June 30, 2013 | By Tekoa Da Silva
This week saw absolute fireworks in the metals markets.
Gold was smashed repeatedly, knocked down in $50 increments during the early morning hours while most in the West were still sleeping.
Peter Grandich mentioned to me during an interview that he’s convinced there’s a smoking gun of manipulation being held somewhere, and that the shots fired this week created ‘technical extremes’ he hasn’t seen in years—which led him to call for a bottom in gold on Wednesday, within 48 hours, while trading at $1225.
What’s fascinating is that on Thursday, while gold was being pounded into the close, mining stocks said—“We’ve had enough!”, and closed up higher for the day. This is an interesting development, as it may be signaling that smart money is moving back into the market.
Also of interest this week was powerful commentary from Sprott Asset Management’s Rick Rule. He told me he’s “finally seeing institutional investor capitulation“, which is no doubt the cause of spectacular drops seen in a number of mining stocks over the last week.
However, spectacular pops are now beginning to follow those spectacular drops, and Rick further indicated that, “This is the fourth time in my career that I’ve seen capitulation selling,” and, “as long as investors do the work…[they] can expect spectacular returns”.
Part of that work requires looking for top management, Don Coxe mentioned in conversation yesterday. He said look for, “Honest managements that have some real proof of what they’re doing.” Don’s full interview comments will be published on Tuesday.
I also had the chance to speak with Jim Rogers, and asked his thoughts on ’getting out of the system’ (in case mud hits the fan). He said make sure to, “Own [some] real assets…because if you have money in the financial system and the financial system collapses…even though you may have done nothing wrong–you may suffer because somebody else did something wrong.”
In terms of mining shares, the questions I’ve been getting alot right now are, “What are your favorite mining companies here in this market? What are some good names to look at?”
To help address those questions, I’ve published a small list of companies called, the Da Silva “Legendary Mine Builders” Index, and will be investing in those companies for the remainder of the bull market.
As a special thank you for supporting my work, I’d like to offer you that list at $50 OFF the regular price. However, please note that I am not a financial advisor. I am a private investor (and publisher) who believes in precious metals, and the potential for outsized returns in mining shares as currencies begin to collapse.
In wrapping up, as you probably know—interest rates have sky-rocketed recently. The 10-year treasury yield moved from 1.5% to over 2.5% in a flash.
So in the days ahead, I’ll be putting together interview commentary on the implications of those rising rates, how we can best protect ourselves, and potentially make a fortune over the next decade in the process.
That’s all for now. Best in health, wealth, and happiness in the days ahead!