Equity valuations have so far failed to keep pace with rising bullion prices, but that makes for some outstanding investor opportunities among a few particularly well-positioned juniors that the newsletter publisher identifies as running ahead of the herd this summer.
When the government’s delaying tactic, which involves continuous borrowing and money printing is no longer tenable, the dollar could collapse, interest rates and consumer prices could soar and the US economy could implode. That’s the real crash that I was warning about.
Success in critical metals depends on finding the trends - how the metals will be used, where market share is allocated - and on familiarity with the companies you invest in, from who is on the management team to how much cash they have on hand.
Precious metals dealings opened their first August session with mixed results this morning; with some components of the complex headed lower and some in the opposite direction. Platinum and palladium were the early stand-out gainers.
New York metals trading opened with gains of $15 in gold and 73 cents in silver this morning. The former was quoted at $1616 and the latter at $40.80 per ounce against only a slightly weaker US dollar and against a decline in crude oil.
As concerns mount that there is another financial crisis in the offing and the gold price rises, American investors worry increasingly about whether the US government will confiscate gold. The precedent was set in 1933 by President Roosevelt.
There is a real sense of the "calm before the storm" in markets globally. Complacency reigns, despite signs that the sovereign debt crisis in Europe is deepening and that Japanese and US bond markets also look very vulnerable.
Early next month thousands of delegates will converge on Cape Town to participate in one of the world's most important mining capital formation and distribution processes - Investing in African Mining Indaba.