There is a difficult trend in the mining industry; something that should be a warning for gold stock investors. If you’re invested in this space, you need to be aware of what’s going on and that is the cost of producing an ounce of gold is soaring.

On June 20, 2012, the Federal Reserve had their big meeting of the FMOC (Federal Open Market Committee). The Markets had been pricing in a new round of QE3 where the Fed was going to start again buying Treasuries directly in order to inject liquidity into the markets. The markets ran up in anticipation;  as [...]

Commodities have been much more volatile of late, especially last week with with copper closing last Friday at a six-month low on expectations of weak Chinese economic growth. It has since had a bounce, but it was an ever so small bounce. Last week, China surprised the markets (as it often likes to do) with [...]

Although there is still talk of a bull market in the US, the TSX Comp and the TSX Venture haven’t been so lucky over the past year. Both ended 2011 in the red and 2012 isn’t looking much better either at this point. Only gold has performed relatively well over the past year and at [...]

It seems that this year, investing in physical gold would have been a much better investment than investing in mining stocks. Mining company stock, pretty much across the board, have sunk to their biggest discount ever for 2012, when compared to the price of the resources (gold, silver, etc.) they produce. As many investors worry [...]

If you have been watching the TSX Venture index for the past few months and watching as most of your investments appear to be fading away, you’re not alone. Just looking at the 6 month Venture Index chart can make anybody’s stomach turn. The index has been in a virtual free fall for months now [...]

  Hey, “It’s tough out there !” Yes, indeed.  Let’s see where we are: What will happen with interest rates?  Is there a bond bubble ? What is the future impact from Europe ? Will emerging markets continue to grow and support commodity markets? Will there be a QEIII ? What will be the impact [...]

The TSX Composite is looking like a bit of a dog.  The S&P 500 is looking a bit like a star. Is this what QE does when Ben Bernanke and the Federal Reserve print money? Is the weakness and lack of conviction of the ineffectual Harper Conservative government in Canada the primary driver behind the [...]

Gold miners have been hit hard because of an anticipated drop in gold prices due to bad technicals, lack of quantitative easing, a slowing economy in China and overall bearish analysts. In order to best describe this, let’s take a look at the chart of GDX (Market Vectors Gold Miners). As we can see below, [...]

The mining industry continues to show strength on it’s balance sheets. Although all mining companies continue to face challenges caused by geo-political tensions, the uncertain global recovery and the fallout from the global financial crisis, their revenues are driven higher by continued growth in the emerging markets and strong investment demand for commodities such as [...]