Will Gold Win Out Against the US Dollar?

Will Gold Win Out Against the US Dollar? By Louis James It is an essential impossibility to solve problems created by excess debt and artificial liquidity with more of the same. That’s our credo here at Casey Research, and the reason why we believe the gold price will turn around and not only go higher, but much, much higher. While fellow investors around the world may not agree with gold-loving contrarians like us, they are buyers: gold is up in euros and almost everything else, except the dollar. The dollar’s rise has been strong and seems all but unstoppable. But look at it in big-picture terms, as in the chart below, and ask yourself how sustainable the situation is. I’m skeptical of reading too much into such charts. A peak like the one in the early 1980s would certainly take the USD much higher, and for several years to come. But … Continue reading

Chen Lin’s Secret to Finding the Next Goldcorp

The Gold Report: You’ve written that the China-led Asian Infrastructure Investment Bank (AIIB) could lead to a boom in commodities. We recently saw that South Korea is joining a number of European countries and signing on, despite U.S. reservations. Do you see this as a threat to U.S. fiscal dominance? Chen Lin: I think this is a first step for China. The country has a huge reserve, $4 trillion, much more than it needs on the balance sheet to stabilize its currency. The rest is wasted, collecting no interest. China made some huge mistakes in the past through poor acquisition decisions because of faulty lending standards. This is a sign that it has learned from its mistakes and wants to make the most of the trillions it has to loan out right now. The bank will operate close to international standards, and because it has many nations involved already, defaulting … Continue reading

The Secret of Success in Mineral Exploration

The Secret of Success in Mineral Exploration By Louis James, Chief Metals & Mining Investment Strategist As an investor, I want to bet on the jockeys who win the most races, not just the best-looking horses. So, while I’m no Tom Peters or Stephen Covey, I’ve made a study of success over the last decade. The critical question for a metals investor: what does it takes to be a serially successful mine-finder? Before I give you the answer, let me give you a little context on just how difficult this is. It’s not as simple as looking for a needle in a haystack; it’s more like looking for a needle in a vast field of steel haystacks, each one of which will give your metal detector false positives. And it’s very expensive to drill holes into them, which is the only way you can test for a needle’s hidden presence. … Continue reading

CNG:TSXV – Supports Catalytic Ozonation Study

Cdn Mining supports catalytic ozonation study 2015-03-26 09:08 ET – News Release Mr. Ray Paquette reports CANADIAN MINING SIGNS LETTER OF SUPPORT FOR NSERC STRATEGIC PROJECT GRANT APPLICATION Canadian Mining Company Inc. has signed a letter of support for a Natural Sciences and Engineering Research Council of Canada strategic project grant application with Dr. Rajesh Seth of the department of civil and environmental engineering, Centre for Engineering Innovation, University of Windsor, Ontario. Dr. Seth is applying for work financing on a project entitled “Modified Natural Zeolite-Assisted Catalytic Ozonation for Removal of Organic Contaminants from Water.” The project will test the feasibility of using natural zeolite-based catalytic ozonation to enhance the cost-effectiveness of ozonation to deal with select challenging contaminants of concern in Canada, both from industrial and agricultural sources, as well as the urban environment. Ray Paquette, chief executive officer, stated, “This project is of great interest to the company … Continue reading

How Warren Buffett Wins From Bank of America’s Capital Plan

By Jordan Wathen March 19, 2015 Warren Buffett has a sizable stake in Bank of America (NYSE: BAC  ) , even if it’s hidden from plain view. Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  ) owns warrants that entitle it to purchase 700 million Bank of America shares for $7.14 each at any time before 2021. At the current price, it’s as if Berkshire has an $11.2 billion stake in Bank of America, making it one of Buffett’s largest investments. Owning warrants is not exactly like owning stock, however. Because Buffett hasn’t exercised his right to buy the shares, Berkshire Hathaway isn’t entitled to any dividends Bank of America pays on its common stock. In fact, every time Bank of America pays its quarterly dividend of $0.05 per share, Buffett gives up a little bit of a return. Berkshire Hathaway is missing out on $140 million in annual dividends by holding on to the warrants. Buffett contends this is a good … Continue reading

The Titanic Sinks At Dawn

Posted on March 19, 2015 by Gary Christenson TheDeviantInvestor.com What Titanic?  The RMS Titanic, or any of the following: A titanic quantity of derivatives – say 1,000 Trillion dollars. A derivative crash was at the center of the 2008 market meltdown.  It could happen again since there is now more debt, leverage, and risk than in 2008. A titanic accumulation of debt – global debt is approximately $200 Trillion. Global population is about 7,000,000,000 so there is about $28,000 in debt per living human being.  If global debt were backed by all the gold mined in the history of the world, an ounce of gold would back $36,000 in debt.  Gold currently sells for less than $1,200.  Gold is undervalued and there is an excess of debt. A titanic increase in debt in the past decade. Official US debt increased by over $10,000,000,000,000 in the past ten years.  What did … Continue reading

Silver Poised to Surge

Adam Hamilton Mar 20, 2015 Silver is scraping major support again, after a rough couple months where speculators left it for dead. But today’s brutal lows and extreme universal bearishness are the perfect breeding ground for silver’s next big rally. Investors are very underexposed, while speculators have big short positions that will have to be covered. So as gold reverses decisively and paves the way, capital is going to flood back into silver. Silver’s great allure today when it is down and out is hard for most to understand. That’s because most traders mistakenly make linear assumptions in a nonlinear world. They expect today’s market conditions to persist indefinitely. But that’s not the way markets work, they are forever cyclical. The best times to buy low before later selling high are when assets are universally despised and trading at super-low prices. And once silver inevitably reverts back to bull mode, … Continue reading

Why Aren’t These Investors Worried About The Gold Price?

  Why Aren’t These Investors Worried About The Gold Price? By Jeff Clark, Senior Precious Metals Analyst Have you noticed that some gold investors don’t seem very concerned about the current behavior of gold? While the price remains weak and range-bound, some gold investors don’t seem worried about it at all. The natural reaction to an asset you own losing a third of its value, with seemingly little motivation to move higher, is cheerless and maybe even depressing. So why aren’t they? Are they out of touch? Perhaps have nothing at stake? Are they the kind of investors that would go down with the ship? Or do they know something we don’t? Gold’s Cycles The resource markets are well known for moving in cycles, probably more than most other markets. Raging bull market, crippling bear market, repeat. This includes gold and silver. Yes, catalysts can impact the price along the … Continue reading

Reality Always Wins… But Never on Schedule

Reality Always Wins… But Never on Schedule By Louis James, Chief Metals & Mining Investment Strategist “Expect the worst and you won’t be disappointed” is true enough, but it’s a miserable way to go through life. For investors, expecting the worst is paralyzing, a reason to do nothing. But when a market gets beaten up the way the natural-resource sector has been over the last few years, pessimism comes to dominate the chatter in boardrooms, blogs, and cocktail parties the way mold takes over a shower. It’s a blight. “There are no buyers left in the market; it will take years to recover.” “There’s no financing available, so everything will grind to a halt for years to come.” “Don’t step on that black spot.” Recent experience in the resource sector has been so bruising that the wounded have turned to pessimism as a psychological defense, to feel wise and experienced, … Continue reading

Trading the parabolic dollar

Adam Hamilton – Zeal Intelligence | March 14, 2015 The mighty US dollar has been red-hot in March, rocketing higher on the incredible divergence of major central-bank policies.  While the Federal Reserve’s first rate-hike cycle in 9 years looms, the European Central Bank has started aggressively monetizing sovereign debt for the first time ever.  The resulting yield differential has catapulted the dollar parabolic, portending a major reversal and fantastic trading opportunity. Currency trading is the biggest financial market in the world, with trillions of dollars changing hands every day.  Yet since major currency price levels generally meander slowly, this massive market lurks beneath the surface with scant limelight.  But this month the soaring US dollar and plummeting euro have utterly dominated mainstream financial news.  These warring currencies’ huge price moves have been epic. The dollar and euro are opposite sides of the same coin.  When one rallies the other necessarily falls, and vice … Continue reading