The recent selloff in gold prices has come despite a bullish outlook for the metal.
"The 'cash is king' crowd is at the heights of [its] popularity," said Jeb Handwerger, editor of market analysis provider GoldStockTrades.com. Investors have been selling precious metals, hoarding cash and Treasurys instead. "That will change."
"Already, the European Central Bank is literally seducing troubled financial institutions, dangling newly printed money before their waiting eyes," he said. "Essentially, the ECB has inflated their books by 20% and this may only be the beginning as the moribund European economy will probably require further oxygen."
The ECB isn't the only one likely "cranking up liquidity" for 2012, the U.S. Federal Reserve is too, Mladjenovic said, predicting that Europe will be doing more bailing out, and a third round of quantitative easing in the U.S. is gearing up for an election year.
Jeb Handwerger is the Editor of GoldStockTrades.com, where his Newsletter Subscribers can read about his "up to minute" technical analysis of the markets, and he is also a Rare Earth Element Think Tank Member. Jeb stopped by SNNLive at the Hard Assets Conference 2011 in San Francisco to discuss Rare Earth Element sector. In this Rare Earth Element Wall Street View, Jeb wants, "investors to realize, most technology applications and smart phones, hybrid engines, require rare elements", however, "most of the supply is coming from China", as he states in this interview.
Mr. Handwerger claims that, "the biggest growth sector in rare earths right now is the permanent magnetwhich is used in wind turbines, which is used in Hybrid engines. Those permanent magnets require specific rare earths, specifically neodymium and dysprosium. These are the two elements that are really really in demand that are in a shortfall. Investors should look for companies that have neodymium, dysprosium and the heavy rare earths".
Jeb goes on to discuss how he would like the United States to develop its own domestic supply of critical rare earths because, as he states, "By 2015, the Chinese have stated that they will no longer be exporting heavy rare earths." Jeb concludes by saying, "right now, through my research, there is only one 43-101 compliantheavy rare earth deposit on US soil, that's in Alaska, and that's a company called Ucore Rare Metals". Ucore Rare Metals was featured on the cover in the Quarter 2, 2010 edition of the Micro Cap Review.
“Jeb Handwerger, editor of GoldStockTrades.com, recommends International Tower Hill(THM) in Alaska as a good way to play this take-out theme. International Tower Hill has what big miners want — 100% ownership of the 20th-largest gold deposit in the world, Livengood. It ranks in the top 2% of gold discoveries over the past 20 years. The mine could produce an average of 562,000 ounces of gold over a 23 year life, delivering 664,000 ounces of gold during the first five years.
The company has 7 more years of feasibility, permitting and construction ahead of it before it will start producing gold. Although it has $116 million in cash and no debt, its capital costs will still reach $1.6 billion — all preproduction cost. Costs might be helped, however, by a new development. Tower Hill recently bought the land rights to an area near Livengood originally used for placer gold mining — gold that was originally at Livengood but has been moved over decades by rain and now lives in valleys at the base of the deposit. Tower Hill now owns that land.
Due to the concentration of gold, the grade is 3 to 4 times higher than the average grade at Livengood, according to the company. Tower Hill is working on a preliminary economic assessment which will provide cash costs and production capability, but the company now has the ability to become an overnight producer and use the cash to fund construction and production at Livengood. This might eliminate the need for Tower Hill to issue shares to raise cash and might make it even more appealing for a major searching for gold.”
Jeb Handwerger of www.GoldStockTrades.com joins us for a wide ranging interview covering Rare Earth Metals, Uranium and the intractable US Budget Deficit. Jeb has been following mining stocks for many years and is an authority on Rare Earths, Uranium and other mining sectors. He explains why it's crunch time for the Western World to break China's monopoly on these metals which are vital to modern life as we know it. Rare Earths go into just about every electronic item that we require in our daily lives, from cellphones, to computers, to windmills and automobilies.
His view of Uranium is quite compelling. Are you aware that there is a treaty between the US and Russia to dismantle Soviet Era nukes that provides much of the nuclear fuel consumed in the United States? This treaty expires in 2013 and may lead to almost immediate shortages of Unranium around the world. The Chinese are seeking supplies from any place they can find them.
Finally, we conclude with Jeb's concern and ideas for limiting the Federal Budget Deficit. He believes that the problem can only be addressed by revitalizing America's core manufacturing and mining sectors.
Subscribe to Jeb’s free 30 day trial of his members-only, premium up to the minute analysis on precious metals, uranium and rare earths by clicking here…
This Article's Word Cloud:AssetsBudgetEarthElementGoldGoldStockTradesHandwergerHillInvestorsLivengoodMetalsRareThestreetTowerUraniumWednesdayanalysisaveragebeencashcompanydepositdiscussearthselementsfromgoldhaveheavyinterviewlifemetalsmightminingmoreonlyoriginallyoverpermanentrarerequiresaidthatthistreatyusedwhichwillyearyears
Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be
held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.
SDI is associated with: ValueForum.com --
a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com --
videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock
quote content appearing on SDI is at least 20 minutes delayed and is
powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on
gold mining companies.