Livemint
India's top bullion bank to work with jewellers to tease out gold hoards
Reuters India
MUMBAI (Reuters) – The biggest bullion-importing bank in India plans to team up with jewellers for the first time to offer a gold deposit scheme, hoping ease of access and attractive interest rates will tempt people to part with their jewellery and
India Still Feeling The Gold SqueezeDaily Reckoning – Australian Edition
US Treasury “Firm Believers In Gold", Will Not Sell Even To Avoid DefaultGold Seek
Jewellers explore ways to restore gold's glitter as sales dwindleLivemint
Hindu Business Line –Mineweb
all 20 news articles »
Gold Ends Week at 3-Month Low, US Bullion Eagles Improve
CoinNews.net
On Friday, gold for December delivery fell $28.70, or 2.2%, to settle at $1,268.20 an ounce on the Comex division of the New York Mercantile Exchange. The settlement price was the lowest since July 10. Gold suffered through the week with investors
Gold spot price set for loss this weekiNVEZZ

all 5 news articles »


Economic Times
Top bullion bank to work with jewellers to tease out gold hoards
Economic Times
MUMBAI: The biggest bullion-importing bank in India plans to team up with jewellers for the first time to offer a gold deposit scheme, hoping ease of access and attractive interest rates will tempt people to part with their jewellery and relieve tight
India Still Feeling The Gold SqueezeDaily Reckoning – Australian Edition
'Gold buyers look at the returns, not the price'Hindu Business Line
US Treasury “Firm Believers In Gold", Will Not Sell Even To Avoid DefaultGold Seek
Creamer Media’s Mining Weekly –Livemint
all 20 news articles »

Business Insider Australia
Morgan Stanley Sees Gold Lower in 2014 as Goldman Says Sell
Bloomberg
Bullion is heading for the sixth weekly loss in seven and investment holdings are shrinking even as U.S. lawmakers wrangle over the debt ceiling and budget, seeking to avert a default and end a government shutdown. Gold is a “slam dunk” sell for next
SPDR Gold Trust (ETF) (GLD): Which Side Of Goldman Sachs Is Right About Seeking Alpha

all 15 news articles »

U.S. stocks are rallying on hopes on some sort of deal coming out of Washington.  Just like we have witnessed over the past several years, lawmakers will come to some sort of last minute deal to kick the debt can down the road.  Over the next week look for some sort of move to avert a default.

The markets could rally short term on such a deal, but over the longer term the equity and housing markets appear to be ready for a major correction after rallying for two years.  We are witnessing bubbles in certain areas of the market which I encourage investors to steer clear from especially banks, housing, social media and biotech as these are very crowded trades filled with promoters, snake oil salesman, charlatans and day traders.

Overbought bubbles end up in devastating losses.  Stay away from high flying stocks and instead focus on value in the mining sector.  Meanwhile, the U.S. government has now been shut down for almost two weeks and may be on the verge of a credit downgrade.  The gridlock is over Obamacare which will cost the U.S another trillion dollars of debt over the next few years.  This will force Bernanke’s successor Yellen to continue monetizing the debt through quantitative easing which may be increased over the next few months as unemployment is rising to the highest levels in 2013.  

In my opinion, investors should steer clear of real estate as home sales fueled by record low interest rates and hedge funds could slow down.  Interest rates are beginning to rise rapidly despite $85 billion a month of QE.  Unless we see a significant increase of quantitative easing be prepared for a major exodus out of bond funds into real assets in the form of precious metals, commodities, energy and mining stocks.  For over two years, pundits in the media have claimed that the Fed will taper or exit from QE.  This has been wrong.  The Federal Reserve has only increased QE and may consider doing so shortly.

Stick to the beaten down sectors that have been correcting for more than two years and showing historical undervaluations.  Stay away from the overbought financials and housing stocks are in fact at a greater risk of correcting with rising interest rates.

Rising rate environments usually predicts higher commodity prices and inflation.   Historically, it is wise to position oneself into precious metals and commodities when interest and inflationary rate risk are great, yet the masses are still chasing the latest high flying biotech or social media stocks.  I think we could be on the bring of a major spike in interest rates that were manipulated lower for many years.  This could cause a correction in equities and bonds.  Investors may race into precious metals, commodities and mining stocks which are being completely ignored by the public.

A catalyst for this rotation could be caused by a large sovereign nation selling U.S. debt and not finding willing buyers.  We could see increased volatility in the foreign exchange markets, interest rates and commodities due to capital seeking inflationary havens.

The real estate and banking sectors could turn lower quickly with interest rate spikes forcing The Fed to stop all taper talk and possibly increase QE.  The housing numbers and high unemployment shows the economy is still on shaky legs.

Home sales are a huge part of this recent recovery in equities.  Yields are reaching two year highs and may soon start putting a damper on the sector.  QE is losing its effect on bond yields and we must all prepare for a major move in interest rates.

Be careful if you hold adjustable debt.  Stick to companies with no debt or at least paying down debt with positive cash flows and strong treasuries and shareholder base.

Remember the S&P 500 has made a 150%+ move since early 2009.  When stocks are high and commodities are cheap I favor mining equities as historically high commodity prices follow equity bubbles.  I believe we may be entering a very strong cycle for our wealth in the earth sectors as more savvy investors may capture profits in U.S. equities/housing and begin hedging against inflationary risks by buying mining equities and precious metals.

One excellent company which should be on everyone’s radar is Comstock Mining (LODE) who was recently invited to ring the opening bell on the New York Stock Exchange to commemorate one year of gold production in the historic Comstock Mining District.  I was invited to attend and you can see the opening video by clicking here…

Comstock Mining has the who’s who list of shareholders and mutual funds such as U.S. Global Investors, Gabelli Funds and Century Management.  Comstock Mining is well capitalized on the premier New York Stock Exchange and is increasing institutional support during a bear market in precious metals.  The company recently announced that they raised $8.6 million for expansion of production and shows that major capital is supporting this operation.

Comstock Mining is significantly outperforming the gold miners index reflecting its outperformance during a challenging precious metals market.  Look for support to hold near lows and an eventual reversal and breakout at $2.25 as it may be forming a bullish reverse head and shoulders pattern.

This outperformance during the hard times may forecast its emerging leadership in the gold mining sector as they may be able to sustain increasing production and resource growth with lower cash costs.  Smart investors may just be beginning to realize the potential and growth of this historic mining district which built The West.

Comstock Mining has delineated over 3 million ounces of gold and this is just from a tiny portion of the district.  There are very few companies like Comstock Mining (LODE) growing production, paying down debts and reducing cash costs in the entire industry.

In addition, Comstock Mining has great potential to grow to 40k gold ounces, on its path to 150k ounces with the addition of the Dayton Mine.  Not only should the company be able to produce a potential cash flow, but these funds could possibly sustain major resource growth without having to continue to dilute shareholders by relying solely on the capital markets.  There is great geological potential in this district and I would not be surprised over the next 3-5 years to see this resource expand exponentially both in size and grade.

Recent results show a major increase in production growth both in gold and silver.  The company believes the production figures will increase significantly in the near term.  I have been to the property and Comstock has great infrastructure with lower capital costs than many of the majors.  Cash flow and potential earnings over the next few quarters can possibly make the company self sustainable to drive further exploration and resource growth.

I visited the operation and met with the highly experienced technical team led by some of the mine builders who worked for the majors.  Watch my recent interview with Comstock Mining CEO Corrado De Gasperis where we discuss the opening bell at the NYSE and highly encouraging fundamentals by clicking here… or on the video below.

For more information on Comstock Mining (LODE) contact:

Kimberly Shipley, Manager of IR, 775-847-0545, shipley@comstockmining.com

Disclosure: Author is long Comstock Mining and the company is a sponsor on my website.
___________________________________________________________________________

Sign up for my free newsletter by clicking here… 

Sign up for my premium service to see new interviews and reports by clicking here…

Please see my disclaimer and full list of sponsor companies by clicking here…

Accredited investors looking for relevant news click here…

Please forward this article to a friend.  To send feedback or to contact me click here

Listen to other interviews with movers and shakers in the mining industry below or by clicking here…

Listen to internet radio with goldstocktrades on BlogTalkRadio

 

 


Financial Express
Gold Bullion Continues to Drain Out of COMEX
The Market Oracle
There were big adjustments in the registered (dealer) gold inventories at JPM and HSBC yesterday as a total of over 40,000 ounces of gold bullion moved back to the customer storage category. In Scotia Mocatta 4,572 ounce of customer gold moved into the 
India Gold Smuggling Jumps as "Mobilize Gold" Schemes BeginBullionVault
India Gold Premiums Soar as Festival Season BeginsWall Street Journal
Gold Imports by India Slump as Curbs Reduce Demand for JewelryBloomberg
Reuters –GlobalPost –Metal.com News
all 60 news articles »

iAfrica.com
Gold Prices Flirt with $1300 as Yellen Moves to Chair US Fed
BullionVault
GOLD PRICES dipped below $1300 per ounce for the first time in 1 week Wednesday afternoon in London, dropping 2.6% from yesterday's high after news broke that Janet Yellen is set to lead the US Fed when Ben Bernanke steps down as chairman in 
BULLION LATEST – Gold price continues on wait & see as investors sit outFastMarkets Metal News
REFILE-PRECIOUS-Gold drops close to $1300 on stronger dollar, stimulus worriesReuters
Gold Drops Most in a Week as Stronger Dollar Damps Metal DemandBloomberg
FX Empire –Reuters UK –iAfrica.com
all 1,732 news articles »

Newstalk ZB
Wider Choice For New Zealand Mint Gold & Silver Bullion Investors
CoinWeek
The distribution agreement with the renowned West Australian mint lifts to three the number of bullion brands available from New Zealand Mint – Pamp Suisse, the company's own Gold Kiwi brand and now Perth Mint products. nzmint Wider Choice For New 
Buying gold? You've now got more choiceNewstalk ZB

all 2 news articles »


BDlive
Gold Nearly Flat, US Mint Bullion Sales Rise
CoinNews.net
"After an initial period of calm, gold finally reacted yesterday afternoon to the U.S. budget dispute and the approach of the debt ceiling being reached," analysts at Commerzbank said in a note relayed on MarketWatch. "As there is still no sign of the
Gold Befuddles Bernanke as Central Banks' Losses at $545 BillionBloomberg
Gold Investing Prices Rise as US Default Fears Spread, Silver Jumps; Shutdown BullionVault
Gold price is 'bound to go through the roof'BDlive
Forbes –ETF Trends
all 163 news articles »

BDlive
China's Gold Bullion Imports Slip But "Very Strong"
BullionVault
Reaching 110 tonnes net of exports in August, China's gold bullion imports dipped from 113 tonnes in July, but held above 100 tonnes for the fourth month in succession. The world's No.1 gold mining nation since 2007, China is set to become the world's
China Gold Imports Continue To Impress [SPDR Gold Trust (ETF)]Seeking Alpha
Western Analysts Bearish Gold, Chinese Imports Show Another 100-Tonne MonthGold Seek
Gold Swings Near Week High as Investors Assess Stimulus, DebtBloomberg
Reuters –BDlive
all 19 news articles »

ETF Trends
Gold Investing Prices Rise as US Default Fears Spread, Silver Jumps; Shutdown
BullionVault
GOLD INVESTING prices jumped in early US trade on Monday, rising 1.2% after a flat start to the week in Asia and London to reach a 1-week high of $1328.50 per ounce as concerns spread over the current US government shutdown leading to a US debt 
Gold, Silver Fall on Week; US Mint Bullion Sales SteadyCoinNews.net
Gold ETFs Face Scary Technical OutlookETF Trends
Mining Sector Signaling An Excellent Entry PointETF Daily News (blog)
Reuters –Zee News
all 91 news articles »

CoinNews.net
Gold, Silver Gain on Safe-Haven Demand; US Bullion Sales Up
CoinNews.net
Gold and silver futures closed higher Monday for the first time since Wednesday. Their gains were attributed to stronger safe-haven demand as the U.S. government shutdown continued and as concerns grew over the debt ceiling gridlock. Gold for December 

and more »

For many months I reminded my readers to ignore the low uranium spot price and the hysteria in the media over nuclear power.  Instead I encourage all investors to focus on the increased M&A in the uranium mining sector where junior miners who are extremely early stage and do not even have a NI43-101 resource are being bought out for $185 million.  Despite the uranium spot price hitting generational lows, we are witnessing ongoing consolidation and increased M&A in the uranium mining sector.   This may mean the smart money is anticipating a major rebound in demand and prices.  If we are seeing this much M&A activity in the uranium mining sector when the spot price is hitting eight year lows, imagine what could happen in this small sector when uranium starts moving higher.

Just recently announced, Fission Uranium will buy Alpha Minerals for $185 million in order to have 100% control of the Patterson Lake South Discovery.  Many analysts are saying this is the best discovery in the Athabasca Basin where grades are exponentially higher than the rest of the world.  I don’t think Alpha shareholders should give that asset up in the middle of a drilling program.  Denison (DNN) is making an offer for Rockgate at ridiculously low levels. Energy Fuels just acquired Strathmore to try to become a bigger player in the U.S. market.  Although I am not a shareholder of Alpha or Rockgate I would vote against these bids as they may be coming at the bottom of the uranium cycle.  Think what these assets could be valued at when uranium is at a reasonable price.

Don’t be surprised to see further merger activity in the emerging Wyoming producers especially Uranerz (URZ) which has possibly the best land position in the Powder River Basin where Cameco is expanding production.  Uranerz is on the verge of commencing production at its Nichols Ranch in Wyoming.

This increase in M&A probably means that either Cameco, Denison or Rio Tinto want to acquire assets sooner rather than later.  It must be remembered that the Athabasca assets are extremely early stage and although the uranium assets may be high grade, it could take thirty years to build a mine.

Cigar Lake, which is the largest high grade undeveloped deposit in the Basin was discovered in 1981 and has still not yet produced one pound of uranium.  Cameco is continuing to delay startup.  The grades are phenomenal there, but Athabasca has challenges including being in an area of lakes where there is the risk of flooding.

Cigar Lake has been under construction for seven years with many problems occurring delaying production several times.  One must not forget that the uranium bubble back in 2007 was accelerated when a flood in Cigar Lake was announced.  Uranium ran up to $137 a pound.  One delay or shutdown of a major uranium mine such as Cigar Lake or Areva’s Niger Operations could lead to a powerful reversal in the spot price.

Fission may be building the next Hathor which was taken out for over $650 million by Rio Tinto back in 2011 if it is able to acquire Alpha.  From my evaluation the Alpha shareholders should not sell at these levels possibly at the bottom of the uranium market.  This is a buyer’s market.

Patience and fortitude should be exercised by shareholders of companies getting low bids.  There are several other juniors I have positions in the Athabasca Basin with smaller market caps.  Some of the teams have geologists I have followed for years with incredible resumes.  I will be highlighting some of those Athabasca stories in the coming weeks.

However, it must be understood that these Athabasca plays are highly speculative, early stage exploration stories with the potential for great gains but also greater risk.  Be careful of promotions and only invest in teams with experienced management.  When everyone is discussing a particular story, look for the next opportunity.

Fission and Alpha are probably unable to advance this project alone and most likely will be acquired by either Cameco, Denison or Rio Tinto.  These Athabasca mines require large miner expertise to be put into production.

This increased M&A activity in the uranium space may be forecasting a potential turnaround.  This sector is trying everyone’s patience as the spot price hits new lows and as the masses believe there will be no recovery.

I believe these are the times to buy not sell when the fundamentals are strong, yet the prices are low and sentiment is negative.  The Russian Megatons to Megawatts Deal which supplied 24 million pounds to the U.S. is done.  Reactors are being built all over the world and restarts are beginning in Japan.

M&A activity should increase with not only early stage discovery situations such as Fission and Alpha but with emerging producers such as Uranerz (URZ) and companies already nearing the Feasibility Stage such as Pele Mountain (GEM).  Near term supply should be tight as the Russian agreement expires.  Remember the uranium producers have had to compete with this 24 million pounds of extra supply for twenty years.

Many of the uranium mining companies believe the absence of that supply could boost uranium prices which are trading at decade lows and is way below production costs.  Look for a major turnaround in the uranium price in the fourth quarter of this year or in early 2014.  The low price environment has shut down mines and the absence of supply coupled with increased demand could cause a bullish reversal in uranium prices.

One uranium district that has been completely ignored by the investment community is Elliot Lake, Ontario.  I have been writing about Pele Mountain (GEM.V) for years as others ignored this undiscovered situation.  Now a Canadian Financial institution has just published a very positive research report.  View the Jacobs Securities report by clicking here…  The report concludes, “Given Pele’s historic correlation with uranium prices, and the strong uranium fundamentals that we believe could drive prices higher, we maintain our view that investors should consider GEM based on its sizable near-surface resources, well-scoped project, supportive jurisdiction and well understood path to permitting and development. We believe, Pele is positioned for success as a developer of a geopolitically secure supply of U3O8, Critical REO, and scandium oxide.”

I couldn’t agree more with them.  More than 300 million pounds of uranium were mined in Elliot Lake, Ontario by Rio Algom and Denison Mines.  The Elliot Lake Mining Camp is known as the Uranium Capital of the World and was the only Canadian mine that commercially produced Rare Earth Oxides.

The Elliot Lake mines were closed down in the 90′s when rare earths were unknown and worth little and uranium was trading below $20 a pound.  Being a past producing district of both uranium and rare earths gives an advantage to Pele Mountain Resources (GEM.V or GOLDF) a small junior miner, who will hopefully begin feasibility on their enormous and valuable Eco Ridge resource.

Operating in an established, past producing district with power, labor and infrastructure is crucial when evaluating the potential viability of mining development.  Every twenty to thirty years Elliot Lake goes through a boom cycle.  Even though the Athabasca region has higher grade uranium, mining and processing is a lot more challenging.

Pele Mountain (GEM.V or GOLDF) may provide excellent leverage to uranium and rare earths for investors at these discounted levels.  Elliot Lake is a proven rare earth and uranium mining district which is very supportive of Pele Mountain’s Eco Ridge Mine.  See the letter supporting the mine from the mayor and city council by clicking here…

Pele has a proven commercial processing method unlike so many other rare earth juniors of recovering the valuable rare earths used in the latest green energy technologies such as wind turbines and high efficiency lighting.  Pele has the Elliot Lake technical team led by Roger Payne who has the experience designing and developing efficient and safe production of critical clean energy metals such as uranium and rare earths.

When comparing Pele’s NI 43-101 compliant resource base to some of the recent acquisition prices of $7-10, Pele is trading for pennies of a penny on a dollar and may provide great leverage as uranium and rare earth prices recover.

Listen to a recent interview with Roger Payne, who leads Pele’s (GEM.V or GOLDF) technical team and previously managed Rio Algom’s operations in Elliot Lake by clicking here….  He has decades of experience in this region, which could blossom again providing a safe and secure supply of uranium, rare earths and scandium.

For More Information on Pele Mountain Resources Inc.: Email: ashefsky@pelemountain.com Telephone: 416.368.7224 or 1 800.315.7353  Website: www.pelemountain.com Twitter: @pele_mountain

Disclosure: Author owns Denison, Energy Fuels, Pele Mountain and Uranerz and Pele Mountain and Uranerz are both sponsors on this website.

___________________________________________________________________________

Sign up for my free newsletter by clicking here… 

Sign up for my premium service to see new interviews and reports by clicking here…

Please see my disclaimer and full list of sponsor companies by clicking here…

Accredited investors looking for relevant news click here…

Please forward this article to a friend.  To send feedback or to contact me click here

Listen to other interviews with movers and shakers in the mining industry below or by clicking here…

Listen to internet radio with goldstocktrades on BlogTalkRadio