Gold and Silver Mining Stocks

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I’ve written many times in the past about the low utility of technical analysis when analyzing gold and silver assets if one does not also take into consideration Western banker manipulation of these assets. To understand this truth further, check out this article I wrote earlier this year called “Technical and Fundamental Analysis Fall Woefully Short When Assessing Manipulated Markets”.

I’ve written many times in the past about the low utility of technical analysis when analyzing gold and silver assets if one does not also take into consideration Western banker manipulation of these assets. To understand this truth further, check out this article I wrote earlier this year called “Technical and Fundamental Analysis Fall Woefully Short When Assessing Manipulated Markets”.

Every Precious Metals investor knows about the typical summer doldrums that usually afflicts the Gold & Silver sector as summers are typically poor performance months. However, this summer we were hit with a steep downfall earlier than in most years in April and early May, so there is a distinct possibility that despite gold and silver mining stocks normally waiting until late August to put in a  bottom, that the bottom may already be in.

Every Precious Metals investor knows about the typical summer doldrums that usually afflicts the Gold & Silver sector as summers are typically poor performance months. However, this summer we were hit with a steep downfall earlier than in most years in April and early May, so there is a distinct possibility that despite gold and silver mining stocks normally waiting until late August to put in a bottom, that the bottom may already be in.

The second issue is mine supply. Silver mine production has been increasing over the past decade, largely due to rising prices, allowing companies to ramp up production and bring more metal to the market. In fact, global mine production is up 33% since 1999. Meanwhile, total demand, as you’ll see in the chart below, is also rising.

The second issue is mine supply. Silver mine production has been increasing over the past decade, largely due to rising prices, allowing companies to ramp up production and bring more metal to the market. In fact, global mine production is up 33% since 1999. Meanwhile, total demand, as you’ll see in the chart below, is also rising.

The first is industrial use. Demand from a number of industries that use silver has been flat or falling. Household demand for silver like cutlery, flatware, and candlesticks hasn’t risen in ten years. Jewelry fabrication is up but a blip. With the shift to digital photography and image storing, use in photographic film processing continues to fall. And yet, total demand from industrial users keeps climbing.

The first is industrial use. Demand from a number of industries that use silver has been flat or falling. Household demand for silver like cutlery, flatware, and candlesticks hasn’t risen in ten years. Jewelry fabrication is up but a blip. With the shift to digital photography and image storing, use in photographic film processing continues to fall. And yet, total demand from industrial users keeps climbing.

Cotton was less than 20 mg/lb in early 2010, and now trades near 30 mg/lb. Cotton’s 30-year average price is 53.2 mg/lb (74% higher), and its record high of 250 mg/lb is eight times today’s level.

Cotton was less than 20 mg/lb in early 2010, and now trades near 30 mg/lb. Cotton’s 30-year average price is 53.2 mg/lb (74% higher), and its record high of 250 mg/lb is eight times today’s level.

Gannett is a rare treasure for the short seller: It’s the leading business in an undeniably obsolete business, it holds a tremendous amount of debt, and on its balance sheet you will find an array of worthless assets purchased at all-time high prices. In short, there’s no way this business can succeed and there are dozens of ways it can fail.

Gannett is a rare treasure for the short seller: It’s the leading business in an undeniably obsolete business, it holds a tremendous amount of debt, and on its balance sheet you will find an array of worthless assets purchased at all-time high prices. In short, there’s no way this business can succeed and there are dozens of ways it can fail.

Before I move into this month’s new equity recommendation, I want to introduce you to one more key metric we’ll be following more closely, given our concerns about the world’s monetary system. As paper systems fail around the world, they will have to be replaced with something else. As I mentioned, the U.S. dollar makes up 62% of the world’s central bank reserves.

Before I move into this month’s new equity recommendation, I want to introduce you to one more key metric we’ll be following more closely, given our concerns about the world’s monetary system. As paper systems fail around the world, they will have to be replaced with something else. As I mentioned, the U.S. dollar makes up 62% of the world’s central bank reserves.

The Fed’s program is scheduled to end this month. That’s when we’ll have our first real test of the true appetite for risk. I bet we see a big correction in the stock market at exactly the same time.

The Fed’s program is scheduled to end this month. That’s when we’ll have our first real test of the true appetite for risk. I bet we see a big correction in the stock market at exactly the same time.

The United States is the only government in the world that can actually afford to underwrite the world’s banking system. That’s not because we have any real savings, it’s only because we control the world’s reserve currency. It’s a paper standard, which means we can always print more of it.

The United States is the only government in the world that can actually afford to underwrite the world’s banking system. That’s not because we have any real savings, it’s only because we control the world’s reserve currency. It’s a paper standard, which means we can always print more of it.

As a mental exercise, consider this: if the demand keeps growing at the same rate as it did in the first quarter of 2011, we may see overall 2011 growth at a surely market-impacting 20.9%.

As a mental exercise, consider this: if the demand keeps growing at the same rate as it did in the first quarter of 2011, we may see overall 2011 growth at a surely market-impacting 20.9%.

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