MAY 29 JWU

May 29, 2014

     JWU GOLD STOCKS VALUE PLAY UPDATE

1.           Both Indian and World Bank economists estimate that a whopping 15{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} - 30{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of all electricity produced in India is stolen or sold illegally by the mafia.

2.           That creates blackouts, reducing productivity.  Almost the entire country was without power for 2 full days in 2012.

3.           That’s about 10{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of the world’s population in “no GDP growth at all mode” for 2 full days.

4.           The Modi solar power plan does a lot of more than just increase demand for silver in the panels.

5.           My father was an electrical engineer who invented the world’s greatest protection and control system, in British Columbia, to prevent the spread of widespread blackouts.  He’s passed on now, but if he were here he’d be very interested in what Modi is honing in on, here and now.

6.           I expect Modi to be more interested in solar as a means of isolating the country from banksterism, than from a “go green, for the environment!” theme.   Oil and coal are mainly imported, and that’s an economic yoke.

7.           India does have huge coal reserves, and Modi will likely look to mobilize those as well.  Coal supplies 40{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of India’s energy now, but it’s mainly imported.

8.           Please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may29gdxj1.PNG  That’s the GDXJ daily chart, with yesterday’s interesting candlestick highlighted.

9.           Also, note the stokeillator and volume!

10.        Please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may29gdxj2.PNG  This weekly GDXJ chart has the 14,3,3 series Stochastics in play, almost flashing a substantial buy signal.

11.        Please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may29hui1.PNG  That’s the monthly bars HUI versus gold chart.

12.        I’ve highlighted the 5, 15 moving average series signals.  Those don’t always work out by any means, but the first buy signal since the 2011 sell signal occurred is almost flashing now.

13.        Also, gold stocks, compared to gold, are almost trading at 2001 levels, when gold was $250 an ounce!

14.        Let’s not celebrate quite yet.  Instead, please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may29hui2.png Double-click to enlarge.  That’s the weekly chart of HUI vs gold.

15.        It suggests there could still be more downside.  I’m a buyer of gold stocks, but I want to caution parabola enthusiasts that it could be some time before the stocks rise noticeably higher against gold.

16.        On that note, please click here now: http://www.gracelandjuniors.com/images/stories/14may/2014may29u1.PNG  Uranium is a solid holding for me, although nothing like gold, silver or cash.

17.        This monthly chart of uranium shows the 5,15 moving averages crossing into a buy signal possibly in 2009 and certainly in 2010.  It’s now 2014, and uranium is still grinding away.

18.        My total uranium position is almost unchanged in size from 2009, and that’s because price has never traded in a new leg down under $4.50

19.        I’ve made dozens (maybe hundreds of trades; I have long lost count) since 2009, all booked wins, but I’ve never added much to the overall position, which is dictated by absolute price on the grid, not time at the same price on the grid.

20.        Moving average crossovers can mean a reversal of trend is in play, or they can mean a sideway move is in play.

21.        A sideways move was the case with uranium.  There’s no question that if Chindia locks up mine supply, Westerners that can’t buy gold will buy gold stocks.

22.        But that could be a number of years away, with gold stocks trading relatively sideways against gold in the meantime.  You just can’t know the answer to what happens after an item becomes dramatically overvalued or dramatically undervalued.

23.        I’m comfortable buying gold stocks here, but please click here now: http://www.business-standard.com/article/pti-stories/gold-worth-rs-25-lakh-hidden-in-man-s-rectum-recovered-114052801541_1.html  

24.        India is still offline.  The road to getting demand to exceed supply is not an overly long or difficult road, but it’s a real road, and to travel it does take some time.  Indians want their gold in India, not in Dubai.  To get higher gold prices, India needs to come back on line.  The process (a new govt) to get that done is in play now, even when completed, it will take several years to build demand to the levels that push price up dramatically, thereby pushing gold stock profits up dramatically.

25.      Gridtime!  Like my fellow gold gurus, I enjoyed laughing at the US first quarter GDP “growth”.  Unlike them, I agree with the bank econs that 3{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} - 4{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} growth is really coming, and coming fast, to America.  I think it’s going to be more inflationary than the bank econs anticipate, and that could speed the rise of gold prices, and hence the rise of gold stock prices.  When something offers value, it’s important to buy that value without hesitation, but at the same time, something of value doesn’t necessarily rocket to fair value or over value in any set period of time.  Getting comfortable with gold, silver and metal stocks is my theme for you in 2014, and understanding what I’m saying here is a big part of that.

Kirk on the gold exploration bull era bridge, out!

Thanks!

           Cheers

           St

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