Category: General

Sean Rakhimov: Upward Trend a Silver Investor's Friend

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The Gold Report: The Washington D.C.-based Silver Institute reports that net silver demand has exceeded net silver supply each year since 2004, with a supply deficit of 113 million ounces (113 Moz) reported in 2013. Why hasn't that trend translated into dramatically higher silver prices?

Sean Rakhimov: First, I don't put much faith in these numbers. For instance, CPM Group has somewhat different numbers. Either way, silver supply and demand have been roughly in equilibrium, in my opinion, over the past decade or so. Second, silver manifests itself as a precious metal in times of crisis or uncertainty. When it's business as usual, silver acts more like a base metal and trades more on supply and demand numbers. Silver prices will respond during a crisis as its perception changes from an industrial to precious metal. That's when you will see more of what we saw in 2011 when in the space of about six months silver went up three times. Another period like that is coming.

"Excellon Resources Inc. has a handle on its deposit's cost structure and grade."

TGR: In early June we started to see stronger precious metals prices and that has carried through. Is this a trend?

SR: It is the beginning of a trend. Precious metals characteristically start going up after a prolonged decline, yet early in the reversal they rarely inspire any confidence because the last dozen or so similar moves fizzled after a 1020% move. This could be one of those. Silver is at $21 per ounce ($21/oz) now, maybe next week it will test $18/oz again. It's anybody's guess but I believe that toward the end of the year we'll probably see higher numbersmaybe substantially higher.

TGR: Is there a telltale sign that shows investors that this upturn is real? Continue reading "Sean Rakhimov: Upward Trend a Silver Investor's Friend" →

After The World Cup, Nothing Can Save Brazil

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By: Joseph Hogue of Street Authority

Shares of Brazilian companies listed on U.S. exchanges have made a remarkable comeback since March. The reasons given in the financial press would be comical if they were not so ridiculous.

For instance, one pundit says the World Cup, though well over budget and a spectacular failure for the home team, will mean faster economic growth in the second half of the year.

That's just a sample from a list that goes on and on... but nobody's acknowledging the economic reality that is poised to bring stocks down again.

Stocks Bounce -- But Not For Long
In November, I examined the country's deep fiscal problems and predicted lower economic growth on higher rates. Since then, analysts have downgraded estimated 2014 economic growth to just 1.2%, down from expectations well above 2% last year. In March, the country's debt was downgraded to BBB- (one level above junk) by Standard Poor's, and the government will likely miss budget targets this year.

Shortly after my article came out, Brazilian stocks plummeted, with the iShares MSCI Brazil Fund (NYSE: EWZ) falling 18% in just three months. Shares of Petrobras (NYSE: PBR), forecast to be the hardest-hit for its role as state-controlled piggy bank, fell almost 38% over the period.

While Rousseff's approval ratings have been dropping, investors are underestimating the power of her political base and the government's ability to manipulate the electorate with social programs. The government has boosted cash transfers to the poor and increased tax exemptions. Price controls have lowered electricity by 30% and bus fares by 20% over the past year. Continue reading "After The World Cup, Nothing Can Save Brazil" →

The Absolute Best Way To Choose The Right ETFs

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By: David Sterman of Street Authority

The rapid proliferation of the exchange-traded fund (ETF) industry has been a boon for investors.

Many folks now simply focus on a key sector or trend, and buy the most suitable ETF to hit their target. For these folks, the time and energy of individual stock research just isn't worth it. Yet the process of picking the right ETF can be downright confusing.

Let's say you want to own an ETF that focuses on industrial companies. Do you choose the SPDR Industrial Select Sector ETF (NYSE: XLI), the Vanguard Industrials Index ETF (NYSE: VIS) or the iShares Dow Jones U.S. Industrial Sector Index ETF (NYSE: IYJ)? Before you answer that question, know that there are also more than a dozen other industrial ETFs, with a niche focus on China, multinationals, small caps... the list goes on.

Frankly, we may have reached a point of too many ETFs, and some funds will simply wither away from a lack of interest. According to XTF.com, investors can now choose from more than 1,600 ETFs that collectively control more than $150 billion in assets. In just the month of June, 24 new ETFs were launched. It's getting hard to keep score.

Many new ETFs are falling under the category of "smart beta," which I discussed a few months ago. These funds tend to be pricier than traditional passive ETFs, which have less portfolio turnover and, typically, much lower expense ratios. Continue reading "The Absolute Best Way To Choose The Right ETFs" →

Doug Casey: "America Has Ceased to Exist"

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By Doug Casey, Chairman

“America is a marvelous idea, a unique idea, fantastic idea. I’m extremely pro-American. But America has ceased to exist,” says Doug Casey. Watch him in this fascinating interview with Reason TV’s Nick Gillespie discuss the political, social, and economic challenges the US must conquer as well as lessons we can learn from failed states.

A severe economic and/or political crisis can sneak up on you before you know it. Learn from the three harrowing stories of international crisis survivors—and the insightful comments of experts like Doug—how to recognize a crisis in the making. You may need those skills soon because it can, and will, happen here… Watch Meltdown America, a 30-minute free documentary that predicts the economic and political unraveling of the US.

 

The article Doug Casey: “America Has Ceased to Exist” was originally published at caseyresearch.com.

Weekly Futures Recap With Mike Seery

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We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Silver Futures

Silver futures in the September contract rallied $.35 cents this week as tensions between Israel and Hamas have sent prices to 4 month highs at 21.48 with the next major resistance at $22 as I’ve been recommending a long position when prices hit a 4 week high breaking above 20.02 about 3 weeks ago so continue to place a stop below the 10 day low as the chart structure is outstanding as that level currently stands at 20.82 risking around $.70 or $3,500 per contract at these price levels. Silver has been going higher in recent weeks as this commodity has solid demand due to electronics and many other products that currently use silver and if you’ve been following any of my previous blogs for the last several months I thought prices were extremely cheap especially compared to the rest of the commodity markets so continue to be long while placing your stop at the 2 week low as prices are trading above their 20 and 100 day moving average telling you that the trend remains higher.
TREND: HIGHER
CHART STRUCTURE: EXCELLENT

Continue reading "Weekly Futures Recap With Mike Seery" →