Tag: Gold Miners

How to Buy Yukon Gold Stocks

Filed in BP, Ford, Gold, Gold Exploration, Gold Market, gold-stocks, Lear, New Gold, o, target by on February 18, 2011 0 Comments

For the past few weeks, I’ve been urging investors to take a close look at a quality gold exploration companies working in Canada’s Yukon Territory… But with so many Yukon gold stocks to choose from, it can be difficult for investors to determine which companies deserve the most attention. And that’s exactly why I put this article together for you today. For the first time ever, I’ll be publishing some of the guidelines I’ve been personally using to buy Yukon gold stocks. The very first thing investors should know is that the Yukon gold story is just getting started. Last year, nearly 80,000 new gold claims were staked in the Yukon. But this represents only 4% of the Yukon’s total land mass. There is still plenty of staking potential. In 2011, however, it’s very likely we’ll see several companies make big gold discoveries. In an average year, only about $20 or $30 million is spent exploring for gold in the Yukon. Now that the price of gold is breaking record highs, about $100 million is spent in an average year. But in 2011, the Yukon Geological Survey estimates almost $330 million will be spent for work programs and drilling this summer in the Yukon. With so much exploration going on, someone will no doubt find gold. Almost 20 million ounces of placer gold have been taken out of the Yukon Territory over the century. The Yukon overall has the biggest placer gold signatures in the world— meaning there are very large sources of gold in the Yukon from whence this gold sprang. Geologists generally agree that the source of the placer deposits is typically 10 times larger than the amount of placer gold discovered in an area. In the case of …

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Gallup: The Unemployment Rate is 10%

Gallup:  The Unemployment Rate is 10%

Jobs…jobs…jobs… I’m beginning to sound like a broken record but it’s true: This economy is going nowhere unless we start creating some jobs. As for the recent drop in the unemployment rate to 9.0%, I’m not buying it since it comes from Uncle Sam. The real figure is likely closer to what Gallup is reporting today… From by Dennis Jacobe entitled: Gallup Finds U.S. Unemployment Up to 10% in Mid-February “Unemployment, as measured by Gallup without seasonal adjustment, hit 10.0% in mid-February — up from 9.8% at the end of January. Underemployment, in which Gallup combines part-time workers wanting full-time work with the U.S. unemployment rate, surged in mid-February to 19.6% — mostly as a result of the sharp increase in those working part time but wanting full-time work. Underemployment now stands at basically the same place as it did a year ago (19.8%). The unemployment rate in mid-February is 0.8 percentage points lower than it was at this time a year ago, compared with a 1.1-point improvement at the end of January. This suggests that jobs are less available now than they were in January. More troubling, however, is the surge in underemployment. On this broader basis, current job conditions are barely improved from what they were at this time last year. Essentially, what has happened over the past year is that some people who were unemployed got part-time jobs but are still looking for full-time work. This is not much to show for a year in which many macro-economic indicators showed improvement. This is likely why Gallup’s self-reported spending

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Inflation in (Mostly) the Wrong Places

It is often claimed that inflation is a benign, even positive, force. People assume that prices, wages, and assets will all rise together… In the real world, inflationary episodes don’t play out that way. Wages don’t keep up, and bubbles form in unexpected (and unwanted) places. In America, compensation is clearly stagnant. And the outlook for future pay raises is not good, as this chart from David Rosenberg shows: Contrast that with this next chart, which shows the percentage of companies planning to raise prices: Combine stagnant wages and slow growth with high unemployment and rising prices, and you get a recipe for stagflation. This scenario is being played out around the world. In the UK, consumer prices rose 4% in 2010. As noted by the Financial Times , wages aren’t keeping up: The prices of everyday goods and services are rising about twice as rapidly as average wages, Tuesday’s inflation figures confirmed — which means that the standard of living of many Britons is already falling. According to the Bank of England, average pay at the end of this year will be able to buy no more than it could in 2005. It is the first time that the purchasing power of earnings has fallen so far since the 1920s. I expect this trend to continue as long as the Fed’s mad experiment is ongoing. The thing about Central Bank “easing” is you never know where inflation will pop up… Easy money will always fuel speculators, who have little skin in the game, to find another bubble to “invest” in. Silver, gold, oil With printing presses switched “on” for the foreseeable future, we remain bullish on precious metals. Silver is holding above $30 today and could hit $37.50 on the next leg up. Coal, oil, and natural gas investments should continue to do well. And as my colleague Nick Hodge of Energy and Capital says, “Buy it if it burns.” If you’re not yet convinced that Fed printing is directly related to rising commodity prices, examine the following chart. (The solid blue line represents the Austrian Money Supply (AMS), and the solid teal line represents commodity prices ( IMF Commodity Index )): Note: The version of money supply shown

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Sysco Confirms Our Worst Fears

Filed in AMAG, BP, GOld juniors, Gold Market, HAL, inflation, lead, Lear, o, target by on February 14, 2011 0 Comments

The food inflation strategies we outlined here and here and here may have sounded a bit gloomy, but considering what’s been happening in the commodity markets (inflation, weather-related disasters, and freezing conditions in Mexico), the well-timed strategies remain in place. ———————— Now that Sysco has confirmed their prices are rocketing (which also means your food prices will head north), it’s about to get a lot worse for the millions already struggling to pay their outrageous food bills… According to reports, you’ll pay double… even triple the price for produce within weeks thanks to a freeze that wiped out crops in Mexico and the southwestern US. And, according to Zero Hedge, “Now might be a good time to hit the frozen foods (or fresh produce if you’ve got a vacuum sealer) aisle at your local grocery store and stock up on your favorite fruits and veggies, as there may be a severe supply crunch coming in the next couple weeks lasting perhaps several months.” “Why pay premium prices later when you can prepare yourself today, before the rest of the country gets wind of it,” says Zero Hedge, as inflationary risks, supply problems, weather related incidents, and a recent freeze in Mexico that’s lead to an 80% and 100% crop damage makes life a bit more unbearable for companies that Sysco, which just released the following note: ALL OF OUR GROWERS HAVE INVOKED THE ACT OF GOD CLAUSE ON OUR CONTRACTS DUE TO THE FOLLOWING RELEASE. WE WILL BE CONTACTING YOU PERSONALLY TO REVIEW HOW THIS WILL AFFECT OUR CONTRACTED ITEMS WITH YOU GOING FORWARD. THE DEVASTATING FREEZE IN MEXICO IS WORST FREEZE IN OVER 50 YEARS… THE EXTREME FREEZING TEMPERATURES HIT A VERY BROAD SECTION OF MAJOR GROWING REGIONS IN MEXICO, FROM HERMOSILLO IN THE NORTH ALL THE WAY SOUTH TO LOS MOCHIS AND EVEN SOUTH OF CULIACAN. THE EARLY REPORTS ARE STILL COMING IN BUT MOST ARE SHOWING LOSSES OF CROPS IN THE RANGE OF 80 TO 100%. EVEN SHADE HOUSE PRODUCT WAS HIT BY THE EXTREMELY COLD TEMPS. IT WILL TAKE 7-10 DAYS TO HAVE A CLEARER PICTURE FROM GROWERS AND FIELD SUPERVISORS, BUT THESE GROWING REGIONS HAVEN’T HAD COLD LIKE THIS IN OVER A HALF CENTURY. THIS TIME OF YEAR, MEXICO SUPPLIES A SIGNIFICANT PERCENT OF NORTH AMERICA’S ROW CROP VEGETABLES SUCH AS: GREEN BEANS, EGGPLANT, CUCUMBERS, SQUASH, PEPPERS, ASPARAGUS, AND ROUND AND ROMA TOMATOES. FLORIDA NORMALLY IS A MAJOR SUPPLIER FOR THESE ITEMS AS WELL BUT THEY HAVE ALREADY BEEN STRUCK WITH SEVERE FREEZE DAMAGE IN DECEMBER AND JANUARY AND UP UNTIL NOW HAVE HAD TO PURCHASE PRODUCT OUT OF MEXICO TO FILL THEIR COMMITMENTS, THAT IS NO LONGER AND OPTION. WITH THE SERIES OF WEATHER DISASTERS THAT HAS OCCURRED IN BOTH OF THESE MAJOR GROWING AREAS WE WILL EXPERIENCE IMMEDIATE VOLATILE PRICES, EXPECTED LIMITED AVAILABILITY, AND MEDIOCRE QUALITY AT BEST. THIS WILL NOT ONLY HAVE AN IMMEDIATE…

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Millionaires More Likely to Strategic Default

Filed in BP, CBS, Gold, GOld juniors, Gold Market, housing-market, Lear, o by on February 8, 2011 0 Comments
Millionaires More Likely to Strategic Default

Not surprisingly, the bursting of the housing bubble has moved up to the final rung on the ladder. Far from the days of the subprime debacle, now even the “good” people are getting squeezed. The difference is the rich are smart enough to walk away from it all. In fact, homeowners with loans of more than $1 million default at a much higher rate than “the little people” do. From CBS News entitled: Even More Millionaires Defaulting on Mortgage “ For Darren Thomas that ocean view was quickly losing its value. He says, “I bought it for [$1.385 million]. It is worth less than [$800,000], maybe less.” Thomas bought his townhome in 2006 but after seeing its value drop steadily he stopped paying. “I haven’t made a payment in two years,” he says. “It was business decision. It was an easy decision. I have a property worth six or 700,000 less than when I bought it. I was making payments of 10,000 a month.” Thomas has gone into strategic default. He could make payments but is refusing to put more money into a home that is worth less than his mortgage. Among luxury homeowners he is not alone. One in seven homeowners with loans over $1 million are seriously delinquent compared to one in 12 with mortgages below $1 million. The more you owe, it seems, the better off you may be. Darren Thomas continues to live in his home because banks are often slower to foreclose on million-dollar homes. For those who have stopped paying their million-dollar mortgages it’s just an investment that didn’t work out. “As negative equity took place and drove the value down it became an investment not worth holding onto,” says Corelogic’s Mark Flemming. “Not much different than a regular stock you would sell.” “People like myself, business people, are going it is silly to throw good money after bad,” says Thomas “The loss is not mine. The loss is the banks.” When it comes to real estate, the rich are different. They can be just as ruthless as the bankers.” I guess Nick Carraway was wrong after all. In some ways the rich really are just like the rest of us….suckers for a good bubble. The difference is they understand the money/business part of the game better than most. For them its just a business decision. By the way, according to CoreLogic, home price have fallen for the fifth straight month. Overall, house prices delined 1.8% for the month of December. Related Articles: Case-Shiller Index Shows Renewed Home Price Declines 2011 Housing Market Forecast Case-Shiller Index Screams Housing Double Dip Meredith Whitney Predicts a Housing Double-Dip Zandi: Expect 8% Home Price Declines To learn more about Wealth Daily click here Millionaires More Likely to Strategic Default originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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China’s Housing Bubble Begins to Top

Filed in BP, citigroup, economy, Gold, GOld juniors, Gold Market, housing-market, Lear, o, target by on February 1, 2011 0 Comments
China’s Housing Bubble Begins to Top

Round and round she goes, where she stops nobody knows…. From Bloomberg entitled: China’s Housing Market Nears U.S., Japan Bubble Levels: Chart of the Day “ China’s property market may be heading into a bubble as the economy’s reliance on real estate reaches a level close to the housing peaks in the U.S. and Japan, according to Citigroup Inc. The CHART OF THE DAY shows investment in residential property accounted for 6.1 percent of China’s gross domestic product last year, the same level as the record in the U.S. in 2005 that was followed by the subprime crisis, said Shen Minggao, Citigroup’s China research head. It’s also about 2 percentage points away from Japan’s 1970s housing boom, he said. “ China’s property market is entering into a bubble stage,” Shen said in a phone interview. “It’s evident that property prices are no longer sustainable once the residential investments achieve above 8 percent of nominal GDP, and China may not be an exception.” A 10 percent drop in China’s property investment translates to a 1 percentage point decline in nominal GDP, Shen said. Adding investments indirectly related to the real estate industry, nominal GDP will fall 2 percentage points to 2.5 percentage points, he said China’s property prices rose for 19th month in December, climbing 6.4 percent from a year earlier. The government last week increased the minimum down-payment for second

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Buying Blood in the Streets: A How-To Guide

Filed in BP, Gold, Gold Market, o, target by on January 31, 2011 0 Comments
Buying Blood in the Streets: A How-To Guide

There’s no cash in the ATMs, there’s something like 5,000 prisoners roaming the streets and there’s no security. — May Sadek, man on the street, Cairo In my financial trading service Crisis & Opportunity , I seek maximum returns by buying stocks when fear is the highest, and selling them when the panic dissipates. It might sound crude and insensitive to buy stocks in places where people are literally dying, but it works; and by supporting the stock market when everyone is fleeing, you are reducing the panic— which is a positive for financial stability. Baron Von Rothschild is credited with saying, “The time to buy is when blood is running in the streets.” He’s been re-quoted by everyone from Mobius to Rockefeller. But through extensive research, I uncovered this bit from The New York Times circa 1931… It has been reported during the aftermath of the Franco-Prussian War, when the French had been defeated and the mob was looting Paris, a friend of his asked, “What are you going to do to protect your interests in this dreadful hour?” The Baron said to him, “Can you keep a secret?” He replied, “Yes.” The Baron said, “Well, if the truth must be told, I am protecting myself by buying real estate.” His friend responded, “Do you mean to say you are buying real estate with the gutters of Paris running with blood and the city in the hands of a mob?” Rothschild said, “Yes, my friend, I mean that very thing, and that is the only time, when the gutters are running with blood, that you can buy real estate at 50 cents on the dollar.” Istanbul to Constantinople Buying blood in the streets has become a hoary Wall Street platitude because it is extremely profitable. The thing about revolutions is that the countries don’t disappear… Sure, governments come and go, the names and lines on maps change and are redrawn— but the people and resources remain. I can name a number of countries off the top of my head that had post-revolution stock market booms: South Korea, Indonesia, Malaysia, Sri Lanka, Russia, South Africa… the list goes on. When you invest in foreign markets that are in crisis, you get a bounce-back on both the equity side and the currency side. Here is an example: In 1998, the people of Indonesia took to the streets and threw off long-term dictator Suharto. The market crashed, and the currency went from 350 to the dollar to over 15,000 before it stopped trading altogether. One of the Indonesian blue chips— P.T. Telecom — fell from the low $30s to $1.50. The currency now trades at 9,047 rupiah to the dollar. If you put $10,000 in TLK at $1.50 and held it to the top, you would have made $366,000 on the share price— plus another 30% or so on the currency…

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Mythbusting Gold's Volatility | www.bullfax.com

Filed in Barrick Gold, Gold, Gold Miners, Indonesian Gold, miners, o, shares by on January 26, 2011 0 Comments

Canadian gold miners tumble after bullion sell-off. Shares of Barrick Gold and other gold-mining majors fell on Friday on the Toronto Stock Exchange following a nearly 4% drop in the price of gold bullion on Thursday. …

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Time to Buy Gold Stocks…Again

Filed in Australian Gold, currencies, featured, Gold, Gold Miners, miners, o by on January 26, 2011 0 Comments

Gold stocks are seen as relatively cheap in this essay with reference to the Market Vectors Gold Miners ETF and declining fain the the paper monetary system. … Western central banks are trashing their own currencies at unprecedented rates , while Eastern central banks are slowly tightening policy and accumulating gold bullion . If current trends in government spending and central banking continue, gold could soar to multiples of its current price. …

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Case-Shiller Index Shows Renewed Home Price Declines

Filed in BP, Gold, Gold Market, housing-market, Lear, o by on January 25, 2011 0 Comments
Case-Shiller Index Shows Renewed Home Price Declines

This one is no real surprise since the double dip in home prices is accelerating…. From Bloomberg by Shobhana Chandra entitled: Home Prices in Us. Declined 1.6% From Year Earlie “ Residential real-estate prices dropped in November by the most in a year, signaling housing has yet to join the U.S. rebound. The S&P/Case-Shiller index of home values in 20 cities fell 1.6 percent from November the prior year, the biggest 12-month decrease since December 2009, the group said today in New York. The decline matched the median forecast of economists surveyed by Bloomberg News. “ The housing market is in a state of hibernation,” said Zach Pandl , an economist at Nomura Securities International Inc. in New York. “We have a very severe foreclosure problem. Prices are going to keep weakening this year. Weakness in the housing market is likely to keep the Fed relatively cautious in its statement tomorrow.” The Case-Shiller gauge is based on a three-month average, which means the November data was influenced by transactions in October and September. Sixteen of the 20 cities in the index showed a year-over- year decline, led by a 7.9 percent drop in Atlanta. In November, prices in eight markets dropped to fresh lows from their 2006, 2007 peaks. “ With these numbers more analysts will be calling for a double-dip in home prices ,” David Blitzer , chairman of the index committee at S&P, said in a statement. A double-dip would be reached when the 20-city index sets a new post-peak low, which may happen in the first half of this year, said Blitzer. Industry projections reinforce the concern about housing. The number of homes receiving a foreclosure filing will climb about 20 percent in 2011, reaching a peak for the housing crisis, said RealtyTrac Inc., an Irvine, California-based data seller. Home values may drop as much as 11 percent through the first quarter of 2012, which would put them 36 percent below their 2006 peak, according to a Dec. 8 Morgan Stanley report.” From the looks of this report, it is shaping up to be another tough Spring. Related Articles: 2011 Housing Market Forecast Case-Shiller Index Screams Housing Double Dip Meredith Whitney Predicts a Housing Double-Dip Zandi: Expect 8% Home Price Declines To learn more about Wealth Daily click here Advertisement “R-4 Trigger” Predicts Which Options Will Jump 68% or More After three full years of beta testing (and cumulative returns of 10,805%), the “R-4 Trigger” is ready for public release… Which means, just 27 days from now, you could be sitting on easy 68% gains. Click here to learn more. Case-Shiller Index Shows Renewed Home Price Declines originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Fear the Reaper

Filed in ben bernanke, BP, earnings, economy, Gold, GOld juniors, lead, o, recession, shares, stimulus by on January 24, 2011 0 Comments
Fear the Reaper

It’s been a hell of a run. The economy is back on track. A new survey from the National Association for Business Economics suggested that jobs were coming: The number of economists who saw hiring by their firms increasing over the next six months was 42 percent, compared with 7 percent who expected to lay off workers. The NRI of 35 was the highest in the 12 years that the question has been asked. Some talking heads are suggesting the economy grew 3% in the fourth quarter of 2010. Companies slashed costs, became mean and lean, and drove profitability to record levels. Intel— one of the companies I told you to buy two weeks ago — just said it was buying back $10 billion in shares. Ben Bernanke has been pumping up liquidity to drive the stock market higher. His plan has worked to perfection… The Dow only goes up There is only one trade on right now. Group-think means the trend is your friend. “Don’t fight the Fed” is the mantra bleated by the sheeple. The blind squirrel investors have found their nut and assume there is another one just over there, ready to be eaten. This of course, raises my contrarian hackles. Take a look at this chart… Barry Ritholtz over at ritholtz.com had a great point when he wrote: At 90% gains, this market has run further and faster than any previous rally. Indeed, in just 20 months it has far outpaced every other rally’s 24 month record by some 50%; the next closest gainer was 65.7%. That does raise some cause for concern short term. The market has never gone so far, so fast as it has in the last two years. After a 90% run, which is a more likely scenario— that the Dow goes up another 90%, or that it corrects? Small caps lead Not only do small cap stocks (under $300 million market cap) lead over the long haul, but they also lead the way out of recessions. These are the smaller, quicker companies that are able to adjust to the economic landscape, and fast to roll out new products. T. Rowe Price found that in the 12 months following the previous nine recessions, small-cap stocks gained 24%, versus 17.6% for the S&P 500. Merrill Lynch reported that in the 18 bear markets since the 1930s, small caps gained an average of 41.4% in the 12 months after the end of the decline, compared with a gain of 32.4% for large caps. It has been true with this bounce back, as well. Small caps have been on fire until last week. As of Friday, small caps were down 4% for the week and 1% for the year… No more bailouts to states Another reason to think about taking some profits is that there are no more bailouts coming. The majority of 2008’s stimulus package went to the states. This equals about $400 billion that the states used to keep running…

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Going Beyond Rare Earths

Filed in BP, copper, Gold Market, o by on January 19, 2011 0 Comments

Back in April 2010, I published an article called “5 Rare Earth Stocks to Hedge Against Chinese Control.” In that piece, I wrote: Because 95% of the world’s rare earth elements are produced in China, it is becoming increasingly urgent for developers to find REEs in other parts of the world. This becomes more and more apparent every time I talk to high-performance battery manufacturers and companies that rely on rare earth magnets for things like wind turbines and energy efficient electric motors. Bottom line: China needs those REE supplies for its own consumption. And in the not-too-distant future, those supplies found outside the Middle Kingdom will be the only supplies we’ll be able to get our hands on. So here are a few companies that are operating in this sector, and are not based in China: Avalon Rare Metals, Inc. (TSX: AVL) – projects in Canada Great Western Minerals Group (TSX-V: GWG) – projects in Canada, South Africa, and the U.S. Rare Earth Metals (TSX- V:RA) – projects in Canada Commerce Resources Corp. (TSX- V:CCE) – projects in Canada And of course, there’s Molycorp, which has just recently filed to go public. This company is looking to develop operations in Mountain Pass, California, just about 15 miles from the Nevada border. Since that article, rare earth stocks soared. In fact, of the four listed in that …

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