Uranium and Specialty Metals: A Few of My Favorite Things, Part II

Uranium – One of the best investments you can make right now is to pick up relatively secure, low-cost uranium – the feedstock for nuclear reactors.

The demand for uranium is building in intensity like a heap of hot coals. There are already 436 reactors up and running today. And there is a surge in demand coming in the next decade from the hundred or so new reactors expected to come online. Yet the industry is about 400 million pounds short of meeting that demand, as shown in the chart below.

Investing in Gold During a Fed-Induced Bounce

Stocks up, gold down.

Once again yesterday, investors demonstrated their preference for paper over the shiny yellow metal. The Dow Jones Industrial Average notched a slight 3-point gain, while gold tumbled about $17 an ounce.

This divergence between stocks and gold is not enormous, but it is telling. Most investors believe the credit crisis is a mere memory, and that an economic recovery is underway.

Brazil Launches Salvo of Trade Sanctions Against US

According to the head of economic affairs at Brazil’s foreign ministry, Carlos Marcio Cozendey, the plan is “to distribute the retaliation broadly in order to maximise pressure.”

The “retaliation” he refers to includes trade sections on 100 US goods, ranging from cars to milk powder. The tariffs are in response to cotton producer subsidies the US has kept in place despite a 2008 WTO ruling that found the practice discriminatory.

Water Stocks: A Few of My Favorite Things, Part I

Water – I’ve been urging my subscribers to invest in water stocks for several years…and Hyflux is one of my favorites. Hyflux (HYFXF: OTC Bulletin Board) operates in China, Southeast Asia, India, the Middle East and North Africa. It is involved in a variety of water projects, from desalination to recycling. It was among the first stocks ever recommended in my investment service, Mayer’s Special Situations, when I launched the “Blue Gold Portfolio” back in the summer of 2006. Since I recommended it, Hyflux is up 75%, while the S&P 500 is down 10%.

Strong Chinese Exports Cause Aussie Dollar to Soar

Yesterday’s price action in the currencies versus the dollar was a drag, man… We did, however, see the higher yielding currencies begin to move away from the pack of currencies led by the euro (EUR). That move higher by the likes of Australia (AUD), Brazil (BRL), South Africa (ZAR), and others, carried over through the overnight sessions, so, as we start today, they are stronger versus the dollar… In fact, the Aussie dollar is near a 7-week high this morning.

Is Bakken Shale the New American Gold Rush?

You know the labor market is tight when the local McDonald’s starts handing out $300 signing bonuses. Workers are coming in from all over, making it tough to find housing. They might sleep in their trucks or pitch tents, but it can get 50 degrees below zero, which makes such a move dangerous.

Can India Get Soaring Food Inflation Rates Under Control?

India’s inflation in food prices has been soaring lately — holding for weeks above 17 percent — due to a combination of factors including the weakest monsoon rains in nearly 40 years, new taxes on gasoline and diesel, and increased excise taxes on a wide variety of products.

From BusinessWeek:

When is the Best Time for You to Look at Junior Miners?

After a relatively quick run up in the value of gold, when’s a good time to consider taking another look?  Recently, the Wall Street Journal examined the junior miners, and the good opportunities there may be for investors interested in wisely timing stock purchases of early-stage firms.

From Wall Street Journal:

What’s More Important: Price Per Ounce or Ounces Owned?

In a recent conversation with a fellow gold analyst, he was emphatic that the price one pays for physical gold should be ignored. “What’s far more important,” he insisted, “is how many ounces I own in relation to the total value of my assets.”

Building a core position in gold bullion is a smart goal, to be sure, and a strategy Casey Research has been advising for years. However, ignoring the price you pay for gold could be seen as foolhardy; sure, it’s insurance, but isn’t price part of the consideration when you shop for insurance?

Investing in Gold: Protection from Runaway Inflation

Since the feds can’t grow their way out of debt…they’ll have to try to inflate their way out.

Trouble is, first…central bankers don’t have that good a grasp of inflation. They can control the amount of money in the monetary base at the Fed. But they don’t really control what happens to it next. For a long time, prices don’t necessarily react…because, in a depression, the velocity of money slows down to a crawl. The banks don’t lend; the money doesn’t get around…and it doesn’t feed into consumer prices. Then, all of a sudden, people realize that there dollars are losing value…suddenly, they are eager to send them on their way. Velocity increases – fast. It is as if they had put cash in a particle accelerator. Instead of 6% inflation, the CPI goes to 12%…or 25%…or 100%.

Gold and Silver Supply: Get Some While You Can

Adrian Douglas of MarketForceAnalysis.com took a look at a summary of the goings-on at the Comex, and says, “the data reveals a very shocking trend. That is that the registered (dealer) inventory is being drawn down at a phenomenal rate. In silver the inventory has dropped by 24% in 6 months while in gold it has dropped an eye-popping 41% in 6 months!”

Thompson Creek Metals Company (NYSE:TC) – Recession Took a “Big Bite,” but it’s “on the Rebound”

Thompson Creek Metals Company (NYSE:TC), the Toronto-based molybdenum mining company with operations in Canada and the US, hit some rough waters with a recent downturn in “moly” pricing, but there’s reason to expect a stronger performance ahead.