Saturday, May 07, 2011

James Dines on Silver and Gold Markets and what is coming next for Rare Earths and Lithium tnr.v, rvm.v, laq.v, bvg.c, bva.v, tnr.v, asm.v,,, ktn.v, gbn.v,, mgn, asm.v, sgc.v,, btt.v,, nem, fcx, bvn, auy, abx,


  We will make a few observations to share with you today: nothing is going straight up - we will have a lot of corrections on the way - they will provide only buying opportunities. Our Catalyst is firmly in place, QE 2.5 is confirmed by Mr Bernanke - FED will leave amount of QE Stable, interest and maturing debt will be reinvested. Any trouble in the market will be met with QEn+1 in the coming election year.

  We have noted, before the Silver parabolic rise junior mining companies in Silver and Gold were not making the new highs, now after the Silver "blood bath" junior miners were holding the grounds. This summer will provide new buying opportunities into the solid junior mining names.
  All these Central Banks verbal interventions will bring volatility and have only one target - to make debasing of US Dollar gradual and prevent the next collapse of the financial system. You have to look deeper than day to day market rumours and Houses talking their books. China and their holdings of US Treasuries will be the guide.

"US Dollar Collapse: China Is Ready To Dump US Treasuries: Xinhua: China should cap forex reserves at 1.3 trillion U.S. dollars: China banker." Now Chinese reserves are over 3 Trillion dollars and at the end of February their holdings of US Treasuries were at 1,154.1 Trillion dollars. If somebody thinks that out of "more reasonable" 1.3 Trillion dollars in Reserves China will keep 100% in US Treasuries - they must be working for the FED.
  Situation is getting even worse with Japan holding the bag with another 890.3 Billion dollars in US Treasuries. After Tsunami and Nuclear Disaster US Inc can not really expect Japan to be on a shopping spree for its IOUs.
   Our Catalyst is now in a full blown action and we hope that Easter prayers will help US Dollar debasement to be managed peacefully." 

  We can tell you already that this correction in the Gold market will be very different - for the first time we have Central banks buying gold. You have noticed that we are not writing so much on Gold and Silver these days - now it is in the mainstream and you can find a lot of information on these subjects. We will always follow the major turning points. There is No at this time - all fundamentals are firmly in place for the Bull to be in place in Gold and Silver markets.
  We are riding these Bulls for ten years now and it will be important to note here, that even if we have another ten years in place it will be different from the very beginning. One thing is to buy Gold below 300 dollars and Silver below 5 dollars and another one is to step in now. We will personally demand more potential upside for the risk undertaken - junior miners will provide it. In this new stage you have to have multiple in place to increase your odds to succeed: underlining commodity multiplied by growing Resources in the development stage - any special company-based catalyst will be always in plus.
  If we are talking about James Dines and his views on the markets these days, we have to mention his conviction about the Rare Earths generational opportunity. Many plays in REE have already enjoyed almost parabolic rise within last 12 months, but there are still some just coming on stage.

  We will share today with you the last very important observation before forwarding you to the recent James Dines interview. Our Catalyst and everything what is driving Gold and Silver all these years are driving the New - still under the radar screens of most investors - Generational Bull Mega Trend. This Mega Trend is Energy Transition of our World to the post carbon society. You are more than welcome to explore it here on these blog.
  All these games with QE and debasing the US Dollar will lead to the inevitable - Inflation, it is the only way to run on par with the Debt in order to keep the insolvent financial system running. During this exercise the fundamental shift will have to occur - transition to the new Energy Diet for our society. Oil will be pushed out of reach for the most economies due to the Peak Oil multiplied by Inflation which will push prices of all Real Assets, including commodities higher. 
 If rising Gold could be still portrayed to the crowd as the fancy of the cocktail discussions and headache for the FED and their buddies among the millionaires - who is preoccupied with Wealth Preservation - the rising Gas prices are hitting to the core of our society. It is all about mere survival for the millions. It is the Institutional Risk which can break the canvas of all social structure within months of Hyperinflation.

  It is inevitable - the move out of Oil - we can chose now and try to make it more or less manageable and smooth and we have technology to do it. Electric Cars provide this opportunity. Price of Oil, properly accounted for all wars to keep it running and all military expense to protect the ocean supply lines is already much higher than the 100 dollars per barrel. This move will happen anyway, whether particular companies and their hired politicians want it or no - the question is when and at what price. The longer we all wait the higher the total cost of this transition will be.
  For us it is the same situation as with Gold and Silver ten years ago - the forces of supply and demand and real economics will be driving this Bull, which can not be controlled even by Almighty FED. According to the admission of Mr Bernanke: "FED can not print Oil."
  Listen to the James Dines and study your post carbon future with strategic commodities at the base of the Next Industrial Revolution: Rare Earths and Lithium

  It is not only about money this time - the question is how are we all going to survive? Even the best politicians can not make it without us this time - we do not have luxury of time left. Do your part: start asking questions, spread the word, buy Electric Car or support the transition in your community.
  In the investment world new fortunes will be made on this trend and if you will discount the recent OTC Lithium Hype in the U.S. there are solid companies and serious players coming into the sector. Study the fundamentals, research the ideas, make your DD and have a great journey! 
  If you need any further conviction, just have a look at the M&A picture and Who is Who in Lithium development business now:


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