Time to Find Investment Opportunities

Originally posted on June 30th at argmaur.blogspot.com

As anticipated, our mining stock picks have settled near support levels and have signaled an imminent reversal. The recent downturn in the sector preceded that of the entire stock market last week. To be clear, the banks have caused the market decline through bad investments and unfortunate timing. As aforementioned last week, the current “bank run” is in full swing and not nearly over.

- Analysts Backtrack on Banking Stocks After Saying Worst Is Over – Bloomberg
- Financial Firms May Make Deeper Cuts, Eliminate 175,000 Jobs – Bloomberg
- S&P Cuts Bank of America to Sell from Hold

The banks and the financial news providers will have you believe that we have an overall bad economy—which just isn’t true. We’ve previously suggested that the economy is expanding, production is growing, and American companies are doing better abroad; take a look at these news items:

- US Economy Expanded Faster than Reported with First Quarter GDP Revised Upward to 0.9% – MoneyMorning
- Cost-Cutting Helps Walgreen Raise Profits 2% – New York Times
- GM, Ford Will Export More Cars to China – Yahoo! Business News

Again, precious metals supply levels are being severely tested and the consequences of such actions are explosive prices in the long-term.

- Australia Gold Output Falls 7 Percent in 12 Mos. – Reuters
- Standard Bank (South Africa) and ICBC (Industrial and Commercial Bank of China) Cooperate in Precious Metals Market – Trading Markets.com
- Platinum trading begins in Tokyo, Platinum ETF in Zurich, and a report that Nanomotors with platinum may increase speed – Platinum Today

Precious metals and commodities prices have maintained their support levels despite the actions of mining stocks. Most notable, gold’s price quietly marched pass the $900 level and is on its way to $950. Nonetheless, our major observation was the major mining stock divergence from the stock market. When the major indices tumbled last week, we bore witness to a rise in mining stock prices. Should the diverging trend continue, it will positively impact the mining sector.