Over the past two days, I have been attending a convention hosted by the Prospectors & Developers Association of Canada (PDAC) in Toronto, Ontario, Canada. This is one of the world’s biggest events where mining industry experts and associations meet and talk about exploration and development opportunities across the globe. Mining companies also showcase their projects here each year. Attendees can meet firms that provide services to mining companies as… Read More
As prices for silver and gold started falling in 2013, my prediction was that lower prices for the precious metals would cause miners to cut back on the exploration and development of new mines, eventually stunting supply. And that is exactly what has happened. In the case of silver, the cutback on supply has been significant.
Production of silver from mines in Canada, a major silver-producing country, is collapsing.
In… Read More
As the chart below illustrates, since July of this year, the U.S. dollar has been rallying against other major world currencies.
I, for one, do not expect to see the rally in the U.S. dollar sustained. I believe the U.S. dollar is currently rallying, because other parts in the global economy are doing worse than the U.S. While the U.S. dollar may rise in the short-term, because our central bank… Read More
If there’s one sector of the stock market still poised for more capital gains, it has to be in domestic oil and gas producers.
This sector continues to be a top wealth creator. Most of the action is in the junior and mid-tier producers, as well as the limited partnerships focused on storage and distribution.
On the other hand, large, integrated producers are running into oil equivalent production issues. Both… Read More
The strength in this market is with oil, as both the spot price and oil stocks are holding up very well.
While the broader market has been experiencing a well-deserved price retrenchment, both large- and small-cap oil stocks have been on the comeback trail. The price strength is helpful as speculative fervor continues to come out of equities. The performance illustrates how helpful sectoral portfolio diversification can be when asset… Read More
The S&P 500 index really hasn’t done much since the beginning of the year but churn…but then again, why shouldn’t it?
For stocks, 2013 was an exceptional year. If we get another positive year on top of dividends, then it’s total gravy.
The capital gains over the last several years have been highly unusual, representative of the gains often seen after a major financial crisis.
There are no bandwagons to… Read More
Quite a bit of speculative fervor has been zapped out of this market, which is helpful for the longer-run trend.
With the exception of biotechnology stocks, trading action has softened in initial public offerings (IPOs), 3D (three-dimensional) printer stocks, cloud software stocks, and even a lot of restaurant stocks that only recently were very hot.
The stock market is just a continuing cycle of fluctuating investor sentiment. Valuations among junior… Read More
In the month of November, the U.S. government registered a budget deficit of $135 billion. Over the course of the month, it spent $318 billion and only took in $182 billion. So far for the fiscal year 2014, which began in October, the U.S. government has registered a budget deficit of $227 billion; that’s an average of $113.5 billion a month so far this fiscal year. (Source: Department of the… Read More
This morning we learned sales for this year’s Black Friday weekend declined for the first time since 2009. I have been warning my readers for months that falling consumer confidence would result in a pullback in consumer spending—and that’s exactly what’s happening this holiday shopping season.
According to the National Retail Federation, consumers spent an average of $407.02 from Thursday through Sunday, down about four percent from what they spent… Read More
As gold bullion prices continue to take a beating because of the belief that the easy money policies of the Fed won’t go away anytime soon, silver prices have fallen into the same rut. Just like gold bullion, the silver market has also become a place where bears prevail.
But in the midst of the negativity towards silver, I see that the fundamentals that ultimately drive silver prices higher are… Read More