This is why we continue to explore the development of rare earths and resist being seduced by the daily marketplace which tends to confuse, misdirect and obfuscate.  We are looking for geometric profits in rewards for our patience.  Jobs refused to be swayed by temporary roadblocks in his overall ability for astronomic profits.  This brings us to today, the rare earths are breaking out of bases.

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Check out my recent interview with Jim Mckenzie from Ucore Rare Earths (UCU:TSXV or UURAF:OTC) which possesses the largest 43-101 compliant heavy rare earth asset in the United States.  We discuss recent developments, news and how the company is moving ahead into mine development in 2012.

“We’re back on with Jeb Handwerger to discuss “The January effect,” and how to pick the best mining stocks. According to Jeb, gold and silver miners will rise again in 2012, and the time honored trope regarding the month of January will reign true, as the first week of the New Year shows these stocks opening on a bullish note. When asked about the best gain for 2012, Jeb says investors must look at undervalued junior mining natural resource assets–he recommends companies with strong financial positions that are progressing toward the production phase of mine development.”

Click here to listen to the full interview with Kerry Lutz…

Gold Stock Trades emphasized the importance of avoiding knee jerk reactions when precious metals experience healthy pullbacks.  Today the commodities (DBC) are rising across the board as they return from the premature grave to which the naysayers have assigned them.

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Watch my recent interview with George Salamis from Edgewater Exploration (EDW:TSXV).  In this interview we discuss what may be impacting miners in 2012 and why the weak Euro may benefit European gold miners.

Rarely has such technical destruction been visited on stalwart sectors such as gold, silver and the mining stocks (GDX).  The silver charts reveal technical damage not seen since the destruction of 1984.  It can only be conjecture that can account for a once in a generation obliteration of a once hallowed sector.  It must be remembered that both gold (GLD) and silver (SLV) had major moves earlier this year to the $1900 and $50, surpassing overhead resistance and reaching overbought territory.  This may be the reason why the decline in precious metal is overextended and extremely oversold.  We urged caution back in April for silver and in September for gold.  Silver has characteristically corrected close to 50% from its highs, while gold has fallen less than 20%.  Pullbacks are normal and restorative in a secular bull market in precious metals especially after explosive moves.

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January 2011

Don’t Be Blinded by Current Equity Market Euphoria

“Even though the markets are hitting new highs, don’t be blinded by the current euphoria on equity markets. Bullish sentiment is reaching new highs, surpassing the pre-credit crisis top. Herds are selling their precious metal investments to enter US equities on the hope of a recovery.”

February 2011

Fronteer Bought Out By Newmont, Readers Up Over 120%

Even though January of 2011 brought a lot of profit taking to mining stocks and precious metals, the leadership of Newmont (NEM) has used this pullback to purchase one of my long term favorite recommendations Fronteer Gold (FRG) for a 37% premium.  I believed Fronteer was a great candidate for a takeout and mentioned it on thestreet.com over a month ago.  My premium readers have gained 120% since my 8-4-10 buy signal.

March 2011

Malaise in Municipal Bonds, Nosedives in Nuclear, and a Green Light for Gold

“It is crucial to monitor this market and minimize risk as the S&P has reached my measured move after the end of August 2010 reversal. One can predict a move or where the next critical juncture will occur by using this technique, and I often use it to force myself to take profits as it reaches a target. I wrote several weeks ago when equities were reaching record overbought territory to be cautious and not to be blinded by market euphoria.”

April 2011

What’s Driving Silver Prices?

Investors have been scrambling to own silver and gold. What a difference a few weeks make. In July of 2010 and January of 2011, we saw two major buying opportunities for precious metals investors to position themselves at discount prices. Now gold and silver prices are selling at a premium. Silver is reaching extremely risky levels, yet miners are still poised to breakout. Remember that I am recommending partial profits if your winnings enable you to play with the house’s money and you are still holding silver from our August Buy Signal.

May 2011

What Will Happen As QE2 Ends?

The euro continued to press higher on the hopes of a recovery from July of 2010 until May of 2011. The decline in the euro is due to expectations of further bailouts in Europe and the European Central Bank taking a very dovish position by not raising interest rates. Greece is on the brink of default and Portugal may receive additional assistance. We are witnessing pressure put on the euro and capital flowing into the US dollar which has forced some UD dollar (UDN) bears to cover their aggressive short positions. This short covering rally in the US dollar has caused a commodity (DBC) de-leveraging forcing hedge funds to raise cash reducing their exposure to commodity-related equities.

June 2011

Gold Soaring In Comparison To Stocks

The S&P is showing negative divergences between price and momentum an indication of further price decline.  The absence of relief rallies over five weeks in equities and the outperformance of gold indicates investors are interested to hold hard assets going into the conclusion of QE2.

July 2011

Time For QE3? Gold and Silver Miners Reversing Higher

This dollar bounce and mining stock selloff is providing one of the best opportunities for long term mining investors to enter the market during this short term liquidity crisis.

There is currently a short term consolidation and pause in the US dollar decline. This is a phenomenon resulting from the extreme weakness of the Euro and the need for liquidity rising from the potential exit from QE2.

Looking forward to the rest of the summer and the 2012 election it may become evident that a QE3 – in whatever semantic guise – may have to be instituted to buoy the economy, improve employment, and postpone a financial crisis. Already President Obama has told the nation that he will propose a massive infrastructure stimulus after today’s horrendous jobs data.

August 2011

Mergers And Acquisitions In Mining Stocks Heat Up

It is precisely gold’s linear bull trend as opposed to a geometric blowoff which indicates the longevity of this millennial move in gold. As the metal surpasses resistance we anticipate and welcome the customary healthy pullbacks on this rising arc. The risk off trade will transfer capital from the extended gold price to the undervalued mining equities.

September 2011

Compelling Values In Gold, Silver and Miners After Correction

We are adamant in the signal that the marketplace is sending us.  There has been a disproportionate ratio of down stocks to up stocks.  Usually a ratio of 10 to 1 indicates an immediate turnaround.  At this point the disproportion may be setting a record.   Unless this action is forecasting dire catastrophic events, there are no places to hide.

At this point the marketplace will accept even palliative measures as long as the downward descent is halted.  We expect Bernanke and Trichet to  come up with more powerful measures.  It may not walk like QE3, or talk like QE3 but in the very least it will act like QE3 by whatever means necessary unlike the twist.

October 2011

Snapback Rally In Metals and Miners?

We may now be testing a bottom that may furnish us additional entry points. The current crisis may be just the excuse that the Federal Reserve has been waiting for to inject additional stimulus. Do not be dismayed by violent corrections as investors are forced to sell natural resource stocks in order to meet margin requirements. These liquidity traps may result in declines of 50-90% which are characteristic in the life cycle of junior mining companies.

November 2011

Gold Mining Stocks On The Rise

Investors may well be running from the Euro(FXE) into the U.S. dollar (UUP) and long term treasuries(TLT). It is curious that the Euro is not being buoyed by the Swiss intervention. This may be signaling trouble in Eurozone survival. The U.S. dollar is undergoing a rise which we believe is a cosmetic response to the weakness in the Euro. All short term currency manipulations produce technical gaps which inevitably is filled.  At the same time, the gold miners (GDX) are approaching interim upside targets as the upward breakout in the miners accelerates as it reaches new all time record highs.

December 2011

Gold, Silver, Miners Finding Support Despite Gloom and Doom

Our mission statement is to encourage investments in wealth in the earth situations that are significantly undervalued.  Short selling is a perilous pursuit.  Bonds(TLT) and the U.S. dollar (UUP)  are dangerous investments in light of record debt levels.  Difficult as it may seem we continue to be riders on the storm.

At this time our sectors are down, margin calls abound and tax loss selling continue to skew most stocks and precious metals to the downside.  Do not be dismayed, one does not go short now.  Our wealth in the earth stocks are inexpensive, undervalued and oversold and once again reason will prevail and sanity will return to the marketplace as it always has.

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We reiterate our guiding principles at precisely these times that tests our basic mission statement.  First and foremost is the avoidance of margin.  Mining stocks are characteristically volatile and subject to turbulent corrections.

Being able to buy and hold in such maelstroms rewards the brave with eventually impressive profits.  The commodity arena has never promised us a rose garden.  In order to reap the rewards of speculation one must know the territory through which one is passing.   This year we have crossed a lonesome valley of mining investments.

The challenges are immense.  The rewards are even greater or else why do we endure the slings and arrows of outrageous fortunes if not  to enjoy substantial profits.

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