Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Wednesday, February 28, 2007

A Good Way to End the Day

The broad market finished surprisingly well considering the horrible news on new home sales. Fourth quarter GDP numbers were also revised down sharply to 2.2% growth from the 3.5% that was previously reported. But don't waste too much sweat on that one. Ben Bernanke soothed investors by saying that growth is on track. Anyway, it was a good day after Tuesday's shellacking.

Gold closed down $14.70 on the day. It was a liquidity squeeze and a margin squeeze. The liquidity squeeze was investors fearing that China and other central banks might tighten money, and just the fear of that hammered gold. The margin squeeze was in the futures markets, where hedge funds and other speculators had to sell something to meet margin calls as prices headed lower after the open.

But things turned around. In fact, gold is still holding up well, and silver is holding up even better. And the mining stocks in Red-Hot Canadian Small-Caps bounced back just fine.

They followed (more or less) the action in the Canadian mining sector. Here is a chart of that...I have to say this sell-off is just what we needed to get some froth out. In fact, if we'd had a bigger sell-off, it would have been even better. 10% pullbacks are very common in bull markets. Maybe we'll go lower; wait and see.

Australian markets open up in an hour and half; we'll see how this plays out on the other side of the world.
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Gold and Silver Charts for Wednesday

A daily chart shows gold IS trading below its recent daily uptrend, but may just be testing it. Momentum is still bullish. Now let's look at a weekly chart of gold ...

Yesterday’s swoon doesn’t even register on the very, very bullish weekly chart of gold. Now, let's look at a weekly silver chart ...

Daily silver is more bullish than gold. This is the hot precious metal. And now for the weekly chart ...

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Asian Stock Tsunami Update

When I went to bed around midnight last night, Asian stocks looked pretty bleak. But we've seen some pretty good bounces this morning. We aren't out of the woods yet, but here are some stories ...

Shanghai Shares Rebound Nearly 4 Percent; China Says No Plans to Tax Capital Gains

SHANGHAI, China (AP) -- Chinese stocks recovered Wednesday following their worst plunge in a decade as regulators shifted into damage control, denying rumors of plans for a 20 percent capital gains tax on stock investments.

The Shanghai Composite Index gained 3.9 percent to 2,881.07 after opening 1.3 percent lower. On Tuesday, it tumbled 8.8 percent, its largest decline since Feb. 18, 1997.

XX However, not all the news is good, as the story goes on to say ...

Markets across Asia were still rattled, with many falling for a second day. Japan's benchmark Nikkei Index sank 2.85 percent, while stocks in the Philippines tumbled 7.9 percent. Malaysian shares fell 3.3 percent, while Hong Kong's market fell 2.5 percent.

XX And here is a story on how China is NOT planning a big capital gains tax -- apparently, that was fuel for the spark of yesterday's selling.

Report: China not planning big capital gains tax

XX Now, let's look at some charts of Asian stocks of interest ...

Again, this doesn't mean we're out of the woods. But commodity-heavy Australia seems to be bearing up better than financials-focused Japan. Stay tuned for more updates. Good luck, and good trades.

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Tuesday, February 27, 2007

Asia and the Selling Wave

The stock selling wave that started in Asia and then became a tsunami of panic by the time it hit Wall Street is back in Asia (where it is Wednesday morning).

XX Here is the news so far. In China:

China stocks open down but quickly recover

SHANGHAI (Reuters) - China's main stock index opened lower on Wednesday but recovered quickly and moved into positive territory as heavily weighted financial blue chips climbed.

The benchmark Shanghai Composite Index <.SSEC> opened down 1.34 percent, but after five minutes stood 1.18 percent higher at 2,804.454 points.

XX In Hong Kong, at first the news was bad ...

Hong Kong shares open sharply lower on global market slump after China selloff

HONG KONG (XFN-ASIA) - Share prices opened sharply lower following steep falls on global markets after investors were spooked by a nearly 9 pct drop on the Shanghai bourse yesterday, dealers said.

XX But then it got better ...

HK shares trim losses as bargain hunting emerges

HONG KONG, Feb 28 (Reuters) - Hong Kong stocks pared earlier losses in Wednesday morning trade after China's main stock index moved into positive territory and investors saw value in battered shares such as China Mobile.

"This is a good correction, a good opportunity to buy," said Tat Auyeung, fund manager at APEX Capital Management who manages a number of Asia ex-Japan funds worth about $500 million.

XX In Japan, the market took a Godzilla-sized hit in the morning ...

Japan stocks tumble almost 4 pct in global sell-off

TOKYO, Feb 28 (Reuters) - Tokyo's broad TOPIX index tumbled nearly 4 percent on Wednesday morning, on track for its biggest loss in almost three years, as investors rushed to unload everything from Sony Corp. to Softbank Corp. as part of a sell-off in markets around the world.

XX In Australia, stocks sold off and then bounced a bit. Authorities tried to calm nervous investors ...

Australia well placed to weather market volatility –Treasurer

SYDNEY (XFN-ASIA) - Federal government treasurer Peter Costello said Australia is well placed to weather market volatility, have a strong economy and as well as strong corporate earnings.

Costello, who oversees the government's management of the economy, said market volatility illustrates the importance of sound economic fundamentals.

XX And Aussie metals stocks are showing particular strength...

Local metal stocks show some resilience

METALS stocks are holding up well in a market that is taking a 195 point hit in early trade after a horror night on Wall Street.

While US stocks exposed to the resources sector - steelmakers and miners - took big hits in New York after the Shanghai Stock Exchange fell 9 per cent, the same trend is less pronounced here.

XX All in all, not so bad. Let's see how markets in Asia end the day.

UPDATE: You can read a great story on the Asian stock sell-off by pointing your browser at: From Shanghai, tremors heard around the world.
I find it interesting that in China, people refer to the stock market as "dubo jin" or the slot machine.

Further update: This bounce doesn't sound convincing. The headline says China A-shares end morning slightly higher on technical rebound. We'll need more than a technical rebound to end this route.

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Panic Selling in the US and Canada -- Opportunity Knocking?

Boy, talk about investors being easily spooked. The news that China's market lost 9% of its value -- the biggest drop in 10 years -- has rippled around the globe like a shockwave.


Even uranium stocks are taking a hit. And they were immune to the sell-off in Australia.


This reeks of panic selling to me. Now the million-dollar question is, it that something big and bad knocking at our door, or it that opportunity knocking? Especially in uranium stocks -- I was afraid that the stocks were taking off so fast that many investors might decide not to put their money to work, even though the potential upside is enormous. Well, if that's what was holding you back, here's your second chance.


So how long will this sell-off last? One day, two days, three, a week? Or is there a Big Bad Wolf out there that is finally knocking at our door, and we are about to tumble into recession? Personally, I believe the Commodity Supercycle can kick any Big Bad Wolf's ass. That, and the fact that the selling in China was sparked by profit taking, tells me this sell-off should run its course sooner rather than later.

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Red-Hot Resources: We Have Ignition!

If you're a subscriber to Red-Hot Asian Tigers, it's a very good morning for you. I've recommended Summit Resources twice in Red-Hot Asian Tigers the last two weeks, and you should have been able to buy it at least one of those times. And look at it now ...

You can read about the takeover bid by CLICKING HERE. The upshot for Red-Hot Asian Tiger subscribers is, for every 1,000 shares you had of Summit, you just racked up about $1,000 in open gains. That's before commissions, and open gains aren't profits until you book 'em. Still, not bad for a couple weeks!

Now, should you bank those gains now? Should you hold? Or is this a good time to buy more shares of Summit? I'm afraid my opinions on those subjects are for Red-Hot Asian Tigers subscribers only. Look for an issue today or tomorrow.


Meanwhile, Red-Hot Canadian Small-Caps subscribers shouldn't feel left out. You have huge gains on one uranium stock and over 23% n the other one we added just about two weeks ago.


PLUS, the news about Summit sent other small-cap uranium companies soaring in Australia. The same thing will probably happen in Canada.


And we aren't even close to the end of the wild, bullish story on uranium. In fact, if anything, we're at the beginning of the end of the first chapter of the Big Uranium Bull Market.


Hey, remember that Ugly Duckling I talked about in a recent Money and Markets -- the only stock in my Small Uranium Wonders report that hadn't left the launch pad yet. Well, check out its chart including Monday's rip-roaring action ...


It sure looks like it is breaking out to me. Good thing I recommended subscribers buy another 800 shares of this one on Friday! But is it too late to buy this or the other stocks in Small Uranium Wonders? No! Hell, no! I can't emphasize enough, we're at the beginning of the end of the first chapter of the Big Uranium Bull Market. I believe there is much, much more to come.


If you don't have Small Uranium Wonders yet, call 800-400-6916 and get it now.

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Monday, February 26, 2007

Gold Demand Surged in 2006

That's the word from the World Gold Council, as relayed by this story in the International Diamond Exchange.
  • At $44 billion, gold jewelry sales set a record high.
  • industrial demand was the highest ever at 458 tons.
  • Demand for investment gold increased 7% over 2005 to 637 tons and 45 percent in value
Now while demand surged in dollar value, demand for gold for jewelry and from central banks actually fell in terms of tonnage. For example, in 2006 jewelry demand rose 14% in value, but fell 16% in weight. However, two important points ...

1) We are seeing new demand come in from China, and a resurgence in demand from the upwardly mobile in India. This emerging market demand should be a huge force in 2007.

2) Despite higher prices, gold production is decreasing from year to year. Overall supply fell 13% in 2006.

All in all, I'm very excited about gold and gold mining stocks right now. We are seeing a huge breakout in one of the gold mines we have in Red-Hot Canadian Small-Caps, and ditto for one of the gold mines we have in Red-Hot Asian Tigers. The others are smoking on the launch pad.

And as for gold itself, take a look at this weekly chart ...

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Saturday, February 24, 2007

Weird Science Saturday: Paging Bruce Willis!

The astronomical community is abuzz about Apophis. No, not the Egyptian God of Chaos and Darkness, though that was a good guess. The Apophis I'm talking about is an asteroid a quarter-mile in diameter that was named after the Egyptian god. The asteroid 99942 Apophis is rated as the celestial object (currently) most likely to collide with the Earth.

On Friday the 13th, 2029, Apophis will pass closer to the Earth than some of our communications satellites. The odds are that it will then ricochet off into space, not to be seen again for a hundred thousand years. But some mathematical models say this near-miss will destabilize Apophis into another orbit that will send it slamming into the earth in 2036.

If Apophis hits, say the scientists: [it] would release more than 100,000 times the energy released in the nuclear blast over Hiroshima. Thousands of square kilometres would be directly affected by the blast but the whole of the Earth would see the effects of the dust released into the atmosphere.

The reason astronomers and other scientists are abuzz about this is that if we decide we want to nudge Apophis away so it doesn't slam into the Earth, it's not as simple as loading Bruce Willis aboard the space shuttle and sending him aloft to the beat of an Aerosmith soundtrack. It will take decades to develop astroid-nudging technology -- which means we should get started ... oh ... right about now.

When I heard about this, the first thing I thought was: "Oh, some scientists are bucking for more money for their pet projects." Maybe, maybe not. Can we send Bruce Willis rocketing into space anyway? I'm all for that. Anyway, I consider Global Warming to be more severe on the threat scale.

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Friday, February 23, 2007

My latest interview on HoweStreet.com

Phil and I shoot the bull about uranium. I made him promise that I can talk about silver next week -- I'm getting uranium-ed out! LOL!

Hear it here: http://tinyurl.com/ytnv6e
Check out my new gold and energy blog at MoneyAndMarkets.com

Silver Breaks Out to the Upside


How sweet it is! Silver shatters the overhead resistance that has held it down since December.

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Let's Try Something Cool

Google Assures me that I will be able to publish my Small Uranium Wonders portfolio in my blog using their "doc.google." Let's see...


By George, I think it actually works! Well, as you can see, the stocks are doing very well -- no big surprise, because uranium soared to $85 per pound this week (from $75 last week). The whole recommended portfolio is showing open gains (before commissions) of 21% in less than a month!

I think these stocks are going much higher. In fact, if you subscribed to Small Uranium Wonders, check your email -- I have a new order recommendation going out today! We're buying more shares of the "Uranium Ugly Duckling" I talked about in this week's
Money and Markets.

And that's not the only one that's going higher. I think they're all going much, much higher. There is still time to get onboard. If you aren't in Small Uranium Wonders yet,
CLICK HERE.

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Wow -- A Celebrity Trial that REALLY Is Important!

I can't watch CNN anymore because I absolutely loathe the coverage they're giving the court battle over Anna Nicole Smith's carcass. Sure, we all look at the people involved in that fight and ask ourselves: "What is wrong with these people?" But what we should really ask ourselves is "what is wrong with the networks that they're obsessed with this circus of death?"

There is a much more interesting and important court case playing out, one that has gone to the jury. The verdict, when it comes in, could send shockwaves through the Washington Establishment and the mainstream media, which has been exposed as a bunch of hacks and toadies-to-power throughout the trial. I'm talking about the trial of Scooter Libby.

Libby is a former aide to Vice President Cheney, on trial for lying to a grand jury about exposing the identity of covert CIA operative Valerie Plame. Now THIS is a trial. If you haven't been reading any of it, you should definitely read about the closing arguments. A good place to start is by CLICKING HERE. The mainstream media has nothing to approach this kind of coverage. Instead, they're obsessed with dead Anna Nicole like cats with a ball of yarn.
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Here's One for the Bears...



NYSE Margin Debt Reaches $285.6 Billion, Topping 2000 Record

Feb. 20 (Bloomberg) -- The amount of money borrowed from brokerages that do business on the New York Stock Exchange to buy stock reached a record $285.6 billion last month, topping the prior high set at the peak of the so-called Internet bubble.

Read the rest by CLICKING HERE
Check out my new gold and energy blog at MoneyAndMarkets.com

Happy Friday!

Gold, silver and uranium are rocking and rolling. Even commodities like copper look ready to sling-shot higher in the second half of the year (it wouldn't be surprising to see more pain for copper in the second quarter). Our stocks are rising. Are there any dark clouds on the horizon?

Well, yes. If you've heard me speak at The Money Show or other venues, you know that I'm probably the most bullish person at Weiss Research. I disagree with Martin Weiss and Mike Larson all the time. That is not a bad thing. As I told listeners at the Money Show recently, "if you listen only to people who agree with you, you can end up lost in a Middle Eastern country, unable to come to grips with how you got there, and unable to find a way out."

So, Mike, Martin and I hash things over. Often, we come to a consensus one way or another. Other times we keep coming back to the same arguments (inflation versus deflation is one of our favorites, and I think we're never going to resolve that one because we enjoy the discussion too much).

We disagree about the economy. I am bullish, Mike and Martin are not. They believe the bursting of the housing bubble will derail things; I believe that other global engines (China and India, to name two) will take over for the misfiring US economic engine. China and India can't replace the US economy, but they can keep the global economy humming along until the US gets back in gear.

But then there is also the debt question. I don't really worry about the national debt too much. As my friend Jack Crooks (the best currency trader you'll ever meet) says, the national debt will matter when it matters, and not a minute sooner. I'm more concerned with personal debt.

You see, despite the imploding housing bubble, the US consumer has kept right on spending. What exactly are they spending? Debt. Here are some charts I picked up from BondDad's diary ...
According to the Federal Reserve’s Flow of Funds statement, total household debt outstanding is $12.5 trillion dollars. This is over 90% of the total US GDP and over 120% of disposable income.

So, not surprisingly, debt payments as a percentage of total income are at record levels ...

I know many people are using their homes as piggy banks. I also know that home values are steadily going down in places like Palm Beach County, Florida (where I live). I have never been a big believer in theories that home prices could collapse overnight. Instead, I believe in a slow, gradual squeeze, as homesellers reduce their prices in a competitive spirit of quiet desperation.

And then things get worse. One of the homes in my neighborhood, a similar model to mine that was purchased less than a year ago, is going into foreclosure. I know this because I'm planning on selling MY home. A foreclosed home down the street will likely weigh on home prices, don't you think?

So, I think that consumer debt, not national debt, could be the Achilles heel of the American economy. I expect it could be a slow-motion train wreck in the making. Can China and India ramp up their economies fast enough that a consumer squeeze in the US won't matter? I can't predict that.

One short-term relief would be for the Fed to lower rates. I think they have tarried too long on this, as they are bedazzled by the great bugaboo of inflation. People are less concerned by devaluing money than having no money. Will the Fed act in time? Again, I don't know.

But that would only be a short-term solution. A longer-term solution would be opening up our doors to legal immigrants again. Since 9/11, it has become very hard to move to this country ... unless you hotfoot it across the Rio Grande, in which case it becomes pathetically easy. Do we really want to discourage legal immigration while turning a blind eye to illegal immigration? Legal immigrants bring money and job skills. I would LOVE to sell my house to a legal immigrant who wants his own piece of the Florida/American Dream.

And we're also going to have to let the US dollar devalue. I hate to say this -- I'm as much a greenback investor as anybody. I can think of many other, better ways to make America more competitive in the world (becoming the leader in alternative fuel technology, for example, and exporting the heck out of it) but Wall Street can't seem to come to grips with other solutions.

And that brings us back to silver and gold. If the US dollar devalues, those are two metals you will want to own ... in fact own as much as possible.

Keep in mind, I'm only voicing my fears here. Alternately, the economy could do absolutely fine this year. Personal debt may level off, home prices may do the same, and the commodity boom could keep the fires burning under the US economy as well.

And Now For Something Completely Different

I didn't mean for this to be a depressing Friday post. Here, let me cheer you up: You can watch Keith Olbermann's top five rants by CLICKING HERE.

And here is a montage of David Caruso's one-liners from what may be the the most poorly written show on television, "CSI Miami," in Miami's so bright, Caruso's gotta wear shades

If you're not watching The Venture Bros., you're missing out on what I believe is the most inventive, funny show on TV. Yet strangely, most women don't seem to like it (LOL -- I don't get Oprah!) Personally, I just buy the DVDs. Season Two comes out on April 14. Here is a taste on YouTube.com: CLICK HERE.

And in the "It Couldn't Happen to a Nicer Bunch of People," category, we learn that trouble is bearing down on Iran's mullahs like a whirlwind in:
Iran: Unstable, troubled oil giant

And Australian stocks surged on Friday. Don't Red-Hot Asian Tigers subscribers know it! Your portfolio is doing GREAT!

Have a great Friday.

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Thursday, February 22, 2007

Uranium Catapults to $85 Per Pound!


Good morning! The whisper number on uranium is anywhere between 82.50 and 85 this week. Hey wait … the sealed bids in London were opened last night. Let me go look ...

[Muzak plays …]

$85 per pound! That's a 13% climb in one week! Holy MeltUp, Batman! What kind of runaway train has left the station now? $100, here we come. Then $140 and beyond.

I could send you my Excel sheets tracking my two uranium portfolios, but that would only make you weep, WEEP, that you were not able to buy these stocks.

Oh, wait, you STILL CAN! We aren't selling the first uranium report, which has racked up triple-digit open gains, anymore. But we are still selling Small Uranium Wonders. The portfolio as a whole has areadly racked up about 14% open gains before commissions in a few weeks, but there are two stocks that are still on the launch pad ... and I expect this portfolio to do as well as the first one over the long haul. And I expect the stocks in the first uranium report to still go much, much higher.

Are you interested? CLICK HERE.

If you're going to do it, pull the trigger my friends. The earlier you do it, the sooner you can jump onboard this train!



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Wednesday, February 21, 2007

Retreating Glaciers Uncover Hidden Treasure

As THIS STORY explains, glaciers are retreating so fast in British Columbia -- up to 300 meters at some properties in the past 25 years -- that ...

In a bittersweet upside to climate change, freshly exposed ground across B.C. is begging to be explored for minerals as glaciers and ice packs wither away.

The glacial strip show under way for centuries has accelerated as temperatures have climbed, Weaver says. Shrinking glaciers get dirtier, darker and absorb more heat, causing them to recede even faster.

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China's Addiction to Oil

The "showdown with Iran," along with expectations for big drawdowns in stockpiles tomorrow, are blamed for today's sudden jump in crude prices.

While these things exist and do have to be factored into the market, try not to get distracted by the short-term noise and price swings up or down. Instead, keep your eye on big picture factoids like this ...

China's Crude Oil Imports Hit Record


China imported 13.7 million tons of crude oil in January, an increase of 3.5% from the year earlier period, marking its highest-ever level of oil imports on a monthly basis, according to government data. The surge in imports comes as oil prices fell to a 19-month low and was driven in part by stockpiling ahead of the Lunar New Year Holiday, analysts said. The figure amount to a daily average of 3.2 million barrels and eclipses a previous monthly record of 13.4 million tons of crude imports in September.

Reports said China's efforts to fill its strategic oil reserve may also have contributed to the surge in demand. China's dependency on imported oil rose 4.1 percentage points to 47% of yearly demand in 2006, state news agency Xinhua reported Tuesday, citing figures by the Ministry of Commerce.

Last year China produced 183.68 million tons of crude oil, an increase of 1.7% on year. Net crude oil imports rose 19.6% to 138.84 million tons. Xinhua reported domestic crude production is forecast to rise less than 2% in 2007 while demand for crude oil and oil products will rise between 5% to 6%. In a separate report, Bear Stearns forecast China's oil needs will rise 7.8% in 2007.

With demand like that, and supplies stagnant at best, how can crude oil not go higher? $65 crude oil anyone? $70? It's coming up.

Meanwhile, reports like this (CLICK HERE), from Sandford C. Bernstein, that oil will be going to $30 per barrel, should not be taken seriously. And the chuckleheads who put out this kind of crap should be ashamed of themselves.

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BHP Is Buying Uranium

Well, this is interesting news ...

BHP BILLITON is being forced to buy in uranium from third parties at boom prices to meet increased demand from contract customers, despite owning the world's biggest uranium deposit at its Olympic Dam project in South Australia.

Read the rest by CLICKING HERE.

So we have BHP, owner of the world's biggest uranium mine, being forced to buy uranium to meet contractual obligations.

The World Nuclear Association has forecast that demand for uranium could increase from about 65,000 tonnes last year to about 78,000 tonnes in 2015 and 111,000 tonnes in 2030. I really, really think that's an underestimation.

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Latest Money and Markets article is up

This week, I'm talking about uranium's ugly ducklings. I believe we have one ... maybe even two ... in the Small Uranium Wonders portfolio. While other stocks recommended in that report are already racking up double-digit open gains, one stock in particular is actually down just a tad from my first recommendation, despite its enormous potential.

The other stock that may be an ugly duckling is also down a bit, but it's a more long-term play, so you expect those kind of fluctuations. The one I'm really watching will be producing sooner than most.

Am I completely wrong about this stock? Or uranium in general? It's possible, but I don't think so. If you aren't onboard with Small Uranium Wonders yet, it's not too late to buy any of these stocks. For more details, CLICK HERE.

And to read my latest Money and Markets article, CLICK HERE.

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Tuesday, February 20, 2007

Cotton Presents a Bumper Crop of Potential


Barclays says corn and cotton may outperform oil this year thanks to increasing demand for ethanol and Chinese demand for cotton for textiles. As ethanol production rises, farmers plant more corn and less cotton. That scarcity drives up cotton prices.

Here is a piece I just wrote ...

Farmers are turning from planting cotton to planting corn. As long as the government is throwing money at ethanol – 51 cents per gallon – farmers would be silly not to plant corn. After all, federal corn subsidies totaled $37.3 billion between 1995 and 2003. That's more than twice the amount spent on wheat subsidies, three times the amount spent on soybeans, and 70 times the amount spent on tobacco. Now add the ethanol subsidy on top of that and you can see why corn is becoming VERY popular with farmers.

Heck, showing that the Bush administration has yet to meet a boondoggle it doesn’t like, Energy Secretary Samuel Bodman told reporters on Monday that perhaps America should have a strategic ethanol reserve. That would be even more money thrown at corn. And that means even less acreage available for cotton.

Meanwhile, on the demand side, China's cotton consumption from 2002 to 2005, increased 62% to 9.7 million metric tonnes, thanks to the rapid growth of Chinese textile exports. China's cotton consumption in 2007 is expected to reach 11 million tonnes, including 4.4 million tonnes of imports. By 2010, its total imports should hit 5 million tonnes.

And hey, Australia, the world’s fourth-largest cotton exporter, just cut its forecast for its current crop by 7.7% to a 20-year-low, thanks to a horrible drought.

All in all, this sounds like 2007 could be a good year for cotton.

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Ouch!

The dollar keeps pulling a Rasputin ("I'm not dead yet!") and raises its head off the mat to bolt higher. Crude and gold take it on the chin, as Bloomberg tells us ...

Gold Falls Most in a Week After Dollar Halts Slide, Oil Drops

Feb. 20 (Bloomberg) -- Gold fell the most in a week in London on speculation investor demand may slow after the dollar halted its slide against other currencies and oil declined, reducing inflation prospects.

Investment demand for gold in exchange-traded funds watched by the World Gold Council has climbed 3.5 percent this year. Purchases accelerated this month as the dollar declined and crude oil rebounded. The dollar rose against the euro and the yen today.

"In the last week or so, the U.S. dollar moves have been more influential'' on the gold market, said David Thurtell, a London-based analyst at BNP Paribas SA, France's biggest bank. ``The inflation picture is sort of benign."

As with any adventure story, an Oriental villain makes it all the better ...

Investors in Japan sold 8.8 metric tons of bullion more than they bought in the last three months of 2006, compared with net purchases of 6 tons in the same period a year earlier, according to World Gold Council figures last week. Japanese investors "were one of the major drivers'' who sent gold to a 26-year high in May."

XX Ah, so that's it -- let's blame the crafty Japanese for this tumble. Does anyone take this narrative seriously? Let me tell you my view: Gold has been on a rocket ride recently. It is taking a rest, as happens in every bull run. The bigger uptrend is still intact. Therefore, history tells us a smart speculator might buy this dip.

Likewise, the US dollar looks to be in trouble, despite today's bounce. Now, I may have this story wrong. Maybe the greenback is finding a new bottom and gold is finding a new top. But that's not what the trends are telling us now.

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Now, It's Easier to Trade Foreign Stocks Electronically Online

From the Seattle Post Intelligencer...

NEW YORK -- E-Trade Financial Corp. unveils a global trading platform today that makes it the first U.S. discount brokerage to give customers the ability to trade foreign-listed stocks online. The pilot project, which begins with 1,000 E-Trade customers this week, allows them to buy, hold and sell stocks in Canada, France, Germany, Hong Kong, Japan and Britain.

The rollout is expected to take two months before all customers have access, and could expand to 42 international markets.

The launch unlocks thousands of stocks previously unavailable to online traders, and pressures top rivals Charles Schwab Corp. and TD Ameritrade Holding Corp. to make similar moves.

It also comes as stock exchanges in Asia have bounced to unprecedented highs and far outpaced Western markets.

NOTE: This is not an endorsement of E-Trade as a particular trading platform. It just shows an example of what's out there. If your broker doesn't allow you to trade foreign stocks online, maybe it's time you asked: "Why not?"

Check out my new gold and energy blog at MoneyAndMarkets.com

Monday, February 19, 2007

Monday Is Chart Day

I've made a chart comparing the performance of the US dollar and the S&P 500 against some major metals and foreign markets in 2006...
How will these markets and metals perform in 2007? Well, I have my ideas. I think uranium will continue to lead the pack in metals, that's for sure.

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Saturday, February 17, 2007

We Broke a Record -- What Do We Win?

As we shiver through February, here is something to keep in mind ...

Warmest January ever recorded worldwide in 2007: US scientists

NEW YORK (AFP) - World temperatures in January were the highest ever recorded for that month of the year, US government scientists said. "The combined global land and ocean surface temperature was the highest for any January on record," according to scientists from the National Oceanic and Atmospheric Administration's National Climate Data Center in Asheville, N.C.

Here is the interesting thing -- global temperatures are warming up much faster than anybody thought possible. It is warming by 10ths of degrees when scientists thought it would happen by 100ths of degrees.

I have a good friend who is deep, deep in global warming denial. He says the February freeze we've experienced is proof that global warming is bunk.

But paradoxically, global warming causes severe cold snaps. That's because the warming feeds high pressure systems, which in winter time can cause sudden, severe cold. I guess it's nature's way of trying to balance things out.

But the trend should remain steadily warmer. And that's one reason I'm such a big booster of nuclear power. An operating nuclear power plant puts out zero greenhouse gases -- you can't say that for coal or even natural gas.

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Friday, February 16, 2007

RCS Uranium Stock Goes Ballistic

You know what it is, boys ...

This is a nice move for a stock that Red-Hot Canadian Small-Caps subscribers added just two weeks ago.

By the way, the stock picks in my Small Uranium Wonders report, which came out in late January, are now showing double-digit open gains, on average. But there's still time to get onboard. In fact, one of these stocks is an ugly duckling that could turn into a beautiful swan very soon.

For more on Small Uranium Wonders, CLICK HERE.

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Talkin' About Exxon

Brent Clanton of the Biz Radio Network in the great state of Texas (as a Texan friend of mine always says) called me this morning to talk about Exxon-Mobil, and the recent announcement by their CEO that the company is becoming more eco-friendly. You can listen to it by CLICKING HERE, then scroll to the bottom of the page and go the next page. Sorry it's convoluted.

Anyway, my quotes were pretty much what I said on my blog. You can read that post by CLICKING HERE.

I always like listening to Brent's show. It's exciting and interesting. The morning shows in Palm Beach county that I've heard pretty much suck wind.

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Marketwatch quotes me on ethanol

Dow Jones Marketwatch reporter Myra Saefong used me as a source for Corn-based ethanol's a flawed concept

She actually quoted me a lot, which is surprising -- usually we talk-talk-talk and she only uses a few lines. But that's par for the course. I've been a reporter, and I know how many sources they talk to.

Anyway, for the scoop on why corn-based ethanol is a boondoggle (at least until they improve the technology), CLICK HERE.

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Thursday, February 15, 2007

Foreigners Take Their Money and Run!

My coworker (and bond guru) Mike Larson has just raised a red flag on the December Treasury International Capital report, which looks Liza-Minelli-in-a-thong ugly. Mike gives us the details ...

* Total foreign purchases of U.S. stocks, Treasury debt, and other bonds plunged to a net $15.6 billion in December from $84.9 billion in November. Forecasters were looking for $60 billion in net purchases.

* A broader measure of international money flows looked even worse -- it FELL by a net $11 billion, vs. expectations for a gain of $70 billion.

* Foreign private buyers were much, much less active buying our assets, while foreign official buyers (central bankers) picked up the pace from November. By country, Japanese holdings of U.S. Treasuries rose $6.9 billion, Chinese holdings rose $3.1 billion, and U.K. holdings jumped for a second straight month -- gaining $16.5 billion. There was big selling in the Caribbean region (that's a sign of hedge fund activity, since many operate via offshore banks located there). Other sellers included some smaller countries in Europe, like Switzerland, Ireland, and Italy.

As you might expect, the dollar's getting whacked on the news. Bonds didn't lose much of their earlier gains in the wake of the news, however.

My view -- if the dollar is getting whacked on this news, that should translate into great news for our gold and silver positions. It's hard to tell about this kind of fall-out though. If stocks take it on the chin, and we get a broad sell-off, mining stocks could get trampled in the stampede.

Well, the market opens in a few minutes. We'll see.

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Wednesday, February 14, 2007

The Kiss Me Deadly Portfolio

That was my original title for my latest MoneyandMarkets.com column. The editor changed it to something predictable.

Anyway, in this column, I talk about gold, silver and uranium ... and the Money Show.


Excerpt...

The stocks in my portfolios are so packed with firepower they’re what I call “Kiss-Me-Deadly” … ready to explode. And I have so many more new ideas, it’s ridiculous. I’ll give you an example:

I talked to a guy at the Money Show who is chief geologist of a mining project in Latin America. They’re starting production this year … already know they have half a million ounces of gold … and will probably have 1.5 million ounces defined by the end of 2008. Plus:

  • Their mining costs are around $200 per ounce (possibly less).
  • They’re on a tax holiday for 18 more years, so they keep what they earn.
  • The stock is trading at less than a buck a share … and I’m talking Canadian dollars!
You can read the rest by CLICKING HERE.

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Latest Radio Interview -- The Orlando Money Show

Tom Jeffries from Money Matters (formerly of HoweStreet.com) called me on my cell phone on Friday for a quick interview. I was at the International Money Show in Orlando, which he kept referring to as The Gold Show. Well, I talked to a gold coin dealer, but it's much more than that. And as usual, I was quite excited about uranium. Tom is a top-notch interviewer, so it was a good one.

Anyway, you can listen by CLICKING HERE.

In other news, the new HoweStreet.com interviewer called and we had a nice long chat yesterday, mostly about uranium. He wants to do an interview every Friday. That should start this week.

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China Trade Surplus Is Growing Fast

"China Posts $15.9 Billion Trade Surplus for January" is the headline on Bloomberg News. China's trade surplus grew 65% year-over-year to $15.9 billion in January. That's the fifth highest growth rate on record. Exports increased 33% to $86.6 billion, the fastest growth rate in 17 months.

Meanwhile, growth in imports rose at a 27.5% clip to $70.7 billion, or double the rate in December.

The US is not happy with China's record trade surplus. In a complaint to the World Trade Organization, the US alleges that "60% of Chinese-made goods sold in the U.S. are eligible for 'market-distorting' export subsidies.

China's response: "Whoop-de-doo!" Just kidding. The Chinese have called the complaint: "regretttable."

Looking forward, China's trade surplus "may remain at relatively high levels, between $15 billion and $20 billion monthly, in the near term,'' according to Ma Jun, an economist at Deutsche Bank AG in Hong Kong.

To me, it doesn't sound like China is slowing down. And that means it's unlikely the commodity supercycle will slow down anytime soon.

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Gold Chart -- Looking Good!

Gold is up this morning even though crude oil is down. The two have moved in synch, lately. Are those fundamental forces I've been talking about for precious metals finally ready to rumble?
Marketwatch says the US dollar is falling due to the widening US trade gap. When has the US trade gap ever really mattered? If it did, gold would be over $1,000 an ounce now. On the other hand, a weaker US dollar will light a fire under gold nearly every time.

My target on gold remains $790.

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Tuesday, February 13, 2007

Exxon and the Lapdog Press

My PR agent (yeah, I have one) sent me the following story...

Exxon Mobil CEO: Oil could be much cheaper
Says that oil would be between $40 and $45 a barrel if risk of disruption were less; also says governments should address climate change.


February 13 2007: 2:21 PM EST
HOUSTON (Reuters) -- U.S. crude prices would be between $40 and $45 a barrel if risks of supply disruption were not in the market right now, Exxon Mobil Chief Executive Rex Tillerson said on Tuesday.

Separately, Tillerson said it is prudent for global governments to develop and implement policy to address climate change.

Here is my reply to her...

Sure, Exxon Mobil increased capital and exploration spending by 12% to nearly $20 billion in 2006. But it recorded a profit of $39.5 billion for 2006 -- $2.5 billion more than analysts anticipated. In other words, it could have spent another $2.5 billion on exploration and still met estimates.

And while Exxon’s production was up year over year, oil production fell by 1% in the most recent quarter. Natural gas production also fell to 9.3 million cubic feet per day from 9.8 million cubic feet per day.

In 2006, Exxon spent $25 billion on repurchasing its shares. Yep, more than what it spent on exploration and production. The company has a history of this -- Exxon Mobil spent more money in 2005 buying back stock than it did on capital spending, exploration and research and development.

Adding up both share buybacks and boosting its dividend, Exxon spent $32.6 billion in 2006.

So in sum, if Exxon wanted to see $40 oil, it could spend a lot more on exploration and more importantly, promote conservation. I don’t think it wants to see lower oil prices at all. The tighter supplies are, the more it can charge.

As for Tillerson’s statement that “it is prudent for global governments to develop and implement policy to address climate change”, well I agree with that. But I’d like to ask Mr. Tillerson why he thinks it is prudent for
Exxon to spend $16 million funding a disinformation campaign on global warming.

And I’d also like to ask him why, even now, Exxon provides financial funding for a “think tank” that offers scientists $10,000 a pop to "critique" findings in a major global warming study.

In short, Mr. Tillerson’s statements are shameless, self-serving, and misleading. Therefore, I expect them to be repeated without question across the mainstream media.

XX Don't get me wrong -- I have nothing against a company making profits. But they shouldn't be misleading about their motives, and I think Exxon Mobil's action on Global Warming are reprehensible.

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The Sin of Corn-Based Ethanol

A reporter at Dow Jones Marketwatch just asked me: "Just the short answer to the question please: Since it takes a lot of energy and corn to make ethanol, does the effort to produce it outweigh benefits of the finished product?"

Here is my answer:

Let me give you an answer that is not a short answer. I have to tell you about something called EROEI, or EROI, or Energy Return on Energy Invested. Basically, it’s Energy Output/Energy Input. And it is at the crux of why corn-based ethanol is a boondoggle. EROI can also be expressed as “net energy,” in other words, if you put 1 BTU (British Thermal Unit) making something, and you get 1.2 BTUs as an end product, your EROI is 1.2:1 and your net energy is 0.2.

0.2 sounds small. It is. And that’s the net energy of corn-based ethanol. At EROI of 1.2 to 1, the
3.9 billion gallons that the US produced in 2005 required 3.29 billion gallons of BTU energy input, resulting in a `net energy' of 610 million gallons.

And remember, this is being generous. There are some computations that show corn-based ethanol has a net energy of zero. Others show it as a net energy LOSER.

Meanwhile, all that corn that was used to make ethanol could NOT be sold for food. So, your food prices are higher.

How does corn-based ethanol compared to oil when it comes to EROI? When oil was cheap and fresh and literally gushed out of wells, the EROI on oil was about 100 to 1. That’s right, 100 to 1. Even nowadays, when we’re drilling for more expensive oil, the EROI for oil is about 10:1 or 15:1.

So why would anybody bother with corn-based ethanol? The answer is simple: Money! Agriculture giants like ADM and the big corporate farms are making money with both hands. On the one hand, they make money from tax subsidies for ethanol production. On the other hand, they make money from selling corn as food because corn is more scarce, so the price of it goes higher.

I not only think corn-based ethanol is a bad business idea. I think it’s a sin.

That said, the technology could improve. If scientists figure a way to improve the EROI of corn-based ethanol, it might be worth it.

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The Natural Gas Mafia?

The news that Russia and Iran may be forming a natural gas cartel definitely has me nervous. Raymond J. Learsy is nervous, too...

What's worse than one bully? A mafioso of them. And if Iran's Supreme Leader Ayatollah Ali Khamenei has his way, the world's largest natural gas producers might try to form such a mafia to manipulate markets and keep gas prices high and ever higher, just as the OPEC cartel has so successfully and destructively done with oil.

Read the rest by CLICKING HERE.

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Sunday, February 11, 2007

India Gets its Dil Chahata Hai

Dil Chahata Hai means "heart's desire" in Hindi. India has been reduced to beggar status in the international nuclear community because it does not have enough uranium to meet its needs. It got a lifeline from US because Uncle Sam wants India as a regional counterweight to a rising (and sometimes belligerent) China. But Australia, the world's richest storehouse of uranium, refuses to sell to India because it broke international nuclear proliferation treaties.

Well, maybe India doesn't have to beg anymore:

NEW DELHI: India has identified the uranium deposits in Andhra Pradesh, which can meet the fuel requirements of India's nuclear power programme and mining for the uranium ore will start by the end of this year. Read more by CLICKING HERE.

I don't have information on India's uranium deposits. I don't know how rich they are, mining costs, etc. But this has the potential to give India a much better seat at the table, and could also shift the balance between India and its neighbor, Pakistan. Keep your eye on this story.

UPDATE: Now -- NOW -- Australia says it could sell uranium to India "within a decade." Ziggy Switkowski -- the best-named bureaucrat EVER -- who headed Australia's Nuclear Task Force, says ""India's credentials are well regarded in Australia and... therefore it may mean they emerge eventually as a potential market for Australian Uranium."

Well, depending on how ambitious India's nuclear program is, they may definitely need it. For now, I think the real excitement in India will be over mining their native uranium.

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News From Cameco: Songs of the Drowned

Man, I go off to Orlando and I miss all the good stuff. Check out the latest from Cameco on its Cigar Lake Mine. They're delaying uranium sales from Cigar Lake by up to 7 YEARS!

Cameco Corp.
has deferred planned uranium sales from its flooded Cigar Lake mine for up to seven years, putting further supply constraints on an already tight market and raising concerns the crucial project could be delayed even longer than expected.

The world's largest uranium producer said it has postponed deliveries of Cigar Lake uranium initially scheduled for this year to the end of those contracts and said other customer deliveries affected by the supply interruption will be put off for "a five- to seven-year period."

Read the rest by CLICKING HERE.

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Saturday, February 10, 2007

Orlando, the Labyrinth, and The Tower of Babble

I went to Orlando for the Money Show on Thursday morning and just came back, so I hope I didn’t miss much. I had about 1,000 emails waiting for me in my inbox.

In case you’re interested…

Gold made a strong technical breakout on Friday. Silver has been leading gold higher, but gold had such a strong Thursday and Friday that the yellow metal might be taking over as lead dog. The time to buy your favorite gold stock is now. I have so many ideas I can’t even fit them all into my portfolios. And the ones in my portfolios are so packed with firepower they are Kiss-Me-Deadly. These are the golden bullets you want locked and loaded if we get hit by the monster shitstorm that Mike Larson and Martin Weiss (my coworker and boss) have been predicting.

And I’m adding more. I talked to a guy today, he’s chief geologist of a mining project in Latin America, they are starting production this year, already know they have half a million ounces of gold, probably 1.5 million ounces defined by end-of- 2008, mining costs are just $200 per ounce (probably even less, but I won’t bore you with why), TAX HOLIDAY for 18 more years, so they keep what they earn, back-of-the-envelope figuring tallies up to a $200+ million resource valued right now at about $65 million. It’s trading at under a buck a share, and that’s Canadian, which is, as we all know, monopoly money (LOL! Just kidding, my Canadian friends). I’ll probably recommend it to my Red-Hot Canadian Small-Caps subscribers next week – there are still some things I have to check out.

You think that’s good? I got stories like that left and right. Silver -- man oh, man, how sweet it is. Check out the weekly chart of a stock I’ve had my subs load up on for months … BREAKOUT! You think that’s the end? No. Man, Hell, no! My INITIAL price objective is 8.75, and it could go much higher than that (especially if silver goes to $20 this year, as I think it will for reasons I won’t bore you with). And you can buy this one in the US, too.

And uranium? I gave my presentation on uranium to a packed house. Considering that I got lost twice in that freakishly huge Pan’s Labyrinth of a hotel, I’m amazed anyone found the room, and best of all, my speech was very well received. The uranium story is simple: A tidal wave of demand threatens to swamp available supply. The uranium stocks I recommended in my first report are lifting off the launch pad, riding plumes of white-hot nuclear fire. The stocks in my second uranium report are still smoking on the launch pad. But you wouldn’t be interested in a near-term uranium producer with a resource valued at about 15 cents on the dollar, one that’s going to mine the stuff in about the most eco-friendly way you can imagine, by pumping baking soda through the rock and then sucking it out with the world’s biggest Crazy Straw. Yeah, baking soda. Welcome to the weird, weird world of In-Situ Recovery mining. It’s going to put Texas uranium mining back on the map. Nope, you wouldn’t want that stock. My God, what was I thinking burdening the buyers of my second uranium report with a turkey like that? Or maybe you DO want a potential moonshot like that. In that case, CLICK HERE.

I’m just saying, my friends, that if you aren’t investing in natural resources yet, consider it. Here’s a couple good mutual funds run by people much smarter than me:

World Precious Minerals http://www.usfunds.com/funds/worldgold_doc.asp

Global Resources http://www.usfunds.com/funds/resources_doc.asp

I'm not saying "buy 'em," I'm just pointing out that they're out there.

I also got to hear Newt Gingrich speak. He is a powerful storyteller – absolutely brilliant. As an Irishman I respect the storytelling tradition, and if you speak in public, and you have a chance to hear Newt speak, take it, even if you think he’s making it all up. Listen to Newt, and you’ll see where Stephen Colbert came up with the idea of “truthiness.” I liked his speech so much I bought the CD, and I’m going to study it for how to improve my own speeches. The Republicans need great storytellers like Newt – their storytelling is their strength (See Ronald Reagan – another great storyteller, and my dark-horse pick for the Republican presidential nomination in 2008, Mike Huckabee).

Speaking of politics, I found something political and delicious. You can find it by following this link: http://www.youtube.com/watch?v=wsqprEihjXg If Weiner was my rep, I’d vote for him. Where the hell has this guy been for the past six years?

Anyway, now I’m back at the computer at home, after reading my son Peter some Spider-Man comics (see below) and he zonked out dreaming of the Webbed One. See, Peter is just AMAZED that Peter Parker and he have the same first name. Coincidence? Peter thinks not! I had the comic book because, on the way home, I swung by one of the most amazing comic book stores I’ve ever seen – Sci-Fi City. I’ve seen better collections of comics, though I was able to get some good Spider-Man comics for Peter (yeah ... they’re for Peter … sure), but the rest of the store was chock-a-block with every kind of game, collectible, and downright weirdness that you can imagine. Half the store was devoted to people busily playing card and miniature games. And this place was busy. Many people coming in with their kids– like me, getting them started in geekdom early.

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Friday, February 09, 2007

2 charts for ya

I'm busy as a bee at the Orlando Money Show, but here are two charts for you...

First, an update of last week's weekly silver chart...

and here is gold on a daily chart...

Bullish? Heck, yeah! If you didn't get in on the most recent recommendations in Red-Hot Canadian Small-Caps before they blasted off, look for an update for you on Monday.

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Wednesday, February 07, 2007

Thought-Provoking Essay

Read THIS.

A few excerpts ...

The announcement in December by the Kuwaiti government that production had peaked and is now declining at the world’s second largest field, Burgan, passed without comment or even a blip in the price slide.

The fact that Iran on current trends is set to become an oil importer in six or seven years causes not the least anxiety. The world’s oil replacement ratio, that is to say the percentage of consumption that is replaced each year with new discovery, has fallen to 30% and keeps falling.

The truth of the matter is that the world is in the midst of an energy crisis, but neither the NYMEX nor the IPE seem to have noticed.

Instead, the market is worried, worried, worried about an American recession. We have news for the market. The recession arrived seven years ago and is gathering strength. GDP in real terms is contracting if one deflates it using an inflation index calculated the way it used to be calculated instead of the hedonic, chain-weighted nonsense that the government churns out to ensure that GDP stays positive. If Uncle Sam was still calculating the rate of inflation the way he did in 1970 when US oil production peaked, it would be over 10% per annum instead of the fictional 2.6% that the government claims today.

XX My one crit to this essay is the author is too focused on the US. True, we lead the global economy by the hand, but the global economy is growing more able to stand on its own every year. Nonetheless, whether you agree with him or not, it's a gripping read.

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New Way to Find Uranium?

According to ABC (The Australian Broadcasting Corporation):

Mining companies may soon be using native plants instead of drill rigs to find mineral deposits.

New research from the University of Adelaide shows that as plants spread their roots to find underground water, they bring up the minerals underneath into their leaves, which can then be analysed to find what rocks are below the surface.

Geology lecturer Dr Steve Hill says they have already had success identifying uranium deposits in the Curnamona Craton in South Australia's north.

He says mining companies have already expressed interest because the process can be just as accurate as drilling, but is far less expensive and more environmentally friendly.

Read the rest by CLICKING HERE

XX If you talk to miners, they usually have a couple tales of woe. One is finding talented staff -- geologists and engineers -- to work on projects. The other is the scarcity of drilling rigs. This sounds like an interesting angle on one of those problems.

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Ground Control to Major Tong

Remember that story I posted on Monday about China going to the moon? I turned it in to a Money and Markets column. My editors cut out an important transition, from the quest for helium 3 to nuclear power today, but eh … I’ve had better pieces hacked worse.

http://moneyandmarkets.com/press.asp?rls_id=682&cat_id=6&

They didn’t use my original headline: “Ground Control to Major Tong.” My editor said he was afraid that readers wouldn’t get it. Hey, how old is David Bowie now? When did he sing “Space Oddity?” Decades ago, at least. I think most of my readers would get it. More importantly, even if you didn’t get it, would the headline “Ground Control to Major Tong” stop you from reading it, or would it intrigue you?

Continuing the uranium theme, I’m going to speak at the Money Show in Orlando on Thursday. My presentation is on uranium. That should be fun. Even better -- I'll get to visit one of the big Comic Book stores in Orlando.

http://www.sci-fi-city.com/ or http://www.coliseumofcomics.com/

I’m turning my four-year-old son into a comic book geek (he's starting to read and write, and comic books are easy to read). Peter is a Spider Man fan. He’s AMAZED that he and Peter Parker have the same first name. Coincidence? He thinks not!

And the Spider Man fans among you will remember that in the original comic book, Peter Parker turned into Spider Man thanks to a bite from a RADIOACTIVE spider! See, it all comes around.

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Tuesday, February 06, 2007

Snapshots of the Commodity Supercycle

Bloomberg offers many functions on its terminals. One I've recently discovered is CRR , which allows you to make charts showing how different commodity futures perform. Here are some examples (NOTE: There is no uranium future, so it does not show up on these charts)...

Year to date ...
For 2007, natural gas is kicking butt! Notice how oil has actually lost ground -- it's interesting that natural gas is going up when oil is going down, isn't it? I expect sugar to be in the dumpster, and sure, copper has been getting plenty of bad news with the implosion of the US housing industry, but zinc? I am SO glad we took profits a while ago on Zinifex (an Australian zinc producer) in Red-Hot Asian Tigers.

Note also how silver is outperforming gold by a wide margin. It's nice to see these aren't just voices in my head saying this (LOL!)

Here is the 3 month chart ...I guess natural gas ended this past three months where it started, so it didn't end up on the best OR worst list. That means all of natural gas' gains have come recently.

Here is the 6-month chart ...
Nickel has been kicking butt over the longer term. Gold has been trading sideway in a range for the last six months, so it doesn't make the best or worst list (silver continues to outperform). Corn and soybeans continue to be strong performers.

One year ...

Man, zinc is one of the big winners over the longer-term, so that tells you its recent performance is absolutely horrendous! It's a worse pick than copper! Over one-year, natural gas is one of the big losers. That tells us that its recent rocket ride not only has momentum, but it still has lots of ground to make up.

Now what will outperform for the next year going forward? Well, if I knew that, I'd have my own island! But Red-Hot Canadian Small-Cap and Red-Hot Asian Tiger subscribers know what I suspect will outperform.

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