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March 22, 2013 / Jeb

Rebound in Gold Mining Stocks?

I have just returned from PDAC, the largest mining show in the world where I was invited to be a speaker.  This is my second year presenting at the show which is attended by over 30,000 people from all over the world.  It is a great honor and privilege to be selected by the highly prestigious PDAC committee.  Only two years ago, the sentiment was completely different.  In 2011, the mood was euphoric and may have marked the top in the junior mining sector.  This year the sentiment was negative and may be marking a capitulation and major bottom.

The theme this year at the conference was that explorers and developers are having a difficult time raising capital as investors chase the overbought Dow and Nasdaq which is hitting record levels and making multi-year breakouts.  Surprisingly, this is at a time when the gold and silver miners are hitting multi-year lows despite gold and silver holding the $1500 and $26 area.  I expect support for gold and silver to hold as the equity markets are overbought and our sectors look to rebound off of these oversold levels.

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March 22, 2013 / Jeb

Uranium Miners Starting To Rebound

A self-proclaimed long-term contrarian, Handwerger targets undervalued sectors with great long-term growth potential — of which the uranium market is a prime example. While other commodities have made significant gains following the 2008 financial crisis, uranium prices are down about 70 percent from their 2007 highs — a situation brought on by a natural disaster, not poor fundamentals.

“Uranium is one of the few commodities still heavily discounted compared to other commodities. The mispricing of the sector can largely be attributed to a lack of understanding — on the part of many investors — of the overall global fundamentals that are involved in the uranium sector,” said Handwerger. He believes governments, utilities and big-money investors are beginning to come around to the reality that nuclear power will be a part of the modern, global, industry-based economy, especially in Asia.

Read the full article on the uranium miners by clicking here…

March 22, 2013 / Jeb

Platinum About To Outpace Gold and Silver

The trend towards resource nationalism is taking a major toll on the potential supply of platinum.  Simultaneously, auto sales are rebounding to levels not seen since before the credit crisis in early 2008.

Despite global supply concerns, increase of resource nationalism and rising industrial and automobile demand, platinum is still undervalued compared to gold and are far below pre credit crisis highs.  This may be a short term phenomenon and over the long term PGM’s may provide a great buying opportunity and outperform gold.

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March 22, 2013 / Jeb

Major Breakout for Uranium Miners In 2013

I have recently returned from the PDAC convention as an invited speaker.  This is the largest mining conference in the entire world.  One of the areas which is seeing increased investment interest is the overlooked junior uranium miners and explorers.  The uranium miners have been basing for two years following Fukushima shaking out plenty of the weak retail investors.  However, this undervalued sector may be poised for a major rebound in 2013 as I expect an increase of institutional interest and merger and acquisition activity.  Already the two year downtrend in the uranium prices is being broken to the upside after bouncing off three year lows.  

For many months, I highlighted the CB&I deal with the Shaw Group, the Chinese-Cameco connection, The Russians and Uranium One and the coming acquisition of junior explorers in the Athabasca Basin.  Witness the acquisition of Fission Energy, which borders the famous Hathor Deposit which was taken over by Rio Tinto in 2011.  Finally, after two years the sentiment has changed and is turning positive.  This sector is extremely active with investment interest and confirms my belief that the death of nuclear that was called by so many analysts over the past two years was premature.

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March 22, 2013 / Jeb

Buy Gold and Silver Wholesale

In ancient Greece, farmers would plant crops based on prophecies from an oracle.  Today investors look to spreadsheets and minute by minute charts to try to predict the future.  Trying to be a prophet is an unprofitable occupation.  The secret to wealth is buying wholesale, waiting and hopefully selling it retail.

We all love sales and discounts when prices drop for fast food, clothing or cars.  However, when it comes to mining stocks investors look for momentum and major price rises continuing to bid up the price to overbought levels.  Instead, they should look for quality assets on sale in mining friendly jurisdictions.

The key to making money in the mining market is when you buy not when you sell.  Mining equities are priced at irrationally discounted levels and many in the business for many decades have never seen such a disconnect between the share prices and the underlying assets.  This may be exactly the time to seize on opportunities of buying mining shares on sale.  Wall St. will intoxicate investors with a poison that takes away reason and force us to follow the flavor of the month.  This is happening right now in the ignored and undervalued resource sector and true contrarians who can dismiss the negativity in the market and press could make a fortune if they have patience and fortitude.  Technically, gold is basing and should reverse 
at support and could break out of $1800 later this year.

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March 22, 2013 / Jeb

Risk On Inflationary Trend About To Begin

Most investors have a tough time standing apart from the crowd. That’s why Jeb Handwerger says, “To be successful in the market, 99% of the people have to think you’re wrong.” While most investors are chasing overvalued equities, the smart money is acquiring assets that will benefit from the next uptick in inflationary pressures. In this interview with The Metals Report, Jeb Handwerger, editor of Gold Stock Trades, explains which investments will benefit most from the coming “risk-on” trade.

Investors must be willing to accept that these markets are extremely volatile. We have just lived through a long and painful downside. The reversal, when it comes, will be powerful. There have been trillions of dollars pumped into the financial system by central banks worldwide. This may be unleashing long-term inflationary forces. This challenge could be with us not only over the next couple of years, but possibly into the next generation, perhaps with gut-wrenching price increases.

This is why Jeb maintains a long-term position of diversification across the precious metals, uranium and strategic metals. Short to medium term, the markets have been in a consolidation phase. Eventually, the capital will flow to the commodities and undervalued junior miners. It’s important to be patient in these sectors and to realize that these may be excellent discount buying opportunities seen possibly once in a lifetime.

Read the full interview with Jeb Handwerger by clicking here…

February 17, 2013 / Jeb

Gold and Silver Building Base For Eventual Breakout

Governments all around the world are flooding the markets with cheap fiat currency to artificially boost moribund economies.  They are not cutting entitlements like they should be doing.  Instead, they are raising taxes and inflating their way out of debt which may hurt any meaningful long term economic growth.

Around the world gold has outstripped every competitive currency for the past ten years, yet the mainstream fail to understand the importance of owning gold and the gold miners.  Recently we have been in a sideways basing period in gold where the price has bounced between $1800 and $1550.  Gold may now be forming the base for a major breakout at $1800.

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