Friday, August 29, 2014

Updated Dollar Chart -- The Greenback Bumps Its Head

Here's an updated U.S. dollar chart. As predicted the U.S. Dollar Index went up to test overhead resistance at 82.70. As expected, it bumped its head.

(Updated chart)

Is the rally over? It's hard to say. Momentum still looks strong, and it's not unusual for anything to pull back before plowing on ahead. Next week should give us more clarity.  Have a nice long weekend.

Thursday, August 28, 2014

The Eagleville Project, Nevada

So a few weeks ago, a friend of mine in the industry called me and said, "There's a gold exploration project in Nevada, they want you to come and take a look at it." He told me the name of the company.

"That's too small," I said. At the time, the stock traded for 15 cents. The market cap was (and is) minuscule. "Even if I liked it, I couldn't recommend it."

"Come anyway," he said.

"How am I going to justify the expense?" I asked.

"They'll pay your airfare and hotel."



"Just what I want, to be squeezed into an economy class seat, shipped across the country like a piece of meat, then end up in Reno."

"You'll find it interesting," he said. "Come and see."

So, I went. And sure enough, the project was interesting, as you'll see from the video I'm about to post. But this is not a recommendation. I'll explain why.

Good points include ...
  • It's in a highly prospective geologic area.
  • It was previously a working gold mine. Often the best place to look for gold is in an old gold mine. The old-timers missed a lot, especially if they were chasing visible gold in veins.
  • The geologist, Tom Callicrate, really knows his stuff. 
  • Technology has improved quite a bit, and that could help the discovery process.
However ...
  • The company that owns Eagleville is very small. Its share price is low.
  • It has enough money to cover expenses for this year, but it will have to raise more cash.
  • The volume on the stock is very low.
  • I cannot emphasize enough how risky a gold exploration stock is, especially in an environment in which gold prices are drifting sideways to down.

And yes, it's near a working gold project. But that can be akin to the similarity between lightning and a lightning bug.  The jury is out until they prove they have a deposit.

One final point: You can buy working gold mines with good prospects for expansion at close to book value right now. Sometimes cheaper than book value. Maybe not for 15 cents a share. But they're producing mines. Eagleville is not.

So no, I do not recommend this company at this time. It has a whole drilling program ahead of it. Anything can happen. They might actually turn up a sizable gold deposit. They might not.

Here is the video ...

And if you want to see a longer version of this video, with extra footage at the end of Tom showing us lots of maps about the project and the area, CLICK HERE

Wednesday, August 27, 2014

Drowning in the Desert, on the Fringe of a Dying Empire

You know what the Nevada desert has too much of? Rain. It’s ironic that at a time when neighboring California is so bone-dry that wells are running dry across the state and residents are turning to bottled water for just about everything, the first day of Burning Man in the Nevada desert was canceled. Due to rain.

The skies opened up in a deluge. So much rain poured down that roads leading into Nevada's Black Rock Desert were deemed "un-drivable" by the event producers. State police turned away 50,000 or so people, who then dragged their butts back down the road to spend the night in Reno.

A photo from a previous Burning Man
I know this because I was staying in Reno. It’s about my fourth time in the city in three years. And my hotel was flooded with rained-out Burning Man refugees.

The big casino hotels in Reno are cavernous structures built for a boom of a different age. They were constructed just around the time the local energy boom was cresting and the nascent gold and silver boom was in its infancy. 

Meanwhile, Vegas was building glittery castles to the sky. So, the entrepreneurs of Reno rolled the dice, and they built big.

They bet their hunches, but hunches can be wrong. A recession that Ben Bernanke calls “worse than the Great Depression” went around kicking the state of Nevada (and everyone else) in the ‘nads, repeatedly. Real estate collapsed. The mining boom flamed out, stillborn.

And while Vegas seems to be back on its slippery feet, Reno hasn’t come back. Not yet.

As a result, these huge hotels in Reno tend to be half-empty at the best of times, and eerily spooky at others.

But on Monday, my hotel was teeming with freaks, geeks, musicians, groupies, hippies, hipsters and wanna-bes, artists, poets, satirists, and the kind of red-eyed dilettantes that populate the fringe culture of a dying empire.

And I found myself doing something I never thought I would do – enjoying myself in Reno.

One of the main reasons I enjoyed this trip is that Reno hotels don’t assault you with noise the way Vegas hotels do. So I was more relaxed from the get-go.

Also, the wine at the bar was dirt cheap ($4). The entertainment was women in bikinis wrestling in chocolate syrup, which was cheered enthusiastically by the crowd. While we were there, a waitress came by our table and handed out a round of free shots of Crown Royal.

A better photo than I could have taken
The food at the hotel restaurants was excellent. And the indoor pool and hot-tub was clean, uncrowded and relaxing.

And the Burning Man refugees made the place a people-watching gawker's paradise.

Sure, the electric sign out in front of the hotel may not work correctly, and half the machines in the exercise room may not work at all. But Reno has a certain shabby charm.

In fact, I told friends, “The people here seem genuinely friendly, whereas in Vegas they just see you as a target and want to hose out your wallet.”

“What is wrong with you?” one of my friends, Jon, railed at me long-distance. “Reno is shabby Disneyland for low-lifes. It's a low-roller's paradise.”

“I must be a low-life then,” I replied with a laugh. “It’s not paradise. But I’m much more relaxed than I’ve ever been in Vegas.”

Jon then regaled me with HIS Reno story:

“On my one visit there, we stayed at one of the older casino hotels on the main drag, right across from the pawn shop. You could stand at the window and watch the teenage junkies five floors below as they pawned their leather jackets.

“Also, whenever Allyson went down to the lobby without me, she had to show her room key to the security guard by the elevators, because hookers. Nobody ever stopped me and asked me to show my key.

“And there was the hundred dollar bill incident. We were waiting for the elevator and the door opened and there's a hundred dollar bill, lying on the elevator floor. Instant dogpile as four or five people scrambled for the money--finally a woman came up with it in her fist and said ‘Praise God! My luck's finally turning around!’ Allyson and I stood there, stunned.”

Jon added: “This was all on a two day visit.”

I sighed. “I’m staying at a slightly better hotel, Jon.”

The fact is, I did enjoy Reno, and I enjoyed the Burning Man refugees tremendously.  That’s after I gave up trying to explain Burning Man, an art, music and culture festival that is probably the biggest to-do in that part of the country, to my host who was showing me around the gold and silver project I’d come to see.

The guy who invited me to see the project is a born salesman, a deeply committed Christian, a tee-totaler, FOX News true believer, and an avid sportsman. I think Burning Man exists in another universe than he does. He’d never heard of it before.

A local drilling contractor who accompanied us on the tour expressed his contempt for Burning Man attendees. “They’re dirty hippies,” he said. “They’re filthy, they stink. They roll around in the dirt like animals, and they don’t even know the dust is poisonous.”

There are many reasons not to attend Burning Man, but that’s the first I heard that the desert dust is poisonous. I think if I was young, I would go. They’re expanding Burning Man for next year, by the way. I guess we have no shortage of dirty hippies.

And it’s funny how so many people hate other people without getting to know them.

Anyway, I had some good conversations, and a good time. I’m not mentioning the name of the Reno hotel I stayed at because they deserve a chance to at least fix their big sign.

Oh, and I checked out a gold-and-silver project. I’ll be posting a video from that tomorrow. I am NOT recommending the stock; it’s too small, and it doesn’t have enough volume.  And it will probably have plenty of ups and downs as it grows (or not).

But I did meet some fascinating people. There are some big things going on in the Nevada Desert.

I'd say the potential for a major discovery is better than average, thanks to changes in technology and geologists better understanding how that part of the world was formed.

Why try to develop a gold and silver mine when the price of precious metals is in a slump? Buddy, that’s exactly when you should be doing it.

For one thing, you can get contractors for a song. In fact, I hear they’re having a special on hippie-hating contractors right now.

Sunday, August 24, 2014

Scouting Out Nevada's Gold Country

I'm flying to Nevada today, checking out some hot metals prospects.  Here is a link to the videos I shot when I was last in Nevada, a year ago

Happy trails,


Friday, August 22, 2014

How About That US Dollar Rally?

The US dollar continues to rally. Here's a weekly chart ...
(Updated chart)

  • As you can see, the US Dollar rallied right through overhead resistance at the 50% Fibonacci retracement of its big decline.
  • It's now trading at its high for a year.
  • It will likely test the 82.70 area. And it could go higher from there.
  • Momentum is not only bullish, it is strengthening.

The dollar seems to be driven by a 1-2-3 of weak Europe, strong U.S., and the general feeling that the U.S. Federal Reserve will start hiking interest rates sooner rather than later.

Naturally, a bullish dollar is weighing on gold and miners.

I recommended that Gold & Resource Trader subscribers take some mining gains recently. I probably should have recommended taking more off the table. However, gold buying is starting to pick up again, probably driven by India.

So gold and miners could do well despite a dollar rally. After all, we are entering a season that is typically good for the precious metals.

We'll see. And we'll also see if Mighty Greenback bumps its head and heads lower. 

Have a good weekend.

Thursday, August 21, 2014

2 Stories on Silver and the Killer Drought

I've been away recently -- I was in Alaska. While there, I had the opportunity to fly from Deadhorse to Anchorage by helicopter. The whole trip took 8 hours, but that includes 2 hours of sitting in stream beds in the middle of nowhere, waiting for fog to blow over.

It was a gorgeous trip ...

Now, I'm hopping on a plane again this weekend for Nevada. Some guys have a prospective property there that they're very excited about.

In the meantime, here are two stories of mine that may interest you.

The Land That Rain Forgot
California is having the worst drought in recorded history. But if you think the impact of this new dust bowl is going to be limited to the land of latte-drinking, Volvo-driving liberals, think again. READ

The Fix Is In on Silver
A relic from Queen Victoria's time catapulted into the computer age last week. I'm talking about the "silver fix" - the mechanism by which a handful of dealers set the price of silver by backroom negotiation. READ

Saturday, August 9, 2014

Good Year (So Far) for Gold & Resource Trader

My colleague Matt Carr crunched the numbers on the performance of my publication Gold & Resource Trader (GRT) and came up with some stats to lift my spirits.

On Wednesday, Matt wrote: 
You had a banner start to the year: out of 20 closed positions (including partial closes), 16 were closed for gains, 3 losses and one flat. And 9 of those closed positions were for double-digit percentage gains. 
And all of that was during when the sh*t hit the fan – from mid-January to April – when the broader markets corrected, biotechs collapsed and the Nasdaq toppled.

Matt added ...
The Dow (based on yesterday's close) is up only 0.10% for the year. The S&P is up 4.56%. The Nasdaq is up 4.57%. And the Russell 2000 (small caps) is down 3.06% this year. Gold – for instance, SPDR Gold Shares Trust (GLD) – is up over 5%. Despite all the negative news and views on gold. Metals have outperformed the market this year. Even the lowly gold.

Then Matt said ...
GRT has only closed 8 positions for losses so far in 2014. That’s out of 35 closed positions. That’s a success rate of 77.14% on closed positions… Basically 8 out of 10 positions are closed for gains. Sean’s had 11 positions closed for double-digit gains. And has two more positions open with double-digits gains at the moment. He has a very strong track record. A very strong track record in a sector most investors have abandoned or cast aside.

So where does this leave us now? I recommended my GRT subscribers close two more positions on Thursday. One was barely positive, but it was turning against us, and I'll take any win when the broad market was having a terrible day. The other position was yet ANOTHER double-digit percentage gain.

Of course, individual performance depends on where you buy and sell, and what commissions you pay, if any. 

Bottom line: it's been a pretty good year so far. Sure, many of GRT’s gains are on the small side. But there are plenty of double-digit percentage gains as well.

If you're one of my paying subscribers, thanks for coming along for the ride. 

All the best,


Weekend Reading: Coffee and the Hottest Emerging Market

Here are a couple of stories and charts I had published this week.

Have a great weekend. I'm in Prudhoe Bay, checking out another very interesting company.

Friday, August 8, 2014

I'm flying to Prudhoe Bay -- Links & Gold Chart

I'm flying to Prudhoe Bay today and tomorrow.  I want to stay healthy on this trip, so I better eat plenty of salad.

You're welcome.

Here are some links to keep you entertained and informed.

About those Chinese iron ore miners cutting output
China's hundreds of small miners are not necessarily following the playbook. We'll have to watch this and see how it plays out.

Gold price rallies on Iraq, Ukraine
And yet after dropping on news that we are bombing ISIS (ISIL) militants in Iraq, US market futures have turned positive. Go figure. Also, yesterday's sell-off in the S&P 500 saw the lowest volume of the week. This sell-off lacks conviction. Until we see real volume, the S&P bears have to be nervous.

Here's a chart of interest.

(Updated chart)

One more thing: Over the last month, gold saw a negative 19% correlation to U.S. stocks, and silver had a negative 13% correlation. When the broad stock market is going down -- as it has for the last month -- that's a good thing.

Ebola Drug Firm Shares Go Bonkers After FDA Announcement
Yeah, I'll bet.

Have a great Friday.

Thursday, August 7, 2014

2 Precious-Metal Must-Sees

Do you believe in cycles? Many people use them in trading. I think gold is in a virtuous cycle now, and that's partly why I think it's going to $1,430 by the end of next month.

And for those who cringe about making predictions: Remember the phrase, "strong convictions, loosely held." In other words, nothing is set in stone.

Meanwhile, I don't follow any particular silver cycles. Silver is gold on steroids, right? It will just over-do whatever move gold makes. So who cares about silver cycles?

Well, one guy cares, and he is watching a 36-month silver cycle.

That's from @Gann360, a technical analyst I follow on Twitter. 

Does it mean anything? I don't know. It is interesting to look at, though.

Now, that's one thing. The other thing is that the great folks at Visual Capitalist have put together one of their nifty infographics (again). This one is about "What the IRS needs to know when you buy and sell gold & silver".

You can see this in full-size glory at

A Tale of Two Charts (Gold & The Dollar)

I'm super-busy this morning -- putting on a new trade and grabbing gains -- but here are two charts I need to share with you.

First, an updated version of the weekly chart of the Dollar Bullish Fund (UUP) that I showed you on July 28. It tracks the US dollar Index closely.

(Updated chart)

You'd think a test of #2 looks like a certainty, right. Except that nothing is certain in the markets, and there is ALWAYS another chart.

Next, here is a daily chart of the UUP, and below that, I've put gold vs the dollar. Gold USUALLY goes in the opposite direction of the US dollar, but not always. They both rallied this week because of geopolitical fears, among other reasons.

(Updated chart)

The daily chart of UUP looks like it is running into trouble -- just as it gets close to that overhead resistance. While the resistance line may still act like a magnet, it sure looks like sellers are chomping at the bit to sell the greenback.

That could be good for gold. But we'll see. Good luck today.

Wednesday, August 6, 2014

10 Ripping Reads and Sizzling Charts for Wednesday

I had a very nice piece written this morning on the California drought -- but then the Daily Grind ate my homework. Seriously, they're going to run it this week. So, please accept these interesting, provocative, and potentially money-making links as a consolation prize.

1. U.S. trade deficit narrows as petroleum imports fall
The Commerce Department said on Wednesday the trade gap dropped 7% to $41.5 billion, the lowest reading since January.

2. Calculated Risk adds ...
Exports are 18% above the pre-recession peak and up 3% compared to June 2013; imports are about 2% above the pre-recession peak, and up about 5% compared to June 2013.

3. Trouble in Europe
Italy falls into recession with its second quarterly contraction (-0.2%; previous -0.1%). Take a gander at a chart of Italian GDP growth. 
Also, Germany reports second consecutive monthly decline in factory orders (-3.2%; previous -1.6%). This comes on top of China's July service sector PMI falling to 50 from 53.1 in June. When that news came out yesterday, it really soured the market (and pushed silver and copper lower). Now this European news seemed poised to push stocks lower this morning, but stocks are resilient as the S&P 500 trades around support..

(Updated chart)

Note -- the broad market is oversold, and this makes a bounce from this support more likely. It is not, however, pre-ordained.
Another note: Bespoke, who I trust, is generally gloomy on Europe. Could this pull global markets down?

More bad news for Europe ...

4. Putin Readies Retaliation
Russian President Vladimir Putin said he has ordered his government to prepare retaliatory measures against US and European sanctions imposed last week.

Note: The New York Times reported that Russia is massing large numbers of troops on the Ukrainian border in a "war game" exercise. Also, the Polish foreign minister said that a potential Russian invasion of Ukraine was "imminently possible." Sure, but he has a history of making outrageous claims. And the New York Times has been used to trump up calls for war before (see Iraq invasion. Does nobody have memory anymore?) Russia denies the claims of troops massing.

Another Note: On the bright side, a cease-fire in Gaza is holding (for now). Maybe it's time to buy Israel?

Anyway, Russian saber-rattling means ...

5. Gold Higher On Safe-Haven Demand
There's not much at this Kitco link that we don't already know (sorry, Kitco dudes). 

It may not be just Russia -- ISIS is also capturing key infrastructure in Iraq, including a dam and Kurdish oil fields. However, Iraq's key southern oil fields remain ISIS free for now.

6. Silver Doctors: Deja Vu All Over Again in the Gold Market
Some interesting stats here.

7. Why Murdoch Pulled Time Warner Bid 
iven the reaction of the Fox stock price to the news, Fox has decided that it can create more value for shareholders by buying back its own stock and executing its own plan than by chasing after Time Warner.

8. Hackers In Russia Have Stolen More Than A Billion Usernames And Passwords
The records included confidential material from 420,000 websites, such as 1.2 billion username and password combinations and more than 500 million email addresses. 

9. Antarctica's Point of No Return

Recent satellite observations have confirmed the accuracy of two independent computer simulations that show that the West Antarctic ice sheet has now entered a state of unstoppable collapse. 

10. Let's end with some good news. Here's the Gallup Job Creation Index ...

The job creation index hit a 6-year high in July.

Good luck and good trades today.

Tuesday, August 5, 2014

I Was an Ebola Zombie!

By now, you’ve heard about the worsening outbreak of Ebola – the most lethal hemorrhagic fever known to man. It is spreading across western Africa. The big worry now is that it will spread much further by air travel.

 This particularly scares me because I may have to fly twice in the next month. But there’s something else. One time, when I traveled on an airplane, I was once convinced that I had Ebola, or maybe that I was zombie patient zero.

Let me tell you that story.

Your Basic Zombie Morning

My day at the airport in Reno, Nevada, started rather ordinarily. I ordered a large iced tea and breakfast sandwich from Burger King. I know, I know, it's junk food. At 6 am, all airport food is junk.

I had finished the sandwich, and was halfway through the iced tea when my stomach started to feel weird. Now, maybe we shouldn’t blame Burger King. I’d had dinner at an Asian fusion place the night before, maybe that was the problem. In any case, I hobbled to the bathroom.

Oh, I should mention here that I needed a cane. This was a couple months after I had fractured my knee. I did that when I tripped over an uneven sidewalk while jogging. If you ever want to prove to someone you shouldn’t go jogging, folks, take it from me: Jogging can cause grievous bodily injury.

So I was hobbling around, using a cane. But the job still needs doing, and my job involves going to mines and potential projects. That’s what I was doing in Nevada.  On the bright side, it was a really nice project.

But the point is, my knee was already strained. Then I had played mountain goat on a gold project. Now, the next day, I was quite wobbly as I hurried to the bathroom.

So, I went to the bathroom and had the runs. Then I went back again later for the same thing. Do you think that's gross? Gross hasn't started yet.

Easily Offended? Go No Further

Seriously, if you're easily offended, stop reading now.

Luckily, I'm a guy who believes in preparedness. So I popped two Imodium, a medication that reduces the symptoms of diarrhea by drying up your guts. I drank a lot more water, and got on my plane. Turns out I was stuck in the middle seat next to an old feller who was hobbling worse than I was. 

This old dude looked like he was held together by baling wire, spit and stubbornness. He also had a custom cane that I was immediately and irrationally jealous of.

The flight attendants buzzed around the old dude even before the plane took off, trying to pump water and food into him to make him feel better. So they didn’t notice me, and how pale my face was getting.

As soon as the seatbelt light went off, I went back to the bathroom. To get out of my seat, I did a rub-along-creep over the old guy that a Vegas table dancer would be proud of. There was a line at the bathroom, but I didn't have to go, I was just making sure. Nothing happened. Hey, maybe I was all worried for nothing.

I got some TUMS antacid out of my backpack (I travel VERY prepared), friction-danced my way past the old guy, and tried to sleep. I actually slept on and off, but my dreams were strange. Dreams like …

There was a casino in first class that I wasn't allowed in … there was some byzantine plot at work worthy of Game of Thrones … someone was trying to infest me with a brain parasite. Holy heck, who has dreams like that?

I'd wake up from each of these fever dreams going "What the (expletive deleted)!"

Acidic and Serious

I now knew I was feverish. That probably wasn't good. The old guy wanted to talk, and I tried to keep up my end of the conversation, meanwhile I ate more TUMS, because my burps were getting more acidic and more serious.

Suddenly, it hit me like a bolt of lightning. I knew I was going to throw up. I turned and looked at the old dude. His eyes widened with alarm as he saw the look on my face. "I need to get out,” I told him. "Right now."

The urgency in my voice spurred him into action. He started to get up. VERY slowly. I could have been out past him in three seconds, this took at least 20, 25. Tick … tick … tick … as the contents of my stomach slowly bubbled their way up my esophagus.

Finally, the old dude stood up. Finally, I got out – hobbling the whole way, mind you – and looked back down toward the lavatories. The aisle was packed with passengers and food carts. Dammit!

Here’s the thing: I REALLY knew the puke was coming now. So I turned and hobbled into first class, straight to the bathroom we economy-class plebes had been told not to use. "I really gotta use this," I told the startled steward as I lurched past. 

Black as the Ace of Spades

Luckily, the first-class bathroom was unoccupied. I got inside. I lifted the toilet lid just as an enormous wave of puke rushed up out of my throat like an alien trying to get out of my body. The hot bile swamped my teeth and the roof of my mouth and tongue like tsunami victims in Indonesia.

To be clear, I was positioned over the toilet. Clearly, it didn't matter. Either the splatter effect sent puke everywhere, or my mouth is so darned big that it is less of a funnel and more like a canal lock. Puke. Went. Everywhere!

And then I did it again! Worse, this time, puke splattered over my pants, down into my cuffs, onto my shoes. And now we get to the scary part. My vomit was BLACK. Black as the ace of spades, like I'd swallowed an octopus and it squirted ink in my stomach.

Now when is vomit black? I’d heard of that only one time: When someone has Ebola.

Ebola is a perfect killer in that it transforms virtually every part of the body into a digested slime of virus particles.  Literally every part of your insides bleeds and liquefies. As that blood and viscera stews in your body heat, it turns black. When Ebola victims puke, it comes out the color of midnight, with such force that it’s been known to tear off the tongue’s skin.

To be sure, I’m one of those idiots who looks up medical symptoms on the Internet (my diagnosis is inevitably cancer). So my knowledge of Ebola was very limited. But the black puke was a dead give-away.

Unless … could it be … zombies puke black vomit too, don’t they? Darned tootin’ they do. Maybe I was a zombie!

The “Sharktopus” of Airborne Creature Features

Now, in my defense, I had a raging fever. I wasn’t thinking clearly. So forgive me if in those first terrible minutes, I convinced myself that I’d turned into an Ebola zombie hybrid. The “Sharktopus” of airbone creature features. I was “Zombola,” maybe.

But then, kneeling in a puddle of my own vomit, my head cleared a bit.  I realized it had to be the Imodium that made my stomach contents black. What I was throwing up wasn’t my own liquefied guts. It was an ichory soup of this morning's breakfast and last night's tuna-steak burger and sweet potato fries.

Either way, it was awful!

However, I felt better. So, now that I was going to live through this, I decided to mitigate the humiliation, as well as the mess for the hard-working airline attendants. I cleaned the bathroom and my clothing frantically. The hardest part was the floor, which was now coated in black bile soup. The “soup” vibrated along with the thrum of the jet engines. Cleaning that up took a LOT of paper towels.

Still, if I do say so myself, I cleaned up pretty well, and the room looked okay, too. I did use up most of the paper towels, but what were the odds of two Ebola zombies on the same plane on the same day?

When I got back to my seat I felt better. Though I did keep a barf bag from the plane handy.

When we landed, I stumbled off. I was still sweating profusely. The flight attendants gave me cautious looks. I think they were glad to get me off the plane and out of their zone of liability.

I called my wife from the Atlanta airport and told her what happened. She was very sympathetic.  Perhaps TOO sympathetic.

“You’ve had a terrible ordeal,” she said. “I wouldn’t blame you if you checked into a hotel and stayed the night in Atlanta.”

Yeah, thanks, Honey. I get the picture. If I did have Ebola – or was a zombie – she wanted me to find that out away from home.

But I went home anyway (I live in Florida -- the flight from Reno to Atlanta was just the first part of my journey). I paid up for first class, so I would potentially infect less people. I knew I didn't have Ebola. But something had twisted my guts. if I did infect someone, hopefully it would be one of those Wall Street bankers in the seat next to me.

3 Takeaways

And it turned out to be food poisoning. No Ebola. No zombie.

But what can we learn from this to apply to today’s Ebola scare?

Be Prepared. I travel with a regular emergency kit of supplies just in case. You know what? Sometimes, the bad stuff really happens. 

Don’t Panic.  I panicked myself into thinking I had Ebola. Now, the news media is doing it for you. Don’t make their jobs easier by buying into the panic.

Cheap Food Ain’t Worth It. Seriously, “cheap” junk food can carry much bigger costs than you realize.

All the best,


Monday, August 4, 2014

3 Bullish Facts for Precious Metals and Miners

We had to grab another round of gains in Gold & Resource Trader today. That's not what I wanted to do, but when you hit a stop, you hit a stop.

And yes, I know, I shouldn't bitch about taking gains.

In other news, the Market Vectors Junior Gold Miners closed up 2.6% in July.  That's lower than its 4.6% average over the past five years, but considering that the Dow gave back all its gains for the year in July, I'll take it.

More interesting is what happens next. You know what history tells us: August is usually a very good month for the junior gold miners. To this we can add ...

1. Gold Industry deals have hit a 3-year high. Mergers and acquisition are trending. Deals worth about $14 billion have been announced or completed so far this year, according to data compiled by Bloomberg. Good for junior miners? I think so.

2. Silver inventories at China's Shanghai Futures Exchange are plummeting. I don't work there, so I won't pretend to know exactly what this means. But it's probably bullish. Here's a chart from the SRSrocco Report.

3.  Gold loving India recently accounted for 42% of total gold and silver leaving Switzerland. That looks like a bullish trend, too. By the way, the el Nino threat to India's monsoons has been downgraded ... the monsoons are hitting hard enough to cause deadly landslides ... and India has drought-resistant rice now anyway, So, while rainfall across northern India is about 33% below the normal level for this point in the monsoon season, maybe we shouldn't measure this year by previous years. Just sayin'.

Now we just need energy stocks to start showing signs of life and I'll be happy. In fact the fact that energy continues to slump in the face of ISIL (or ISIS) taking over oil fields in Iraq is somewhat troubling, from an oil bull's perspective. We'll see.

Happy Monday, good luck, and good trades. 

Friday, August 1, 2014

10 Top Reads & Friday Is Fun-Day

Today, I'm recommending that Gold & Resource Trader subscribers bank three rounds of non-gold gains. That puts me in a good mood. As the old saying goes, "take gains, you'll feel better."

Here are some things I'm reading.

1. Surprise! Another Sentiment Extreme Hits the Gold and Silver Market

2.  U.S. July factory activity expands at fastest pace in 39 months. Cool beans.

3. Must-know: Gas versus gasoline. Nice charts. Example:

4. Fears of a return of the weather phenomenon El Niño have cooled, spurring investors to withdraw bullish bets on food and other staples

5. Some great charts on making money in oil stocks HERE.

6. UCLA flood from water line rupture is red flag for L.A. infrastructure. It really doesn't get into it, but America's city infrastructure is falling to pieces.

7. WTO Fails to Ratify Trade Agreement. As Naked Capitalism says: "The U.S. was bullying India on this but they refused to give in. Not a good sign for TPP and other deals out there."

8. A Grand Unified Theory of Terribleness: Money Laundering by Banks, Terrorism, Genocide, and Tax Cuts. "New York takes in about $60B of tax revenue every year, so this deal is about 5% of that. And whaddayaknow, Cuomo announced roughly that amount of money in tax cuts for businesses and individuals earlier this year."

9. Why the Children Fleeing Central America Will Not Stop Coming

10. ‘Overblown’ Argentine Debt Crisis Ignored By Gold Market. This “default” was already priced into the markets four years ago in 2010 when the initial restructuring negotiations were resolved."

And now, something really cool to watch on a Friday. Using unique animation techniques, and an iPhone 5S, watch as this guy turns everyday life into a super cool cartoon universe!