Keith Schaefer Picks the Companies You Will Want to Own If the Conservatives Win in Canada

The Energy Report: Oil prices continued to fall last month. What happened? Is this a problem of too much shale oil, too little demand from China or something else entirely? Keith Schaefer: I think it has a lot to do with increasing shale production in the U.S. Production resiliency has surprised everyone. It surprised investors and lenders. It certainly surprised the Saudis. And it surprised the long oil speculators. We saw that nice pop back up to $60 a barrel ($60/bbl) after the initial collapse to $40/bbl in December/January. But as the rig count dropped and oil production failed to decrease, the longs have gotten discouraged. The Street has realized that the Saudis are going to keep putting the pedal to the metal, Canadian heavy oil production cannot be turned off, and debt-laden producers in the States aren’t going to shut down existing production. We will continue to have excess … Continue reading

Can Tesla Make Winners Out of These Lithium Players?

Bacanora and Rare Earth Minerals saw their stock take a nice bump upward as the news was announced on Friday. According to the news release, Tesla will buy lithium hydroxide to feed the manufacturing of batteries at its Nevada Gigafactory on the condition that the Sonora project reaches certain milestones and passes product specification qualifications. Though the press release did not specify how much material will go to Tesla, Bacanora estimates the Sonora project will have an initial production capacity of 35,000 tonnes per annum (35 Ktpa) lithium compounds with the potential to scale up to 50 Ktpa. Simon Moores, managing director of London-based Benchmark Mineral Intelligence, estimates Tesla could consume as much as 80% of total output. In a recent interview with The Gold Report, Simon Moores correctly predicted that Tesla would be focused on supply security in H2/15. “If Tesla wants to drive down the price of batteries … Continue reading

Jayant Bhandari Presents Arbitrage Opportunities for You to Pounce On

The Gold Report: In a recent article, you argued that investors in the West will find their way to gold when the new reality dawns on them that losing a bit of money to preserve the rest is “a good deal.” Please explain further. Jayant Bhandari: What has to happen does not have to happen right away. Everyone in the world is flocking to the U.S. dollar. It offers liquidity, but eventually the U.S. dollar will become too expensive. When that starts happening people will look for other opportunities to safeguard what they own, and gold is something that will become increasingly visible. TGR: How long is the U.S. dollar going to continue its ride? JB: The U.S. dollar could do well for quite a period of time because while the U.S. is sinking, everything else is sinking faster. The European Union is in worse shape. Most of the developing … Continue reading

Why a Fed Rate Hike Could Be a Blessing for Gold Prices: Brien Lundin

The Gold Report: You recently implied in an article titled “The Cocked Trigger” in Gold Newsletter that the current prevalence of short gold positions is actually a good thing for gold prices, especially if the Federal Reserve raises rates. That goes against everything we’ve been led to believe. Why do you say that? Brien Lundin: We have an unusual situation in the gold market right now in that in the Commitments of Traders reports by the U.S. Commodities Futures Trading Commission, for the first time, the managed money sector has a net short position in gold. Typically, speculators have a net long position, and the commercials—jewelers, bullion dealers, etc.—have a net short position because they have to hedge. But the speculators are now net short, and the commercials have their lowest short position ever. It is a set up for a short covering rally at some point. Add to that … Continue reading

Haywood’s Mick Carew Explains Why Now Is an ‘Opportune Time for Consolidation’ in the Mining Space

The Gold Report: In Q2/15, Oban Mining Corp. (OBM:TSX), backed by Osisko Gold Royalties Ltd. (OR:TSX), consolidated a number of micro-cap gold equities in Québec and Ontario while Crocodile Gold Corp. (CRK:TSX; CROCF:OTCQX) merged with Newmarket Gold Inc. (NGN:TSX.V) in an effort to become a consolidator in its own right. These are two consolidation stories in the gold sector. Should investors expect more? Mick Carew: As we approach what we hope is the bottom of the commodity cycle, we view this as an opportune time for consolidation in the mining space. We’ve seen a migration toward increased mergers and acquisitions (M&A) activity over the last couple of years. This year in particular has seen a number of high-profile mergers, including Alamos Gold Inc.’s (AGI:TSX) acquisition of AuRico Gold Inc. and Tahoe Resources Inc.’s (TAHO:NYSE; THO:TSX) acquisition of Rio Alto Mining Ltd. We’ve also seen major gold miners, including Barrick Gold … Continue reading

Has China Awoken The Gold Bull?

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Written By: James West  August 21, 2015 And is it time to buy gold miners? Investor interest in gold (XAUUSD:CUR) has been at an all time low recently, with many acknowledged ‘gold bugs’ having thrown in the towel as gold prices flirt with multi-year lows, and sentiment projected by mainstream financial media would have you thinking gold as an asset is finished. This despite the growing comprehension by John Q Public that all of our markets are horribly manipulated. The disingenuous red herring of prosecuting members of the London Gold Fix group was designed to convey they perception that the industry is properly and diligently regulated. Such is not the case. But reconciling CFTC Commitment of Traders reports against trading patterns is an exercise in futility, since the reporting does not disclose which market participants are in which category. So analysts are left to deduce positions. Concentrated positions are thus difficult to discern. … Continue reading

Silver Cycle Low – Now

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Posted on August 18, 2015 by Gary Christenson The price of silver has been crushed during the last four years.  Prices are ready to reverse.  We will know soon enough after the High-Frequency-Traders have their way with prices for paper silver and gold on the CME.  But consider: Casey Research:  Top 7 Reasons I’m Buying Silver Now Gary Savage has declared that “Gold is Now a Buy.” Adam Hamilton    Gold’s Artificial Lows Richard Russell:  Buy Physical Silver Ahead of the Coming Chaos Gold Sentiment Reaches 2nd Most Negative Level in 25 Years The US Dollar peaked in March and has been slipping lower since then. Gold peaked four years ago. Silver peaked four years and three months ago.  Both are due for a rebound. Is there anything specific regarding silver, or is it just “hope and change?”  Yes! Daily charts (not shown):  Silver hit its low about 2 weeks ago … Continue reading

Quaterra Resources Has the Property, the People and the Partner for Large-Scale Nevada Copper Mining

The Gold Report: Your latest presentation declares that Quaterra Resources Inc.’s (QTA:TSX.V; QTRRF:OTCQX) “assets have the potential to be transformed into a district-scale, long-life copper-mining operation.” Tell us about your assets, and explain why you have such confidence in them. Steven Dischler: We own 51 square miles of property in the Yerington district of Nevada. This is a district with a rich history of successful copper production in one of the world’s best mining jurisdictions. We have three properties there: Yerington, which Anaconda mined at an average of 0.54% copper, MacArthur and Bear. Yerington has a mineral resource as defined under NI 43-101, and MacArthur has a preliminary economic assessment, but it is Bear that we believe could be the catalyst for the whole district. Source: Quaterra Resources We own valuable water rights at Yerington specifically permitted for mining and mineral processing. We have broad-based community support for responsible mining. … Continue reading

Carsten Ringler Makes the Basket Case for Gold Equities

The Gold Report: You prefer to value gold based on its worth relative to other financial benchmarks. Tell us about some of your go-to ratios and why they are meaningful. Carsten Ringler: I’m looking at different ratios between different baskets of assets like, for example, the gold to real estate ratio. In January 1980, when gold peaked at $850 per ounce ($850/oz), a single-family home in the U.S. was $74,500 and the ratio was 88 oz, meaning it took 88 oz to buy the average home. At the moment a single-family U.S. home averages $237,400, which means you would need 202 oz gold to buy that house in today’s market. Factoring in inflation since 1980 by using the CPI calculator from the Federal Reserve Bank of Minneapolis, gold should be around $2,473/oz. That means gold is very much undervalued. Another ratio I look at is gold versus the Philadelphia Gold … Continue reading

Is This the Best Bet in Banking?

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Editors Note: Dudley Pierce Baker If you like JPMorgan, you should love its warrants. These warrants are just one of over 200 stock warrants trading in the U.S. and Canada in all industries and sectors and offering great opportunities and upside leverage. Enjoy this read from The Motley Fool and then visit us at http://CommonStockWarrants.com August 19, 2015 Jordan Wathen There is a lot to like about JPMorgan Chase (NYSE:JPM). It’s arguably one of the nation’s best banks, run by one of the best bankers of the era, Jamie Dimon. In the second quarter, JPMorgan earned 14% on its tangible equity. Dimon has suggested that some revenue growth and cost cuts could put the bank on track to reliably earn 15% or more on its tangible equity over the next few years. And despite this strong performance, investors are letting shares trade for less than 1.5 times tangible book value, a relative steal compared to the … Continue reading