As SilverStrategies.com editor Sean Rakhimov tells us in this exclusive interview with The Gold Report, the economic crisis may go on for a generation but the market is a separate animal that will stir back to life sooner. He expects physical gold and silver to lead the parade, with base metals lagging 12-18 months behind, followed by share price recovery for the majors and on down the line. When picking stocks to buy now, he says investors have to decide for themselves whether a company will survive the washout; it may be tough going...
Shares of Frontera Copper Corp. (FRCPF.PK) jumped from C$0.31 to C$0.59 last week, a gain of more than 90%, as 14.3% of the Toronto-based miner’s outstanding shares were acquired by two or three investors in the past month. The most recent purchase comes from Mexican registered Invecture Group, which bought 7.2% on Wednesday, bringing its stake to about 16%.
“Somebody is seeing value in Frontera,” Scotia Capital analyst Majed...
When people see danger in the market, their natural response is to liquidate everything and move everything into cash in order to ride out the storms. The conventional wisdom is "Cash is King." However, conventional wisdom doesn't work anymore, as this is unconventional time. If you are fully loaded in cash or U.S. Treasury Bonds, this news, first noted by Karl Denninger, should completely shock you out of your shell:
Important update [Oct. 23, 08]: The story of Norilsk selling its SWC stake might NOT be true. Please see my latest post that deals with these suspicions, and do your own due diligence.
This is the fourth part of my series articles discussing the true valuation of physical assets, paper assets and currencies, vital knowledge needed to survive the unfolding global financial crisis. If you haven't read the previous articles, you can read them here: part 1, part 2, and part 3.
Since seasonal demand for gold is typically at its high this time of year and the unprecedented market turmoil caused by the credit crisis rolls on, many are disappointed with the price of gold.
Canaccord Adams analyst Steven Butler said in a note to clients:
Is it deflation, stagflation, or hyperinflation, that we're seeing in the current global economic crisis? That's the quadrillion-dollar question investors must get right. This article will answer that big question but it is also meant to be a sequel to part one and part two of my previous, serial articles talking about valuations of physical and non-physical assets as well as currencies. Please read the first two articles if you have not. It's critical to understand valuation of commodities and currencies first, before the big question of inflation versus deflation.
In the past couple of weeks, analysts started to make drastic cuts to their targets for base metal companies to account for tumbling commodity prices and a larger-than-expected economic downturn. Scotia Capital analyst David Christie has taken the next step, and cut gold and silver companies as well.
The problem for precious metal companies is that they often produce base metals like copper and molybdenum as byproducts in their mines. So while they are not hit as hard as the base...
The media and foreign interests have conveniently lumped Evo Morales in with the politics of Hugo Chavez. In a world where the Morales government has few kindred spirits it has coalesced with the Venezuelan leader out of convenience rather than conviction
Bolivia is fabulously wealthy and prospective on the mining front, having been for hundreds of years the very paradigm of a mining nation with its fabulous Potosi mine. A new era of exploration and production has begun.
A handful of miners, including some international majors are forging ahead in Bolivia...
All investments are about buying something at a lower cost to get a higher return later. Therefore, investors should try to understand the value of things they buy and sell. Warren Buffett said you should never buy something that you do not understand. At a time of crisis such as the one we face now, in order to survive and prosper, investors must have a profound understanding of values not just of things physical, but of non-physical things as well.
In my last article, I discussed why physical things have intrinsic value and...
Pan American Silver (NasdaqNM: PAAS) opened at $12.29. So far today, the stock has hit a low of $11.68 and a high of $12.66. PAAS is now trading at $11.74, down $0.26 (-2.17%). Over the last 52 ...
TORONTO, Nov. 27 /CNW/ - Dr. Piyush Patel takes top honours as Canada's Ernst & Young Entrepreneur of the Year 2008 winner. Dr. Patel is co-founder of Allied Research International. "Dr. Patel ...
Even though the Russell 2000 (NYSE:IWM) closed up over 5% today, small caps still tumbled to fresh bear market lows earlier in the day and closed out the week at the lowest point since April 2003 ...
Pan American Silver Corp posted a lower-than-expected quarterly profit, hurt by falling silver and zinc prices, and said it will axe 500 jobs. Email and Share: These icons link to social ...
It wasn't supposed to be this way. Precious metals are supposed to increase in value when global financial paradigms careen into turmoil and collapse. Gold and silver prices are supposed to ...
(RTTNews) - Pan American Silver (PAAS: News ) rallied in pre-market trading, after reporting its third quarter adjusted earnings. The stock was up 44 cents just before 8:55 am ET, rising to $11.13 ...
Pan American Silver Corp. is cutting 500 jobs in Latin America, rolling back executive salaries by 10 per cent and reducing exploration and capital spending to deal with weaker finances and a drop ...
Peru, the world's third-largest producer of copper, zinc and tin, may face labor disruptions as companies cut costs and the nation's revenue falls on slumping metals prices, said Geoffrey Burns ...
By Business News Americas staff reporters Vancouverite Pan American Silver's (TSX: PAA) net income fell 73.2% to US$6.40mn in the third quarter from US$23.9mn year-on-year, the company reported in ...
By Sakthi Prasad BANGALORE, Nov 13 (Reuters) - Pan American Silver Corp (PAA.TO: Quote, Profile, Research, Stock Buzz) posted a lower-than-expected quarterly profit, hurt by falling silver and ...
NEW YORK (MarketWatch) -- Plains All American Pipeline LP priced 6 million common units at $46.31 each for trading on Thursday. The partnership raised $278 million in the deal. Proceeds will be used to reduce outstanding borrowings under its credit facilities, which may be re-borrowed to fund its capital program, including its acquisition of Rainbow and other acquisitions.
Chevron shares initially rise after news that the No. 2 U.S. oil giant will rejoin the the Dow Jones Industrial Average, but the stock pulls back by midmorning.
NEW YORK (MarketWatch) -- Plains All American Pipeline L.P. rose 41 cents to $51 after the company said it's withdrawing a $400 million initial public offering for Plains GP Holdings L.P. The company said market conditions "have substantially deteriorated" since the IPO process began in August.
SAN FRANCISCO (MarketWatch) -- Merrill Lynch & Co. is forecasting spot gold prices will average $750 an ounce in 2008, up 7.6% from 2007 and ranging between $700 and $900 an ounce, helped by good supply-demand fundamentals and investor interest in the bullion's ability to protect against a weakening U.S. econommy and sliding U.S. dollar. In a report released to news media Monday, Merrill Lynch analyst Michael Jalonen also forecast silver prices averaging $14 an ounce this year. Increased costs -- up 5% to 7% in 2008 -- will continue to weigh on gold producers, but Jalonen said higher gold...
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