Gold And Mining Stocks – Dave Kranzler

TND Guest Contributor:  Dave Kranzler |

In case anyone’s noticed, I have stopped issuing any more bottom/buy now calls.  It’s not worth running into the buzz-saw of Federal Reserve/U.S. Government intervention, even though the thesis to buy precious metals and mining stocks is rock solid.  The “idiot” factor in the form of hate emails and comments that were so foul I could not publish them were at an all-time high last week.  It does suggest to me that we are at a bottom and likely headed higher, despite the inexorable torture the Fed and Wall Street likes to inflict on the sector in order to prop up their ability to continue using fraud and criminality to suck wealth from our system.

Based on several recent media reports, of course not reported by western news resources, it would appear that the Chinese are starting to grow weary of the U.S market manipulation and fraud.  In case anyone missed this, Singapore and Shanghai have now introduced gold futures contracts that require actual physical settlement:  LINK.   In addition, a Chinese official last week gave a speech in which he specifically referenced the Chinese effort currently ongoing to remove the pricing power of gold away from London and NYC.  While the transition will not happen overnight, I suspect that it the probability is high that gold (and silver) will move higher for the rest of this year.

On that note, I will say that these two ideas are up 5% and 6% respectively today  I added to the first one Friday right  before the market closed.

You can access either report by clicking here:   Mining Stock Reports.  Both reports offer in-depth analysis and company management input.  I believe my reports offer insights not available elsewhere.  I’m away from office until this afternoon, but I am going to insert a section on call/put option strategies in the second report.

I think the first one is capable of doing a quick 20% from here but I would hold it for a bigger move because, given its positioning in Nevada, I have to believe that it will be on some acquisition “short lists for buyers who are looking to buy gold in the ground, especially after the takeover of Chaparral Gold last week (20% premium to the previous day’s close).

I think the second one is capable, assuming gold moves higher from here, of producing a 30% ROR by the end of the year.  Mind, this is a large-cap gold producer with a lot of gold in the ground, which means general business is risk is minimal and the only risk is market risk.

The last 2 1/2 months have been very painful for the precious metals sector.  But at some point the Fed and Wall Street will have to capitulate to the natural market forces that are removing physical gold from the system.  That is, I think we’re getting to the point at which the Fed/U.S. Govt has no choice but to ease off their fraudulent paper manipulation and let the price move higher for now.

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About Dave Kranzler:

 I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics.  Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund.

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