Monetary Easing a "Game Changer" for Commodities

Source: Reuters, Jan Harvey and Jane Baird (10/19/10)

"Palladium, iron ore, thermal coal, gold, copper and zinc could be set to benefit."

Swiss Bank UBS said on Tuesday a fresh round of U.S. monetary easing could be a "game changer" for commodities and identified palladium, iron ore, thermal coal, gold, copper and zinc as its top commodity picks.

The bank said recent comments from the U.S. Federal Reserve made it a "racing certainty" that more quantitative easing would be introduced at the central bank's next meeting in November.

A second round of QE "means that strong international capital flows will reinforce already powerful domestic credit creation in emerging markets," the bank said in a report.

"That should flow through to robust, commodity-intensive growth in EM, while the developed world struggles in the face of higher commodity prices," it added. "We believe that QE2 will prolong the bull market in commodities."

Auto-catalyst metal palladium, thermal coal and iron ore headed the bank's list of top picks. Palladium is expected to rise as constrained supply from South Africa and Russia, in conjunction with rising demand, tighten the market.

The white metal is one of the best performers of the commodities complex so far this year, with prices currently showing gains of 43% since the end of 2009 and hitting a nine-year high earlier this month.

"We forecast that palladium will likely see one of the strongest increases in intensity of use of any commodity to 2015," UBS said.

The bank also said it saw gold as a good bet. "In a low cost-of-capital world, be long gold," it said.

UBS said it favored gaining exposure to gold prices via gold stocks rather than physical gold, though some risks remained to share investments due to uncertainty over operating costs and conditions and rising political uncertainty.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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