TGR: What are some select gold equities at the production stage?
IL: Timmins Gold Corp. (TMM:TSX; TGD:NYSE.MKT) is a favorite. The company continues to increase revenues, cut costs and expand its mine life with funds paid from production. It just had another record-breaking quarter. Its profit from operations grew 40%; earnings are up 155%; cash flow is up 50% or 51%, and it sold 30% to 35% more gold than it did last year. This is all at a cash cost per ounce on a byproduct basis of $703. That's an all-in cost. Even if prices fall to $1,000/ounce ($1,000/oz), Timmins is still making money. In the gold space that's rare. Full Story
Casey Research's Chief Energy Investment Strategist, Marin Katusa, whose portfolio profited nicely the last time the uranium bull broke loose a decade ago, recently interviewed a group of world-renowned energy experts to discuss the prospects for the sector that some considered doomed by the Fukushima disaster. Anti-nuclear power sentiment has by no means evaporated, but Katusa sees clear signals that the bulls are ready to run, not least of which is the recent attack on the Somair uranium mine in Niger. Full Story
“The more gold a country has, the more sovereignty it will have if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency.” — Evgeny Fedorov, Russian lawmaker, United Russia Party Full Story
"The Fed wants to kill all signs of inflation to hide the damage they're doing to the middle class. First the Fed leaves food and energy out of the CPI, and then they get the Labor Department to lie about the figures. Their last trick -- smash the price of gold and silver. What are they going to do when the bond market (fearful of inflation) collapses? You can't fool all of the people all of the time.” Full Story
Global growth is on the path for continued improvement in 2013 - metal consumption will expand. Excess copper stocks are being taken up by traders, warehousing companies and soon ETF’s.
Copper, one billion new consumers, over 800 million people to be born between now and 2025 and a massive current, and future, infrastructure deficit should all be on our radar screens.
Is an investment opportunity in copper on your radar screen?
That the COMEX have fallen is not disputed. But has the decline created a potential crisis? While owners per ounce of stock or registered stock has gone up the levels are not yet at peak ratios. This suggests that the COMEX still should have sufficient stocks on an historical basis. However, if the ratio continues to rise it could become a concern. Full Story
A subscriber recently commented that the Oligarchs who rule Russia only wish they got to run things as efficiently as how JPMorgan and the big banks control our financial markets, particularly in the trading of precious metals. Based upon the last few days, it’s hard to argue with that. On Sunday evening shortly after 6 PM, the price of silver was taken down 10% within a few minutes on an insignificant number of contracts (1600), evoking memories of the infamous 13% ($6) decline on the May 1 Sunday evening of 2011. If the Russian criminals oversaw silver trading and not the CME Group and the CFTC they could not possibly have rigged prices more corruptly. Full Story
In his market letter for May, commodities fund manager John Butler of Amphora Capital in London describes the rationales and mechanisms of surreptitious currency market intervention by central banks, rationales and mechanisms that will be familiar to anyone who follows the gold market with even the slightest skepticism. Full Story
We’re now at the point of having to adjust to the eventuality of the Fed stopping its QE programs. Don’t think this won’t happen, it will. The question is when and that’s a very big unknown. Given that one of the Fed’s key guides is unemployment which is running near 7.5% and that the Fed has a target of closer to 6.5% for this number, I don’t think there’s need to be concerned about waking up any morning soon to see that the Fed has changed course. Full Story
By: Peter Schiff, Euro Pacific Capital - 23 May, 2013
While the world's economies jockey one another for the lead in the currency devaluation derby, it's worth considering the value of the prize they are seeking. They believe a weak currency opens the door to trade dominance, by allowing manufacturers to undercut foreign rivals, and to economic growth, by fighting deflation. On the other side of the coin, they believe a strong currency is an economic albatross that leads to stagnation. But the demonstrable effects of currency strength and weakness reveal the emptiness of their theory. Full Story
By: Jeff Clark, Senior Precious Metals Analyst - 23 May, 2013
Platinum is a precious metal, as is palladium, though to a lesser degree. However, like silver, both are also industrial metals. Unlike silver, it's their industrial use that is the primary price driver for both platinum and palladium – and that use is undergoing a fundamental shift. Full Story
If central banks are not careful, they too will lose the confidence of the market – that is, the people. And when that happens, not even all the foreign currency reserves in the world will save them. Only gold will. Full Story
Cambridge House International announced the attendance of a team of world renowned investment managers, representing the Sprott Group of Companies, at the upcoming World Resource Investment Conference. Keynote speeches will be delivered by Rick Rule, David Franklin, Steve Yuzpe, Brian Mellum, and Dean R. Jensen. Full Story
The migration of gold from West to East is the grand story of the decade. China wants the Yuan to have at least a role in the next global reserve currency. They demand respect. They wish to use their trade advantages in such a manner that results in more power and influence to be gained from their Yuan currency in surplus and their Gold reserves in accumulation. They strive for reserve currency status, but it is a mixed bag of benefits and burdens. Full Story
The migration of gold from West to East is the grand story of the decade. China wants the Yuan to have at least a role in the next global reserve currency. They demand respect. They wish to use their trade advantages in such a manner that results in more power and influence to be gained from their Yuan currency in surplus and their Gold reserves in accumulation. They strive for reserve currency status, but it is a mixed bag of benefits and burdens. Full Story
By: The Gold Report and Maria Smirnova - 23 May, 2013
I think you have to remain optimistic that the prices of the commodities, especially silver and gold, turn around. I do not even want to call them commodities, to be honest. I would call them currencies, especially gold. Silver is a hybrid because it also has industrial applications.
Once the turn happens, these stocks could explode in a good sense and completely revalue to the upside. Today, they are at depressed valuations. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 22 May, 2013
China has signaled it is going to propose plans this year to allow freer flows of the Yuan both in and out of the nation as part of measures to loosen control over the Yuan and interest rates. It was expected that full and free convertibility after 2022, but it’s clear that the program is moving at an accelerated pace. How far this next phase of convertibility will go has to be seen at the end of this year. Full Story
The original intent of that book was to give readers a general sense of the exciting and opportunity-rich world that lay outside of their national borders, with a review of over 100 countries, valuable "opportunity intelligence," and the resources that anyone could follow to realize these opportunities. Even though the book is now clearly out of date, the need for information on internalization is more relevant than ever, as governments the world over become more desperate. The purpose of this website is to preserve the mission of that book and be the premier location for up-to-date, highly actionable, and practical information on the topic. So why is internationalization prudent? Full Story
In a recent post, The Pull from the Future, I discussed how any sort of quantitative model based on statistics, earnings, GDP -- really any extrapolation of past data into the future -- is just not a viable method for forecasting future market behavior. Full Story
As the global equity and bond markets grind ever higher, abundant signs exist that we are once again living through an asset bubble – or rather a whole series of bubbles in a variety of markets. This makes this period quite interesting, but also quite dangerous. Full Story
Repeat after us: There is zero chance the Fed is going to tighten…zero chance…zero chance…zero chance. We’ve made this point so often here that it is has practically become a mantra at Rick’s Picks. It has also been amplified, refracted and explicated – though not hotly debated – in our forum, where there are apparently few who expect any change in Fed policy. As how could there be? For even the slightest hint that easing is about to taper off, let alone end, would bring on the Second Great Depression faster than you can say “Hooverville!” Full Story
Most people, depending on which side of retirement they’re on, feel they either won’t ever be able to retire or stay retired once they are. Many of us watched our parent’s generation put their retirement savings into CDs paying 6%+ and just living off the interest. With those rates no longer an option, we need other options. This article shares a strategy for never risking more than 1% of your portfolio in any investment and the five point balancing system for deciding if an investment even belongs in your portfolio. Full Story
This has been one of the worst stretches for gold and silver pricewise in quite some time, no secret there. I have to go back to when silver was in single digits to find a comparable period. The question on precious metals investors’ minds is whether this bad stretch is going to continue much longer. Are the past few months setting the stage for a pronounced rebound in prices or has the tide changed for the worse for an extended period of time? I think the answer can be found in analyzing the following facts. Full Story
By: Stewart Thomson, Graceland Updates - 21 May, 2013
Is it possible that just as QE itself is producing “diminishing returns” for the US economy, QE-exit news will soon have minimal effect on the gold price? I think so. Any further QE exit news may be a buy signal for gold! Full Story
Other Alternatives. There are other alternatives beyond currencies, gold & commodities in general, some of which seek absolute returns. In principle, pursuing an absolute return strategy may be a good idea to protect a portfolio to the downside. But keep in mind that in 2008, when push came to shove, many alternative strategies could not be executed as stocks could not be shorted in long-short equity strategies; and liquidity completely dried up in more esoteric strategies. Another reason to have a look at currencies, liquidity is generally not a problem: about $4 trillion in currency transactions take place every business day. Full Story
Let’s take a look at a few graphs of the dollar, from Feb 1, 2013 through Friday May 17, 2013. Yes, I said graphs of the dollar. I’ve priced the dollar in gold first (of course), then silver, the euro, and even the yen. The pattern is obvious. The dollar is going up. Full Story
The giveaway that Soros is extremely bullish on gold comes not only from his extensive holdings, but also from his $25.2 million call option on junior gold stocks. This is a highly leveraged bet on the weakest gold mines. With high production costs and falling gold price from constant short selling in the paper market, Soros’ bet makes no sense unless he thinks gold is heading up as the short raids concentrate gold in elite possession. Full Story
Aren’t those bonds debt? Where did that debt come from? Does bloated debt not imply that the economy in which the stock market’s components ply their trade is a leveraged thing, as opposed to an organically thriving thing? Why can’t we just let the debt float on the open market and let it get resolved by the market if things are so good beneath the surface? Full Story
Fiat currencies are paper monies issued and circulated by government legislation and decreed as a country’s legal tender to function as a medium of exchange for all transactions of goods and services within its economy. Only the federal government has the power and the authority to issue currency notes for distribution throughout the nation. Fiat currencies, such as those currently in circulation within the world’s major economies, such as the United States (Dollar), the United Kingdom (Pound), Japan (Yen), China (Yuan/Renminbi) and the European Union (Euro) are ‘promises to pay’, backed solely by ‘the full faith and credit’ of the issuing country, or countries. They are based upon an elastic and constantly expanding money supply, as compared to a commodity system where the currency is backed by a definitive supply of gold. Full Story
Silver’s recovery yesterday from being 10% lower at one stage to recouping these losses and then rising over 2% was very positive technically. The key reversal is leading some to postulate that we may have seen the bottom or are close to a bottom. Full Story
By: Chris Powell, Gold Anti-Trust Action Committee Inc - 21 May, 2013
Markets won't be restored by pretending that they are invincible. In fact, like democracy itself, markets always need protection against totalitarianism, and Casey's libertarian indifference and his belief that if he doesn't know it already it can't be happening are no help in that struggle. Full Story
The Soros Investment Fund’s 13F filing does indeed show the sale of 12 per cent of his total investment in GLD. But it also reveals that he then used $40 million of that cash to buy shares of the Market Vectors Gold Miner Major ETF (GDX).
Then he also bought $25 million worth of call options on the Market Vectors Gold Miner Junior ETF (GDXJ). Full Story
Everything I have seen published by both the companies and the analysts suggests that the all-in average cost of production for larger mining companies is in the $1,300–1,500/ounce range. That is a tight margin at the current price. Companies are cutting back on exploration and capital expenses (capex). That may help in the short run, but it will not solve the problem. Full Story
Not a day passes without the financial media denouncing gold as an investment option and hailing the bureaucrats heading the world's monopolist monetary central planning agencies as superheroes. It began prior to gold's recent breakdown, with widely cited bearish reports on gold published by Credit Suisse and Goldman Sachs, among others. Never mind that most of their arguments were easily unmasked as spurious. It should be no wonder though: gold's rise was the most conspicuous evidence of faith in central banking being slowly but surely undermined. The banking cartel relies on the fiat money system remaining intact; the legal privilege of fractional reserve banking provides it with what is an essentially fraudulent profit center unparalleled by any other in the world (fraudulent in terms of traditional legal principles, but not in terms of the current law of course). Full Story
It’s already been a month since gold fell almost $200 in two trading days. This head-spinning drop damaged the bull market. It broke the back of a STRONG market, but that doesn’t necessarily mean the mega uptrend is over.
Our first potential downside target level for gold at the $1300 to $1450 level was reached. And we could see gold decline further in the months ahead before a bottom is found. Full Story
These scandals will surely occupy the news for the weeks and months to come, meaning that nothing will be done about the debt ceiling and deficits that face us here and now. What nobody seems to get is that these scandals are just part and parcel of a continual erosion of the rights of Americans. Much like the movie Wag The Dog a lot of this is a concerted effort to keep Americans from focusing on what matters. In the end nothing will be resolved and the inquiries will fade in September as football season heats up. Once the Super Bowl is played, they’ll have to come up with something else… maybe a good war! Full Story
By: Hong Kong Mercantile Exchange (HKMEx) - 20 May, 2013
The voluntary surrender decision was made to enable the Exchange to re-align its strategy with the new industry environment since its trading revenues have not been sufficient to support operating expenses and, as a result, its inability to meet the required regulatory financial conditions. Full Story
By: Steve Saville. Speculative Investor - 20 May, 2013
In previous commentaries we've discussed the apparent discrepancy between what has been happening to the money supply and what has been happening to "price inflation". We don't want to go back over this ground in today's report, other than to note the following: First, there is plenty of "price inflation" if you know where to look for it. The new all-time nominal price high for the US stock market and the surging demand for junk bonds are two examples. Second, monetary inflation's effects on prices are always non-uniform and can encompass large and variable time lags, making the exact price response impossible to predict and difficult to correctly interpret. Full Story
You have the OPPORTUNITY to buy gold and silver at a huge discount to their real value – just my opinion – but both are “on sale” at current prices. (Gold is currently priced about the same as in late 2010.) “But can’t they go lower?” Yes, of course, gold could drop to $1,000, the Middle East could be transformed into a region of tranquility, peace, and cooperative people, and the US Congress could balance the budget. But as long as governments and central banks are “pushing paper,” digitally printing unbacked currencies, and overspending their revenues, the price of gold will increase – just my opinion – to much higher than it is today. Full Story
There has been a growing shift in favour of assets relative to bank deposits. This was initially encouraged by zero interest rates, but more recently there is little doubt that Cyprus’s bail-in has accelerated the trend. This explains the bull markets in bonds and equities, which conveniently underwrites the entire banking system. It is however too early to offer evidence of falling deposit balances held by non-banks and the general public because depositors as a whole have been remarkably complacent, but there is ample evidence that liquidity from monetary expansion is inflating financial assets faster than bank deposits. Full Story
The herd is convinced the commodities boom is over. Doom and gloom, the sky is falling, the bears argument sounds convincing - growth has stopped, economies are slowing. Looking at the TSX.V’s performance (most of the world’s mineral exploration firms call the Venture Exchange home) it’s as if people are convinced the need to search for, develop and mine new mineral deposits is over. Full Story
The Big Hedgers, including bullion banks, had gotten "very small" in the number of their net hedges with gold near $1425 and silver $23.38 in other words.
Both gold and silver have continued lower since then, ending the week near $1360 and $22.26 respectively.
Interestingly, premiums for physical metal on the street exploded higher in 2008, just as they are doing now. Full Story
I am a buyer at current levels and believe purchasing in tranches is sound advice for any investor looking to take advantage of the discounted prices in both physical metals and mining equities. While it might be more exciting to chase exploding prices higher, the majority of profits are made by those that buy before lift-off, when everyone else is too scared to act. Full Story
My real message is simple. Many of the investment products a good professional advisor can offer are incredibly complicated. They truly need to be tailored specifically to an individual's needs. You and I might both need glasses, but our prescriptions are probably quite different, and only a real doctor can prescribe the right lenses. The same holds true for an advisor recommending financial products. Full Story
All Japan, All the Time Let’s Export Our Deflation The Hard Part: Structural Reform A Free Video Presentation Tulsa, Atlanta, Nashville, Brussels, Washington DC, and NYC Full Story
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