Sprott contends, “You get a lot of criticism because people think you’ve lost your marbles . . . our views will be proven to be correct.  We intensely analyze the gold and silver market, and we think both will hit new highs at the end of the year or early next year.”  Bank depositors are at extreme risk.  Sprott says, “The shocking thing to me is, obviously, most governments now have put into place legislation or rules in their banking systems for bail-ins . . . . And the fact that all these countries are doing this means . . . this is what’s going to happen.”

Sprott goes on to say, “That is the ultimate win for precious metals, and God knows what the price would be if it turns some of those depositors into people who need to own gold and silver.”  Sprott says extreme physical demand for gold and silver is draining supplies.  Sprott predicts, “Somebody is going to fail here.  All the data I look at says the Western central banks . . . that have been selling gold are running on fumes now . . . so, it’s very close at hand.”  Join Greg Hunter as he goes One-on-One with Eric Sprott, President and CEO of Sprott Asset Management.

Full Article

Post from: Gold News from Gold Editor

Eric Sprott Predicts New Gold and Silver Highs by End of 2013 to Early 2014

The post Eric Sprott Predicts New Gold and Silver Highs by End of 2013 to Early 2014 appeared first on Gold Editor.

The Gold Report: Many believe that the price of gold represents a market referendum on the value of paper money and the health of the world economy. Do you agree?

Jay Taylor: Yes, I do. Gold rose from the mid-$200s/ounce (mid-$200/oz) in 2002 to as high as $1,900/oz. That clearly suggests that things are not all right in the global economy. Politicians like to create the illusion that they can create something out of nothing and give it to people in exchange for votes. Gold gets in the way of that falsehood politicians wish to use to deceive voters for their own gain and the gain of those who fund their election campaigns.

TGR: Gold has fallen from $1,900/oz to below $1,400/oz. Some people say this proves the bubble has burst.

JT: I wish that were the case because that would mean that the policymakers—the people in charge of the Federal Reserve, the Treasury and of other countries and banks around the world—had fixed everything, but I don't believe that for a minute. If anything, their policies are making things worse.

I wish there was a reason to be optimistic about the global economy. Keynesian economic policies didn't work in the 1930s, and they're not working now. Franklin Roosevelt's Treasury secretary and a personal friend of the president said after the second term, "We have just as much unemployment as we had at the start of the downturn, and we have a huge amount of debt to boot." And the same thing can be said now if we use the same measure of unemployment as we did in the 1930s.

As David Stockman said recently, Fed Chairman Ben Bernanke is in the process of destroying capitalism. Pushing interest rates to zero destroys savings and creates malinvestment. That works very well for the people who control the supply of money and credit, but it doesn't work very well for the people who are actually contributing to the economy: miners, manufacturers, farmers. The middle class is being destroyed. That's why, if you are not on Wall Street or in government, you have to own gold and silver because the currency is being used to reallocate wealth from most of us to those who rule us from Washington and Wall Street.

TGR: But we keep hearing that the recovery is just around the corner.

Full Article (precious metals)

Post from: Gold News from Gold Editor

Jay Taylor: In Precious Metals, Cash Flow Is King

The post Jay Taylor: In Precious Metals, Cash Flow Is King appeared first on Gold Editor.

This is the time to be quietly accumulating those companies which have attractive projects and strong management.  I recently presented my subscribers with a new company that I feel is an exceptional opportunity.  It is a company with cash, a known deposit, good infrastructure and capable management, that should be among the early movers as this market recovers.

Dolly Varden is reactivating an historic silver district in northern British Columbia.  Previous work has outlined a multi-million ounce resource (non-compliant).  Management believes that the existing mineralized zones have the potential for 40 to 50 million ounces.  Beyond that, there is excellent potential to greatly expand the known mineralized zones.  On that basis alone, this company represents exceptional value.

In simple terms, Dolly Varden is an analog for the renowned Eskay Creek mine.  Eskay, located north of Dolly Varden on the same geological trend, was one of the richest silver mines ever.  The average grade over the life of the mine was an exceptional 45.7 grams per ton gold, and 2,231 g/t silver.  During its life, Eskay ranked as the 5th largest silver mine in the world.   The nearly 15 million ounces suggested by the historic estimates, and the potential for up to 50 million ounces in the known zones make Dolly Varden an attractive investment EVEN if that was all there was.  The potential for further discoveries on the scale of Eskay, while speculative, make this a compelling story.  Positive results from the on-going exploration program would have an immediate impact on the valuation.

"Emerging metal companies will continue to increase in value as their projects advance. The companies that we are following have aggressive work programs underway or soon to commence. Results from that work will provide share price momentum well beyond the impact from market moves."    -- Lawrence Roulston

Full Article

Post from: Gold News from Gold Editor

New Silver Company with Plenty of Cash and Exceptional Geological Potential

The post New Silver Company with Plenty of Cash and Exceptional Geological Potential appeared first on Gold Editor.

First, I understand. I'm an investor, too, and I also manage money for family members. We have positions that are underwater, a few dramatically so. Worse, in many cases a full position had been built, seemingly leaving no room to average down and lower our cost basis. This predicament isn't fun, and there are a limited number of options.

However, instead of responding emotionally, let's look at some facts and consider their implications.

The drop in stock prices came with no drop in the quality of the companies' assets. This is important to recognize, because it highlights the difference between value and price, and points to opportunity. Even at lower gold and silver prices, the value of these companies is higher than they're currently priced. This will eventually correct, as all mispriced markets do.

Investors must be willing to hold through down or sideways markets to realize profits. The trend we're betting on took an unusually large detour, but it has not changed in any material way. It may take some time for the market to stabilize before it makes a significant move up, and with summer knocking on the door (often gold's low season), we could easily see the gold market remain weak for a few months. A huge rally in the immediate future is unlikely unless a black swan hits (for example, a deterioration in European sovereign debt, a sharply lower US dollar, bank failures, etc.). The message is that, like any market with favorable fundamentals, you must have the mental wherewithal to stay in the game, however painful, in order to seize a big profit.

A lifetime buying opportunity is shaping up. By any analysis, gold stocks are about as cheap as they've ever been. Therefore, focus on positioning yourself ahead of what we think will be an extraordinary reversal. The more spectacular the selloff, the more spectacular the opportunity – and this selloff has been one for the record books. We're witnessing a setup that only comes along a few times in an investor's life. Our goal is to prepare for it, not lament an unexpected trend interruption.

Be honest with yourself about risk and volatility. Investment decisions based on emotions rather than facts rarely work out. I know it's not easy, but look ahead and not behind. Stock prices don't care how you feel – and they still won't when the market reverses to the upside with you on the sidelines looking on.

Full Article

Post from: Gold News from Gold Editor

Time to Stress Test Your Resolve in the Gold Markets

The post Time to Stress Test Your Resolve in the Gold Markets appeared first on Gold Editor.

The Gold Report: Coeur d'Alene Mines Corp. (CDM:TSX; CDE:NYSE) recently acquired Orko SilverCorp. for cash and shares. What should investors pay attention to in that deal?

Keith Phillips: The deal involved La Preciosa, a silver asset controlled by Orko, in an attractive jurisdiction in Mexico. From an investment banking perspective, seeing two different, quality companies competing for a junior mining asset in an environment where people thought the merger and acquisition (M&A) business was dead was encouraging. First Majestic Silver Corp. (FR:TSX; AG:NYSE; FMV:FSE) made an initial bid for Orko, and Coeur d'Alene was the successful bidder.

TGR: Are high-quality silver assets more likely to be targets than similarly valued gold assets in this market?

KP: There are many targets in gold but very few buyers currently. Silver is a smaller business with fewer quality targets but a relatively large number of healthy buyers. Coeur d'Alene is obviously healthy, having gone for Orko; Hecla Mining Co. (HL:NYSE) bought Aurizon Mines Ltd. to diversify into gold but also to stay in precious metals in North America. Pan American Silver Corp. (PAA:TSX; PAAS:NASDAQ), Fresnillo Plc (FRES:LSE), Silver Standard Resources Inc. (SSO:TSX; SSRI:NASDAQ), First Majestic and many others are well positioned to be consolidators of silver assets.

TGR: What are your thoughts on the strategy of Agnico-Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), which has been on a shopping spree this year? Agnico has taken significant positions in ATAC Resources Ltd. (ATC:TSX.V), Sulliden Gold Corp. (SUE:TSX; SDDDF:OTCQX; SUE:BVL), Kootenay Silver Inc. (KTN:TSX.V) and Probe Mines Limited (PRB:TSX.V) and also bought Urastar Gold Corp. and its Mexican assets for a total of CA$10 million.

KP: Many of Agnico's friendly competitors are being cautious from an M&A perspective, and I think Agnico sees an opportunity to be more aggressive and to position itself in desirable assets. I'm impressed that it continues to be opportunistic, and I think Agnico will be rewarded for staying on track.

Full Article

Post from: Gold News from Gold Editor

Keeping Stakes Small: How Some Companies Are Navigating the Gold M&A Market

The post Keeping Stakes Small: How Some Companies Are Navigating the Gold M&A Market appeared first on Gold Editor.

Ningbo Morsh Technology is launching the world’s first graphene production line with an annual capacity of 300 tons in Ningbo, Zhejiang Province, It enters production on August, 2013. This production will be widely used in the chemical industry and energy sectors; moreover, Chongqing Morsh’s production line will be widely used in the electronics industry and IT sectors, according to the company.

Chongqing Morsh Technology will build the world’s first mass production of 15-inch single-layer graphene film production line in Chongqing city. They will produce graphene-based transparent conducting film (TCFs) products, which will initially number 10 million pieces per year for the next five years.

In 2012, Vorbeck accelerated scale-up plans and expanded Vor-ink™ capacity to over 40 tons per year by adding new real estate and production equipment.

In 2013, there has been several announcements of successful manufacture of graphene on the large scale.

MesoGraf is produced by the Grafoid-Focus Graphite-Graphite Zero trinity of companies. The production process starts at Focus Graphite’s Canadian graphite mines, where high-quality graphite is extracted. The graphite is then sent to South Korea where Graphite Zero uses Grafoid’s proprietary process to manufacture pristine graphene in bulk volumes.

South Korea has pioneered a simple, but efficient and eco-friendly way to produce Edge-selectively functionalized graphene nanoplatelets (EFGnPs) by dry ball milling graphite in the presence of various gases.

Full Article

Post from: Gold News from Gold Editor

Graphene By The Ton

The post Graphene By The Ton appeared first on Gold Editor.

Below, in no particular order, are four of the silver juniors mentioned by the panelists.

Reservoir Minerals (TSXV:RMC) is currently exploring in Cameroon and Gabon in Africa as well as at six sites in Serbia. While the majority of its properties center on gold, its Parlozi project, located in Serbia, contains high-grade silver mineralization that is associated with lead and zinc sulfides and is comparable to Trepca-type and Mexico-Peru cordilleran skarn/manto deposits, according to the company’s website. Its Bobija project, also in Serbia, may contain high-grade lead, zinc and silver mineralization as well.

Perhaps most significantly, Reservoir’s Timok gold-copper-molybdenum project in Eastern Serbia is a joint venture with Freeport-McMoRan Copper & Gold (NYSE:FCX), which is the project operator. Freeport has exercised its option to fund all exploration work at Timok until a bankable feasibility project is completed, according to Reservoir’s website. The company’s most recent news release states that it intersected 291.3 meters grading 7.17-percent copper equivalent at the project.

Based in Canada, Dolly Varden Silver (TSXV:DV) is focused on developing its Dolly Varden Silver Mines property, which is located in Northwest British Columbia and hosts four historical deposits. The company describes it as an advanced-stage property and notes on its website that a historic resource estimate completed in 1986 estimates that it holds 5.7 million proven and probable ounces of silver. It intends to confirm that estimate, reclassify it as current and “expand the resource to a target of 40 to 50 million ounces of silver.”

In April, Hecla Mining (NYSE:HL), a strategic investor in Dolly Varden, paid $2.7 million to maintain its 19.94-percent interest in the company. John King Burns, chairman of Dolly Varden, commented that Hecla’s continued investment “is a testament to … the prospects of [the] Dolly Varden property.” He also noted that the company’s plans for this spring and summer are to define a high-grade silver resource at the project’s four deposits and identify an “Eskay Creek-type VMS deposit” at the Red Point target, which is northwest of the existing mines.

Full Article

Post from: Gold News from Gold Editor

4 Silver Juniors to Watch

The post 4 Silver Juniors to Watch appeared first on Gold Editor.

Rick Rule: I think there are two parts to the answer, maybe three. First, the gold market was technically weak. The second thing is that there were a lot of institutional players long gold on leverage, using capital that was borrowed rather than their own, so when the price crashed they had to unwind very rapidly.

The fact that there was a very large futures player who attempted to come out of the market all at once during a period in time when the market was extremely illiquid is, of course, also very suspect. I know that most Internet articles are focused on the one large 400-tonne sale at a very odd point in time, and I would certainly agree with the suspicion that if I were a holder of that size and I was looking to sell or had to sell, I probably wouldn't have chosen to do it all at once or in a very illiquid time in the market.

I think that one of the things you have to look at in the gold market is that we are changing the nature of ownership, from institutional momentum holders who are leveraged, which is a long way of saying "weak hands," to physical individual buyers on a global basis, which is a different way of saying "strong hands." So one of the things that happened in the gold smackdown is that gold did what many things do in bear markets: it went from weak hands to strong hands.

Jeff: I saw a BNN video where you said the capitulation process isn't over. What makes you say that?

Rick: I don't know if I have an opinion regarding the capitulation process in gold and silver, but I certainly think that the lows are yet to come for the junior mining equities. My experience in 35 years in junior equity markets is that bull markets end in an upside blowout, and bear markets end in a downside puke. I think we were partway through that a couple weeks ago, but I think it got interrupted. I haven't seen the sort of cataclysmic capitulation selling that usually marks a bear market bottom. It doesn't mean that just because it has always happened that way that it will happen this way again, but I haven't seen the capitulation selling. What I have seen, for example, is mutual funds being forced to sell to meet redemptions – but I haven't seen the no-bid market that usually marks the cataclysmic bear market bottom.

Full Article

Post from: Gold News from Gold Editor

Rick Rule’s Reasons to Buy Gold and Select Gold Stocks

The post Rick Rule’s Reasons to Buy Gold and Select Gold Stocks appeared first on Gold Editor.

The Gold Report: Marc, I recently interviewed James Turk who said that Europe is in a banking crisis, but that some countries are in worse shape than others. Are things on the continent as bad as they seem to be from the headlines in the U.S.?

Marc Faber: Unemployment is high in both Europe and the U.S., particularly for young people. One reason for the high unemployment rate is that it is very difficult to find highly specialized workers for industry. Perhaps that's due to more university students studying non-user-friendly subjects, such as philosophy. The Western world is lacking in well-trained workers who can handle industrial machines that cost $10–20 million ($10–20M). But if I need a clerical assistant for financial services, I can find hundreds and hundreds of applicants.

TGR: A lack of skilled workers sounds like an economic problem, not a banking crisis.

MF: Mr. Turk is correct that there is a worldwide banking crisis. But the crisis was caused by bailing out the global banking system. Using handouts, the governments monetized the debt structures of the European Central Bank (ECB) and its subsidiaries in countries like Spain, Italy and Portugal.

TGR: If we were to solve the economic crisis, would that solve the banking crisis?

MF: In my view, the European economy will not suddenly recover. It has too many structural problems. One way that the so-called "banking crisis" could be resolved, though, is to let inflation rates rise. Asset prices would then shoot up, and loan portfolios would be better covered. But I do not really think that inflation is the solution.

TGR: It would be a painful solution.

MF: The danger is that the whole financial system could blow up due to the huge amount of derivatives still outstanding. Once again, excessive speculation is being fueled by artificially low interest rates, and asset bubbles exist everywhere.

Full Article

Post from: Gold News from Gold Editor

The World Is a Mess, But Junior Mining Stocks Could Double

The post The World Is a Mess, But Junior Mining Stocks Could Double appeared first on Gold Editor.

MPI was founded in 1972 as a national consulting body engaged in the development of and planning for China's metallurgical industry, according to its website. It is affiliated to state-owned Assets Supervision and Administration Commission of the State Council or cabinet.

So far, China has had limited success in developing overseas iron ore resources. "There have only been two projects of joint venture and acquisition," Xinchuang said at the Platts Steel Raw Materials Asia conference in Singapore. He did not, however, name them.

"We want to develop our own iron ore mines overseas with Chinese mining companies and diversify the supply," he said, adding this would be "good for the global health of the steel industry" as well as China's own.

Steel Markets Daily provides transparent daily and weekly assessments of iron ore, coking coal, coke, ferrous scrap and ferroalloys prices, plus insightful analysis and commentary on the day's market activities.

The target areas for overseas development were primarily Africa and South America, and the latter would not be restricted to Brazil, he said, though he did not elaborate on which countries China would look at. In Africa, China is eyeing Guinea, Sierra Leone and Liberia for iron ore resource investments, he added.

Full Article

Post from: Gold News from Gold Editor

China Seeks to Diversify Iron Ore Sources, Eyes Overseas Projects

The post China Seeks to Diversify Iron Ore Sources, Eyes Overseas Projects appeared first on Gold Editor.