Gold & Silver

A recent article titled ‘Should You Have Silver in Your Portfolio – As Well As Gold?‘, sub-heading ‘Which is Better to Own – Gold or Silver’ discusses this question under 4 headings: (1) Should We Only Hold Gold?, (2) Should We Only Hold Silver?, (3) What Are Silver’s Major Attributes?’, and (4) How Do Gold and Silver Compare With Each Other? – reading time 4 minutes.  Under the fourth heading the author lists 22 comparators to think about when comparing/contrasting gold and silver. The author concludes the article by saying that he believes both gold and silver “will do well”, but that in the end silver will outperform gold.

I think anyone owning or thinking of owning physical gold or silver (directly, or indirectly through ETF’s, gold or silver certificates, etc.), gold or silver equities, base metals equities with high silver by-product content, or gold or silver royalty or ‘streaming’ equities ought to read this article.  I suspect many of you won’t find ‘much new’, but I found the article to be a good overview and useful review document.  I suggest whether or not you read this article, you reach your own conclusion on the prospective trend direction in the gold and silver prices based on your own conclusion on how the macro-economic scene is likely to unfold over the next 1 -3 years.  From my perspective, the further ‘out in time’ a forecast or prediction, the less weight ought to be put on it – and in the complex and volatile world we live in ‘unexpected events and ‘outliers’ can make any forecast or predication ‘meaningless in a heart-beat’.

Food Shortages & Consequences

I think it worth your while to read an article titled ‘Price Shocks, Food Shortages and Global Economic Riots in 2011?‘ – reading time 4 minutes.  While one might argue that the article sets out a somewhat extreme view, I think it worthwhile to consider that it might not be doing that.  There is little question the world’s population continues to grow exponentially, and that much of the world lives in poverty.  Like many articles generated in America, this article in my view focuses to much on what the factors it cites may mean to Americans.  In my view it is more important to think about what lack of food, bad weather, world population growth, resource prices, etc. may mean on a world scale.  In my opinion a good article to read and think seriously about, irrespective of whether you invest in precious metals and resource equities, and equities generally – although it strikes me that the trends discussed in this article may well bear positively on many commodity prices, and hence on the shares of the companies that produce those commodities.

U.S. Trade Deficits

An article titled ‘Trade Deficit Falls Again‘ reports that the U.S. Net Trade Deficit fell in November by U.S.$110 million from October’s posted number of U.S.$38.42 billion.  A companion article titled ‘Trade Deficit Falls Again, Part II‘ was also published.  The reading time for the first article is 5 minutes, the reading time for the second article is 4 minutes.  I strongly recommend you read both articles.  As you know if you read these e-mails, I consider the U.S. Net Trade Deficits to be an extremely important ‘economic marker‘ of the prospective health and well-being of the U.S. economy.  I commented on the first article this morning as follows:

The author’s statement that: “The Trade Deficit fell in November to $38.31 billion from $38.42 billion in October. The fall in the trade deficit is good news for the economy” can hardly be viewed in my opinion as meaningful. The quoted drop in November from October doesn’t qualify as a ’rounding error’. That said, I agree completely with the author’s statement that: “Getting the trade deficit under control has to be one of the top economic priorities” and have written about this multiple times over the past four years (for example, see my September 11, 2009 commentary on this subject by clicking here).

Try as I might, with U.S. dependence on foreign oil and its post-1999 manufacturing job losses, I don’t see a solution in sight for the U.S. I believe U.S. monthly net trade deficits will continue for the foreseeable future, and the result will be a continuation of world wealth redistribution. My conclusion: (1) U.S. net trade deficits are a fundamental ‘U.S. economic health marker’, and (2) U.S. net trade deficits will continue, and will continually weaken the U.S. economy against the economies of its principal trading partners.

Additions to Stock Research Portal’s Company Universe

Today we added the following Companies to our Company Universe:

Gasfrac Energy Services, Inc. (TSXV:GFS).  We currently categorize Gasfrac Energy Services, Inc. as an Oil & Gas Services company operating principally in Canada (Alberta). Gasfrac Energy Services, Inc.’s current market capitalization is approximately Cdn$525 million.  Review research data on Gasfrac Energy Services, Inc.

Redzone Resources Ltd. (TSX:REZ).  We currently categorize Redzone Resources Ltd. as a gold explorer operating principally in Mexico and South America (Peru). Redzone Resources Ltd.’s current market capitalization is approximately Cdn$25 million.  Review research data on Redzone Resources Ltd.

Southern Andes Energy Inc. (TSXV:SUR).  We currently categorize Southern Andes Energy Inc. as a uranium explorer operating principally in the South America (Peru). Southern Andes Energy Inc.’ s current market capitalization is approximately Cdn$25 million.  Review research data on Southern Andes Energy Inc.

Press Release Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe who yesterday issued Press Releases and whose shares increased in price from the previous day’s close by more than Cdn$0.05, more than 10%, and whose share volumes yesterday exceeded their trailing 3 month average trading volume.  You can research each of these companies by clicking on the company name in the table.

* Yesterday’s data, or latest trading day’s data, as applicable

Insider Trading Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe for who our system yesterday reported insiders who filed reports indicating they had acquired shares through ‘purchase’ transactions.  You can research each of these companies by clicking on the company name in the table.

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