Your analysis counts.  The private investor’s judgement is usually more accurate as or usually better than the analysts or so called “experts opinion.” Make sure that any advice makes sense to you. Cycles? On a cyclical basis, gold and silver are due soon for major moves up which do not have to occur exactly on schedule. Often cycles are early or late in their occurrences but nonetheless are significant. They fool the majority. But note well that over the last three years during a period of a severe bear market in gold and silver mining stocks we have recommended and bought gold mining stocks that have rocketed up 900% (Richmont); up 1400% (Claude Resources was taken over by Silver Standard); and Niogold up 400% (was taken over by Osisko). Many others have had large moves up. Bottom line? The best and most opportune time to invest in precious metals and mining stocks is during bear markets and brutal corrections.

The World of technology has changed. It’s ever evolving cycle has now in fact changed the World. I, for one try to embrace the advances which happen at an alarming rate. In my 50’s, the only disappointments I hold are the fact we are all not flying around like the Jetson’s, and 3D glasses at the movies still suck. It is imperative that we all try to keep up with these changes to remain competitive, and valid in our existence. Jobs, careers, and Industries have been streamlined and even wiped out, as we make way for the modern World.   The technological revolution in the Capital Markets has been devastating. Much like automated tellers and checkout lanes, the roles of an Equity Trader have been surpassed by the abilities of intelligent mathematicians and their aptitude to apply their skills to take advantage of Markets with lightning quick speed. I use this only as an example because I am, or perhaps was an Equity Trader. Flash crashes are real-keep that in mind!    The dependence of algorithmic programming on Trading desks has, and continues to reach ultimate capacity. To give credit where due, the individuals who create the programs have worked hard to achieve their goals, and in some ways have led to liquidity. Unfortunately, the “auto-pilot” use of program trading has brought us to an extremely unfair playing field for other investors.    As I write this, all Major Markets have been reaching record highs on a daily basis. This […]

    We have expected the stock market to have suffered 20% corrections over the past three years each time to be followed by returns to the upside, they did not occur. Those normal corrections  would have prevented the stock market from its current extremely high overall valuation. More importantly, harsh corrections offer investors and institutions exceptional opportunities to accumulate shares at lower prices while they are “on sale.” The stage is now set for another brutal bear market. We do not want it to occur and we are not short sellers; we are studying various indicators and they strongly suggest caution. Near zero interest rates and QEing have been enablers supporting the stock market.  We have said many times, odd as it may seem, that bull markets do not end due to overvaluation. They end with interest rates rising sharply, often with a decline in the money supply or recession. But note well that dangerous market tops are usually accompanied by overvaluation and euphoria. Are we seeing that now?

Much to the dismay of Republicans, a surprising amount of press is given to the S&P 500’s performance under Democrat and Republican presidencies. But doesn’t Congress control the purse strings? Since 1945, whenever Republicans controlled both houses of Congress, the S&P 500 rose an average 13.3%, and gained in price in two out of every three years. Whenever the Democrats were in control of both houses, however, the S&P 500 gained an average of only 7.4%, but rose in price a more consistent 73% of the time. 

                                                                          Inflation is here! A few weeks ago, we predicted that a point of inflation was possibly upon us and it was going to be reflected in the bond market. We suggested that the turning point was July 8, 2016. At that time, ten-year U.S. notes were trading at 1.35%, yields on tips were negative, gold was fetching $1,375 (15% more than it did a year ago), and consumer prices were less than 1% higher than the previous year. It appears we might be right. The headline CPI rose 0.3% between August and September, registering a year over year increase of 1.5% while core CPI was up 2.2% and running ahead of the Fed’s target rate of 2.0%.

What about copper? By Harold AGJ Davis,    www.prairiecropcharts.com  Winnipeg, Manitoba As a key industrial commodity, copper prices are very sensitive to pressure changes in economic activity. Thus, any copper market analysis also encompasses an economic insight. What is copper telling us now? Copper’s price responsiveness to economic expansion and contraction over the past half century is well understood. Yet, in the past fifteen years or so, copper’s moves have not corresponded as closely to changes in American industrial production and construction as they once did. It seems that copper’s drivers have evolved and demand swings are no longer dependent upon the service sector dominated American economy. Rather, the capital spending, infrastructure development and booming construction of Asia, China in particular, appear to have taken over.

  At the Montreal Analyst.com and Canadian Mine Analysis.com, we believe that gold and silver mining stocks will be one the best performing groups of this decade. Since many readers  are not familiar with gold mining and silver mining, we thought that we would give a quick capsule summary of the “nuts and bolts” (better yet the picks and shovels)of mining. The basic premise naturally is that the property (project) contains gold. A company wants to determine if gold (or silver) reserves are in the ground. This is done primarily by exploration (such as samples) and eventually by drilling. The samples and drill results are sent to a lab for analysis. That will help estimate the  amount of reserves in the ground. It takes time and is expensive-and it’s only the start.

The price of gold bullion is blatantly being manipulated as we have seen again this week. It was so obvious by what transpired on Tuesday. On our sites in the past, we have said that without manipulation by the central banks colluding with certain brokerage houses gold would likely never have been below $1300 an ounce during the last four years.

HPQ Silicon Resources, (formerly URAGOLD) investors must now wait…

It doesn’t make sense but bull markets do not end due to overvaluation. They generally end with interest rates rising more than moderately, a decline in the money supply or a recession which we don’t yet have. But, we now have short and long term cycles that are issuing strong warnings. Take a look at the past and note the similarities with the market today. Dangerous market tops are usually accompanied by overvaluation. Caution is warranted. Yet, we still find so many stocks that are incredibly undervalued. For example, many gold and silver mining stocks are very cheap.