Gold Stock Trades Editor Jeb Handwerger is a highly sought-after stock analyst and best selling writer syndicated internationally and known throughout the financial industry for his accurate, in depth and timely analysis of the general markets, particularly as they relate to the precious metals, nuclear and rare earth sector. Jeb utilizes both fundamental and technical analysis, especially the study of price volume action to understand the long term macroeconomic trends in the natural resource market. A true renaissance man Jeb has a strong background in stock market history, investment psychology, geopolitics, mining engineering and economics.
The following is a commentary by Jeb Handwerger, editor of the premium newsletter GoldStockTrades.com. Based on charts technicals, he explains how the gold and silver price, as well as platinum, are approaching strong resistance levels that date back to mid 2011. As those levels have been tested several times, there is a strong possibility that the prices will break through with the current attempt. If that’s to occur, the resulting momentum will cause a major breakout rally. Seasonals are favouring such a move. We are approaching the end of the year where investors are facing a confluence of mixed signals such as tax loss selling, fiscal cliff discussions, the Greek [...]
What should investors in the precious metals market do next after Obama’s win? The way we see it is to wait for any initial reaction of pessimism to subside. Precious metal devotees are a special breed that still must operate within basic rules of the game. What is the market signaling to us? Immediately after Obama’s victory, there has been a selloff in the general market. Note carefully that gold and silver has held up well despite a significant decline in the Dow Jones Industrial Average and S&P 500. The market will do whatever it can to confuse, misdirect and obfuscate. The recent decline in the S&P500 not only was [...]
This article is written by our partner GoldStockTrades who offers a premium newsletter for more in-depth precious metals analysis and gold stock tips. We are experiencing a pullback in precious metals and mining stocks as investors react momentarily to a purported better than expected jobs report. It is reported that the unemployment rate increased despite adding 171,000 new jobs. The numbers look abysmal. However, the media reports that the economy is picking up and no more QE will be needed. Hence, precious metals are hammered. We have seen this before where investors are shaken out during corrections while the long term gold and silver players add more on pullbacks. Now [...]
There may be an increase in Mergers and Acquisitions in the mining sector. The majors are seeing share price increases which puts them in a stronger financial position to be able to buy undervalued miners with near term production. Miners are looking to Europe where a cheap Euro means better margins and costs for European miners. Look at Greece which is developing four major mines. For years, Greece was a difficult jurisdiction for miners to operate. However, the economic collapse with soaring unemployment in the country forced the government to find ways to create jobs. Greece is focusing on revitalizing the mining sector by fast tracking four mines that are [...]
Regardless of who wins the election, we believe that precious metals and especially the undervalued junior miners should be included in one’s portfolio. We are living in volatile times, where we see possibly many catalysts to cause a breakout in precious metals. The world has chosen a Keynesian approach which may cause gut wrenching hyper-inflation. Remember Central Banks all over the world are adding to their gold reserves especially emerging nations. Countries such as China is overweight in U.S. dollars and treasuries and have already began buying undervalued natural resource assets and early stage precious metal miners. They are opening banks in Canada and the U.S. to finance natural resource [...]
We are seeing some healthy profit taking in precious metals after making an explosive breakout over the summer. Investment demand after QE3 is increasing as investors seek alternatives to fiat currencies which are being devalued by Central Banks all over the world. We may see consolidation and volatility in the markets until after the U.S. Presidential Election, when most investors realize that not much will change. All over the world governments are looking to boost unhealthy economies and this will continue regardless of who is in office. Major infrastructure projects will probably be announced after the election both in the U.S. and China to boost employment. Additional means to boost [...]
Jeb Handwerger, editor of GoldStockTrades.com, says the technicals are lining up for precious metals players, not just the fundamentals. The fundamentals for gold and silver appear to be making a positive turn as the US, ECB and Bank of Japan simultaneously signals Worldwide QE3. The charts are just beginning to make new uptrends and may have much more room to go. One must remember both gold and silver have not made new inflation adjusted highs despite record sovereign debt levels and a coordinated worldwide currency debasement. There is much more room to go in this rally as many investors still need to unwind a record position in cash and treasuries. [...]
In 2010, we predicted the acquisition of Fronteer Gold by Newmont Mining (NEM) for $2.3 billion dollars. One gold and silver miner which we believe is a near term takeout target possibly before the end of 2013 is Paramount Gold and Silver (PZG). We highlighted this company a few weeks ago and already it has made a powerful move. The primary reasons we believe the majors are looking at Paramount is that they have known advanced NI 43-101 resources of over 100 million ounces of silver and 4 million ounces of gold at their two properties in mining friendly Nevada and the historic Sierra Madre Trend Mexico. This is a [...]
Since July we have alerted our readers to a breakout in gold and silver prices as we expected a risk on rally in commodities with the catalyst being QE3 combined with worldwide stimulus moves from Central Bankers. Since that time silver has soared 30% higher almost 10 straight weeks in a row as Bernanke announces a QE 3, 4, 5+…? and record low interest rates until mid 2015. Silver has been outperforming gold over the past 10 weeks as investors are hoarding and buying poor man’s gold to hedge against worldwide quantitative easing and pump-priming being implemented by Central Banks around the world to devalue their respective currencies. The Bank [...]
The Fed has announced the next round of QE after the Europeans, Chinese, Japanese and South Koreans make stimulative moves to devalue their currencies and boost their economies. This is very bullish for gold and silver. Gold and silver is extending its rally from early August while the miners breakout being led by the silver miners We have reiterated for some time that the Fed’s solitary success has been in inflating U.S. debt assets to create the feeling of wealth through record low interest rates in order that consumers with deep pockets will spend and invest in quality companies which in turn will create capital expenditures for an ongoing recovery. [...]
We have seen major developments in the silver mining sector (SIL) which shows that the majors are hungry for the juniors. Coeur D’Alene (CDE) has made some strategic investments in some juniors silver explorers in British Columbia and Mexico, Hecla (HL) made a bid for U.S. Silver and Silver Wheaton (SLW) has signed its first major royalty deal in years. This signals that the smart money believes we are near a bottom and we may just be at the beginning of a major move in the junior silver miners. The majors are hungry for new deposits in mining friendly jurisdictions. Since Bernanke’s Jackson Hole speech that sparked a risk [...]
Silver (SLV) is breaking out past $30 and the trend is moving higher as the Fed signals that they are now ready to pull the trigger and boost the economy possibly as early as the next Open Market Meeting in the middle of September. Silver is regaining the 200 day moving average on a breathtaking move. Even though we have the general equity markets at record highs, economic conditions all around the world are not showing evidence of a recovery…yet. The equity markets (SPY) rallying higher during an economic contraction may be forecasting a reflationary turnaround. Remember a rising equity and bond market historically precedes an inflationary scenario. Silver which [...]
For several weeks, we have been attracted to silver (SLV) due to rising demand as a monetary metal and declining supply due to the lack of new discoveries. Silver is beginning to outperform gold (GLD). The large miners (GDX) and the juniors (GDXJ) are continued to move higher ahead of Labor Day. Investors are returning to a new uptrend in precious metals. Technical breakouts appear to be forming similar to early 2009. The precious metal royalty companies are outperforming such as Royal Gold (RGLD) and Franco Nevada(FNV), which are hitting new 52 week highs and were added to our select list in mid-August prior to the breakout. We believe we [...]
Admittedly, for over a year and a half precious metals investors have been going through a time for testing of our essential position in wealth in the earth equities and bullion. Investors were experiencing pain and panic at a time that it was easier to throw in the towel as the technical charts appeared to be broken as gold (GLD) and silver (SLV) went below the 200 day moving average. We advised patience and fortitude despite an onslaught from fellow analysts and media coverage which were attempting to shake out our readers. Now precious metals and miners appear to be making constructive and powerful breakouts. The casino has ever been [...]
Turmoil in Peru, Mexico, Argentina and Bolivia is adding to the world’s already existing shortage of silver. This supply crunch is combined with rising political uncertainty in Egypt, Syria and Iran and economic malaise in the EU and the United States which is causing investment demand for silver to rise exponentially. China is flexing its muscles in the South China Seas and is covertly importing silver to hedge against major declines in the U.S. dollar. Recently we called a major top in treasuries in late July and a breakout move into silver for several weeks. All signs are pointing to a possible global inflation which could propel silver prices higher possibly from a ratio [...]
Gold Settles Higher On May 23d – Finds Support From Drop In Dollar
With the present economic conditions in the US, there are various ways in which the fluctuations in the price of dollar will make the gold price rise and fall according to the rates. If you’re an investor, you should take into account the bigger picture so that you can take an informed and measured decision in the long run.
Gold & Silver Price Overreact to Fed Speech
The metals have been subject to the same type of trading behaviour. It became blatant once again today. In fact, it is the third time this week that we witness extreme speculation in the metals. Silver, for instance, saw its peak today at $23.20 and its lows at $22.15, a difference of almost 5% intraday. Note that the peak on the charts was during the speech of Mr. Bernanke. A bit later, prices came down triggered by one specific sentence in the speech.
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