Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
As we mentioned recently the dollar may well have run its course for now having been the main beneficiary of the perils that have swamped the euro. This chart shows the US Dollar gradually heading south over this three day snap shot. O
nce the heat comes off the Euro the dollar will be next to go under pressure as the fundamentals look none too rosy.
Jim Rogers on CNBC 10 June 2010
Short on stocks and long on Commodities thats Jim Rogers today. Other points of note in this interview included his comments on the Euro which he thinks could put in a short term rally only because everyone he knows is so negative on it which suggests to him a bounce could be on the cards.
A weak euro means more printing of money and ultimately more inflation and therefore he suggests that we should hold real assets, cotton, silver, natural gas, etc. Now, this next comment is very interesting, he said that if you are not a very good stock picker then you should stick to the commodity itself. So where do we go from here? Well, the first step regarding investment in this sector is to get your paws on the real thing, physical gold and silver. After that we can select some of the associated precious metals stocks, maybe place some cash with one of the funds or select a suitable vehicle for the implementation of options trading. The stocks do come with a myriad of risks including taxation which has recently popped up in Australia. A change of government anywhere in the world can bring about a new set of laws that were not even on the horizon when the project commenced.
You can always turn to a professional financial letter writer for advice in the sector that captures your interest and there are lots of them out there, but do try and get a recommendation from someone who has used the service over a reasonable period of time and considers it to be value for money.
From Jim Rogers to Jim Sinclair who has just sent us this missive:
The cat is clearly out of the bag concerning the forthcoming bankruptcy of 33 states of the USA.
This moronic New York non-solution to borrow from state pension funds, which now cannot meet their pension requirements, screams bankruptcy. The Administration calling for $50 billion for states and cities would appear to be confirmation of this financial phenomenon. The sign that the financial problems of the states of the USA are going critical and will make the EU situation look like kindergarten, in market terms, will be a stronger euro and stronger gold, sort of like now (9:09 EST).
A shift in the recent relationship between gold and the euro would signal that recognition by markets.
Jim Sinclair now has on offer a set of DVDs to guide you through the investment maze as follows:
Included in this two DVD set is a DVD Rom (accessible by computer DVD drive only) that is a searchable database of nearly two thousand articles over the last two years from Jim Sinclair, Trader Dan, Monty Guild and a collection of other JSMineset contributors. This is one of the largest collections of articles related to the Gold market available today on DVD and includes all charts we have posted over the last year and a half.
The second DVD is the much anticipated CIGA Meeting in Toronto from February 2010. This DVD includes over 3 hours of discussions with Jim Sinclair himself and is playable in any DVD player.
Please click here for more on this topic.
Finally we have this is a short clip from CNBC with Peter Schiff suggesting that we should be buying gold as it could go to $10,000/oz if governments keep producing money out of thin air, worth a watch.
Have a good one.
Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.
The latest trade from our options team was slightly more sophisticated in that we shorted a PUT as follows:
On Friday 7th May our premium options trading service OPTIONTRADER opened a speculative short term trade on GLD Puts, signalling to short sell the $105 May-10 Puts series at $0.09.
On Tuesday the 11th May we bought back the puts for just $0.05, making a 44.44% profit in just 4 days.
Recently our premium options trading service OPTIONTRADER has been putting in a great performance, the last 16 trades with an average gain of 42.73% per trade, in an average of just under 38 days per trade. Click here to sign up or find out more.
Silver-prices.net have been rather fortunate to close both the $15.00 and the$16.00 options trade on Silver Wheaton Corporation, with both returning a little over 100% profit.
To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)
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Gold Prices makes no guarantee or warranty on the accuracy or completeness of the data provided on this site. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This website represents our views and nothing more than that. Always consult your registered advisor to assist you with your investments. We accept no liability for any loss arising from the use of the data contained on this website. We may or may not hold a position in these securities at any given time and reserve the right to buy and sell as we think fit.
