European Investor Olivier Tielens: In a Sideways Gold Market, Explorers Offer the Most Upside

The Gold Report: After flirting with $1,300 per ounce ($1,300/oz) in January, gold has fallen to around $1,200/oz. What happened? Olivier Tielens: Deflationary forces are still leading the game. There’s a 50% chance that we may go to a new low, very probably the final bottom, and a 50% chance gold will trade throughout 2015 in a tight range. TGR: A few years ago, gold rose tremendously after the U.S. Federal Reserve began quantitative easing (QE). Since then, further rounds of QE from the Fed and, more recently, massive QE from Japan and the European Union have not buoyed the … Continue reading

Where is the Smart Money Going in Mining? Lawrence Roulston's Answer May Surprise You

The Mining Report: When we last spoke in June 2014, you said that gold at $1,250 per ounce ($1,250/oz) was a reasonable baseline price going forward. Do you still believe that? Lawrence Roulston: Yes. Actually, the fact that gold has remained at this level while the U.S. dollar has become so strong is very significant. My preference is to pay less attention to the gold price per se and more attention to specific gold and silver companies that are good investments in their own right. This means companies with smart management teams that are expanding resources, advancing projects toward production, … Continue reading

The Resource Maven Tells Investors How to Take Advantage of a Rising Happiness Index

The Gold Report: You have doubled down on your declaration that “Nov. 5 was the bottom for gold and gold equities.” What makes you so certain? Gwen Preston: The primary reason is fundamental: supply and demand. Demand for gold remains strong despite headlines about exchange-traded funds liquidating their holdings. Physical buyers are buying a lot of gold. These include the central banks of China and Russia, countries pushing for an alternative to the U.S. dollar for international trade, and individual buyers in India and China, people who have long believed in gold as a store of value. The latter buy … Continue reading

Jeb Handwerger: A Surge in M&As Proves that Gold Is Back

The Mining Report: You’re fond of the saying, “As January goes, so goes the year.” Given how gold performed last month, up 8%, what does this tell you about the rest of 2015? Jeb Handwerger: Going back over the last 100 years, the statistics are on the side of the sector that outperforms in January. And this January, precious metals and junior miners have taken off, breaking out against all major currencies. Gold bullion outperformed all other currencies, and it’s also beginning to break out against the U.S. dollar. The gold price broke above the 200-day moving average versus the … Continue reading

Global Insecurity Is Good for Gold, Says Mike Niehuser

The Gold Report: Gold and silver have both demonstrated explosive growth in 2015. Why has this happened, and will it continue? Mike Niehuser: Well, I am not sure that I would categorize a higher gold price in the first part of 2015 as “explosive.” Since the beginning of 2015, gold appears to be trading within a band of $1,200 to $1,300 an ounce ($1,200–1,300/oz). While this is not “explosive” from a broader perspective, it is certainly a relief compared to declines in 2013, so let’s just say gold has done well so far in 2015. Despite declines over the last … Continue reading

Avoid Dodos and Find Gold and Silver Miners that Can Soar, Says Raymond James' Chris Thompson

The Gold Report: A recent Raymond James research report refers to silver as the “devil’s metal.” What is the story there? Chris Thompson: Silver is much more volatile than gold. Typically when we see a weak day for the gold price, silver has a terrible day. Likewise, if we see a strong day for gold, typically silver delivers exceptional performance. Because it’s so volatile, we term it the devil’s metal. TGR: If the selloff in precious metal equities is over and this is the bottom, how long do you expect the flat-lining to persist? CT: At Raymond James, in the … Continue reading

Hedge Against Short-Term Cycles with Lithium: Daniela Desormeaux

The Mining Report: Economic growth rates have diverged this year. They’re increasing in the U.S. and slowing down in China and India. They’re stagnating in Europe, and Russia is going into recession. How is all that affecting the lithium space? Daniela Desormeaux: The lithium industry is growing quickly. It is different from commodities like copper or iron ore in that there is not a direct link between lithium and the economic cycle. Last year, most commodity prices were down, and the most important drop was in iron ore. The lithium industry, on the other hand, grew 5–6% last year. “Galaxy … Continue reading

The Companies Bob Moriarty Loves for the Long Term

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The Gold Report: The Swiss National Bank surprised the world by unpegging the franc from the euro. You wrote that you suspect this will be identified as the beginning of the end and that when the derivatives market blows up, it will take down billions of dollars in hedge funds. Is this the beginning of the end of derivatives and hedge funds or the beginning of the end of something bigger? Bob Moriarty: The beginning of the end of something bigger. With the Swiss franc tied to the euro, as the dollar went up, the euro went down. This required … Continue reading

What the Aden Sisters Are Watching Before Jumping Back into Natural Resources

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The Gold Report: We are only a month into 2015 and already the economic news has been dramatic. Switzerland decoupled the franc from the euro. The European Central Bank (ECB) has announced quantitative easing (QE). The Russian ruble is crashing along with oil prices, but the U.S. stock market seems to be soaring. What indicators are you watching and what are you expecting in the global economy in 2015? Pamela Aden: Never a dull moment. The biggest beneficiary of all this turmoil has been the dollar. The dollar index is at 10-year highs. Meanwhile the euro and the Canadian dollar … Continue reading

Stefan Ioannou: Bottom-Fishing Opportunities in Base Metals, Especially Zinc

The Mining Report: Copper has fallen about 12% in 2015 and other base metals are seeing significantly weaker support after the World Bank said it expects the global economy to slow by as much as 1% this year. Is the bull market for commodities over or is this a pause in an otherwise bullish cycle? Stefan Ioannou: Looking at this market as bullish over the past couple of years may be a bit aggressive. There has been a cautious tone since 2012. Metal prices relative to historic prices are definitely higher, but so are operating costs. The margins haven’t changed … Continue reading

The Warrant Report | Primero | New Gold and The U.S. Dollar

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  The October issue of The Warrant Report showcases two warrants as great examples of potential leverage as well as how to reduce your dollar cost in the investment with warrants versus buying the common shares. Primero Mining and New Gold are the two companies showcased. We also present numerous charts of gold, usd, gold in Euros and gold in Russian Rubles. Click Here for the complete report.   … Continue reading