air conditioners and other appliances in homes.

Luckily for China, it sits atop the third-largest amount of recoverable coal reserves in the world behind the U.S. and Russia. The country more than doubled its coal production from 1999 to 2009. Despite this increase, production couldn’t keep up and the country became a net importer of coal two years ago.

The Chinese government made it clear that it wants to wean the country’s power grid from coal. But that’s proven to be a difficult task. Hydroelectric, nuclear and other renewable fuels combined make up only 10 percent of total power. And the EIA forecasts that China’s coal consumption will nearly double over the next 25 years, as the economy continues to grow and electricity demand remains strong.

With coal’s short- and long-term status atop China’s energy mix intact, I think China’s domestic coal producers stand to benefit. Subscribers to my Emerging Market Winners newsletter have already made 23 percent on Yanzhou Coal Mining, ticker symbol YZC. That’s one way to light up the portfolio performance meter.

Watch the video.

Rudy Martin, editor of Emerging Market Winners, is widely recognized as an authority on stock and ETF investing. With more than 25 years of investing experience, Rudy started his investment career by co-managing a $2 billion private equity portfolio for Transamerica. He also served as an analyst for DeanWitter and Fidelity Investments, and research director of a quantitative research firm that is now part of TheStreet.com. Recently he has been providing his investment ideas directly to a select list of global hedge funds as Managing Director of Latin Capital Management, an institutional money management firm with more than $180 million in assets under management. For more information on Emerging Market Winners, click here.

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Win with Chinese Coal Stocks

Commodities, ETF, Mutual Fund, Uncategorized

What’s Driving Silver Prices?

April 29th, 2011

The virtues of gold (GLD) and silver (SLV) are being addressed far and wide. My readers know the steady drumbeat of praise that is reaching a crescendo for the white metal scares the hell out of me. The driving forces behind silver’s price come from investors, industrial demands and a global shortage. The world simply is using more silver than the mines produce and new silver discoveries are becoming difficult to find. These factors are becoming truisms for public consumption.

A parabolic rise has formed in silver as gold advances on to our measured target of $1600. Please note that at these times of extreme optimism volatile pullbacks become more prevalent. Parabolic rises must be approached with caution. Silver has rallied moving exponentially while gold is still moving linear.This metric of $1600 gold is important to us as it may signal a profit taking opportunity for precious metals. Silver is in a roaring uptrend and has now exceeded my late January target of $40. We believe that high quality silver mining shares like SIL will catch up to silver bullion even as the silver bullion price may stall or consolidate. There will be unavoidable pullbacks in silver’s secular uptrend and it would not be wise initiating long positions at these extremely overbought levels. Silver has a very high probability of shaking out investors as pullbacks follow overbought conditions.

Investors have been scrambling to own silver and gold. What a difference a few weeks make. In July of 2010 and January of 2011, we saw two major buying opportunities for precious metals investors to position themselves at discount prices. Now gold and silver prices are selling at a premium. Silver is reaching extremely risky levels, yet miners are still poised to breakout. Remember that I am recommending partial profits if your winnings enable you to play with the house’s money and you are still holding silver from our August Buy Signal.

Other readers who have not been able to build a position can wait for the inevitable pullback as additional buying opportunities. From my experience it is prudent to wait for technical corrections before getting aggressive with any commodity. We firmly believe that any corrections on the way up will represent more reasonable entry points on this uptrend. Always remember that parabolic rises can encounter severe downturns particularly in silver which tends to be volatile. Let’s wait for long term support and a shakeout to reinitiate our short term positions.

One of the reasons for such volatile action in the white metal is the large short position in silver taken by major financial institutions such as JP Morgan (JPM) and HSBC (HBC), which are the subject of a new lawsuit that charges them with price manipulation of the silver market. I believe these short sellers have been wrong all the way up and Monday’s record volume may have been capitulation by the silver shorts. I believe the accumulation of gold and silver is a form of savings in sound money, but I am not adding to positions when the precious metals market is reaching these extremely overbought levels.

There are six banks that now control the London-based precious metals storage market. Interpretation: there is not enough silver to cover the trades being made which partly accounts for silver’s record rise of 144% over the past 12 months and up 22% this past month alone. There is one additional consideration: global hedge funds own one half of one percent (.005) of their overall portfolios in precious metals. Should these funds increase their holdings to one percent (.01) this would result in a large increase in demand.

I feel a pullback may be in order as the recycling of scrap increases. I don’t expect it to last very long. Above all do not even think of shorting silver. I reiterate: buy on dips as the price of silver is capable of doubling in the next twenty four months. I do not expect the silver to gold ratio to drop below 30:1 in the short term.

Is this a secular long term top in gold and silver? I do not believe so. We are witnessing a powerful up move in gold and especially silver, where a healthy correction would be normal. There is a flight to quality away from fiat currency namely U.S. dollars. If the dollar continues to lose value, your holdings of precious metals and mining stocks such asGDX will prove to be a prudent decision.

It must be noted that Evo Morales from Bolivia threw a shock into major silver miners especially Pan American Silver (PAAS) and Coeur D’Alene Mines (CDE) by saying he would use force majeure to take over the mining industry. This caused an immediate drop in the prices of these stocks. On Friday, he backed off by saying he did not mean it. Nevertheless, the markets don’t trust socialists such as Hugo Chavez of Venezuela and Morales of Bolivia.

Witness the sad story of Crystallex (KRY) which has spent ten years and was shovel ready to begin mining on Las Cristinas when Hugo decided to hand the permits over to his Russian friends at Rusoro Mining, a Canadian-based Russian Company. Such geopolitical uncertainty can only limit supply in an already tight market. Silver is such a small market that it doesn’t take much to start a stampede. If you sell your silver you are stuck with paper money. I would rather look to high quality and overlooked natural resource stocks in geopolitically friendly jurisdictions with great relative strength to the sector.

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What’s Driving Silver Prices?

Commodities, ETF

Gold and Silver Soars As U.S. Dollar Crumbles

April 14th, 2011

Gold broke out of its 6 month consolidation and cup and handle pattern. The gold bulls are now in control and short covering should begin to cause an explosive move to my late January target of $1600 on gold and $40 on silver. In late January, gold and silver were in a sell-off and many were predicting lower prices as moving averages were broken. Now we are on our way to the January target in gold of $1600. Many ask what to do as they sit on hefty gains. I have learned through many years of studying the markets that the use of measured moves and technical targets when making a selling decision is quite important and must be followed. Institutional investors sell into strength at overhead resistance and are able to take profits. At those times of extreme optimism is when one must get worried and take some risk off the table. For some people it may be going off margin, for others it may mean raising cash. At times when technical targets are reached, risk management becomes crucial as the most difficult time to sell is when the consensus turns positive. Please stay tuned to daily bulletins on when technical targets are reached.

What is interesting about last weekend’s breakout in gold is that it occurred simultaneously with China raising rates.

In November and December, when China was battling inflation and increased rates, sharp reversals and selloffs occurred in gold and silver to the downside. Now the exact opposite has happened. Excellent price action on negative news from China raising rates shows the yellow metal’s relative strength at this juncture. When precious metals rally and breakout on interest-rate increases that are supposed to slow down inflation, it’s a very bullish sign. This may signal that any rate hikes will not be enough to get inflation under control. Jesse Livermore teaches us that it is not the news item itself that should be monitored, but the market’s reaction to the event is most which is most important. Are we seeing the clues that precious metals are leaving for us? This breakout might cause a powerful 10% move to the upside and a powerful four to six week rally.

Although you may start getting excited with the major gains you’ll be seeing from the late January buy signal and all the Johnny come lately analysts buying gold during this euphoric breakout, I ask you to not get overly optimistic as technical targets will soon be reached in gold, silver, and my mining recommendations. Please reward yourself and take profits when technical targets will be reached. No one gets poor by taking profits.

Many investors have fled the yen (FXY) and are looking for alternative currencies to hedge their positions. The Japanese Earthquake may have many positive benefits to their local manufacturing. For months Japan was concerned about a rising currency and the falling US dollar (UUP) as this affected their exports. Japan was intervening in the foreign exchange markets, buying the US dollar to prevent devaluation. A weak US dollar and strong yen caused major concerns to Honda (HMC), Toyota (TM), and other export giants. This waterfall decline in the yen has not caused any rebound in the US dollar as investors have sold yen, buyinggold (GLD) and silver (SLV) instead. The weakness in the US dollar, a historical safe haven in times of uncertainty, is causing investors to reevaluate that status. This is definitely a catalyst for gold and silver.

The euro (FXE) is reaching technical resistance. Interest rate hikes in China and Europe will not derail this rally in precious metals as inflation is spiraling out of control. Investors are nervous about fiat currencies. Moody’s just downgraded Portugal and may consider further reductions in their bond ratings. If cuts are not made in the US and the debt ceiling is raised, we may see the US get downgraded. This will cause further weakness in the US dollar and rising bond yields. All this may be negative for the global equity markets and will be carefully monitored.

Although investors are celebrating new highs in equities and commodities on Wall Street, leaders in Washington are facing some serious decisions on how to balance the budget. The reckless spending in the government is forcing lawmakers to make some important resolutions about raising the debt ceiling and reducing entitlements. This uncertainty in the US Government combined with the Middle East Crisis escalating has caused investors to seek out the safety of silver and gold. Investors are seeking out the safety of precious metals as gold broke out of its cup and handle pattern and silver races towards my $40 target from late January.

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Gold and Silver Soars As U.S. Dollar Crumbles

Commodities

U.S. Gold Hitting New Highs On Exploration In Nevada And Mexico

April 7th, 2011

(This is an excerpt of what I sent out a few weeks ago to my premium readers.  To get the premium daily reports for free click here.)

Many years ago as I was learning to trade junior resource stocks, a grizzled old gold miner – the owner of a small publicly listed company — asked me: “Do you know what a gold mine is?” I suspected he was leading up to the punchline, “A gold mine is a hole in the ground with a liar looking into it.” As a novitiate in that perilous arena, I never really completely believed in that sarcasm. Instead, I felt there had to be honest, adventurous visionaries who went out into the wilderness and stuck to the rules. Researching the leadership of junior mining companies is crucial when screening for potential winners, and it’s a major component of my research. When an investor finds leaders who have stellar track records and put their own money where their mouth is, they need to pay attention to their actions.

The majors were once penny stocks themselves. For example, Barrick Gold (ABX) traded at $0.17 a share just a few years ago. Goldcorp (GG) developed rapidly in the past decade. The power of a world-class discovery can lead to major gains for shareholders. In the junior mining sector there is not a lack of stocks, however there is a lack of quality leadership that know how to finance and develop a discovery to make shareholders large returns on invested capital.

As a model for my mining stock selection, which has the quality leadership that I am looking for, I will use US Gold (UXG). Right off the bat, I was impressed with the leadership of this small, virtually obscure explorer. My interest was piqued by Rob McEwen. He had created Goldcorp, which again grew from pennies to be the major entity it is today. While leading Goldcorp, McEwen averaged a 31% annual return for shareholders. I also noticed his ability to cut costs and search for innovative approaches to find additional discoveries. Others would have retired with such a feather in their cap, but McEwan went on to form US Gold instead. When he took over leadership, banks, institutions and mutual funds began accumulating his new company and drove shares to $10 just on the news of his leadership. At the time, there wasn’t much of an asset base and many exploration programs were lackluster. As the credit crisis began in 2008, shares plummeted to below $1 a share. Investors realized the company did not have much value other than its famous leader and entrepreneur. Beginning at the end of 2009, the discovery of El Gallo in Mexico revitalized a struggling stock, pulling out of one of the worst credit crunches in modern history. At that time I told my readers that this was one of my favorite silver plays. (Please see original post by clicking here.)

Most people do not realize the value of a pure silver discovery and how rare they are becoming. My readers are well aware that my firm is highlighting the silver area as a moving force in 2011 by our focus on US Gold, which might as well be renamed US Gold and Silver. Its ownership of the El Gallo Project in Mexico places it at the forefront of world-class silver mines comparable to Pan American Silver’s (PAAS) Alamo Dorado. There are very few silver discoveries. Since silver is mostly produced as a byproduct, this significant re-rating of the gold/silver ratio will awaken investors to pure silver discoveries, which can increase in value at higher silver prices.


Source: www.usgold.com

From the recently released scoping study, El Gallo clearly demonstrates its world-class status by its low cash costs, good grade, open pit and significant exploration upside.

With one of the most aggressive exploration budgets planned in Mexico, I expect El Gallo to return significant shareholder value. There are many exciting prospects around El Gallo in which I believe additional discoveries could be made this year.


Source: www.usgold.com

El Gallo is very similar to Fronteer’s (FRG) Long Canyon in that they both had significant exploration potential and targeted prospects with high potential. I believe US Gold is getting a clearer picture of this deposit and may produce significant exploration results this year.

Now after the most recent financing, US Gold has $100 million in the bank to explore and develop key assets in Mexico and Nevada. Insiders control over 20% of the shares — unheard of in the industry. I expect 2011 to be a momentous year where US Gold breaks the $10 barrier and as investors become aware of its world-class discoveries in Mexico and Nevada. The scoping study of its Gold Bar Project in the Cortez Trend and the recent discovery at Limo has now transformed the company; it has a fast-growing silver discovery in Mexico and is seeing the best results out of Nevada to date. In fact, John Hathaway of the Tocqueville Gold Fund has added US Gold to the fund’s holdings.

US Gold was listed on November 2, 2010 on the prestigious New York Stock Exchange. Home of such stalwarts as Newmont (NEM), Barrick, and Goldcorp, US Gold is the only pure exploration stock on the exchange. Moreover, McEwen is on record saying that US Gold will join the S&P 500 by 2015, with production of 5 million ounces of silver and 110,000 ounces of gold by 2013. Also noteworthy: McEwen receives no salary. He owns 21% of the company. Such a vote of confidence by a CEO in the company he is building is indeed a rarity in the annals of gold mining history.

The million-dollar question remains: When will US Gold merge with Minera Andes? Minera has a great land package around Goldcorp’s Cerro Negro Project. Goldcorp paid a hefty premium for this property as there is blue-sky potential for additional discoveries in this region. I see a lot of positives of a merger and very few negatives. Costs will come down, and after its spin-off of its copper project, if US Gold and Minera Andes are combined, it will be a precious metals exploration powerhouse with large valuable land positions in Nevada, Mexico and Argentina. I thought Mr. McEwen was overly optimistic when he mentioned his goal was to be on the S&P 500 by 2015 at a time when he did not have the amount of resources he has now. Now seeing the transformation of these two companies, maybe his call wasn’t off the wall. In a very quick time frame, he has built up two incredible exploration companies.

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U.S. Gold Hitting New Highs On Exploration In Nevada And Mexico

Commodities, Mutual Fund

Falling Unemployment: Blind Optimism in the “Poor” Economy

April 4th, 2011

Let’s see…what’s new?

Bloomberg reported last week that thanks to the mining boom, uneducated Aussie crackers earned more than Ben Bernanke.

“Travis Marks, a 24-year-old with no college degree, is hitting pay dirt as Australia’s mining bonanza fuels demand for workers,” says Bloomberg. “Already making triple the nation’s average salary, he expects to get even richer…

“Marks, who earns A$220,000 ($227,150) a year – more than Federal Reserve Chairman Ben S. Bernanke’s $199,700 – is a rigger for a company providing construction and maintenance services to the resources industry. ‘[This job] is a really good way to get ahead as a young bloke,’ Marks said.”

Well, of course Mr. Marks should earn more than Bernanke. He’s not destroying the world’s financial system. He’s doing something useful.

As we’ve said many times, modern academic economics is a knowledge-subtracting discipline. It’s full of bad ideas and misleading theories. The more you study it, the more you know that isn’t so. Mr. Bernanke proves it. He’s a smart guy. But with so much training in economics he’s worth less than an Outback truck driver.

But this story has a sunny side to it. Turns out, there’s opportunity Down Under.

“Prime Minister Julia Gillard said in February the resource industry could be short 36,000 workers in the next four years,” Bloomberg continues, “and the government will have to introduce measures to encourage older Australians and parents to rejoin the workforce. She also plans to relax restrictions on skilled migration.”

Did you see that last sentence, dear reader? Maybe this is part of the answer to America’s job shortage – export workers to the sunburnt country on the other side of the world. They just have to learn to wrestle crocodiles and to speak Strine.

But let’s turn back to the main story we’re following:

There are now two economies in America.

There’s the “rich,” recovering economy, floating on $2 trillion in excess cash pumped in by the feds. And there’s the “poor” economy, with millions of people drowning in all that Fed-fed inflation.

But wait, what’s this? Unemployment is down to 8.8%. Here’s the report:

“The unemployment rate fell to a two-year low of 8.8 percent in March,” says Bloomberg, “capping the strongest two months of hiring since before the recession began.

“The economy added 216,000 jobs last month. Another month of brisk hiring provided the latest sign that the economy is strengthening nearly two years after the recession ended. Still, a surprisingly large number of people who stopped looking for work during the downturn have yet to start looking again. Private employers, the backbone of the economy, are driving the gains. They added more than 200,000 jobs for a second straight month. It was the first time that’s happened since 2006 – more than a year before the recession started.

“Economists predict employers will add jobs at roughly the same pace for the rest of this year. That would generate about 2.5 million new positions. Still, that would make up for only a small portion of the 7.5 million jobs wiped out during the recession.”

Well, at least that’s progress…but read the next two paragraphs carefully:

“A big factor in the lower unemployment rate is that the proportion of people who either have a job or are looking for one is surprisingly low for this stage of the recovery,” Bloomberg winds up. “People who stopped looking for work during the downturn are not counted as unemployed. If many out-of-work people start looking for work again, they will be counted and the unemployment rate could go up. That could happen even if the economy is adding jobs.”

Let’s see, the economy has to create 125,000 jobs per month just to stay even with population growth. Even so, this isn’t bad. Net, nearly 100,000 jobs to the good. Hmmm… With 7 million officially unemployed…and maybe another 5 million who stopped looking for work…that makes 12 million or so without jobs. If we can sustain this rate – recovering about 100,000 jobs per month – how long will it take for your laid-off nephew to find a new job? Maybe only 10 years!

Bill Bonner
for The Daily Reckoning

Falling Unemployment: Blind Optimism in the “Poor” Economy originally appeared in the Daily Reckoning. Daily Reckoning founder Bill Bonner recently wrote articles on stagflation and introduced his new book Dice Have No Memory: Big Bets & Bad Economics From Paris to the Pampas.

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Falling Unemployment: Blind Optimism in the “Poor” Economy




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The Astonishing Secret of Mexico’s Long-Lost Silver Treasure Maps

March 13th, 2011

Meanwhile, just as some pundits were saying silver was overdue for a decline, it surged AGAIN this week, shattering previous highs and chalking up still more profits for investors.

So now, more than ever, it’s time to pay attention to the most fascinating story any silver miner has ever told me.

The story begins 507 years ago. That’s when a restless, arrogant and mischievous 18-year-old Hern

Commodities, ETF, Mutual Fund, Uncategorized

News Flash: Silver and gold stocks up 11%, 24%, 46% in 1 WEEK!

March 4th, 2011

Sean Brodrick

Frankly, I’ve never seen anything like it: Mining stocks are positively exploding in price.

U.S. Silver is up 11% … Silver Mines is up 13% … Silvercrest Mine is up 15% … Endeavour Silver is up 16% … Mountain-West is up 18%!

Plus …

Great Panther Silver is up 23% … Wildcat Silver is up 24% … Cream Minerals is up 33% … and Cangold is up a remarkable 46% … all in the past week!

Chart

I certainly hope you’ve staked your claim to this historic bull market in the precious metals. If so, you’re probably making money hand over fist right now!

And with the right mining companies, you can still pick up silver and gold very, VERY cheaply. So even if the metals themselves didn’t rise a penny more, the profit potential is enormous.

But I think the entire concept of the gold and silver bull markets ending today is laughable. In fact, before this historic move ends, I see gold prices rising to at least $2,500, and I see silver prices TRIPLING from today’s levels to over $100 per ounce.

Plus, I see many of my favorite silver stocks making investors five times richer, ten times richer, ultimately up to fifteen times richer.

The details are all right here in my just-updated video, including my analysis of the three silver stocks you simply can NOT afford to ignore now.

But you must hurry: The intelligence I give you in this unique presentation is far too time-sensitive for me to leave it online much longer.

Click this link to watch this all-important presentation and stake your claim in this great silver bonanza while there’s still time.

Yours for trading profits,

Sean Brodrick

Read more here:
News Flash: Silver and gold stocks up 11%, 24%, 46% in 1 WEEK!

Commodities, ETF, Mutual Fund, Uncategorized

News Flash: Silver and gold stocks up 11%, 24%, 46% in 1 WEEK!

March 4th, 2011

Sean Brodrick

Frankly, I’ve never seen anything like it: Mining stocks are positively exploding in price.

U.S. Silver is up 11% … Silver Mines is up 13% … Silvercrest Mine is up 15% … Endeavour Silver is up 16% … Mountain-West is up 18%!

Plus …

Great Panther Silver is up 23% … Wildcat Silver is up 24% … Cream Minerals is up 33% … and Cangold is up a remarkable 46% … all in the past week!

Chart

I certainly hope you’ve staked your claim to this historic bull market in the precious metals. If so, you’re probably making money hand over fist right now!

And with the right mining companies, you can still pick up silver and gold very, VERY cheaply. So even if the metals themselves didn’t rise a penny more, the profit potential is enormous.

But I think the entire concept of the gold and silver bull markets ending today is laughable. In fact, before this historic move ends, I see gold prices rising to at least $2,500, and I see silver prices TRIPLING from today’s levels to over $100 per ounce.

Plus, I see many of my favorite silver stocks making investors five times richer, ten times richer, ultimately up to fifteen times richer.

The details are all right here in my just-updated video, including my analysis of the three silver stocks you simply can NOT afford to ignore now.

But you must hurry: The intelligence I give you in this unique presentation is far too time-sensitive for me to leave it online much longer.

Click this link to watch this all-important presentation and stake your claim in this great silver bonanza while there’s still time.

Yours for trading profits,

Sean Brodrick

Read more here:
News Flash: Silver and gold stocks up 11%, 24%, 46% in 1 WEEK!

Commodities, ETF, Mutual Fund, Uncategorized

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