It seems that copper is going back into backwardation, so that's good for equities, oil and commodities.Chart 1: Copper Conta...
Thursday, 27 September 2012
Wednesday, 26 September 2012
On 17 September 2012, talk about a possible release of oil from the U.S. strategic petroleum reserve was put on the table. Since that announcement, the oil price has dropped 10% from $100/barrel to $90/barrel. These strategic petroleum reserves are only to be used during emergencies defined as follows:an emergency situation exists and there is a significant reduction in supply which is of significant scope and duration;a severe increase in the price...
In an interview from Peter Schiff on 25-September-2012 with the CEO of Sandstorm Gold, Nolan Watson, I noticed that platinum production costs are now almost the same as the platinum price. This is very significant as every price drop in platinum will render platinum mines nonviable for business.Figure 1: Price versus Operating Cost (Gold, Silver, Platinum, Palladium)Several articles like these have popped up recently and it's almost certain...
Wednesday, 19 September 2012
A very interesting development has been spotted in a gold-copper mine I talked about before here. I noted that the Philippines' gold and copper resources were ranked in the top 5 in the world. At the time of that article, St. Augustine Gold & Copper Ltd. (SAU) was at CAD 0.3/share. Just recently, the share price of the company jumped up to CAD 0.4/share on news that Australia based CGA Mining Ltd. (CGA) is going to be bought out by B2Gold Corp. for $1.1 billion. Read more about this news he...
Tuesday, 18 September 2012
On 16 September 2012, China Construction Bank (CCB) announced that it would use up to $15 billion dollars to buy a stake (30%-50% stake or full acquisition) in a European bank. CCB chairman Wang Hongzhang said he would target banks in France, Germany and the United Kingdom. He indicated that some of the European banks are "on sale". The most interesting candidates are to be found in the partly nationalised banks, because it allows the government to reprivatise the banks. This way, the treasury is allowed to recoup its investment after having...
Sunday, 16 September 2012
Ben Bernanke recently announced QE3 and it is estimated by Bank of America that the federal reserve balance sheet will go to $5 trillion in two years from now (end of 2014). If we know that the federal reserve balance sheet will go to $5 trillion in two years from now, I want to point out what this means to the U.S. dollar denominated in gold (GLD). How much depreciation in U.S. dollars can investors expect due to QE3? For the answer we need to take...
Just a little pat on my own back.QE3 was announced on 13-14 September 2012, it was predicted that they would by MBS and bonds, Eric Sprott premiums on silver went up, bond yields went up, LCNS went up, silver broke out.All predicted in this August 2012 article.Now the only thing that remains is the JPM silver manipulation. That will ultimately happen when physical shortages in silver start to emerge and we already see that happening. So brace yourself for a spike in silver!See Kingworldnews: Mounting shortages in gold and silv...
Friday, 14 September 2012
In Canada the capacity utilization rate has climbed from 80.5% the previous quarter to 81%. As Canada is a resource based economy, this could be an indication that the commodities market will improve in the next quarters. Capacity utilization rates above 80% are inflationary.http://www.bloomberg.com/news/2012-09-13/canada-second-quarter-capacity-utilization-report-text-.htmlU.S. capacity utilization took a dive in August 2012 to 78.2%, much less than the forecast. This is the lowest since October 2011 and a huge break of the trendline. We can't...
On 13 September 2012, Ben Bernanke announced a third round of quantitative easing also known as QE3. What the federal reserve will do is buy $40 billion in MBS and $45 billion in 10-30 year bonds per month. So a year from now, the federal reserve will have bought $480 billion in MBS and $540 billion in 10-30 year bonds.So basically, the federal reserve will try to spur growth by helping the mortgage market and the bond market. But there is a catch...
Monday, 10 September 2012
While Marc Faber is predicting that the stock market will be lower in a few months, he suggests that investors diversify into the pharmaceutical sector. The reasoning behind this is that during a stock market crash, the pharmaceutical sector will be less hurt by worsening market conditions. Pharmaceutical companies provide a stable dividend and their products are less dependent on economic cycles.There are many pharmaceutical companies for investors...
Saturday, 8 September 2012
Friday, 7 September 2012
Payroll numbers just came out and it's not good: 91000.As I pointed out in this article it means we are bound to get higher unemployment numbers (even though unemployment is only 8.1% right now). This is because payroll numbers are a far better measure than the unemployment rate.What happened? Gold and silver flew through the roof because QE3 is very probable now.Chart 1: SilverChart 2: G...
China has acted with a big infrastructure stimulus plan of 1 trillion yuan. This is equivalent to 160 billion dollars. With GDP of China being half of that of the U.S., this means it is equivalent to a 320 billion dollar stimulus in the U.S. This is a pretty big stimulus if you tell me.You know what that means. Buy commodities and stocks.http://www.businessinsider.com/chinese-market-goes-wild-after-1-trillion-yuan-stimulus-plan-201...
In a previous article in March 2012 I pointed out that it was the perfect time to get out of U.S. bonds and go into eurobonds. Just recently we have a huge confirmation that the market is favoring European bonds (EU) over U.S. bonds (TLT) (Chart 1). We see that the WisdomTree Dreyfus Euro ETF (EU) has shot upwards on 21 August 2012 on news that the ECB would buy Italian and Spanish bonds. That day, the euro jumped to a seven-week peak against the...
Thursday, 6 September 2012
Mike Maloney is one of those people I look up to and I just heard about his incredible story about him being in a frontal car crash.http://goldsilver.com/article/mike-maloney-in-horrible-car-crash-with-tesla/Luckily, Mike survived this car crash and I'm glad nothing of permanent damage was incurred.I always say: "you can have all the gold and silver on this world, but health will always come firs...
Wednesday, 5 September 2012
Silver Lake Resources (SLR) is one of those Australian gold companies that has defied gravity in the gold mining industry. While the 2008 economic crisis hit the whole world, Silver Lake Resources managed to return more than a 1000% in gains starting from year 2008 up to today (Chart 1). The question is, how much can it still go up?Find out the answer here.Chart 1: Silver Lake Resources (S...
Today the CNT Depository has been added to the already existing warehouse stock depositories at the COMEX (CME): Brink's, J.P. Morgan Chase Bank, Scotia Mocatta, HSBC Bank, Delaware Depository. The CNT Depository is located at 722 Bedford St., Bridgewater, MA. CNT, Inc. began as a small numismatic business in 1973. Since that time they have grown into the largest privately owned company in the precious metals industry. CNT, Inc. has an annual net...
Tuesday, 4 September 2012
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