Invitation to the Sprott Vancouver Natural Resource Symposium 2014

Rick Rule has been a longtime friend of Cambridge House International. On July 22 to 25 he is hosting a special event at the Fairmont Hotel in Vancouver. We want to make sure that you are aware that he is hosting the upcoming Sprott Vancouver Natural Resource Symposium.

Rick has gathered an outstanding speaker line-up, which includes mining billionaire Robert Friedland, legendary speculator Doug Casey, world-wide best-selling author Bill Bonner.

Rick believes that right now is “make it or break it time” for millions of investors… And if you do nothing, you could end up regretting it for the rest of your life. He will tell you why this could be the best time in 15 years to enter the resource sector. In fact, he says many of his favorite stocks are still at 90% discounts from their highs.

We are looking forward to learning what some of the most experienced and capable investors in the natural resource industry are doing right now. And you should too!

This event will take place in Vancouver, from July 22nd to 25th, at the Fairmont Hotel.

Although space is limited, this may be the only time that Rick hosts this unique conference, so we want to make sure that you seriously consider attending.

You can find out more details about the conference, including the venue, here.

Click here to order your ticket online today. You can also call 1 800 926 6575 or +1 561 243 2460, ext. 105 or 106.

Sincerely,

Cambridge House International Inc.

P.S.: Attendees will also receive a reduced rate on rooms at the Fairmont, so be sure to mention you are coming to the conference!

Memories of a Euro Crisis

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Memories of a Euro Crisis

Gold prices gained for the sixth week in a row putting up the metals’ best winning streak since August of 2011. Beyond the technical factors that have been supporting this rally that started below 1,250 US per ounce, investors once again are demanding gold for its safe haven characteristics. It was the news of an extension of Portugal’s biggest bank missing an interest payment on their debt that saw investors sell equities and move into precious metals. And thus, the memory of the fears of a sovereign debt crisis in Europe (that investors had since moved passed), serves as a sobering reminder for the need of a hedge to equity exposure. This is amplified by the fact that we are in a rising interest rate environment when investors might want an alternative to bonds and other fixed income.

But it is interesting to think back to what the market reaction might have been two years ago if a similar event had happened to another one of Europe’s major financial institutions, and perhaps allows suggesting that the markets today are not as sensitive as they were in 2012. The selloff in the markets we saw on Thursday might have been much more drastic. And for that matter, the selloff could have followed through into Friday’s trading session as investors concern themselves over the condition of European banks’ balance sheets. Instead, banking fears in Europe translated to a half percent selloff in the S&P500 and the markets finished positive on Friday.

As immune as the markets may have been this week to the events in Europe, they have illustrated one thing, and that is as we remain in this low to moderate growth environment, we will continue to uncover vulnerabilities in our financial and economic system. This is simply because we are not seeing the robust economic growth that would allow us to put the crisis of 2007 behind us and move on. Portugal’s Banco Espirito Santo may not represent a major financial institution in comparison to perhaps the problems encountered by Spain’s Santander in October of 2012, and their exposure to the debunked Spanish housing market. But it does caution that there could be many more skeletons in the closet uncovered by this lifeless recovery.

The same is true for North America. Weak economic growth holds us back from correcting the shortfalls that led to the events of 2007. Despite analysts’ calls for a strong US economy in the second quarter of this year, it follows a near three percent contraction in the first three months. And it’s a similar scene in Canada, which is evident through the performance of a labour market in an economy that continues to illustrate a pure inability to create jobs.

My point is certainly not to be overtly bearish on some unforeseen events or hiding from what’s to come. Moreover, as the same structural problems are still prevalent in the global economy today, like stagnant employment growth, high government debt levels, and an ongoing societal debate surrounding social inequality, it’s hard to see what will spur a sudden shift to a rapidly growing economy. And for that reason it seems we can expect a few more shocks along the way, and investor’s continuing to turn to gold as the ultimate hedge.

 

GoldSeek TV will be hosting a special online event on Wed. July 9th (11am EST):


11am EST

 

Vanessa Collette of GoldSeek TV & Cambridge House Live will be moderating this special event which will include your questions!

Topics:

  • Are the Gold & Silver bull markets coming back?
  • How to profit from the coming stampede into mining stocks.
  • How gold is playing its part in global monetary shifts.
  • Plus much more including your questions!

 

Please send us your questions online:
http://www.goldseek.com/contact/contact.php

Top Juniors Take Off with Slight Move in Metals Prices

By Steve Todoruk, Investment Executive, Sprott Global Resource Investments Ltd.

In the past few weeks, several of the “top” junior exploration stocks have seen a pronounced move upwards, many beating gold and silver bullion by a wide margin.

After hitting a low of $1,180 per ounce this past December, gold moved up to a high of $1,392 by mid-March, 2014.

Outperforming gold by a wide margin…

Many of the junior mining stocks were swept along, and even outperformed gold substantially. For instance, Detour Gold Corp., a junior that I would consider “top tier,” was at around $4.10 on January 1. By mid-March, the stock stood at $12.15, a 196% move. That is nearly 20 times the returns from gold, which rose less than 10% over that timeframe. Continue reading

Sanguine Markets

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Sanguine Markets

A clear message from investors as we head into the July 4th Holiday weekend in the United States is that equity markets are poised to continue their march higher. Of the US indices, both the Dow Jones and S&P 500 continue in record territory, and the NASDAQ is just shy of it’s all time record high reached at the heights of the tech bubble in March of 2000. And what continues to give equity markets their buoyancy are the economic reports that continue to depict a American economy set to equalize the negative first quarter of this year.

Every economic release or piece of data put out this week points to the North American economy, particularly stateside bouncing back from that dismal performance in Q1. Auto sales had their best month since 2006, China’s economy continues to exhibit signs of picking up and in turn signalling strong demand for North American goods and services. As a result of this, Dr. Copper has bounced of its recent lows. But of course, the icing on the cake was the June job’s report with American employers adding a healthy 288 thousand positions.

It was the job numbers though that continues to be the single most important economic indicator for the markets. The health of the US labour market is the de facto concern for policy makers, and thus will continue to be their focus. This will lead an ultimately more dovish Fed to keep their policy more lenient. And although asset prices are not a direct target of their policy, with the Fed in no rush to raise interest rates, the equity market looks like they will continue to find buyers at these levels.

As BMO Capital Markets Chief Economist Douglas Porter observes, two decades ago the unemployment rate was as well at 6.1 percent, average hourly earnings were growing at 2.5% versus 2.3% today, and the consumer price index was at an annualized rate of 2.3% versus 2.1% today. In 1994, the Fed Funds Rate (their policy tool) was 4 percentage points higher than it is today. Obviously, more goes into what determines the FOMC to raise interest rates; however, this exemplifies they are in no rush to act anytime soon.

And this is what is supporting precious metals, particularly silver which made a tremendous 11% move higher in June. The question becomes whether the resurfaced optimism in the equity space will see downward pressure on the metals. Or (as we saw in June), will a cautious investor continue to question the gains in equities and maintain the bid for gold.

 

“There’s likely going to be a bubble created in precious metals stocks”: Doug Casey

SmallCapPower.com recently spoke with Doug Casey, a highly respected author, publisher and professional investor, who warned that the U.S. is facing some type of financial catastrophe. He also mentions which precious metal he believes is likely to outperform in the coming months and describes a shocking possibility for certain gold and silver stocks.

Read the entire interview HERE >>

Miner Was One of the Top Performing Canadian Stocks Over the Last 10 Years

Who said ‘buy and hold’ is dead? SmallCapPower.com takes a look at some Canadian companies that have rewarded patient investors that have held its shares over the past decade. Examining what has made these companies successful will hopefully help one find the next big winning stock for their portfolio.

Read the entire article HERE >>

Another Bullish Signal for Gold

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Another Bullish Signal for Gold

The Financial Times reported this week that central banks around the world are in the process of repositioning their portfolios as they pare back their exposure to US treasuries. They are doing this ahead of the US Federal Reserve ending Quantitative Easing (QE) this fall. Their rationale is that without the US Fed acting as the biggest single buyer of US government debt, excess demand for US treasuries will not be absorbed by the market at elevated prices, and thus will lead to higher interest rates. This should insatiably create a demand for gold, and the demand is from those that need to hedge exposure to US currency and US debt.

And so continues the threat of financial instability for global markets. Contrary to this though, the theme on Wall Street for the last few weeks has been on the abnormally high reported levels of investor complacency. This is gauged by the VIX (commonly referred to as the fear index) touching its lowest level in seven years, which was right before the financial crises of 2007. And this is exemplified by the fact that the major US indices have not made a move one per cent or wider in either direction in a single trading session in the last two months. To some, this is unsettling and continues to prompt calls for that overdue correction in equities.

But looking longer term or perhaps examining the implications of what a diminishing appetite for government debt by the world’s largest money managers means is what is a greater concern verses a lull in the markets. Tighter monetary policy is prompting central bankers, pension funds, and large scale investors that traditionally steer towards fixed income to allocate more capital to riskier assets such as equities. This chase or reach for yield, that many of the world’s brightest thinkers have precaution of is taking place. Riskier assets, and at times less liquid assets will have trouble offering the consistency and performance that some of these funds, like pensions, seek to achieve.

The other caution though that stems from this is the potential of these large scale investors losing the flexibility of their liquidity. Arguably, this would more be a threat to the stability of global markets, but according to the IMF, as 62 percent of all central banks investments were held in dollar based assets last year, it was undoubtedly the utility of the greenback as the world’s reserve currency that offered this convenience. The uncertainty going forward is determining the effect of the end of the dominance or reign of the dollar.

And this is again where precious metals play a role. The greatest risk to financial markets is how the US treasury market preforms when its biggest buyer, the Federal Reserve, is no longer in its role as a never ending buyer of US debt. It in part served this role in order to support a market of suppressed long term rates. The belief is that the demand and rush for equities will keep their prices trading higher as all types of investors continue to raise their exposure to risk assets. Unfortunately, this continues to tell a story of the stark differences between the financial markets and the underlying economy.

One will have to budge.

 

Silver Or Gold – What To Buy? Mike Maloney, Ed Steer & Peter Spina

 

 

At the recent Canadian Investor Conference the question was asked whether to buy silver, or gold. Mike Maloney and others give some insight as to how he uses the gold/silver ratio to determine what he buys, and why that ratio is so important.

For more information about Gold & Silver or Mike Maloney, visit the Why Gold & Silver channel and subscribe: http://goo.gl/emXEB

 

Sizing Up Gold’s Rally

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Sizing Up Gold’s Rally

Gold had its best single day performance since September of 2013 on Thursday of this week. It begs the question, what contributed or led to the 50-dollar rally as it was not triggered by a single piece of economic news, geopolitical action, or policy announcements. One thing that is clear, however, is there has been a shift in investor sentiment and speculators no longer feel as comfortable with their short positions in the futures market. The advances on Thursday, made largely on the back of technical trading confirm this.

Wednesday brought the typical FOMC announcement, to which gold coincidentally has become accustom to not react to. It was perhaps Janet Yellen’s comments during her press conference later on Wednesday that pre-empted the weak dollar trade that in turn was positive for precious metals. Despite the Fed continuing their pace of tapering their monetary stimulus, it was the outlooks for the Fed Funds Rate that were analogous to comments from the IMF earlier last week, that low rates will ensue until at least the beginning of 2017.

The closest piece of contradictory evidence to this is that North American economies, particularly the US and Canada, are beginning to see signs of inflation. Still nowhere near levels that would prompt policy response as of yet, but it’s been the lack of inflation that’s been the concern of both Bank of Canada and the US Fed, thus these drastic upticks have caught their attention. To give context, in the US, core inflation has been 2 per cent or above in 10 of the 65 months since the recession of 2008. A few consecutive months like we’ve seen certainly don’t make a trend; it’s the fact that key components like rising food and energy prices could very well be sustained.

And it is the rise in energy prices, triggered by geopolitical concerns that have been another positive for gold. Tensions around violence in Iraq have investors worldwide keeping a close eye on crude oil prices. As crude prices elevate to higher levels, consumers face higher energy costs and that means less expenditure elsewhere. Gold once again is participating in a fear trade, which history tells us in not usually sustainable for the market on its own, but paired with other factors could be a different story.

The materialization of an increase in the rate of inflation (which investors who questioned the Feds experimental policies have been waiting for since the onslaught of quantitative easing) provides support for metal prices in here. The question becomes will it last, or once again be more transitory in nature.

It’s difficult to try and forecast this rally and the strength and breadth of it. But one thing is for sure, the move in gold this past week was impressive, and if conditions continue to manifest as they were, this rally could be for real.

As per usual, it’s a wait and see game.

 

“Silver could be setting for significant moves:” Andrew Chanin, CEO of PureFunds

Small Cap Power: So can you tell our viewers about your firm as well as your role there?

Andrew Chanin: Certainly, PureFunds was founded in 2010 and it was formed to be a company who’s goal was to bring about first mover ideas into the market, in the form of Exchange Traded Funds (ETF).  I had started my career in finance on the floor of the American Stock Exchange with one of the largest ETF specialist trading firms and really got a strong understanding for the ETF space and became a full believer that the ETF industry is one that is growing with much more potential in the future as well, and wanted to figure out a way to best stake our claim in the industry. Being a market maker for ETFs for several years we started to have our own opinions on where that future for growth in the industry might be.

A common theme that we had noticed from our years in ETFs was that second to market products, being that if there was already a fund out there, trying to mimic that fund, it didn’t tend to be that successful of a practice. However if you were able to identify an area where there wasn’t yet an ETF but there would be market interest in that space, you could really have the ability to create something special in a fund. And the natural resource sector was one that we had been following for awhile and had some very strong beliefs and thought that it was one of those areas that was under served with financial product ingenuity in the form of Exchange Traded Funds.

Small Cap Power: So why did your company decide to launch a junior silver ETF?

Andrew Chanin: Exactly, so it came down to a lack of options, to put it simply. When the first junior mining ETFs just came out I was trading them since inception and really became interested in the space. And the more you spend time looking at the junior space and especially the precious metals space you may start to have a strong belief one way or the other about silver. It seems so interesting that, to me specifically, that there are so many funds for gold whether it’s physical funds or futures-based funds or mining shares or junior mining shares. But for silver ETFs it wasn’t that diverse, yes sure there were futures and physical funds but at the time when we were thinking about launching our fund, there was only one silver mining ETF out there.  And there wasn’t one that just focused on the junior mining space. So having spent so much time researching the junior space and the precious metals space it seemed to me that it was an area that really needed an Exchange Traded Fund.

Continue reading the interview HERE >>

 

Grant Thornton Interview with Mark Zastre, Global Mining Practice Leader

 

Grant Thornton LLP Global Mining Practice Leader, Mark Zastre discusses key findings from the latest International Insights Study. He offers industry insight into the difficulties and opportunities facing mining companies today and illustrates how these issues will impact mining operations in the coming year.