Far from being the usual boring consensus event for gold prices, the inaugural Dubai Multi Commodities Centre Precious Metals Conference struck a decidedly controversial note. It was good to see precious metal analysts battling it out with some contrarian views.
If the US dollar pushes down below the recent lows and we get continuation to the downside, we will break the recent bullish pattern. However, if the dollar finds a bottom and rallies it clearly would create a headwind.
To say the junior resource market has been “acting like a pig” is an understatement. To say simply I’ve been wrong about them being undervalued only irritates those already wishing they hadn’t purchased…
While markets do not always reward every deserving company, quality deposits carry an intrinsic value. That's why the managing editor of The Emerging Trends Report advises investors to "buy the resource" over the stock.
The company has been parking excess cash in silver and gold on a short-term basis since 2008. Instead of falling victim to the volatile silver market, Endeavour “elected not to sell a significant portion of its metal production..."
The better the market is the more likely it is that late March to late April will feature large amounts of profit taking and tax gain selling. Given how metal prices and junior resource shares have fared there seems no danger of things getting frothy soon.
After a tough 2011, the junior resource market is turning and things are definitely looking up. The Resource Opportunities publisher tells us the smart money is looking for deals that have real upside potential.
Complicated more expensive extraction of metals from increasingly harder to find, lower grade ore bodies in almost inaccessible and hostile parts of the world is going to affect our lifestyles. What changes are we going to have to make as nature dictates lifestyles and aspirations?
This is a fine example of what Sprott discussed in his call to action letter. Endeavour is electing to hold its metal until prices correct to its liking. With silver falling to as low as $26 in the fourth quarter, Endeavour sold only 400,000 ounces.