Silver ETFs, Miners Surge Following QE2

Source: MarketWatch (11/5/10)

"Silver ETF up 18% against SPDR's 5.1% increase."

On Wednesday the Federal Reserve announced that it plans to buy $600 billion in Treasury bonds to stimulate the economy, in a process known as quantitative easing, or in this case,"QE2." The aim is to drive interest rates lower in an effort to spark spending and lending. One of biggest concerns with this round of quantitative easing is that it will make the already weak U.S. dollar even weaker. Traditionally, when the greenback takes a nosedive, the markets look to industries based on goods that have price levels that move inversely to the U.S. Dollar. One attractive opportunity for investors in this case is Silver.

According to Dow Jones newswires, the price of silver is trading near 30-year highs, and for the last month it has easily outperformed Gold. Silver ETFs represent an easy way for an investor to gain exposure to the silver price without having to store the actual bars of silver. Over the last month the iShares Silver Trust ETF has risen over 18% while SPDR Gold Shares—the world's largest Gold ETF—has only risen around 5.1%.

While the recent QE2 announcement gave silver a nice short term bump, there are some headwinds for this metal. The bears argue that the recent Republican win in the congressional elections will cause a long term dollar rally, and squash the precious metals market.

With Silver prices surging to their highest levels in thirty years, investors have turned their attention to silver miners.

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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