Insider Buying of Junior Mining Stocks at Record Levels

Owning stocks in the junior mining sector is like holding a stick of soggy dynamite. With a good trade, your portfolio gets a growth explosion. With a bad trade, you explode.

These shares have taken a beating in 2013, creating huge opportunities for value. Insiders have no compunctions about scooping up shares at these low prices.

The INK Research Venture indicator was at 715% on April 30. This means that in the past 60 days, more than seven stocks on the TSX:V have insider buying for every stock with insider selling. Historically, this tends to foreshadow a rally in those prices.

In early March, this indicator was ‘only’ at 400%, so there has been a large increase. The current number is very close to its all time peak of 735% back on October 27, 2008. This preceded the bottoming-out of the Venture market in December 2008 by about six weeks. You may recall how that was a time when many people thought the world was going to end.

But wait. There is also a shorter-term 30-day Venture indicator. It hit 1229% on April 30.

Then there is the INK Gold Stock Indicator. This tracks insider buying on Canadian-listed gold stocks. There are more than 10 stocks with insider buying for every stock with insider selling. This indicator hit an all-time high of 1046% on April 26.

To be a successful investor, you have to be gutsy and buy when prices are low. Maybe insider buying patterns give some encouragement to acquire more soggy dynamite for your portfolio.

Read more in INK’s report

Australia to Join the World’s Orgy of Currency Debasement?

Australia’s mining boom is fading. Demand from China is slipping. The economy is going to contract. Yet their dollar is strengthening.

Central bankers are Keynesian-mercantilists that get bent out of shape when their own currencies are “too strong.” Especially when the economy is threatening to slow down. The bureaucrats at the RBA are no different.

What are they going to do? Try to hold down the price of the Australian dollar. They will join Europe, Japan, China, America, and the Swiss in the frenzy of currency debasement.

This is… a bad idea. Yet it is to be expected, as are the negative consequences it will create.

It might be best to start trading your Aussie dollars for something better. For other currencies, few good choices exist. I used to like the yen before Abenomics. Now I like the Singapore dollar.

Hardly any central bank  can resist racing to the bottom. I don’t think Australia’s can resist.

— Continue reading at Sunday Morning Herald —

Mini-Review: CBC Documentary “The Secret World of Gold”

On April 18, CBC aired a documentary called “The Secret World of Gold.” Though flawed, the program was interesting and covered many issues.

Here are some things talked about in the documentary:

  • The Bank of Canada has sold almost all our country’s gold over the last 30 years.
  • Underwater treasure hunts for gold.
  • Secret government deals to control gold.
  • Futures market manipulation (this was by far the weakest part of the show — the futures market is not explained and the case made for manipulation is very thin).
  • Buildings with gold windows.
  • Wars for gold.
  • How Chavez got all Venezuela’s gold back from the US and Europe
  • Gold shifting to the East from the West
  • Death gold from Nazi extermination camps (some of which was used to fill Hitler’s teeth — WTF).
  • Allocation of central bank gold holdings — who owns the gold? Is the gold even there?

Think about taking 45 minutes out of your weekend to check it out. You can watch it here for free, the only drawback is there are a few dumb CBC ads.

UPDATE: You no longer need to watch it at CBC. The copyright police got to “The Secret World of Gold” on YouTube, so it looks like you have to watch on CBC…

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