Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Virgin Media Fibre Broadband Installation - What to Expect, Quality of Wiring, Service etc. - 21st Jun 21
Feel the Inflationary Heartbeat - 21st Jun 21
The Green Superfuel That Could Disrupt Global Energy Markers - 21st Jun 21
How Binance SCAMs Crypto Traders with UP DOWN Coins, Futures, Options and Leverage - Don't Get Bogdanoffed! - 20th Jun 21
Smart Money Accumulating Physical Silver Ahead Of New Basel III Regulations And Price Explosion To $44 - 20th Jun 21
Rambling Fed Triggers Gold/Silver Correction: Are Investors Being Duped? - 20th Jun 21
Gold: The Fed Wreaked Havoc on the Precious Metals - 20th Jun 21
Investing in the Tulip Crypto Mania 2021 - 19th Jun 21
Here’s Why Historic US Housing Market Boom Can Continue - 19th Jun 21
Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling - 19th Jun 21
Hyperinflationary Expectations: Reflections on Cryptocurrency and the Markets - 19th Jun 21
Gold Prices Investors beat Central Banks and Jewelry, as having the most Impact - 18th Jun 21
Has the Dust Settled After Fed Day? Not Just Yet - 18th Jun 21
Gold Asks: Will the Economic Boom Continue? - 18th Jun 21
STABLE COINS PONZI Crypto SCAM WARNING! Iron Titan CRASH to ZERO! Exit USDT While You Can! - 18th Jun 21
FOMC Surprise Takeaways - 18th Jun 21
Youtube Upload Stuck at 0% QUICK FIXES Solutions Tutorial - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations Video - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Credit Crisis Bailouts Benefitting Gold, Silver, Uranium And Rare Earth Miners

Commodities / Commodities Trading Feb 22, 2012 - 02:36 AM GMT

By: Jeb_Handwerger

Commodities

Best Financial Markets Analysis ArticleThe Chinese Ideographs for crisis is a two edged sword. One blade is pointed upward to forecast opportunity, the other symbol is pointed downward to signify danger. The short term deflationary crisis in 2011 provided a unique opportunity to buy undervalued miners at historic bargain basement prices.


Chart Comparison

In 2012 the market metrics have been directed upwards for gold (GDX), silver(SIL), uranium(URA) and rare earth miners(REMX) as the 20 and 50 day moving averages turn upward. There is an old truism that fighting the tape can be dangerous for your financial health. It is suspected that the Europeans will try to assuage fears on a Greek bailout to the tune of $172 billon to solidify a global market reversal...for the time being.

This event will be coinciding with the general equity markets breaking through key resistance levels and previous 52 week highs. This powerful move in the S&P 500 (SPY) and Dow Industrials (DIA) makes a strong case that this recent 20% correction and our October 4th buy signal provided an excellent buying opportunity. It appears the equity markets have begun a new uptrend in response to Central Banks worldwide printing money and choosing some degree of inflation. Remember the Japanese, Chinese, English, Americans and Europeans have all instituted accommodative measures and are taking the inflationary path.

With this in mind, we have called for over four months, a powerful a risk on rally despite the naysayers as key resistance levels have been broken to the upside.

In any difference of opinion concerning the marketplace there are always criteria to buttress the bearish sentiment. However, capitalism is not yet ready to head for the hills. Our readers have looked ahead to a surprisingly strong rally in our sectors in 2012. Especially so the rare earths (REMX), uraniums (URA) and of course high quality junior gold (GDXJ) and silver stocks(SIL).

Specifically, subscriber attention should be directed in reviewing our articles on uranium written since the Fukushima disaster. Suffice it to say, for many months we have said it is only a matter of time before the world becomes aware of the strategic importance of uranium in the production of global electricity. Everyday brings additional items of interest that substantiates our position.

The public has chosen to ignore the new day that is dawning for nuclear energy. Rarely do we read of the AP-1000 reactor, which is safer and more economical and being approved right here in the United States for the first time in three decades!

The rare earth sector has been pummeled to the mat to the point where they represent dynamic buys at these cheap levels. Not only are they essential for American national security but the Chinese might be interested in purchasing positions to control their already quasi-monopoly, particularly in such "heavies" as dysprosium and terbium. It is noted with interest that the Chinese have halted production of these metals in order to fine tune prices in response to a weak global economy in 2011. Now that we have seen this revival in industrial metals, prices of these critical elements should continue on their secular long term upward path far outpacing 2011 declines.

Recently, Caterpillar announced record earnings based on the need for them to supply equipment for what they state is rising demand for precious and industrial metals production. Caterpillar said, "We expect producers will continue to struggle to meet this demand, and most commodity prices should average higher than in 2011." This may indicate that while all the attention has been diverted to the travails of the Eurozone, the rest of the world has been increasingly active in mining growth and development. The gold miners have experienced a volatile Jekyll and Hyde 2011. According to this pattern it was oversold and has been ready for this upward reversal in 2012.

We feel that it is only a matter of time before the precious metal miners themselves participate in reflecting this burgeoning mining bull market. Many miners are reporting earning surprises beating analyst estimates, while other companies have taken write downs in a powerful gold bull market. The majors are desperate for resource growth at a time when new discoveries are at an all time low. The majors are becoming less picky and some of the undervalued juniors sitting on developing mines may attract the hungry giants who may pay exciting premiums. Do not forget many of these majors are sitting on large holdings of U.S. dollars, which is increasingly losing value. They must work speedily to transfer that capital into resource growth.

Subscribe to my free newsletter to get up to the minute updates on rare earths, uranium, gold and silver.

By Jeb Handwerger

http://goldstocktrades.com

© 2012 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