Month: April 2014

Article By RoboForex.com

Analysis for April 2^nd, 2014

EUR USD, “Euro vs US Dollar”

It looks like Eurodollar completed its correction and right now is starting new descending movement towards the group of lower fibo levels at 1.3665. If later pair rebounds from it, price may start new and deeper correction.

As we can see at H1 chart, pair rebounded from local correctional level of 61.8% one again. I’ve got two sell orders, and if price continues falling down, I’ll move stop into the black. According to analysis of temporary fibo-zones, lower target levels may be reached until the end of the week.

USD CHF, “US Dollar vs Swiss Franc”

At H4 chart, bulls are returning to the market. Probably, price is starting new ascending movement and may break maximum quite soon. Target is still near the group of upper fibo levels at 0.8930.

As we can see at H1 chart, pair is moving above local level of 61.8% again. I’ll increase my long position as soon as market breaks level of 38.2 upwards. According to analysis of temporary fibo-zones, predicted targets may be reached during the next couple of days.

RoboForex Analytical Department

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article by Investazor.com

Yesterday economic indicators published for the Euro Area were mixed.  The Spanish Manufacturing PMI was published in line with the estimates, 52.8 and the Italian Manufacturing PMI was also in line with analysts’ estimates. These two happened to equilibrate very well the other two positive indicators published. German Unemployment Change was better than official estimates, just like I was anticipating, and the Unemployment Rate for the Euro Zone was 0.1% lower.

My expectations were of in line with this drop. Even though the good news helped a bit the Euro to maintain its position, the actual rally came only at the publication of ISM Manufacturing PMI for the US, which was lower than expected. Overall the price was contain between 1.3745 and 1.3815 at the end of the day.

See yesterday analysis: EUR/USD Forecast And Price Action for April 1^st;

Today the Euro was pushed higher before the London opening and the publishing of the Spanish Unemployment Change. Even though this indicator dropped 16.6K, very good news for the Spanish labor market, the price started to drop right at the opening of the Exchange. Continue this article to see what to expect for today and the price action analysis for the EURUSD currency pair.

The following are expected next:

Second day for the ECOFIN Meetings. These are usually held in Brussels and attended by Finance Ministers from EU members states. They discuss a range of financial issues, such as euro support mechanisms and government finances.

The post EUR/USD Forecast And Price Action For April 2nd appeared first on investazor.com.

By MoneyMorning.com.au

After a long first day of presentations at World War D, the international keynote speakers, Marc Faber, Jim Rickards, Richard Duncan and John Robb got up on the stage to answer questions on topics ranging from Bitcoin, to China’s economy and liberty.

You can read a summary of the discussion below, or go here to find out how to see video of the full discussion.

Kicking off the discussion: Bitcoin and Gold

‘Bitcoin feels like currency at this point. I don’t recommend it to investors but I’m not anti-bitcoin,‘ said Jim Rickards.  His concern however, was that many bitcoin users are tax evaders. He argued that the US Internal Revenue Service (IRS) has been used for political purposes before – pursuing the Tea Party over tax matters, for example – and that creates a risk for people who use Bitcoin. Bitcoin has been in an upcycle since 2009, he said, and no one knew what it would be like in a down cycle.
He affirmed the importance of gold in every portfolio.

Joining the discussion, Mark Faber said: ‘The question should be how could you NOT own gold.‘ His concern about Bitcoin was how reliant it is on internet and electricity networks functioning properly, something that can’t be taken for granted in the age of digital warfare.

Gold, however, is a physical asset that performed superbly until September 2011, Faber said, and has been in a correction since then, which isn’t unusual in a money printing environment.  ’The fact is that gold down is a present from God and I wish it would go lower so I could buy more,‘ he said. The big proviso Faber added was that he had to physically own it, and said people would be ‘mad’ to own any asset in the US.

That prompted the question: does the medium of exchange matter to you in the future? Does money have to be backed by a hard asset?

John Robb answered by turning to a theme that had dominated his presentation: trust. ‘What we’re seeing in terms of how people interact is the importance of online reputation.‘ He sees a fundamental shift afoot. This will be where the online sharing economy gives primacy to permanent, online reputations maintained by buyers and sellers (think AirBnB).

Mark Faber didn’t agree, noting that the terrible reputation of bankers hasn’t harmed them. ‘A lousy whore will still have customers,‘ he added to raucous laughter.

Richard Duncan jumped in, moving the discussion back to bitcoin. ‘I don’t understand the point of bitcoin. If you want paper money or paper currency you have several to choose from. If you want a physical asset you have gold.‘

Discussion moved to a theme that had dominated day one:

China’s Economy. Is a collapse imminent?

‘Chinese banks are less connected to the global system than USA and Europe so there is less risk of contagion,‘ said Jim Rickards. The risk may be lower but is still there – he pointed out that when the mortgage meltdown happened in the US in 2007 the Tokyo Stock Exchange dropped precipitously. Why? ‘When you’re in financial distress you don’t sell what you want, you dump what you can sell, which is why they dropped Japanese stocks and gold,‘ he said.

Mark Faber introduced another element – how the Chinese government would respond to a weak economy or falling asset prices. In that case, he said, the Chinese could easily print more money. That would make the currency decline, and Faber isn’t sure what consequences that would have. It’s not the involvement of Chinese Banks in the global system that could cause contagion but investors who have a strong exposure in China, he said.

Richard Duncan sees China differently. ‘China’s economic model is in absolute crisis,‘ he said. ‘With the US in crisis, and Japan and Europe, there’s no one else left for China to keep exporting to. So if exports aren’t growing why would they keep investing in factories? What’s going to drive China’s economy?‘ He argued that bank loans have been driving the Chinese economy and to survive the impending crisis, China will have to do what Japan has been doing: run up massive government debt.

That may avert a depression but in his view, China won’t grow anywhere near 7% a year.

John Robb’s view: China, like other emerging economies, is in an arms race with technology for middle class jobs. Technology, he believes, will win, which will deny billions of people entry to the middle class.

Liberty – are we effectively living in a police state?

‘The problem is we’re in a zero trust or low trust world. We’ve seen more and more states climbing into this police state overwatch,‘ answered John Robb.

The thing about liberty, observed Jim Rickards, is that once you notice it slipping away, those that have taken it won’t give it back. ‘If you pass enough laws everyone is a criminal. This is modern neo-Fascism, and it’s coming your way,‘ he added, to applause from the audience.

Mark Faber ended by noting that those who benefit most from regulation are established corporate players, at the expense of small business and individuals. Large corporations can afford to keep teams of expensive lawyers on staff, allowing them to minimise their own taxes and twist regulation in their favour in ways that their start-up rivals can’t. ‘The corporate establishment love regulation because it keeps the opposition away‘ he said.

And that ended day one. You can catch the events from days one and two here.

Callum Denness
Roving Reporter for Money Morning at World War D

From the Port Phillip Publishing Library

Special Report: ASX: 15,000

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By MoneyMorning.com.au

By MoneyMorning.com.au

After discussion Bitcoin, China and even liberty at World War D, the international keynote speakers, Marc Faber, Jim Rickards, and Richard Duncan continued answering questions on delfation, inflation and interest rates.

You can read a summary of the discussion below, or go here to find out how to see video of the full discussion.

Deflation, inflation and stagflation

If the energy boom, technology boom, and globalisation is deflationary, asked Jim Rickards, how can the US pay its debts?  ’Remember deflation increases the real burden of debt, so if you can’t pay them off today when can you?‘ The forces of deflation are powerful, the necessity for inflation is powerful, but what will happen is a near instantaneous collapse in confidence in paper money and a flight to hard assets, he said.

Faber’s diagnosis was much the same. ‘Inflation and deflation can co-exist, especially in a money printing environment.‘ For example, he argued that gold and precious metals have been in a deflationary phase, as have real wages, for the past 20 years or so. Asset prices however have been in an inflationary phase. Faber’s warning: every inflation phase will sooner or later come to an end. The question for investors is when it will happen. ‘We have a global festival of money printing,‘ he said to much laughter. ‘It’s going to end badly, we just don’t know when.‘

You can see and hear Dr Faber’s comments on video. Click here to find out how.

Richard Duncan agreed the outlook is uncertain. ‘This is being managed by the government. We don’t know who the government will be five years from now,‘ said Duncan, which means it’s difficult to predict what will happen.

To manage this risk, the panel agreed on the need for a diversified portfolio of cash, quality stocks, and gold. Richard Duncan added:  ’I would borrow money at fixed interest rates to buy property. The property I would buy is land with lots of houses on them.‘ Like gold, land is scarce and as long as owners aren’t too leveraged they will always make money from rents, even in a depression.

Mark Faber also added: ‘I would choose the stock part of my portfolio very carefully. If you look hard there is always something somewhere that is depressed, and always something somewhere that is in fantasy land.‘

Jim Rickards also thinks buying up currencies is a good idea, naming the euro, Canadian dollar, Korean yuan and Singapore dollar. He has been a defender of the euro because it’s a de facto German currency. ‘The euro is the deutschmark in drag so to speak,‘ he said.

Interest rates

On the question of locking in fixed mortgage rates, Mark Faber argued that interest rates move in long cycles of 45-60 years – and with effective rates in the US at zero for last five years we have to assume we’re nearing the end of the interest rate downturn. Any interest rate rise will affect the value of assets. ‘I’m convinced in my life I will see the day when my asset values drops 50%,‘ he said.

Speaking on the uncertainty of data that underpins interest rate decision, John Robb argued economic conditions are much worse than central banks and governments are reporting. ‘What we’re seeing on the ground in the US is a lot more dire. Jobs are evaporating faster than they’re being replaced. That’s why so many [people] end up at retirement without any savings at all, and it’s going to get worse and worse.‘

‘I don’t find any discussion of IR [interest rates] useful unless you’re talking about real and nominal. The way I look at it IR are at an all-time high,‘ added Jim Rickards.

And that ended day one. You can catch the events from days one and two here.

Callum Denness
Roving Reporter for Money Morning at World War D

From the Port Phillip Publishing Library

Special Report: ASX: 15,000

Join Money Morning on Google+

By MoneyMorning.com.au

By MoneyMorning.com.au

‘You don’t make money when you sell something. You make money when you buy.‘ Keynote speaker Byron King heard those words from a man named Jim Haber many years ago.

Jim Haber gave Byron King his first welding job, straight out of college.

So how did Byron go from being a welder to a keynote speaker at an investment conference? There’s not enough time to go through his history today. But that quote he shared with us on Tuesday just proves that good money advice doesn’t always come from the finance sector.

So how did he kick off his talk? His topic was preserving wealth while Rome burns. And by that, he means the financial system. He started off by focusing on the US economy.

The financial system around us has been showing signs of melting down since the market crashed in 2008. Yet the thing hasn’t fallen over.

Which led King to ask the audience, ‘Can you smell the smoke?‘

That’s the problem. The financial system isn’t burning yet, but the smoke is starting to fill the air, as Byron explained.

He started with Detroit.

In his words, ‘Things are about as bad as it gets. Detroit is a symbol of lots of things that are wrong with America.‘ Like the high unemployment, or even more frightening, the high youth unemployment.

However, a disproportional number of unemployed are young black Americans and the Hispanic population. Byron says the numbers on this are scary. And he reckons very few in the industry understand the implications of this.

He reckons there is a structural shift in the economic climate in the US. And that’s based on two parts. There’s a shift in attitudes to employment happening in America. He thinks the young kids coming up through the ranks have less engagement with the unions than ever before. And this lower unionised work force are likely to have better employment conditions in the long term.

Also, he noted how the fracking revolution is changing the US economy for the better.

Oil production in the US was on the decline until the mid-2000s. But hydraulic fracking is reviving parts of the American economy. The fracking industry is an example of the free market at work.

The technology to extract the oil this way was financially feasible. And in spite of local governments working against fracking, the industry thrived.

A flow on effect of the fracking industry has been the migration of steel producers shifting to Texas. And why wouldn’t they? Energy is cheap, and labour is available.

And this brings King to a key point as he challenged the audience: What’s wrong with you Australia?

King can’t understand that with all our resources: iron ore, natural gas and coal, why we dig it out, ship it to other countries and let them process the ore into steel, using the coal and gas to power the process.

‘Australia ought to be a redeveloping country. I’m just saying; it’s your country, you do what you want. But you’ve got the iron ore, you’ve got the gas. Come on, get with it!‘ said King. The crowd laughed and appeared to agree.

He said it doesn’t make sense that Australia exports iron ore and coal to China, when it could be turned into steel here and exported as a ‘value added’ product. Byron said the argument that Aussie labour is too expensive doesn’t stack up to reality.

Why? His point was that there is very little human capital required in modern steel production. Most of it is automated. The theory could be applied to the coal and gas industries. We could set up profitable manufacturing for both commodities. Sure they’d need a large capital injection to get going, but the long term labour costs would be minimal with an investment in robotics.

As King reasons, America’s shift into fracking and refining oil is one of the few things that isn’t wrong with the economy.

As I mentioned earlier, Jim Haber, his first employer, gave him his first piece of investing advice. And on the basis of that, King said he had some ‘humble’ investing ideas to share with the crowd.

Look for companies on a roll. A momentum idea; technology stocks are a good example of this right now.

Also, there’s nothing like picking up something that Wall Street hates. There are plenty of companies in the junior resource sector that the market really hates today. You just have to be prepared to take a risk.

Find out how to catch Byron King’s presentation, some specific recommendations he made, and more here.

More from the final day of World War D tomorrow.

Shae Smith+
Roving Reporter for Money Morning at World War D

By MoneyMorning.com.au

Source: Brian Sylvester of The Mining Report (4/1/14)

http://www.theaureport.com/pub/na/no-title-15924

Stephan Bogner, mining analyst with Rockstone Research and CEO of Elementum International, views the crisis in Crimea as the beginning of a larger global power shift east of the Atlantic. In this interview with The Mining Report, Bogner details what these shifting power dynamics will mean for the commodities market. And take heed—gold and silver may continue to make gains, but uranium, potash and rare earths are the true wave of the future.

The Mining Report: In his recent interview with The Gold Report, Robert Cohen said that now that Crimea has joined Russia, the crisis in Ukraine has run its course, which is why the price of gold has dropped. As a European mining analyst, do you agree with Cohen’s assertion?

Stephan Bogner: In my view, high-level Wall Street players are orchestrating the gold price drop as a means of making people believe everything is in order again. They’re attempting to convey that the crisis premium has been deducted from the gold price after its rise in the wake of the Crimea crisis, but I wouldn’t bet on that.

Remember when gold rose from $300/ounce ($300/oz) to almost $400/oz in 2002-2003 due to the widely propagated Iraq War premium? When the war was over in early 2003, the price fell back to $320/oz. People used the same argument then: the gold price is dropping because the crisis is over. In a few months, the price rose to $500/oz for no reason the experts could explain.

Don’t bet on TV experts and commentaries. Bet on your gut feeling, especially when it’s getting quiet and experts are going silent.

TMR: What is the general sentiment among the Germans regarding the situation in Ukraine?

SB: According to large polls in Germany, most Germans think that not only Russia, but the Ukrainian government, the EU and the U.S. all have made mistakes and share the blame, and that the crisis is not our business and we shouldn’t get too involved. One out of two Germans thinks that we should only use diplomatic measures and only every fourth German thinks that sanctions against Russia would be appropriate. That said, I doubt most Germans know what the full consequences that sanctions against Russia would bring us.

TMR: It seems the west is unwilling to do much to help Ukraine, apart from sanctions against Russia. Is this emblematic of a power shift from west to east?

SB: According to these polls, 75% of Germans distrust Putin and at the same time think that he is “clever and strong”, but more than 60% of Germans doubt that Obama can solve this conflict. The traditional thinking that sees Russia as mainly negative and the U.S. as mainly positive is breaking apart. The NSA scandal and George W. Bush laid the foundation for the anti-American impulses that are on the sharp rise again. Vladimir Putin’s power and influence have shifted the balance of power from west to east, although we are too proud to fully admit that.

European politicians should know that sanctions against Russia would be useless and counterproductive, to say the least. Germany and especially other European countries are far too dependent on Russian gas supplies and other commodities to threaten Russia with sanctions. We must acknowledge our fault in deciding to abandon all nuclear power plants in Germany, as we are now paying the price for our energy dependence. Putin must be doubling over with laughter about the proposed sanctions, because he’s smart enough to understand that the threat of sanctions is merely chest-beating, as we attempt to convince our own citizens that we still have some influence.

Europe should try to get on the same page with Russia. I believe this can evolve to be a good thing, as Europe and Russia can become a happy new superpower, especially as we partner more with China. I rather want to see Europe team up with Russia and China to replace U.S. dollar-based transactions with what I envision as a gold-backed monetary system.

Russia can benefit immensely being strategically positioned in the heart of both and sitting on vast amounts of natural resources that can be fed to Europe and China. Ultimately, I see Russian, European and Chinese economies flourishing, while the U.S. inflates itself and becomes dependent on this new superpower.

I believe that Russia will successfully merge with Ukraine. I also believe that this crisis was the beginning of currency and commodity wars that may escalate. After years of depreciating commodity and gold prices, during which the smart accumulated as much as possible, the tide is turning and higher prices are on the forefront.

TMR: How will an alliance of this magnitude and the prospect of currency and commodity wars impact the U.S. economy?

SB: Russia may already be quietly backing away from the dollar. In late 2013, Russia held some $138 billion ($138B) in U.S. treasuries—a fair amount, yet dwarfed by the more than $1 trillion in reserves held by both China and Japan.

Russia is not in a position to take down the U.S. bond market on its own, yet it may have a significant impact when it decides to sell. Russia will have good reason to sell U.S. debt and U.S. stocks, and possibly pursue other means of impacting the globalized capital markets, if the U.S. continues to act so aggressively. Sales by Russia also could trigger others into selling. If the U.S. imposes sanctions against Russia, Chinese officials may start to get the notion that they are too dependent on the dollar, which could lead China to sell U.S. treasuries.

On the other hand, it would be good for the U.S. in the long run if foreign countries dumped their U.S. treasuries and turned away from the dollar. The U.S. economy is too dependent on foreigners buying its debt. I am certain that Russia, and maybe China, are already reducing their exposure to U.S. debt and are ready to shoot back aggressively with massive selloffs if the U.S. goes far out on a limb. This would bring about a falling dollar and a rising gold price. I would rather bet on that than anything else.

TMR: And how will that affect the price of gold?

SB: In the short term, the gold price can fall due to manipulation, but in the mid- to long-term, betting on gold is a sure thing because Russia and China are betting on gold as well. They both know that the fiat system hates gold and they know that once the gold market has dried up or if the U.S. threatens them, they can let the gold price explode.

TMR: Iraq bought 36 metric tons of gold recently, valued at $1.6B, the biggest gold purchase by a sovereign power in three years. Is this part of the shift that you are talking about?

SB: Yes, I believe so.

TMR: After a strong start this year, the gold price is seeing diminishing support above $1,300/oz. Is the bull simply resting or has the bear returned? What would you say to an investor who is still uneasy after a three-year bear market in gold equities and to a lesser extent gold itself?

SB: I would say don’t worry. Be happy with gold and silver. Their times will come, as certainly as there is an “amen” at church.

TMR: Where is gold safer, in your mattress or in cash in the bank?

SB: That is the question that high-level players on Wall Street want you to think about. The orchestrated bear market has become a self-fulfilling prophecy, with China and Russia probably also manipulating the gold price to the downside as they are all purchasing from people who are asking themselves this question—people who are selling or are no longer buying.

In the end, only the brave will be among the winners—those who never doubted that such a question is nothing but a trap to steal your gold and silver and attempt to force a bear market.

TMR: Which gold and precious metals equities are you following at Rockstone Research?

SB: I like Klondex Mines Ltd. (KDX:TSX; KLNDF:OTCBB), because it was able to acquire the Midas mine and mill from Newmont Mining Corp. (NEM:NYSE). This gives Klondex a competitive edge in Nevada that the market has not yet fully understood. The company’s management team is among the best in the entire industry and I expect a steady increase in output from now on.

You want to hold high-grade gold in your portfolio in difficult market times. Nevada is the best place in the world to explore and mine for gold. That is also why I like Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE). Dave Mathewson, the former Newmont chief geologist, knows that there are elephant-sized gold deposits—in excess of 20 million ounces (20 Moz)—on the company’s district-sized property. The latest Pinion acquisition adds tremendous size and potential for large gold deposits to be discovered in the next months and years.

Keep NOVAGOLD (NG:TSX; NG:NYSE.MKT) on your radar as well. Once gold prices pick up, this company will be ready to either advance its Donlin property into a mine or be taken out. I also highly recommend Columbus Gold Corp. (CGT:TSX.V) and have no doubt of its success. The management team is determined to bring this highly prospective deposit in production just when I anticipate gold prices will have recovered substantially. It’s all about timing and Columbus is one of the few gold development companies that is right on track.

I’m very bullish on gold and silver in general. However, these markets are among the most manipulated and thus are riskier, especially now, when it is unclear if the market is in recovery mode or if further selloffs may cause the gold price to fall to $1,000/oz. Nonetheless, I follow a few precious metals companies because I like them fundamentally.

TMR: What about silver equities?

SB: I admire IMPACT Silver Corp. (IPT:TSX.V) for having a management team that knows how to overcome the current depressed state of the market. It will prosper above average once markets have recovered.

The same applies to Santacruz Silver Mining Ltd. (SCZ:TSX.V; 1SZ:FSE). The company has brought Rosario into production with low capital expense (capex) and sound profit margins during bad market conditions, hence Santacruz will prosper nicely when silver prices are on the rise.

Golden Arrow Resources Corp. (GRG:TSX.V; GAC:FSE; GARWF:OTCPK) has already identified a silver resource greater than 100 Moz, and I’m positive that will increase.

But really, I’m far more bullish on uranium, potash and rare earths at the moment. To me, they have virtually no downside risk now and are more likely to rise from today’s rock bottom prices than gold and silver. For example, the entire junior- and senior-uranium market is anticipating the beginning of a strong upswing in uranium prices from the current rock-bottom level where it has been holding for quite some time now.

TMR: What is the case for uranium?

SB: I think uranium has one of the best outlooks of all commodity markets right now and my favorite explorer is Lakeland Resources Inc. (LK:TSX.V).

The Lakeland stock has more than doubled since December and other major uranium companies have been on the rise since late 2013 as well. Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) is up 30%. Cameco Corp. (CCO:TSX; CCJ:NYSE) is up 40%. Fission Uranium Corp. (FCU:TSX.V) is up 60%.

TMR: Isn’t this trend largely based on the Athabasca Basin area play and Fission’s success with a new type of uranium deposit there?

SB: Of course, Fission has more than tripled its stock price because of its discovery of an amazing deposit. The price increases for Denison, which isn’t successfully exploring anything, and for Cameco, a large senior mining company, demonstrates that the entire market is already anticipating a move up in uranium prices, I would argue.

TMR: Do you follow other uranium plays?

SB: I’m pretty much focused only on the Athabasca Basin. I wouldn’t want to look in any other jurisdiction than Canada for political and jurisdiction reasons.

I’m looking more at companies with the potential to become the next Fission. Lakeland, with its large portfolio and strategy of forging joint venture (JV) partnerships, is unparalleled in the Athabasca Basin. It will have one of the largest drilling programs in the entire Athabasca Basin in 2014.

TMR: Any other names you would like to mention?

SB: NovX21 Inc. (NOV:TSX.V) has patented a clean platinum group metals (PGM) recovery technology that can be implemented anywhere. The technology uses little energy and creates no pollution. It has a low capex, offers a quick payback and has a gross margin in excess of 30%.

In the U.S. and Canada alone, more than 12 million (12M) catalytic converters are recycled every year. Worldwide, there are some 50M used cars, but only half of their catalytic converters are recycled. Today, PGMs are usually recovered using capital-intensive smelters. These smelters employ a lot of energy to melt metals between 1,500–3,000 degrees Celsius, generating a lot of pollution.

The NovX21 pilot plant in Québec has been running in an outstanding manner for two years now, making this a great investment opportunity with limited risks. Its process will become the gold standard for PGM recycling.

TMR: Most investors consider rare earth elements (REE) an afterthought at this point. What are you seeing?

SB: The REE exploration and mining space is probably the most difficult commodity market for investors to understand. Yet, I believe that once the market understands how to evaluate an REE deposit, the few really promising REE stocks will appreciate in an outstanding manner. In December 2013, we published two articles on REEs, and named Commerce Resources Corp. (CCE:TSX.V; D7H:FSE; CMRZF:OTCQX) as our favorite in the REE space. That stock has more than doubled since December.

Most REE prices have already hit bottom and are beginning to recover. An upswing in market prices would lift many REE stocks strongly. However, there are few promising development projects and my research explains how to find them.

TMR: Does Commerce have the capital needed to be at the right stage once prices start to rebound?

SB: No, but it doesn’t need to, because it took out most of the risk already. It is in the prefeasibility stage. The company is looking for a partner that is capital-strong before it takes the next risks and brings the Ashram project into production. I have no doubt at all that Commerce will find a partner and that Ashram will be among the next development projects to be put into production.

TMR: Zimtu Capital Corp. (ZC:TSX.V) holds a significant position in Commerce. Will Zimtu be able to help Commerce get the money it needs to advance its projects?

SB: Well, Zimtu has been backing up Commerce with the right people ever since.

TMR: Zimtu is up about 40% year-to-date. Is there much upside left?

SB: Oh yes. Many of its core holdings have more than doubled year-to-date. For example, Commerce Resources has doubled and Western Potash Corp. (WPX:TSX.V) has more than doubled year-to-date.

Zimtu is one of my overall top picks if the mining market recovers. Its share ownership and diversified investment portfolio offer unparalleled upside to a wide variety of commodities, including potash, uranium, REEs, tantalum and niobium, copper, zinc, graphite and gold. The company consistently adds new positions and commodities through property transactions, as well as creating publicly listed companies. And Zimtu is probably the only publicly traded company in which investors can participate in the company-building process as it is a second-to-none prospect generator that is all about people.

Zimtu has been in this business for more than a decade and has established a reputation that is paying off now. Zimtu’s share structure is so tight, with only 11M shares in the market and no warrants outstanding, that its stock is poised to move up in an unparalleled fashion. Management has been very diligent in structuring this company and its shareholder base. I believe that its stock will thrive once the market understands that Zimtu is not only about its core investment holdings but more about future transactions as that is where tremendous value is created and when shareholder value is maximized as no other company in the resource space is capable of doing such on a regular basis.

Zimtu has share holdings in more than 40 publicly traded companies and numerous private companies that are on the verge of going public. Kapuskasing Gold Corp. (OLA:TSX.V) is a good recent example. Zimtu already holds some 2.5M shares and 1M warrants, with an exercise price of $0.10 until 2019. This kind of transaction, made at the earliest-possible moment, is when the most upside can be achieved with little downside risk. Kapuskasing’s stock was halted at $0.07 in late February and resumed a few days ago, trading 1M shares as high as $0.18.

The company acquired the Borden North and Rollo properties near Chapleau in Ontario. The Borden North Property is on the southern flank of the Kapuskasing structural zone, approximately 50 kilometers northeast of Probe Mines Limited’s (PRB:TSX.V) Borden gold deposit, which was discovered in 2010 and hosts a multimillion ounce gold zone. The Probe exploration team, along with prospector Mike Tremblay, was the recipient of the Ontario Prospector Association’s “2013 Ontario Prospector Award” for the Borden gold discovery. Mr. Tremblay joined the advisory board of Kapuskasing Gold after it acquired these two properties. As you see, Zimtu is all about people and creating opportunities.

Zimtu also created Pasinex Resources Ltd. (PSE:CNX) and holds around 10M shares trading at ~$0.05 right now. Imagine the impact on Zimtu if a stock like Pasinex takes off. The outlook for Pasinex turned from bad to fabulous a few weeks ago, as this company holds high-grade zinc properties in Turkey that can be put into production fairly quickly because its joint venture partner is the Turkish mining company, Akmetal AS. As you may know, exploration companies active in Turkey had a really tough time recently, as all exploration projects were forced to be put on hold due to a decree by the Government of Turkey denying any exploration permits. Just a few weeks ago, the Turkish Government issued more than 50,000 exploration permits. Thus, the devalued share prices of exploration companies active in Turkey are likely to recover now, no matter what the gold price or overall commodity market may do. These are the stories to follow as individual market conditions have created opportunities with limited downside risk and rosy outlooks.

TMR: Do you have one final thought on this commodities environment?

SB: Think of commodities prices like a rubber ball floating on water—the deeper you push the ball down into the water, the higher it’s going to jump when it finally surfaces.

TMR: Thanks for your time, Stephan.

Stephan Bogner is mining analyst at Rockstone Research, where he has analyzed capital markets and resource stocks for more than 11 years. He is also CEO at Elementum International AG of Switzerland. Mr. Bogner earned his degree in economics in 2004 at the International School of Management in Dortmund, Germany. He spent five years in Dubai brokering and reselling physical commodities and now resides in Zurich, Switzerland.

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DISCLOSURE:

1) Brian Sylvester conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report, The Life Sciences Report and The Mining Report, and provides services to Streetwise Reports as an independent contractor. He owns, or his family owns, shares of the following companies mentioned in this interview: None.

2) The following companies mentioned in the interview are sponsors of Streetwise Reports: Klondex Mines Ltd., Gold Standard Ventures Corp., NOVAGOLD, Columbus Gold Corp., Fission Uranium Corp., IMPACT Silver Corp., Santacruz Silver Mining Ltd., NovX21 Inc., Pasinex Resources Ltd., Commerce Resources Corp. and Zimtu Capital Corp. Streetwise Reports does not accept stock in exchange for its services.

3) Stephan Bogner: I own, or my family owns, shares of the following companies mentioned in this interview: Zimtu Capital Corp., Commerce Resources Corp., Western Potash Corp., Lakeland Resources Inc., Kapuskasing Gold Corp., Pasinex Resources Ltd., NovX21. I personally am, or my family is, paid by the following companies mentioned in this interview: Zimtu Capital Corp. My company has a financial relationship with the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.

4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts’ statements without their consent.

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By Dennis Miller

My doctor told me to lose weight. … I lost 10 lb. … I gained 10 lb. I’ve said those words to my editor Ann all too often over the last two years. Last month when I proudly announced that I’d bought new walking shoes to replace my old Nike Airs and had lost a bit of weight since my annual checkup, she said that was good news, but that I was fighting the wrong battle. Huh?

Ann has been my editor since I joined Casey Research. She and I share an easy rapport, so I had no problem digesting (pun intended) her comments on my dieting misadventures. Monitoring my health might not be Ann’s highest calling. She’s a member of the New York Bar, and we’d already planned to push her out from behind the curtain to write on legal topics near and dear to our readers. After our recent exchange, however, I insisted this letter be her first guest spot.

A Retirement Guru Eats Broccoli… Maybe

By Ann Coxon

Don’t worry. I’m not going to recommend only eating purple foods while standing on your head and singing the “Hokey Pokey.” Maintaining or regaining your health in your golden years is much simpler than that, and it brings an added bonus: more money.

After quietly listening to Dennis speak about his dieting disasters, I finally risked overstepping professional bounds and told him why he wasn’t having any long-term success and what he could do about it. Instead of taking offense like I feared, he thanked me and all but demanded I share my little health rant with you because so many of his friends and peers share the same struggle. If you don’t fall in that category, good for you!

Now, about that money… For Americans age 65 and older, the mean annual expenditure for drugs is $798; for medical services, $935; for medical supplies, $200; and for health insurance, $3,186. That’s a lot of cash, especially when you consider that the mean after-tax income for this age group is $43,969, according to our friends at the Bureau of Labor Statistics (BLS).

Now, here’s the truly astonishing part: This same group spends a mere $452 on fresh fruits and vegetables. Put another way: Seniors are spending $346 more on drugs each year than they are on fresh, green goodness. Talk about a misallocation of resources!

Some of you are likely thinking, “But I need those drugs to control my blood pressure, or arthritis, or type 2 diabetes.” Just name your ailment. Frankly, you’d probably be right—at least, in the here and now. I’m not a doctor, nor do I play one on television. But we all know these lifestyle diseases are largely preventable and sometimes reversible with diet, exercise, and stress reduction.

It’s hard to see the big picture, however, when many or most of your friends and neighbors suffer from similar diseases of civilization. It just seems normal to hand over your hard-earned dollars to Pfizer, Merck, AstraZeneca, etc.

Don’t get me wrong. Pharmaceutical and biotechnology companies do amazing things. We’ve even recommended one in the Miller’s Money Forever portfolio. If I ever need a life-saving drug developed on the back of Lipitor profits, I will quietly thank my lucky stars that Americans stubbornly refused to give up their three cheeseburgers per week habit.

Nevertheless, there is a better place to put that $798: your brokerage account. Of course, you may need to redirect some of it to your green grocer first.

Turning Medical Costs into Profits

Some health costs are unavoidable. You can chalk the $3,186 spent on health insurance up to the cost of living on planet Earth in 2014. But what if you could lessen or even eliminate the other costs? Could that make a real impact on your financial well-being? The short answer is: yes!

For most, medical costs in the decades leading up to retirement are far lower than they’ll be throughout their golden years. From age 25 through 64, the annual mean drug expenditure averages out to $456.75; medical services, $836.75; and medical supplies, $131.75. That’s $1,425.25, year in and year out.

Our chief analyst, Andrey Dashkov whipped up a chart showing the additional funds a hypothetical health nut would have on his 65^th birthday if he saved and invested that $1,425.25 each year from age 25, at a modest 5% return (the green line).

It’s an ambitious goal. Even the most diligent among us get bumps, bruises, and the occasional bout of influenza, in addition to any genetically unavoidable ills specific to our individual blueprints. So Andrey ran the numbers a second time assuming our health nut only saved 50% of those costs over the same time period (the yellow line).

The verdict: saving 100% gave our guy $172,170 to play with during retirement; saving 50% gave him an additional $86,085.

OK, you get it. We all agree that more money and better health are good things. So why did I tell Dennis he was fighting the wrong battle?

Finding Lettuce in Texas

In the United States circa 2014, both the type of foods and how they are eaten make it practically impossible for people to not get fat and stay fat; and we all know that diet, exercise, and weight are directly linked to those diseases of civilization mentioned earlier.

The most common reasons I’ve heard for not eating whole, healthy foods, other than “nachos just taste better,” are: they’re too expensive; or, they’re simply unavailable. To the former, I say: Pay now in food costs or pay later in medical bills and a lowered quality of life. To the latter: High-quality food is difficult to find in many parts of the country, but it is not impossible.

Having spent the bulk of my life in northern California, I didn’t have to look far for first-rate fruits and vegetables until moving to a certain state in the Midwest. (I won’t name names. Let’s just say this place is awfully proud of its cheese.)

So, to make sure I didn’t completely stick my foot in my mouth, I looked for supermarket alternatives in Corpus Christi, Texas, commonly billed as “America’s fattest city.” I was curious to know if Corpus Christi had any farm-share programs similar to the one I use.

For $35 per month, Corpus Christi residents can pick up a full basket of seasonal fruits and vegetables biweekly at the Southside Farmers Market, or so I’d read. I called up the farm’s proprietor, Rey, who said he’d had to discontinue the farm-share program this year because of what amounted to a lack of demand. He’d had to give away too much un-purchased produce to local homeless shelters for the program to remain profitable.

Locals can, however, still buy Rey’s produce and that of 15 other farmers at the Wednesday and Saturday markets. In short, there is lettuce to be found in Corpus Christi, but folks down there aren’t buying much of it.

You Can Opt Out

“Franken-food” manufacturers and the ever-growing diet industry make dollar after dollar from a chronically overweight and sick population. Here at Miller’s Money we are as pro free market as they come, and I support us all having the choice to spend life feeling crummy, to buy diet books, powders, and potions to lose weight, and then to spend retirement paying big bucks to treat preventable ailments. But why not keep that money for yourself? You earned it.

To make matters worse, federal agricultural subsidies have helped make cheap-but-empty calories so cheap that “poor” increasingly means “obese-but-malnourished.”

Where does that leave Americans? Overweight, chronically ill, and struggling.

So, here was my prescription for Dennis: Opt out of the modern American diet. These guidelines aren’t always easy to follow. Truth be told, I spent two solid minutes at the market last night pondering the wisdom of buying a pint of banana chocolate ice cream for dinner in lieu of the salmon I actually purchased.

Some of these mantras are borrowed, and some I’ve learned through trial and error. No broccoli is required, since Dennis hates it.

• Sit down at a table and eat breakfast, lunch, and dinner—nothing more and nothing less. A car is not a table. A couch is not a table. A desk is not a table.Oh! And turn off the television, or your electronic distraction of choice, during every meal. A bit of conversation, or music if you’re dining solo, will slow you down before a casual meal turns into a feast fit for Emperor Caligula.
• Don’t eat seconds. Another meal will come your way, and you will not starve to death waiting for it.
• Never eat commercially processed food. Just don’t do it. What does “processed” mean? Look at the back of your milk carton. Does it say “Vitamin A palmitate and/or Vitamin D”? If so, it’s commercially processed in my book.There is simply no way to eat enough commercially manipulated food to feel satiated without consuming excess calories. Too many people are fighting this losing battle; they may have minor successes along the way, but they will likely be short-lived. So put down the Lean Cuisine and master or re-master the art of simple home cooking.
• Eat vegetables with every meal, even breakfast. Ketchup is not a vegetable.
• Dessert is like alcohol; have a little with friends, but never alone. The implicit social pressure to not eat a half gallon of ice cream is enough to keep most people in check, but it’s pretty easy to curl up with a dozen cookies when no one is looking. No judgment; we’ve all done it.
• Never drink soda, including diet soda. Although artificial sweeteners contain no calories, they trick your endocrine system into thinking you’ve consumed real sugar, triggering an uptick in insulin and ghrelin, a key hunger-regulating hormone. So say “goodbye” to Diet Pepsi and “hello” to club soda and unsweetened iced tea.
• Eat the full-fat version, not the artificially low-fat or non-fat substitute. Less of the real thing is always more satiating than more of the fake stuff. Who wants to live in a world without real butter and bacon? Not I!
• Break a sweat every day, even on Sundays. You don’t have to join a fancy gym. Your local YMCA likely has classes geared toward seniors so you don’t end up in aerial yoga next to a 25-year-old former New York City Ballet dancer. (Laugh away, but aerial yoga is a real thing and quite the rage among twenty-something urbanites of means. At $20 or so per class, think of how much they could be saving for retirement instead.)Plus, if you’re recently retired and missing office camaraderie, a group class is a no-brainer way to get out of the house every morning. Or just take a brisk walk; it costs nothing.

Eliminating processed foods is a difficult adjustment for many people. You might not know what else to eat. If that’s the case you’re not alone; there’s communal amnesia about how to cook whole foods that taste, umm… tasty. It’s a skill, but it’s an easily learned skill.

Oh, and lest I forget, even if you like hotdogs, fast food, and pre-packaged anything now, our palates are malleable. Start eating whole foods and after awhile you’ll want to eat them. You may feel like you’re in the twilight zone for the first couple of weeks; just give it time. Even Dennis could eventually learn to like broccoli.

By all reports Dennis is following my advice, and his weight and blood pressure are dropping. I practically fainted when he told me he’d eaten beet greens with dinner.

I truly admire Dennis’ willingness to abandon an approach to a problem that wasn’t working. If you feel the same about your approach to retirement investing, or if it simply needs fine-tuning, take a gander at our premium publication, Miller’s Money Forever by signing up here.

After hitting $102.21 last week, Crude oil futures for delivery in May dipped below the mark, down $1,40 for the day after hitting a low of $99.85.

Last week’s rally towards $102.21 stopped precisely on the 61.8% Fibonacci retracement on the bearish swing from $105.20 down to $97.35, raising the possibility that this recent upswing simply completed a retracement and consequently the lower high signals a deeper correction below $100.

As long positions are gradually being reduced, sellers have now reached a very strong support area. Between $99.90 and $100.30 we have a bullish trendline from March, the 50-Day Moving Average and of course the main $100.24 price pivot zone. A daily close below the support area will open the way towards $97.76, where the 100-Day Moving Average is located, with the possibility of a future lower swing low below $97.35.

Further consolidation above the $100 level can become choppy, as price will be squeezed tighter between the rising support and the resistance at $102.20.

*********
Prepared by Alexandru Z., Chief Currency Strategist at Capital Trust Markets

By CentralBankNews.info
    Angola’s central bank maintained its BNA policy rate at 9.25 percent but continued to adjust its other policy rates “in order to continue to influence the reduction of the costs of financial intermediation, in particular mortgage interest rates.”
    The National Bank of Angola (BNA) cut the rate on its standing lending liquidity facility by 25 basis points to 10.0 percent while it raised the rate on its liquidity absorption facility by 25 basis points to 1.50 percent.
    Last month the BNA also raised the liquidity absorption rate by 50 basis points and cut the reserve requirement on local currency deposits to 12.5 percent from 15.0 percent. The BNA has maintained its policy rate since November 2013 and cut it by 100 basis points last year.
    Angola’s inflation rate eased to 7.48 percent in February from 7.84 percent in January while credit to the economy rose by 12.31 percent over the last 12 months to 2.963 billion kwanza.
    The central bank added that the kwanza’s exchange rate had remained stable, with an average rate of 97.60 to the U.S. dollar. In 2013 the kwanza depreciated by only 1.8 percent against the dollar.
    In 2013 Angola’s economy expanded by 7.4 percent, up from 2012’s 5.2 percent growth.
 
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