The Next Gold Bull Market Starts Before October

The Next Gold Bull Market Starts Before October By Jeff Clark I’m going out on a limb: I think the next bull phase in the gold market gets underway before October. Why? China. But not due to runaway demand… At an International Monetary Fund (IMF) forum last month, China’s central bank governor, Zhou Xiaochuan, made it clear he believes the renminbi is “ready for reserve status.” It would be a huge step for the Chinese currency, starting with the fact that it would be added to the basket of currencies IMF member countries can include in their official reserves. Billions would be invested in it. What was the IMF’s reaction? “We welcome and share this objective,” said IMF Managing Director Christine Lagarde. “We are now working closely with the Chinese authorities in this regard,” added Director of Communications Gerry Rice. They didn’t say they would accept it, but then again, … Continue reading

Eric Coffin Pinpoints the Mining Companies with Resources that Are Right for Today’s Market

The Gold Report: At the subscriber investment summit in Toronto in March 2015, you had a talk titled “Life in a Zero Yield World.” What is wrong with that world? Eric Coffin: A zero yield world is the result of four or five years of central banks essentially buying the hell out of the bond market, which is what the European Central Bank (ECB) is doing right now. And buying those bonds, also known as quantitative easing (QE), drives down yields. QE has helped the U.S. and will probably help the European economies but it creates a lot of distortions. We tend to see a lot of money driven into high-risk areas, like heavily leveraged commodity and exchange-traded funds (ETF) bets and things like art and collectibles, because there are these large money pools that can raise capital at close to zero rates, and that tends to make people take … Continue reading

Gold Is Going To Start A New Bull Market

By Mike Swanson on Tue, 05/12/2015 – 06:43 Topics: Gold Investing and Gold Stocks All markets go through cycles and gold is going to start a new bull market before anyone realizes it. And right now everyone is asleep when it comes to gold. Gold last made a peak in 2011 and then had a crash drop in 2013 while the mining stocks had a big decline last year. Those losses have made gold bugs give up. I know markets can be hard for people. I got in gold and mining stocks last summer and had to get in and out for some losses. But if you were interested in gold in the past or own some you cannot give up now when something big is around the corner now. Almost no one is bullish on gold and despite talking about gold a lot I hardly ever even get emails about it. … Continue reading

Buy Silver or You Will Die!

Buy Silver or You Will Die! By Jeff Clark It’s the news everyone dreads—a call from the hospital. And it’s about one of the most important people in the world… Your mother. [Every ALL-CAPS ITEM below contains silver or is required in its use.] You hear the nurse talking urgently through your TELEPHONE and you realize it’s serious… You grab your REMOTE CONTROL and turn down the volume on your PLASMA TV that’s playing your favorite DVD movie. You push the BUTTON and the SPEAKERS go mute. You press “save” on the KEYBOARD of your COMPUTER. “Yes, she’s okay,” the nurse tells you. “But you need to come to the HOSPITAL right away.” That’s all you need to hear. You yell to your spouse and grab your CELLPHONE to call your siblings. “Is she alright?” your wife asks frantically. She was using the VACUUM CLEANER and WASHING MACHINE and didn’t … Continue reading

Four Canadian Juniors Poised to Gain in the Oil and Gas Recovery: Angelos Damaskos

The Energy Report: The prices of West Texas Intermediate (WTI) and Brent have recently rebounded to about $60 per barrel ($60/bbl) and $65/bbl, respectively. Where do you see them going for the rest of the year? Angelos Damaskos: The oil industry expects oil to recover to $75/bbl in the near term because this is the global marginal cost of production. The longer oil trades below that price level, we lose supply not only from the North American shale industry, but also from the longer-term producing projects: the Canadian tar sands and the Brazilian offshore basins. The oil price has recovered by 20–25% from January’s lows but remains 50% lower than last year’s highs. As a result, there has been a dramatic drop in income and earnings, which has been met with big cutbacks in capital expenditure (capex) and development drilling. The length of time oil trades below $75/bbl is a … Continue reading

Auryn’s Management Finds Success in the Prudent, Measured Approach

The Gold Report: Please give us an overview of Auryn Resources and its genesis. Shawn Wallace: Auryn Resources Inc. (AUG:TSX.V) is the third company that Auryn chairman Ivan Bebek and I have started. Previously we founded Keegan Resources and later Cayden Resources. Keegan became Asanko Gold Inc. (AKG:NYSE.MKT; AKG:TSX; ) and it merged with its neighbor, PMI Gold. While working with Asanko in Ghana, we met Auryn COO Michael Henrichsen, a brilliant structural geologist with Newmont Mining Corp. (NEM:NYSE). After Cayden was bought by Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), our team began a global search for an asset with three key attributes: it had to be a district-scale opportunity, which means a land package where multiple deposits could be developed in the same geological setting; it had to be situated in a stable jurisdiction where people get mining permits in a reasonable timeframe; and it had to be high … Continue reading

Five Mining Companies Joe Reagor Believes Are Ahead of the Curve

The Gold Report: What’s your gold price forecast for the rest of 2015? Joe Reagor: For the full year, our average price is $1,260 per ounce ($1,260/oz). If the U.S. dollar were to remain steady and not strengthen, gold could reach $1,300/oz by year-end. TGR: Gold was sold off heavily in the last week of April based on an anticipated interest rate hike by the Federal Reserve. Should the Fed actually raise the rate, how much of a negative effect will that have on gold and for how long? “Integra Gold Corp.’s Lamaque is a near-term production opportunity with a minimal capital budget and an after-tax IRR of over 50%.“ JR: It is commonly believed that rates will rise because the U.S. economy is improving, but we keep getting mixed signals. The most recent jobless claims were exceptionally good, but the Q1/15 GDP increase was only 0.2%. If we see … Continue reading

Investment in Renewables Generates Illuminating Dividends: John McIlveen

The Energy Report: John, how has the renewable space changed in the last five years? John McIlveen: Cost. The cost of standardized technologies for wind and solar have fallen by at least a half in five years, to just below $2 million per rated megawatt ($2M/rated MW), versus the same cost for a coal plant. That coal plant may deliver two to three times the power at that all-in cost, but the costs are about the same because wind and solar do not have fuel and heavy maintenance costs. Fossil fuel plants deliver much more power, but because they pay for their fuel, the overall cost is about the same as for renewables. TER: Bloomberg Business recently wrote that fossil fuels have lost the race with renewables, and Vox responded with some cogent counterarguments. Which is correct? JM: I think Vox. Bloomberg measured the growth of the power grid only. … Continue reading

Chris Mancini’s High-Quality Gold Miners that Have Positioned Themselves Well in the Downturn

The Gold Report: The U.S. Federal Reserve has downgraded its forecasts for both economic growth and inflation. That being the case, why would it raise interest rates? Chris Mancini: There’s a certain contingent in the Fed that believes that its zero interest monetary policy might result in adverse consequences going forward. This contingent is dead set on raising rates and trying to get back to some level of normalcy in interest-rate policy. TGR: There’s a school of thought that holds that the U.S. economy has become addicted to cheap money. What’s your view? CM: There’s no question that much of U.S. economic growth in recent years is due to very low interest rates. The average interest rate on auto loans is the lowest ever. That obviously spurs auto sales. The rates charged for federally subsidized student loans are close to historic lows. That spurs demand for college and university courses. … Continue reading

Survival Guide for the Mother of All Bear Markets from Veteran Bottomfisher John Kaiser

The Mining Report: John, what are the global issues you are watching that could have an impact on commodities, particularly gold? John Kaiser: There is a risk that the economic growth slowdown already underway can deteriorate further, precipitating major general market declines and causing demand for raw materials to flag. This would worsen the current situation where the supply response from the bull period of the past decade is already, in most cases, exceeding demand and, therefore, resulting in a further glut to depress prices and hurt companies involved in both development and mining of raw materials. At the same time, the subdued global growth outlook is creating domestic stresses that in turn are translating into geopolitical conflicts, which have me thinking about security of supply risks should globalized trade come unglued. John Kaiser will be speaking at the Metal Investor Forum, May 30 in Vancouver Click here for free … Continue reading