Global Resource Outlook

By Dave Brown —Exclusive to Resource Investing News

Investment demand for commodities and resources has become guarded, which was demonstrated at Cambridge House’s Toronto Resource Investment Conference on September 15 and 16. The event brought more than 1,000 people to the Sheraton hotel, and appeared to include a relatively high proportion of industry stakeholders compared with investors. This provided a very good opportunity for the investors searching for value or growth potential in the current market to gain a distinct advantage with a higher concentration of management executives and professionally trained geologists…

Read Full Article Here.

Speculator Series Episode 1: Doug Casey

Cambridge House is pleased share this interview with legendary investment newsletter writer and author Doug Casey, founder and chairman of Casey Research. Doug is about the nicest guy you could meet for a man in the doom and gloom business, and we think business is good. So without further adieu, here he is, the one and only Doug Casey. Watch:

For those of you who can’t sit down for all 30 minutes, we’ve included a few of my favourite sound bytes from the interview.

“There are several thousand so called mining stocks traded here in Vancouver. Most of them have nothing but a hope and a dream. Most of them don’t have a prayer of finding anything. So it’s fraught with danger for the average investor. All I can advise is to educate yourself. You’ve got to start reading books about geology and studying the markets, and then interviewing the guys that run these companies until you get a sense of who is real and who is a flake. That’s what you’ve got to do. Most people don’t do it, they just buy a stock because it’s touted to them by anybody from a friend who knows less than they do to a taxi driver, so of course they lose money.”

“It’s good to remember that the junior mining sector is the most volatile sector on the planet, by far, more volatile than the internet stocks ever where during in the nineties. Volatility is your friend, actually, it gives you the opportunity to sell and buy at radical extremes. Through the 70′s and 80′s the junior resource market moved upwards of 1000 percent as a whole then lost 95% of its’ value and then did the same several times in several cycles, so this is a wonderful opportunity it presents, and I wouldn’t say that it’s necessarily cheap right now, but I would say that the odds of a bubble being created are great, so I think this is a good time to start looking at quality issues.”

“At some point a bubble will be ignited in the precious metals, and it is entirely likely as people panic out of dollars, they are going to go into securities because at least theoretically, stocks represent a claim on real wealth, so you put those two things together, a boom in gold, and possibly, a boom in the stock market – not based on fundamentals, but just based on people wanting to get out of dollars, and you could have a super boom. I wouldn’t doubt that there are going to be some issues between now and if we talked again in 3 years that are going to have gone not just 10 to 1 but 50 to 1 even 100 to 1; it has happened in the past, it will happen again in the future. At the same time a lot of these stocks will blow up and dry away because the only gold they have is printed on the face of their certificate, they don’t have any in the ground.”

“If you want to speculate in something, and people are going to be forced to speculate in the years to come, just to hide from the consequences of the governments’ inflation of the currency, I think that junior mining stocks, for people that know what they’re doing, are one of the best places to be. I think there’s also likely to be a bubble that develops in biotech stocks, for a number of reasons, and I speak as a longtime amateur science buff, I’m friendly to those as well. And I’ll give you a third speculation that I think is worth while, and that’s being short bonds. And that’s a triple play if you’re short bonds at this point which are at all time highs. Interest rates have to go up, way up, which is inverse to the fluctuation of bonds, so thats number one. Number two, the dollar is going to collapse, so that’s also going to destroy bonds. Number 3, you have the default risk, and that premium is going to go up. So if you’re looking for one sure speculation over the next ten years get short long term government bonds. So those three, theres lots of good speculations, theres always a new train leaving the station.”

Don’t forget to sign up for Doug’s free Conversations with Casey.

Brent Cook’s Geo-Insights

Brent Cook

Making money in the junior mining and exploration equity markets is all about Turning Rocks into Money™. To do so requires an understanding of the geological characteristics of a mineral system and a reasonable sense of what it will cost to get the metal out of the rock. Because the odds of success—finding an economic ore deposit—are so heavily stacked against the explorationist it is just as imperative to know when a project is failing as when it is succeeding. Knowing more than the crowd is key.

Because we are usually dealing with early stage exploration projects at Exploration Insights we are as often as not dealing with limited data and projecting that into the third dimension—Earth. Exploration geology is not an exact science, it is an art supplemented by experience and imagination that evolves as mapping, sampling, drilling, etc., adds to the picture. Over the years we have discussed hundreds of companies and mineral properties. These discussions often involve examining and interpreting the exploration data.

Our goal is to help subscribers better evaluate their own investments in the junior mining and exploration sector, as well as stocks in the EI portfolio, therefore we have compiled this document of Geo-Insights. It is a compendium comprised of excerpts from Exploration Insights that we hope will be of help and value in your own research.

Good luck out there,

Brent Cook

August 18, 2011

PDF Link: Brent Cook’s Geo-Insights August 2011 PDF (643 KB)
Brent Cook’s Web site: Exploration Insights

Brazilian Businessman Eike Batista on Charlie Rose

Eike Batista on Charlie Rose

Brazilian businessman Eike Batista is the richest mining entrepreneur in the world, with a net worth of approximately $30 billion US dollars. In a special one hour interview with Charlie Rose recorded in February in 2010, Batista describes his lifelong career in resources, and his 360* approach to extracting wealth from the ground. A must watch for young mining & energy entrepreneurs.