Catalyst Check: Natural Resources Watchlist at Three Months

The Gold Report: Joe, some of your picks from the Natural Resources Watch list have performed quite well. Do you want to give us some updates?

Joe Mazumdar: Junior mining sector equities in the gold space, as proxied for by the Market Vectors Junior Gold Miners ETF (GDXJ:NYSE.MKT), have outperformed gold since the June Cambridge House conference. The inter-period high for gold was $1,3351,340/ounce ($1,3351.340/oz), about a 7% return. Gold is down about 3% since the conference, on the back of a strong U.S. dollar.

The benchmark Market Vectors Junior Gold Miners ETF experienced an inter-period high of about $45/share, generating a 30%+ return since the conference. But it is currently flat again. On both metrics, the ETF has outperformed the gold price. Our selections averaged an inter-period high of 50%, which included under-performers (+1826%) and some significant outperformers (+70115%). Currently, the average return for our selection since the conference is a more modest 1415%. [NOTE: Figures cited were current 9/30/14.]

TGR: During that panel discussion, you called explorers a lottery ticket and Cayden Resources Inc. (CYD:TSX.V; CDKNF:OTCQX) was a lottery ticket that paid off. What was your other "lottery ticket" pick? Continue reading "Catalyst Check: Natural Resources Watchlist at Three Months"

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/C7xJewqlB2g/16311

Louis James: Are You Ready for an Early Shopping Season?

The Gold Report: Jeff Clark, senior precious metals analyst at Casey Research, recently wrote in an article titled "Time to Admit that Gold Peaked in 2011?" that countered a chart making the rounds showing gold matching its 1980 inflation-adjusted dollars peak in 2011. The chart implies we should expect a decade or more of lower prices. Aside from the fact that John Williams of Shadow Government Statistics might have a problem with how inflation was calculated, how are gold's fundamentals different today than they were in 1984?

Louis James: The fact that things are different today than in the 1980s is a really good point. The argument over methodology almost doesn't matter. Even if it were true that the gold price of 2011 matched the inflation-adjusted gold price of 1980, that wouldn't mean that gold has to go down the way it did in 1980. There wasn't a near collapse in the banking sector back then. There wasn't the Lehman Brothers upset. The government did not triple the money supply. We're dealing not with apples and oranges, but apples and whales.

TGR: If history is not a map for the future, is John Williams correct that we are getting ready for hyperinflation? Continue reading "Louis James: Are You Ready for an Early Shopping Season?"

Article source: http://feedproxy.google.com/~r/theaureport/Ajgh/~3/n3XMmojNHoU/16045