Saturday, November 3, 2012


I have been researching the declining ore grades and silver yields in the top silver miners.  I thought the decline would be equal to the gold miners… but it turned out to be a great deal higher.
From 2005 to 2011, the average gold yield from the Top 4 Gold Producers declined 27% or roughly 3.8% per year. During the same time period, the top 5 SILVER MINERS average yield fell an astonishing 33.5%…. or 5.6% per year.  This is nearly a 50% higher annual percentage decline compared to the top gold miners!
This is the chart for the top 4 gold mining companies average yield per tonne:

From 2005 to 2011, the average gold yield from the Top 4 Gold Producers declined 27% or roughly 3.8% per year.
I don’t have a chart for the TOP SILVER MINERS, as it will be included in my next article.  But, I will give out the preliminary data.
From 2005-2011… the top 5 SILVER MINERS average yield fell an astonishing 33.5%…. or 5.6% per year.  This is nearly a 50% higher annual percentage decline compared to the top gold miners.
This does not include the newer silver miners such as SilverCorp, First Majestic and etc.  These figures come from the big boys such as Fresnillo, BHP Billiton’s Cannington, Polymetal’s Dukat & Lunnoye, Pan American Silver and Hecla.  I have two other large silver producers that may be factored in.  I have to wait and see.
Anyhow, this shows us that the TOP SILVER MINERS are seeing their annual silver yields per tonne fall 5.6% per year compared to the top gold miners that declined 3.8% per year.

Will your children be poorer than you are?

What gives? Are we still feeling the effects of the 2008/2009 downturn? Is this simply a result of a tough global economy that’s seen a weak recovery in the U.S., a second recession in the eurozone and a slowdown in key emerging economies like China? Or is there something more fundamental to the Canadian economy at work here?

A full four years after the financial crisis nearly ground the global economy to a halt, Canadian gross domestic product (GDP) growth continues to disappoint. After coming in just above 3% in 2010, it slipped below that mark in 2011. This year’s annual growth rate is expected to fall further, below 2%.
In a piece I posted last month, Six predictions for the Canadian economy, TD Economics’ Diana Petramala said the oft-cited global economic headwinds facing Canadian businesses are only part of the story. Our “poor productivity performance,” to use her words, is essential to understanding what ails us.

She’s right, of course. Canadian productivity has been slipping relative to the U.S. number since the early 1980s. A study released last year by Deloitte Canada reported that “Canadian output per worker is only 86% of American output.”  (more)

Greyerz – One Of The Most Important Charts Ever

from King World News
Today Egon von Greyerz sent King World News one of the most important charts you will ever see. Greyerz, who is founder and managing partner at Matterhorn Asset Management, demonstrated, in this one chart, the incredible danger facing the global financial system and why gold will explode higher in price.
This is the first of two interviews KWN will be releasing with Greyerz today. Here is what Greyerz had this to say in Part I, along with his chart: “If I look around the world, the problems continue. China has yet another round of QE totaling $60 billion. China is under real pressure. And if you look at ArcelorMittal, which is the biggest steel producer in the world, and for them China is a massive market, they had a 20% decline in sales in Q3.”
Continue Reading at…

A Utility Penny Stock with a Bullish Outlook and Monthly Income

Like almost everything else, the deregulation of energy has proponents on both sides of the fence. There are those who think it is a bad idea, resulting in increased costs, and declining reliability. Then, there are those who maintain that deregulation has allowed competitive energy suppliers to enter the markets. In deregulated markets, consumers finally have a choice for their supplier.

Love them or hate them, there are a number of publicly traded, diversified utility companies that should be on your penny stock investing radar.

The industry also has a number of penny stocks that provide strong dividend yields, delivering to you reliable monthly or quarterly payments.

Just Energy Group Inc. (NYSE/JE; TSX/JE) is a market leader in a growing, relatively new industry—deregulated utility services, and operates in six Canadian provinces, and in 13 states. The penny stock has diversified revenue and profit sources from a variety of energy-related products sold to a range of customer groups across North America.

Just Energy has generated predictable, reliable operating results, regardless of weather or economic conditions. Further, a very high return on invested capital allows Just Energy to grow and maintain a high payout ratio; in 2011, the penny stock had a dividend yield of 9.1%. Paid monthly, the penny stock’s current dividend yield is 12.5%.  (more)

Commodity Index Breaks Down – So Too Does Silver

by Dan Norcini
Trader Dan Norcini

Another payrolls report today; another down day in the precious metals. Not much of a surprise here as that has been the norm for many a year. In one sense, it really did not matter what the number was as there was more than likely going to be bearish selling pressure no matter what.
When it comes to silver, if the number was a poor one, the bears would point to the fact that the QE3 was already baked into the cake and so was a non-factor. They would then point to the fact that the poor number was sign that the economy was still muddling along without any risk of inflationary factors due to the sluggish growth. Silver MUST HAVE AN INFLATIONARY ENVIRONMENT if it is to mount any sort of SUSTAINED rally.
If the number was considered friendly, then the bears would cry up the idea that the QE was not going to be continued as long as some were initially thinking since the economy was mending.
In other words, Heads, I win; Tails, you lose.
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Has US Housing Bottomed?

by Simon Black
Sovereign Man

After an almost uninterrupted period of decline over the last few years, US home prices now have some positive momentum.
For one, the S&P/Case-Shiller index of property values in 20 cities has seen its highest increase in more than two years. In addition, JP Morgan CEO Jamie Dimon recently stated that his bank was seeing a surge in mortgage applications.
And perhaps most importantly, the National Association of Realtors has reported that the nation’s inventory of homes on the market has dropped to its lowest level since March 2006, while the median home price is 11.3% higher than a year ago.
These are definitely good signs for housing. But remember, nothing goes up or down in a straight line. Just like a stock market that suffers a serious crash, housing has been due for an upward correction.
Continue Reading at…

Watch Out! It is Raining in South America

In a recent commentary I suggested it might be a good idea to go back to the days of early school years and summon up memories of geography classes. Until there is a year or two of what can be considered semi-normal weather for crop production, traders will be on the edge of their seats whenever there are reports of any possibility of too little or too much rain. 

As I have talked about several times because of the internet, there has been an exponential proliferation of commodity analysts. The same can be said with experts on weather and new meteorological services.  And like most analysts and brokers reporting on commodities, doing it as a way to get out in front of potential clients in order to sell services (me too), the same can be said for most reporting on weather. Of course, being correct with an outlook or predictions helps, but knowing how to present what is read or heard, may even help more than being correct. Look at all the rumors that are used almost as facts day after day. Most people can tell when something is completely false, but when a rumor is presented as fact, and is repeated several times, it is often difficult to tell fact from rumor.

What is happening in South America?

Most people, even bad artists like me, can draw a decent outline of North America and South America. However, I doubt many can come up with comparisons to optimum temperatures of planting and degrees of heat for growing according to the Equator, the Tropic of… or best summer growing conditions per month.  (more)

USA, Inc. - Part 2: If America Were A Corporation, It Would Be Broke-er

When Mary Meeker, formerly of pre-IPO bubble analyst fame, released her "USA, Inc." presentation last year, which assayed the US government as if it were a corporation, her conclusion was simple: the country is broke, and can not continue along the path it is on now. Fast forward to today, when the US debt balance is over $1 trillion higher, and the next edition of Mary Meeker's presentation which she released at last week's Ira Sohn conference. Her conclusion: the US is now broke-er than ever.
The summary bullets of the must read cover to cover 50 page presentation.
  1. America is losing its edge - some of this is inevitable as other countries improve their competitiveness, some of this is self inflicted.
  2. Financial strength is vital to competitiveness – it’s core to a healthy economy, job creation, vibrant education / culture and military leadership.
  3. Positive cash flow and a strong balance sheet are key to financial strength – bottom line, it’s bad to spend more than one brings in, as America is doing. In effect, as each day passes – with our rising losses and debt load – we rob just a little bit more from the future.
  4. America does not need to lose its edge, it needs conviction and leadership to move its ‘business model’ in the right direction – we are all in this together, we need to understand and acknowledge our problems and agree to move forward with collective inspiration and sacrifice.
  5. American tax dollars fund our government – we all need to understand where our taxes go and decide if we believe our hard-earned dollars are put to their highest-and-best use. The politicians we elect decide where our money goes. (more)