If A = B and B = C, does A = C?

No need to listen to the “experts” to understand the ins and outs of commodities markets, according to Bob Moriarty of 321Gold. If investors use common sense and basic tools available online, they too can be successful. A century ago when I was in high school, one of my teachers wanted to teach us the basics of logic. The teacher began with the simple equation of if A = B and B = C, does A = C? Of course, the majority of the class picked the most obvious answer. But what happens when the apparent answer is not the correct answer? What if the obvious is dead wrong? Here is the proof. If an airplane is transportation and a train is transportation, is an airplane the same as a train? Now the correct answer is both apparent and obvious. No. A train and an airplane are both transportation but … Continue reading

Some of Brien Lundin’s Precious Metals Picks Are Up More Than 400%. What Is Next?

A battle royale is brewing between gold bulls and commercial traders who are short gold, says Brien Lundin, publisher of Gold Newsletter. That tug of war, which should play out in the coming weeks, could result in either a severe correction or a spectacular rise in the price of gold and silver. No matter which way it goes, in this interview with The Gold Report, Lundin recommends that investors continue to look at companies with world-class resources that are still being priced at a fraction of what their values should be. Lundin should know; some of his recommendations are up more than 400% from December and January. The Gold Report: Gold and silver prices have risen fairly dramatically since the first of the year. What’s your outlook for the metals? Brien Lundin: We are on a razor’s edge right now. The new gold rally has been somewhat confirmed by silver … Continue reading

Some of Brien Lundin’s Precious Metals Picks Are Up More Than 400%. What Is Next?

A battle royale is brewing between gold bulls and commercial traders who are short gold, says Brien Lundin, publisher of Gold Newsletter. That tug of war, which should play out in the coming weeks, could result in either a severe correction or a spectacular rise in the price of gold and silver. No matter which way it goes, in this interview with The Gold Report, Lundin recommends that investors continue to look at companies with world-class resources that are still being priced at a fraction of what their values should be. Lundin should know; some of his recommendations are up more than 400% from December and January. The Gold Report: Gold and silver prices have risen fairly dramatically since the first of the year. What’s your outlook for the metals? Brien Lundin: We are on a razor’s edge right now. The new gold rally has been somewhat confirmed by silver … Continue reading

Fratboys at the Punchbowl

The Federal Reserve, like chaperones at a fraternity house party, has appeared overly concerned about the prospect of upsetting the party-goers and has backed off from earlier indications that it would raise rates four times this year, says Joe McAlinden of McAlinden Research Partners. William McChesney Martin, the longest sitting Federal Reserve Chairperson in history, once famously quipped that it was the Fed’s job to “order the punch bowl removed just when the party” really starts to get going. His point was that the Fed should raise interest rates and restrict liquidity to preempt an overheating economy before the economy actually overheats and it is too late. The metaphor is a bit dusty as it’s been over a decade since the Fed was in a tightening mode, but the “punchbowl” reference is increasingly relevant again. Following the first interest rate hike last December, the Fed, like chaperones at a fraternity … Continue reading

The Two Best Calls Ever on a Gold Bottom

Bob Moriarty of 321Gold calls out the work of two men who got it right on gold and silver. We do our very best to present all possible reasonable alternatives in the resource space. I don’t have to agree with someone to post a piece by them. No one gets it 100%, and I’m wrong on a regular basis like most people. This piece may be the most valuable piece we have ever written so you need to read it all the way to the finish. 2016 is proving to be the opportunity of a lifetime to invest in all commodities. While the manipulation and flat earth crowd doesn’t ever mention it, platinum went down more than gold and no one is screeching about how platinum is suppressed. All commodities went down including gold and silver. Most commodities went down more than silver and gold but that is never mentioned. … Continue reading

Back-to-Back Good News for Nevada Energy Metals

Not long after Nevada Energy Metals expanded its presence in the Clayton Valley, the company announced it added claims to its San Emidio property. Keith Kohl of Oil & Gas Trader explains what this means to investors. It’s only been a few days since we learned that Nevada Energy Metals Inc. (BFF:TSX.V; SSMLF:OTCPk) expanded its presence in the Clayton Valley. Well, we didn’t have to wait very long to hear about the company’s next move. Nevada Energy Metals announced it has increased the exploration potential of the San Emidio property after adding an additional 69 claims to its position. In total, the company now holds 155 claims in the San Emidio Desert, located in Washoe County, Nevada, (roughly 95km northeast of Reno). Some of you may already recognize this lithium project from before. The San Emidio Desert basin is an alkali playa environment underlain by unconsolidated sediments and clays being … Continue reading

Low Prices for Oil Cure Low Prices for Oil

Veteran investor Bob Moriarty discusses one company that is poised to benefit from the volatililty in the oil markets. As investors we tend to over-think our investments. Regardless of why oil went down, at some point someone had to figure out that it was too cheap and should be bought. It didn’t make any difference why oil was so cheap, at some point it was a screaming buy. That took place on Feb. 11 of this year as the near futures contract just about touched $26 a barrel. The ratio of oil to gold was a blistering 48:1, higher by 20% than during the Great Depression. Low prices cure low prices. In the next six weeks after the low, the price of oil went up over 70%. I’m perfectly comfortable saying we have seen the bottom. The fastest money to be made in commodities and resource shares are in the … Continue reading

Mining M&A Warming Up with Reservoir and Sunridge Deals

Adrian Day shares additional thoughts on Nevsun’s deal to buy Reservoir Minerals. The investment conclusion—to hold—remains. And he has an update on another company being acquired. As mentioned in the last note, Nevsun Resources Ltd. (NSU:TSX; NSU:NYSE.MKT) is a strong company, and undervalued stock. Were its flagship Bisha mine not in Eritrea, the stock would be valued considerably higher. (When I mentioned that Nevsun was trading near four-year highs, I was looking at the Canadian chart. Looking at the New York stock in U.S. dollars, this is not the case.) Operationally, it is a very strong company, having built Bisha, unusually, on schedule and under budget. So merging with Reservoir Minerals Inc. (RMC:TSX.V) and its exciting Timok property, by reducing political risk and diversifying the resource base, could see Nevsun’s stock rerate. In any event, the combination will produce a solid midtier resource company. Ending up with some Nevsun shares … Continue reading

The Significance of Rising Commodities Prices…

Precious metals expert Michael Ballanger expounds on how Federal Reserve policy affects the commodities markets, and expresses cautious optimism about how that policy will play out in gold markets. One look at the recent chart of U.S. home prices city-by-city and I had to sit down armed with an Extra-Strength Tylenol and a quarter flagon of Glenfiddich. Zerohedge has been all over this entire commodities rebound since they (amazingly) sourced out the reason. From the minute the phone call went out on Feb. 11 from Fed Chairman Yellen to BOE Chairman Mark Carney followed the next day to ECB head Mario Draghi, the four most important markets on the planet changed direction dramatically, with all of the markets representing the greatest risks to the banking business turning on a literal dime and continuing on a tear ever since. Firstly, before I down my second belt of single-malt, here is the … Continue reading

What Steve Jobs Knew About the Internet that Can Make You a Better Gold Investor

Of all the people in the tech world, Steve Jobs perhaps understood the potential of the Internet better than any of his peers. Bob Moriarty of 321Gold discusses how Jobs’ insight can provide lessons on gold manipulation and what moves markets. Many years ago Steve Jobs said that the most wonderful thing about the Internet was that it gives everyone a voice. He also stated that the worst thing about the Internet is that it gives everyone a voice. We have more access to information at our fingertips than any society has had in history. But as a guy running a financial information website for the last 15 years, I have found that while we have access to far more information, much of it is little more than noise. My experience is that all unsuccessful investors focus on noise and ignore signal. . .to their financial peril. So recently I … Continue reading