Tag Archives: HUI index

The New Issue Of The Mining Stock Journal Has Been Released

Here’s a snippet:  “When I got off the phone with this Company’s CEO, my analytic instinct told me that this stock is a potential grand slam home run investment opportunity. While there are currently many highly undervalued junior mining stocks, I believe this Company is one of the best ideas I’ve looked at in 15 years of focusing on the precious metals sector. My assessment of the Company includes conversations with both the CEO and with a director of the Company.”

You can subscribe to the Mining Stock Journal by clicking on this LINK or by clicking on the graphic below.  For now, I am distributing the previous two issues (March 4th was the debut issue) published.  Each bi-monthly issue contains what I believe to be unique commentary and analysis on the gold/silver market plus a thoroughly researched mining stock idea – mostly juniors but I’ll present an occasional large cap idea, especially if I believe it presents a good short term trading opportunity.




SoT – Bill Murphy: The Gold/Silver Manipulators Are At The End Of Their Rope

When silver breaks $18.50…it will then take out $50 and hit Eric Sprott’s number of $100-plus because since the last time it hit $50 they’ve gone through all that physical supply…this time they won’t be able to go to the physical supply well .  – Bill Murphy on the Shadow of Truth

A “commercial signal failure” occurs in commodities futures trading when the open interest in futures contracts exceeds the amount of the underlying commodity that is available to deliver into those contracts should enough entities that are long decide to demand delivery per the terms of the contract.  It is a rare event because the futures open interest in most commodities rarely exceeds more than 10-20% of the amount of the underlying available.

Except in the gold and silver markets, when the open interest in any other commodity wanders beyond that 120% level the Commodities Futures Trading Commission puts a halt to the entities which are responsible for what has been determined to be “attempted market manipulation.”  This has occurred in the past in the energy markets.

Too be sure, allowing open interest of futures contracts which exceeds the underlying availability of the commodity enables a higher degree of liquidity in the futures market. However, currently on the Comex the ratio of futures open interest to available gold for delivery is 174:1 – this is for the “registered,” or gold designated available for delivery.  In the silver market the ratio is 29:1. Given those absurd ratios, it’s safe to assume that the role of gold and silver futures trading is to enable the Fed and the U.S. Treasury, through their bullion bank emissaries (primarily JP Morgan, Scotia and HSBC) to use Comex futures as a tool for manipulating the market.

The Shadow of Truth hosted GATA/LeMetropole Cafe’s Bill “Midas” Murphy  to discuss some recent events which have led Bill to conclude that ability of the bullion banks to manipulate the precious metals has likely reached its end-game:  “eastern hemisphere demand for physical gold and silver is overwhelming the paper manipulators.”


The first event occurred the day that the HUI “gold bug” mining stock index was driven below 100 intra-day.  It closed over 100 that day and then proceeded on an 18-day tear through that took the index up 60%.  (click on image to enlarge)

The second event was the blatantly fraudulent LBMA silver fix which “fixed” the price at $13.58 despite the fact that external Comex futures were trading at $14.40.

They know they have an end-game coming, and it’s begun and those two events were signatures of that.  – Bill Murphy

Bill was particularly “fired up” today and we think you’ll find the discussion highly engaging and informative:

The longer they drag this out, the worse it will be when the market finally breaks beyond their ability to control the outcome. – Bill Murphy

Two Low-Risk/High Return Mining Stock Ideas

On the assumption that gold and silver have bottomed and are headed higher from here, the stocks below are my favorite risk/return ideas.  My last one Silver Crest, was acquired by First Majestic.  I believe these companies are potentially “on deck” to be acquired.

These reports are available individually or in a two-report special price package ($30 each or $40 for two).

Note:  Many of you have already purchased these reports.  If you are not sure, please check with me.

This company year-to-date has outperformed both the S&P 500 and the GDXJ junior mining stock ETF. Also, it recently raised just under $30 million and a major mining company bought 44% of the deal  – click image to enlarge:


You can access this report here – Click on image:



This company has outperformed the GDXJ ETF over the last 52 weeks and recently released 43-101 resource report on a massive copper-gold project in Russia in which this Company owns  a controlling stake. They are in negotiations to transfer its stake in the project with a one of the largest Chinese mining companies for an all-cash price that is more than double the Company’s current market cap:

You can access this report here – click on image:

You can buy both reports at discount to buying either individually here:


When gold and silver prices finally reflect reality, the gold and silver shares will have represented one of the greatest buying opportunities in the history of finance.  – John Embry on King World News