Category: General

Chris Berry: Energy-Metals Juniors with Derisked Projects Are Takeout Bait

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The Energy Report: In your Morning Notes in January, you defined much of the energy mining industry as an oligopoly. What do you mean by that?

Chris Berry: Industries like uranium, lithium, vanadium, rare earths or potash typically have a few players at the top that control production and hence pricing. This is a huge barrier to entry for juniors looking to join the ranks of producers.

TER: If the majors are producing enough material to meet today's demand, what are the prospects for the juniors in this market?

CB: It's challenging in the near term because I see supply and demand in balance in many of the metals markets. This is why companies with ample cash on their balance sheets should attract attentionthey can survive until demand recovers. Economic growth has slowed across the globe, which implies lower demand and less need for the many juniors out there. Continue reading "Chris Berry: Energy-Metals Juniors with Derisked Projects Are Takeout Bait" →

Rob Cohen Imagines a Gold-Centric World

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The Gold Report: Robert, you presented a paper at the Prospectors Developers Association of Canada conference that focused on, among other things, the uses of gold as a monetary asset. Please tell our readers about that.

Robert Cohen: Gold is quintessentially a monetary asset. Many people believe it is the most ideal monetary asset on the planet, given that the world's other monetary assets are fiat currencies that can be expanded at the whim of a government.

Every ounce of gold ever produced is still kicking around on the surface, a total of about 160,000 tons. Half of that may be in the banking system. Miners produce about 2,500 tons a year. So only a very tiny expansion of liquid gold accrues every year, especially compared to the global liquidity created by printing money. Continue reading "Rob Cohen Imagines a Gold-Centric World" →

Congress works on budget for both 2013 and future

Posted on by The INO.com Team

Congress is finally cleaning up its unfinished budget business for the 2013 budget year with a bipartisan government-wide funding bill. But even as that measure heads toward approval, the House and Senate are moving toward divisive votes that will underscore sharp differences on a bigger problem: how to fix the nation's long-term deficit woes.

The Senate is positioned to approve the catchall spending bill Tuesday after it cleared a procedural hurdle Monday by a strong 63-35 vote. The House, which approved a narrower version two weeks ago, is expected to quickly clear the measure and ship it to President Barack Obama for his signature.

On a separate track, the GOP-controlled House and Democratic Senate are readying votes this week on sharply different budget blueprints for next year and beyond. The measures are non-binding and largely symbolic. But they veer off in opposite directions at the same time President Barack Obama seeks to nurture a future compromise blending new tax revenues with spending cuts beyond what his Democratic allies are willing to offer now. Continue reading "Congress works on budget for both 2013 and future" →

Morning Energy Commentary

Posted on by The INO.com Team

NYMEX CRUDE OIL

April crude oil was higher overnight as it extends the rally off this month's low. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If April extends the aforementioned rally off this month's low, the reaction high crossing at 94.46 is the next upside target. Closes below the 10-day moving average crossing at 92.51 would temper the near-term friendly outlook. First resistance is the reaction high crossing at 94.46. Second resistance is the reaction high crossing at 97.49. First support is the 10-day moving average crossing at 92.51. Second support is this month's low crossing at 89.33.

April heating oil was lower overnight as it extends the decline off February's high. Stochastics and the RSI are diverging but remain neutral to bearish signaling that additional weakness is possible near-term. If April extends the decline off February's high, the 50% retracement level of the December-February rally crossing at 288.66 is the next downside target. Closes above the 20-day moving average crossing at 298.58 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 294.75. Second resistance is the 20-day moving average crossing at 298.58. First support is the 50% retracement level of the December-February rally crossing at 288.66. Second support is the 62% retracement level of the December-February rally crossing at 280.52. Continue reading "Morning Energy Commentary" →

Gold Chart of The Week

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (March 18th through March 22nd)

And so it begins. The first wave of profit taking came on a Sunday night thanks to reports from Cyprus that banks may begin taking money from accounts to help satisfy debt. While the final vote on its implementation has been postponed until later today, the news alone of banks seizing money from account holders at will was enough to have not only European investors concerned, the worry carried over to markets globally. Continue reading "Gold Chart of The Week" →