Gold and Silver Forecast Update

What a month for gold and silver as they peaked and crashed by over 10% this month. But instead of being disspointed, I think this is the perfect fodder and stage for the next super fast bull rally. In fact the next move will be among the powerful and sustainable rallies in 7 year bull run of Gold as it will suck in even the most conservative of funds as Gold takes out levels like $1200, $1300 as if they were fig leaves.

Will the U.S. Dollar Rally End the Gold and Silver Bull Market?

It has become clear to us that the media and so many institutional analysts are going to keep talking the $ up despite the lack of fundamental reasons. We feel that you will benefit most from a look at what lies ahead for the $ and its fundamentals and what could take it higher, if it does rise.

Why Gold and Silver Will Be the Next Currency

In the currency game, only one player has dominated throughout the course of history: precious metals.   Over time, fiat currencies lose their worth, as governments inflate the paper through printing and confidence is lost with each recession.  This phenomenon was proven in the United States with the Continental currency, which was rapidly inflated to pay for the revolutionary war.  Thereafter, the inflated Continental dollar was replaced with hard metals, which retained and actually grew in value from 1774 to the creation of the Federal Reserve Bank in 1913.

Unemployment and Precious Metals

Unemployment Discrepancy and its Impact on Precious Metals Analysts, financial planners and so called “experts” tout a variety of anti-inflation investments, ranging from commodities like oil and coal to sophisticated instruments like inflation-protected treasuries and annuities.  Although all these products may seem to be inflation-proof on paper, none have the intrinsic value of gold, silver or any other precious metals. (more...)

South African Platinum Supply to Rise 5%

Boosted by stockpile sales - Johnson Matthey JOHANNESBURG (Reuters) - Supply of platinum from South Africa, the world's top source of the precious metal, will rise by 5 percent this year, with the sale of stocks countering lower output, a leading metal refiner said on Tuesday. The producer of four fifths of the world's platinum, will see supply rise by 210,000 ounces to 4.73 million ounces in 2009 mainly due to sales of the metal produced last year, but were unsold until this year, Johnson Matthey (JM) said in its Platinum 2009 Interim Review. Although three new mines have started up in South Africa, and a number of others have increased production, output of platinum concentrate will fall, but changes in refined stocks will ensure supplies will increase, JM said. (more...)

Silver to Make a Big Move

Silver is About to Explode Higher Most Gold bulls are silver bulls. The 1970s is the reason why and because inflation that occurs when a secular commodity bull cycle is in effect tends to flow into both precious metals. I have been less than wildly bullish on silver lately. I own some physical silver but hold much more Gold. My concern is simple. In past deflationary cycles, Gold has done well but silver not as well. Since I favor deflation over inflation for this cycle, I heavily weighted myself towards Gold and only hold a little silver. I even made the stupid mistake of shorting silver a few months ago and had my a$$ handed to me. (more...)

Lonmin to Boost Platinum Output 20%

By 2013 to take advantage of climbing prices LONDON (Reuters) - Lonmin Plc, the world's third biggest platinum producer, swung to an annual loss on weak prices and lower output, but said it planned to boost output by a fifth by 2013 as prices climb on shortages. (more...)

Pan American Silver

Reports record net income, record silver and gold production RENO, NV - Pan American Silver Tuesday reported a 172% increase in net income for the third quarter, along with record silver and gold production. CEO Geoff Burns said, "The main drivers of our third quarter performance were a well executed startup of the San Vicente mine expansion, which has been producing silver beyond our expectations, and a solid quarter at Manantial Espejo. " (more...)

Copper Prices Rally

Copper prices rally on brighter demand prospects LONDON (Reuters) - Copper rallied on Monday as demand prospects brightened after Codelco, the world's top copper miner, raised premium charges for Asian customers in 2010, while a weaker dollar also helped boost industrial metals. Three-month copper futures on the London Metal Exchange MCU3 traded at $6,572 a tonne at 1537 GMT from $6,490 on Friday, when a weaker than expected monthly jobs report from the United States hit the dollar and sentiment. Chile's Codelco raised its term premium for copper to the Japanese port of Yokohama to $75 a tonne in 2010, and to $74 for South Korean buyers, in anticipation of rising demand in parts of Asia, industry sources said on Monday. (more...)

Gold:Silver Ratio – Buy Silver!

This article suggests that silver is undervalued compared to gold by anywhere from 10% to 50% based on historical gold to silver price relationships.

With primary secular bull or bear trends easily running from 10 to 20 years of the average investor’s 40 year investing lifespan it is crucial to identify optimal accumulation points within these primary trends to avoid prolonged periods of under-performance and potentially negative returns and to avoid dramatically reducing the number of productive years in which to build one’s fortune. (more…)

Gold Wheaton and South African Uranium

The Canadian miner's Barbados unit will put up an initial payment of $50m Canada's Gold Wheaton Gold Corp (GLW.V: Quote) said its Barbados unit agreed with First Uranium Corp (FIU.TO: Quote) to buy gold from its South African unit for an initial payment of $50 million. Gold Wheaton will buy 7% of the life of mine gold production from Ezulwini Mining Co's mining right over its Ezulwini mine, which covers about 3,718 hectares, in the Gauteng province of South Africa. Under the deal, which is expected to close in late November, Gold Wheaton will pay First Uranium $400 per ounce on each gold delivery, or the prevailing spot price of gold, whichever is lower. (more...)

Gold Market Fundamentals

Gold at Both Ends of the Economic K Wave Cycle Now that the 10-year cycle has peaked, fear will become the dominant emotion in the financial marketplace in the years ahead. Risk aversion is on the rise since the credit crisis and investors must look to those assets which tend to benefit from fear. Gold is of course the chief beneficiary of fear and has the added feature of being a hedge against a hyper-deflationary environment. Hyper deflation will be the order of the day in 2012-2014 when the final leg of the 60-year cycle descends. (more...)