Archive for September, 2012

Junior Miners (GDXJ) Are Outperforming Gold Bullion (GLD)

Jeb Handwerger, editor of GoldStockTrades.com, says the technicals are lining up for precious metals players, not just the fundamentals.

The fundamentals for gold and silver appear to be making a positive turn as the US, ECB and Bank of Japan simultaneously signals Worldwide QE3. The charts are just beginning to make new uptrends and may have much more room to go. One must remember both gold and silver have not made new inflation adjusted highs despite record sovereign debt levels and a coordinated worldwide currency debasement.  There is much more room to go in this rally as many investors still need to unwind a record position in cash and treasuries.  Over the summer a record number of retail investors held their largest cash position in many years.  Now they must look for alternatives as the Central Banks are hoping to increase inflation to promote spending and investing, which will hopefully create employment.   It is clear that policy makers are fighting for inflation as economic growth continues to stagnate not only in the U.S. but in Europe, Japan and even China.  Meanwhile during this recent summer correction, governments around the world were buying gold and silver as a hedge against the U.S. dollar and the Euro which now appears to be crashing into new lows.

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.

The majors are hungry for growth and are sitting on large cash positions which is losing value as Central Banks print dollars.  Too many dollars chasing dwindling supplies of precious metals may cause a major price spike.  The majors must invest in the junior miners which in a bull market could provide great leverage and move exponentially higher in percentage terms than bullion.

As we have believed for many months, governments around the world will be forced to print dollars to deal with a moribund economy while interest rates rise prompting investors to flee bonds into the undervalued precious metals and commodities.  We saw capitulation in the mining stocks in late May when they pulled back to 2010 levels.  Some junior miners are cheaper now at $1550 gold then when gold was $600 an ounce.

For many months we informed our readers that a rotation will continue to occur from overbought equities and treasuries into the record oversold junior miners which could cause a major percentage gain over the next 12-18 months where technical conditions were so oversold that we could see snapback gains of possibly 200-400%.  This happened before in the miners in 2008 and at other pivotal turning points such as in 2000 when the dot-com bubble burst and we believe it will happen again in 2013.

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I will be presenting a workshop on the junior silver miners and participating on a panel about “New Mines” at the annual Toronto Resource Investment Conference at the Toronto Sheraton Centre tomorrow  September 28th, 2012.

I will be speaking on Friday at 3:30 in Workshop Room 3 on “Why the Junior Miners Are  Set To Outperform”.  At 5:00PM I will be a participant on the closing panel on “New Mines” in the Speaker Hall.

To order my premium service click here and find out why many investors are paying close attention to the junior resource market.

Saturday, September 29th, 2012 Invest, News, Trade Comments Off on Junior Miners (GDXJ) Are Outperforming Gold Bullion (GLD)

Gold, Silver Prices To Rise In Q4: ETF Strategists – Investor’s Business Daily


Wall Street Journal
Gold, Silver Prices To Rise In Q4: ETF Strategists
Investor’s Business Daily
The Federal Reserve's third round of quantitative easing will certainly ignite inflation, sending gold and silver prices higher, say ETF investing advisers. They overwhelmingly favored bullion and miner ETFs when asked last week for their best
5 Highest-Yielding Commodity ETFsMinyanville.com
Five Commodity ETFs With Active Options (GLD, GDX, XLE, UNG, SLV, CVX ETF Daily News (blog)
How to Build a Black Swan Hyperinflation PortfolioInsider Monkey (blog)
Business Standard –NASDAQ
all 90 news articles »
Friday, September 28th, 2012 Invest, News, Wealth Comments Off on Gold, Silver Prices To Rise In Q4: ETF Strategists – Investor’s Business Daily

Steve Forbes on the Gold Standard; Fed – TheStreet.com

Steve Forbes on the Gold Standard; Fed
TheStreet.com
When you make an investment if you don't know five years from now you're going to get paid in 20 cent dollars, 100 cent dollars, 10 cent dollars, you get less investment. People always ask me, should I invest in gold? Why would you want to invest in

Friday, September 28th, 2012 Invest, News, Wealth Comments Off on Steve Forbes on the Gold Standard; Fed – TheStreet.com

Study Questions Rationale for Investing in Gold – The Epoch Times


The Epoch Times
Study Questions Rationale for Investing in Gold
The Epoch Times
Gold has been a lure for many investors because of the belief that gold will hedge against inflation or deflation, protect wealth during financial calamities and economic or political upheaval, and insure against becoming poverty-stricken. “The debate

and more »

Friday, September 28th, 2012 Invest, News, Wealth Comments Off on Study Questions Rationale for Investing in Gold – The Epoch Times

Ready for the gold rush – China Daily


China Daily
Ready for the gold rush
China Daily
Chan believes that more Chinese are putting their money on gold jewelry, gold coin and bullion investments. "People have already experienced the fallout caused by the second round of quantitative easing (QE2), as concerns are rising that the launch of

and more »

Friday, September 28th, 2012 Invest, News, Wealth Comments Off on Ready for the gold rush – China Daily

Mining Stock News: SilverCrest (TSX.V: SVL) Reports High Grade Surface Sampling and Additional Drill Results – 157m @ 94.1 gpt Ag Eq at La Joya

VANCOUVER, BC – September 27, 2012 (Investorideas.com Mining Stocks Newswire) SilverCrest Mines Inc. (TSX-V:SVL)(NYSE MKT:SVLC) (the “Company”) is pleased to announce the results of an additional 15 holes of the Phase II drill program and additional surface sampling currently underway at its La Joya Property in Durango, Mexico.

Friday, September 28th, 2012 News Comments Off on Mining Stock News: SilverCrest (TSX.V: SVL) Reports High Grade Surface Sampling and Additional Drill Results – 157m @ 94.1 gpt Ag Eq at La Joya

Gold Stocks Alert: Atlanta Gold (TSXV:ATG; OTCQX:ATLDF) Identifies Pilot Processing Plant

Toronto, Ontario – September 27, 2012 (Investorideas.com Mining stocks newswire) – Atlanta Gold Inc. (TSXV: ATG; OTCQX:ATLDF) announces that it expects that significant economic and environmental benefits will be realized from using a pilot processing method which is currently being used by Knife River Corporation at the Gold Hill Mine located approximately 48 air km from the Atlanta Project.

Friday, September 28th, 2012 News Comments Off on Gold Stocks Alert: Atlanta Gold (TSXV:ATG; OTCQX:ATLDF) Identifies Pilot Processing Plant

Steve Cochrane Finds Value in Far-Flung Locales

September 27, 2012 (Investorideas.com Mining stocks newswire) – There’s a point in a country’s emergence where the perceived risk by investors doesn’t correspond with the real risk, says Steve Cochrane, an investment adviser with Macquarie Private Wealth Inc.

Friday, September 28th, 2012 News Comments Off on Steve Cochrane Finds Value in Far-Flung Locales

South Africa Unrest To Affect Bullion Supply And Support Gold – Business Insider


South African Broadcasting Corporation
South Africa Unrest To Affect Bullion Supply And Support Gold
Business Insider
Gold inched up on Thursday but continued tension over the eurozone debt crisis has bolstered the dollar, weakened oil and is expected to limit bullions gains. Protests against government austerity are on the rise in Greece and Spain and have led to
Unrest in South Africa to Impact Bullion Supply and Support GoldGold Investing News
Shares prices of JSE-listed gold mines dropSouth African Broadcasting Corporation
AngloGold Ashanti says illegal strike has spreadNewsDay

all 523 news articles »

Friday, September 28th, 2012 Invest, News, Wealth Comments Off on South Africa Unrest To Affect Bullion Supply And Support Gold – Business Insider

Gold Sets Records in Euros and Francs on Currency Concern – Bloomberg

Gold Sets Records in Euros and Francs on Currency Concern
Bloomberg
Gold climbed to a record priced in euros and Swiss francs on concern that central banks' moves to boost economies will devalue currencies, spurring demand for the metal as an alternative investment. Bullion for immediate delivery in London reached
Gold Hits New High in Euros and FrancsGold Investing News

all 7 news articles »

Friday, September 28th, 2012 Invest, News, Wealth Comments Off on Gold Sets Records in Euros and Francs on Currency Concern – Bloomberg

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