Author: Jan Harvey (Reuters)
Silver rose to its strongest since 1980 and Gold hit five week highs on the back of growing unrest in the Middle East
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By Marc Davis, www.BNWnews.ca
Silver promises to become the next big buzzword among investors in 2011 and beyond, according to one of the investment industry’s most prescient and successful experts on precious metals.
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There are some bizarre things going on in the silver market at the moment, reminiscent of the supply shortages and high premiums witnessed in 2008. For starters, silver is currently in both short-term and long-term backwardation, suggesting there is higher demand for silver NOW than in the future.
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The Economist
Rising commodity prices both reflect and threaten the world’s economic recovery.
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Cheap, Industrial Silver is an illusion
From the beginning of the financial crisis in 2008, contrarian investors began murmuring about getting into gold and short term Treasuries. It was almost a mantra: gold and Treasuries… gold and Treasuries. Something missing?
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The Economist
Commodity prices are surging at a very early stage of the cycle
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By Frank Holmes
Wall Street has been calling gold a bubble since 2005 when it hit $500. Some media naysayers remained negative even as they wrote the headlines proclaiming record highs and saw gold rise almost 30 percent in the past 12 months.
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By Marc Davis, www.BNWnews.ca
The ‘Holy Grail’ of renewable energy – grid scale power storage – appears to be finally within reach. So is the ability to make electric cars far more practical or user-friendly.
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by Egon von Greyerz - Matterhorn AM
We now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments. Thus most of these assets are also worth-less.
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The One-handed Economist
The establishment argument against gold comes down to the statement that it is a collectable that earns no yield. Art, rare coins, stamps and gold and silver bullion do not earn a yield. Stocks, bonds and real estate earn yields, so the prudent investor should focus on these assets rather than gold or precious metals.
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With gold well into record territory, investor enthusiasm is boiling over.
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If we continue down the same economic path that we have been following for the last four decades - and there is no indication that we won't even if we wanted to, or could, at this point - it is mathematically inevitable that gold and silver will approach infinity in U.S. dollar terms at some point in the future. Yes, approach infinity!
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By: Dr. Jeffrey Lewis
Price is an interesting element of the marketplace. At one price, a product may be a perceived bargain, yet at another still similar price, the same product would be a perceived rip-off.
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By James West 
I guess its not such a dumb idea after all.
When I suggested in an editorial last year that a gold standard should be adopted, I was summarily dismissed in the most condescending fashion by economists and journalists alike who proclaimed that I didn't understand economics or currencies or monetary history.
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Source : Vincent Bressler
Money is:
1) A unit of transaction.
2) A store of value.
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From the October 2010 2010 HRA Journal
David Coffin & Eric Coffin, HRA Advisories
The last month was one of those classic speculative runs that makes everyone who trades resource stocks feel pretty smart. We're feeling kind of clever ourselves, but we have been through enough markets to view self-congratulatory impulses with great suspicion. Mr Market loves hubris.
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By Marc Davis, www.BNWnews.ca and www.Top40goldstocks.com
As the excitement surrounding the $3.6 billion buyout of tiny Andean Resources by Goldcorp Inc. subsides, investors are wondering who’s up for grabs next among Argentina’s other emerging success stories.
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By Marc Davis, www.BNWnews.ca
Potash may be a hot commodity garnering plenty of headlines as of lately. But in the quest to feed a burgeoning global population, phosphate may eventually steal the limelight. That’s because this lesser-known but equally indispensible key ingredient in fertilizer is expected to run out long before potash ever does.
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by Mary Anne & Pamela Aden
Gold's strength is unusual. Just when we thought that gold was taking a breather from its stellar rise, it quickly turned up.
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By Marc Davis, www.BNWnews.ca
In spite of a flurry of headlines in recent weeks heralding a game-changing consolidation of the world’s lucrative potash mining industry, Canada’s two small aspiring potash miners are standing firm.
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By Marc Davis, www.BNWnews.ca and www.Top40GoldStocks.com
In the wake of the pending $3.6 billion dollar buy-out of the gold junior Andean Resources (TSX: AND), expansion-minded major mining companies are poised to gobble up more asset-rich gold explorers. So says the dominant U.S. investment banker, Bank of America Merrill Lynch (BofAML), in a September research report entitled “Global Gold M&A Heats Up.”
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by Mary Anne & Pamela Aden,
Gold is looking good. Since its summer low of $1160 in late June, it has surged to $1,300-plus. That's around a 10% gain in less than two months, and even though gold has again broken its all-time record high, it's poised to move still higher.
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As the US dollar, the reserve currency of the world, continues to weaken, the price of gold as well as the relative value of other currencies will continue to increase. Only last week, the price of gold made another historic high as it traded above $1300 an ounce for the first time ever.
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By Frank Holmes
Dr. Martin Murenbeeld, chief economist for Dundee Wealth Economics and one of the smartest gold minds around, recently released his latest chart book – hundreds of useful visuals to help him tell the gold and commodity stories.
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Brien Lundin: Gold Revival
Source: Karen Roche of The Gold Report 09/08/2010
What do politics have to do with precious metals? A lot, according to Brien Lundin, who writes Gold Newsletter. In this exclusive interview with The Gold Report, Brien reveals how the November elections will be pivotal to gold and why President Obama's policies could provide a big boost to the yellow metal. He also shares some of his favorite producers in the sector.
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By Marc Davis, www.BNWnews.ca
A rebounding fertilizer industry and an eye-popping $39 billion dollar bid for Potash Corp. by the world’s largest mining company, BHP Billiton, are telling signals – ones that suggest that Canada’s tiny handful of potash producers and aspiring miners are ripe plums for the picking.
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Gold And Deflation
by Frank Holmes
I have been speaking and writing about gold's appeal in a deflationary environment - this is a concept that opposes the conventional opinion that the gold price will not rise without inflation.
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Source: Brian Sylvester of The Gold Report
The Gold Report: James, in a recent issue of the Midas Letter you said, "The world, according to gold, is in an absolute mess." We're not in a gold price mania, so how can the world be in an "absolute mess?"
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by Frank Holmes
Global economic conditions are now favorable for gold as a safe-haven investment. The U.S., Western Europe and Japan are close to buckling under the weight of their sovereign debt loads, government budget deficits remain large and persistent and, as a result, faith in major paper currencies is low.
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By MarcDavis,
www.Top40GoldStocks.com
and www.BNWnews.ca
In a jittery stock market, the only gold stocks that investors should own are for companies that really do have the goods. This is the consensus view among various gold investment industry commentators and analysts.
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By Marc Davis, www.BNWnews.ca
Several delegations of high-powered Chinese investment consortiums, government representatives from Beijing, and state-run mining companies have in recent weeks visited Western Potash Corp. (TSX: WPX) (FSE: AHE).
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By Marc Davis, www.BNWnews.ca
With gold prices continuing to shine as the fragile global economic recovery falters yet again, equally buoyant silver prices have given the mining industry considerable impetus to increase production. But that’s simply not happening.
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By Marc Davis, www.BNWnews.ca
Latin America represents the world’s last great mineral frontier for prolific gold discoveries due to its vast land mass and its geologically fertile terrain. This is proving to be a godsend for some lucky investors, while others have seen their luck turn to shattered dreams.
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By Marc Davis, www.BNWnews.ca
With bullion prices at all-time highs and world-class gold discoveries becoming ever more elusive, the investment industry is gambling increasingly sizeable sums of money on major mines-in-the-making. A recent example of this new trend involves Exeter Resource Corporation (TSX.V: XRC) (NYSE-A: XRA). Specifically, a handful of top-tier investment banks snapped up the high-flying mining junior’s CDN $57.5 million equity financing last month in less than 24 hours.
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By Marc Davis, BNWnews.ca
Since the overhaul of Argentina’s protectionist mining laws in 1993, gold production has seen a parabolic rise from a paltry 36,000 ounces to 1.40 million ounces in 2008. (Data for 2009 has not yet been made public). This makes Argentina the third most prolific producer in Latin America. Only Peru and Brazil posted better numbers at 5.78 million ounces and 1.55 million ounces of gold, respectively.
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Imminent Market Meltdown Spells Misery for Most; Profits for Gold Bugs
By Marc Davis of BNW News
Something wicked this way comes! So, be afraid. Be very afraid.
(Unless you’re a gold bug).
The recent rally in American and Canadian equity markets is soon to give way to a gut-wrenching collapse that will push equities to shocking new lows, with gold prices reacting by rallying to new highs.
After having correctly anticipated the timing and extent of the March 9th to April 3rd market rally, this is the latest dire warning from Heiko Seibel, a leading German stock market strategist. The Director of Research for Munich-based CM-Equity AG now believes that the U.S. benchmark S&P 500 Index will dramatically drop to an ultimate low of around 450 points in late June or in July.
The odds favour him being proven right – that is if his talent for correctly anticipating market moves continues. “Within a few weeks, we will see the stock lows of our lifetimes,” he nonchalantly declares.Indeed, he was right on the money when he told BNW Business Newswire on March 2nd that the S&P 500 Index was about to reverse a pronounced downward trend.
He suggested at the time that it would rally to a high of not much more than 850 points during April before it begins an orderly retreat that soon turns into a panic-stricken rout. The S&P 500 closed at 856.56 on April 9th – the culmination of a very impressive five-week gain of 26% over its March 09th low.
However, this rebound cannot gloss over the fact that the bellwether index’s had lost 58% of its value by the time it ended its slide in early March. And now the S&P 500 is likely destined to trade in an uninspiring sideways pattern for the balance of the month, Seibel suggests.
Seibel believes that a growing sense of economic optimism shared by many U.S. investors and the Obama Administration, alike, is completely misplaced. He suggests that the rally during March and early April (with the Dow Jones Industrial Average closing at 8,018 points on April 3rd after enjoying the best four-week run since 1933) is merely a false dawn.
Soon enough investors will be seriously rattled yet again – this time by a devastating after-shock to October’s global financial earthquake. One that will see the S&P 500 Index nose-dive up to 40% before it hits rock bottom at around the 450 points level. This bleak scenario contrasts starkly to the S&P’s heady high of over 1,550 points in October of 2007.
A proponent of quantitative analysis, Seibel says this pending nightmarish sell-off will cause plenty of already shell-shocked investors to relinquish their remaining equity holdings. However, investors in gold bullion and gold-backed Exchange Traded Funds (ETFs) will likely be spared the widespread misery, Seibel believes. “When there is a total loss in confidence in the stock market, then gold will rally.
Gold bullion is historically an inverse proxy to the stock market. So, it’s only logical that this will happen,” he says.“We should see a culmination of massive price weakness in stocks within weeks, which will cause gold to reverse its current trend to establish new highs beyond $1,000 early in the third quarter of this year – maybe even testing the $1,200 mark,” he adds.Interestingly, gold equities will not be immune to the market meltdown because investors will engage in “panic selling,” to preserve whatever capital they have left, he predicts
.Meanwhile, the catalyst to the stock market’s final capitulation during the coming months will be a combination of the collapse of more landmark U.S. companies, a renewed banking crisis, and other forms of “major economic upheaval,” Seibel explains.
However, it is always darkest before dawn. And Seibel reasons that a gradual rebound in equities will finally assert itself during the last quarter of 2009 in anticipation of a spring economic revitalization. One that is already being germinated by massive government-backed infusions of money into the U.S. economy
.“History shows that economic recoveries typically get underway about six to nine months after the markets hit their ultimate lows. So a spring economic recovery appears very probable,” he says.
“And gold stocks will lead the way during the market recovery as they’re already ridiculously cheap and will get cheaper. But as gold prices begin to push higher, then gold producing companies will become attractive because they will offer investors leveraged exposure to these rising prices,” he adds.
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