Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
GDX Gold Stocks ETF - 25th June 19
What Does Facebook’s LIBRA New Crytocurrency Really Offer? - 25th June 19
Why Bond Investors MUST Be Paying Attention to Puerto Rico - 25th June 19
The Next Great Depression in the Making - 25th June 19
The Bad News About Record-Low Unemployment - 24th June 19
Stock Market New High, but…! - 24th June 19
Formula for when the Great Stock Market Rally Ends - 24th June 19
How To Time Market Tops and Bottoms - 24th June 19
5 basic tips to help mitigate the vulnerability inherent in email communications - 24th June 19
Will Google AI Kill Us? Man vs Machine Intelligence - 24th June 19
Why are Central Banks Buying Gold and Dumping Dollars? - 23rd June 19
Financial Sector Paints A Clear Picture For Stock Market Trading Profits - 23rd June 19
What You Should Look While Choosing Online Casino - 23rd June 19
INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - 22nd June 19
Here’s Why You Should Drive a Piece of Crap Car - 22nd June 19
How Do Stock Prices React to Fed Interest Rate Cuts? - 22nd June 19
Gold Bull Market Breaking Out! - 21st June 19
Post-FOMC Commentary: Delusions of Grandeur - 21st June 19
Gold Scores Gains as Draghi and Powel Grow Concerned - 21st June 19
Potential Upside Targets for Gold Stocks - 21st June 19
Gold Price Trend Forcast to End September 2019 - 21st June 19
The Gold (and Silver) Volcano Is Ready to Erupt - 21st June 19
Fed Leaves Rates Unchanged – Gold & Stocks Rally/Dollar Falls - 21st June 19
Silver Medium-Term Trend Analysis - 20th June 19
Gold Mining Stocks Waiting on This Chart - 20th June 19
A Key Gold Bull Market Signal - 20th June 19
Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - 20th June 19
Investing in APPLE (AAPL) to Profit From AI Machine Learning Stocks - 20th June 19
Small Cap Stocks May Lead A Market Rally - 20th June 19 -
Interest Rates Square Minus Zero - 20th June 19
Advice for Financing a Luxury Vehicle - 20th June 19
Stock Market Final Blow Off Top Just Hit… Next Week Comes the FIREWORKS - 20th June 19
US Dollar Rallies Off Support But Is This A Top Or Bottom? - 19th June 19
Most Income Investors Are Picking Up Nickels in Front of a Steamroller - 19th June 19
Is the Stock Market’s Volatility About to Spike? - 19th June 19
Facebook's Libra Crypto currency vs Bitcoin: Five Key Differences - 19th June 19
Fed May Trigger Wild Swing In Stock Index and Precious Metals - 19th June 19
How Long Do Land Rover Discovery Sport Brake Pads Last? - 19th June 19
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Time For U.S. To Focus On Mining Stocks

Commodities / Metals & Mining Nov 23, 2011 - 12:29 AM GMT

By: Jeb_Handwerger

Commodities

The markets have spoken in response to the failure of the Super-committee to reduce spending in Washington with a major decline. This is less than a stellar review for currently elected officials going into the 2012 election. At this point, the marketplace is saying that the "Emperor's Have No Clothes". The word emperor is deliberately chosen. Latter day royalty comports behind the scenes in collegial collusion. It is not too far fetched to suspect the unbelievable. The fix may be in.


Isn't democracy wonderful? When the cameras are on its a different story. There the class struggles continue for the edification of the masses. Behind the scenes, it is buddy time, while the middle class undergoes what is either benign neglect or outright betrayal. The real economic issue is that we are being overly regulated into legislative paralysis. We guardedly hoped for our leaders to come up with visionary vistas. Instead, they have concocted a compote of pap. Washington got there one year payroll tax cut, a few jobless benefits and a few more jobless benefits. This is not what was needed. The impact on job growth will be tepid at best.

Look at what happened to the 2009 stimulus of $800 billion. This did not help job creation. Unemployment went up where today the government publishes statistics of 9.1% unemployment and a rise in national debt to $15 trillion.

The morning after the super committee failure has left investors with a profound sense of disappointment. Washington is proposing a puerile prescription in the wrong pharmacy. Washington could seize the moment to propose truly heroic measures by a simple stroke of their pens to remove the regulatory impediments from essential American resources in the areas of rare earths (REMX), uranium(URA) and precious metals mining(GDX).

There is a need for the fast track approval of our own American critical assets on which our economic future is dependent. We have a national debt of over $15 trillion dollars. Imagine if these U.S. assets in the Earth would be unshackled. The fast track emancipation from regulatory restraints would result in thousands of jobs and go a long way to wiping out our enormous deficits.

The reality is that Washington is aborting job growth and simultaneously going deeper into debt. It is time for us to disenthrall ourselves from hoping that our leaders might seize the day by simply removing the bureaucratic road blocks preventing the development of our country's mineral wealth. What we got instead was palliative pie in the sky, temporary stalling and political campaign moves for the 2012 election.

As long as Washington continues to treat vital American mining interests with benign neglect, the resultant impact on growth will be modest to say the least. We continue to be a nation in executive denial. Instead of throwing dollars at loyalists that can not be translated into domestic growth, how much more productive use could these monies be better utilized and a truly spectacular return on investment? At the same time it would make this country stronger both fiscally and defensively with a lucrative resource base of precious metals, rare earths and uranium.

What does this mean for investors? Never have so many road blocks been thrown into the paths of uranium and rare earths. Nevertheless, we maintain our buy strategy in the face of this excessive doom and gloom. Sooner or later the realization must dawn on our leaders that these sectors represent true wealth and the most profitable places to invest stimulus funds.

In conclusion, we are aware that the areas of nuclear and rare earths are out of fashion. This is not a time to cash in chips that are going through an artificially induced bottoming area as the result of administrative inaction and the manipulations of the short sellers.

Indeed, our carefully researched select rare earth and uranium stocks are actually becoming more attractive to hostile takeovers from foreign entities who recognize the true value of our national resource assets. Realize that the Russians and Chinese have donned their cowboy hats and own large chunks of uranium in Wyoming and molybdenum in Nevada.

Do not be surprised that at this moment of transient disappointment, we may be on the verge of mergers, acquisitions and hostile takeovers. These companies have been offered large premiums at today's prices, which they have been steadfastly rejecting.

The day will surely come when the true value will be recognized of these extremely bargain priced assets. Timid investors race from the battlefield even before they whiff the smell of gunpowder. Our chosen sectors of uranium and rare earths require patience, whose payoff will result in geometric gains.

By Jeb Handwerger

http://goldstocktrades.com

© 2011 Copyright Jeb Handwerger- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules