Oil

Just Another Fake News Story?

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Whilst browsing the internet, I come across many things, that deserve a wider audience, but am unable to offer any further evidence of these sometimes outlandish claims. Not so today.

This piece linked to below, really revolves around a much talked about subject, and one I have myself been involved in writing about, so this piece would appear to add further credence to the mystery.

http://themillenniumreport.com/2016/10/treason-who-did-911-and-why-did-they-do-it/

Who was responsible for 9/11?  WHY did they carry out the attacks of the World Trade Center (WTC)?  And if two planes brought down buildings one and two, how did building 7, a block or two away, across a wide expanse, collapse vertically, and yet was still upright when a BBC news anchor with a live link behind her, showing the building – that could be seen by all those sufficiently awake to notice, – was still visible, while we were being told that the building had already gone down?

The piece linked to above reads like an episode of: “The Bourne Trilogy” with a cast of characters taken from: Politics, Corporate Energy, Mafia and Banking Interests across the western world. I wrote too in the book  “The Coming Battle – 2013”  that events were spiralling out of control.

General Wesley Clark in a video interview explained that he was told in advance of plans to intervene in seven middle-eastern countries, all based on the lie of 9/11… The latest in a long line of black-ops “False-Flag” events, that were used to sway American -and in this case – worldwide opinion to permit those with their own agenda to influence events. And he also discussed what happened next and he recalled how the decision was taken back in 1991 –

It used to be that the propagandists with people inside the military and secret service industries, could modify the News agenda to get the outcomes that they wanted, and due to secrecy laws, their misdeeds would go unpunished for thirty years or more until after the secret documents could be widely accessed. BUT, the Internet has changed all that. The Mainstream News Organisations (MSM) exist to make money for their shareholders and senior management teams – and the corporations that advertise and market their wares on them, are generally large multi-nationals – the very corporations that the MSM is supposed to be keeping a beady eye on, in its role as defender of the public and the customer,  are the very same ones using politics to pursue their own agenda.

As ever, “He who pays the piper, calls the tune.”

So, as corruption apparently swirls around the world, I hear of imminent plans to rid the world of physical coins and notes – particularly in America, where many of the U.S.’s states, and institutions are seemingly hell-bent on destroying the last vestige of freedom – the freedom to spend as you like – by outlawing payment in anything other than digital means.

So will Gold and Silver be once more used to “Barter” with?

Will the closure of your bank, be the event that makes you take action?

Will the ATM closing, or your Bank closing one weekend and not re-opening again on Monday make you take action?

Will the disappearance of your pension fund make you take action?

The time has come.

 

 

 

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The End of Capitalism? – Fascism 2.0?

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To many, Capitalism, is what makes the world go round. But many others don’t really know what that is.

Population growth - From Jesus Christ until 2050. Where will all the food come from to feed these extra mouths?

So what is Capitalism?

Capitalism the word, derives from the word Capital – and Capital is…. “Savings”.

Of course savings, are generally stored in Banks, and that “capital” should generate interest. Of course interest is what the Banks give to the owners of Capital, and traditionally, the Bankers loaned out that capital to business people who would use that injected capital to increase profits, and those increased profits, would pay back the loan, and add value so that the expenditure of the capital is justified.

If we have a population explosion, such as happened after the second world war – the baby-boomers – we have a situation where fast approaching retirement the ‘boomers’ are now saving like crazy in their pension accounts, insurance or assurance policies, bank accounts and stock market brokerage accounts. Of course those who retire inevitably need income from their savings (some of which went into buy-to-let property which led to the boom, between 2002-2007) And yet interest rates have been lowered to zero per-cent or close to it, in Europe, the UK. and the U.S.

So as these savers are looking for yield from their savings, this has driven down Bond yields (A bond is a loan, to a country – such as aTreasury Bill, or Gilt – or a corporation, which generates interest to the holder.).And we know that to produce that interest, we need to generate growth – in the economy, and in the corporation.

BUT, all that growth relies on energy, and despite recent price falls in oil and gas, longer term, much of what happens in the sphere of energy is reliant on oil and gas production, which because of something economists are famiIiar with – EROI – Energy Return, On Energy Invested – we know that we are close to or past the Peak, and the energy cost of producing more energy, will lead ultimately to a collapse in the economy.

But few in the mainstream media, or among our politicians are willing to discuss this or how we might resolve this issue. Fracking is the U.S’s attempts, but as energy prices have fallen, the financial cost of Fracking is now placing undue strain on oil and energy suppliers, and upto 100,000 workers have been laid off in the U.S., and numerous oil companies are either in, or facing bankruptcy.

In the UK, the government has given corporations the power to search for oil and gas under homes, without the normal permissions processes, that the local community normally have, through the licensing process, and through local council control and planning laws.

This therefore begs the question, what should we be told, and if we should what we need to do about it.

This video over an hour long explains how we have been duped.

Video:

At almost two and a half hours long this video below gives a full picture of how those in power, are still duping us.

Video:

As these videos suggest, the rise of the corporation and its influence of the political process, suggests we are well on the way to neo-fascism along the lines of Hitler’s Germany. And the energy revolution I spoke of in a previous post can’t come soon enough.

And Michael Ruppert who you saw in the first film, was a man on the inside, who having been threatened and shot at by CIA operatives, left the police force to investigate how the world really works. Here he discusses his findings, shortly before his untimely death at his own hand.

Video:

According to one recent Reuters article, China has now decided to update the world with its Gold holdings on a monthly basis, and has informed us, that they have added another 19 tonnes to their holdings. Not a huge figure given what we have learned of imports and production in recent years, but perhaps it is an attempt to ratchet up pressure on those pesky western bankers in the IMF that have refused entry to the SDR currency basket?

Time you made some changes in your life?

Time to get some Gold? Or Silver? Or Crypto-currency?

W.

Money for nothing, and their clicks for FREE.

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Stagnation, Inflation, Deflation, Dis-Inflation – and more – Hyper-inflation?

Back in 2010, in October, William H. Bonner of Agora Financial, a Baltimore based Financial Publishing house and regular commentator on the Financial Markets, released the following piece. Since then, the markets have boomed in some areas, and bust in others. But the real value of many of life’s essentials: Food, Clothing, Shelter and the basic necessities of life, and many of life’s “nice to haves” – Copper, Tin, Zinc, Nickel, Iron, Gold, Silver and of course Oil and Gas, have all experienced significant price changes. But are the prices accurate? Do they reflect the effort and cost of capital needed to extract them, or of their true value, if we run out of them? We may live to find out…

That’s the trouble when you start printing money for nothing, the people who get it first make the most profit, and the further it spreads out from the central bank, the less profit it appears to make. But the good Central Bankers, will do everything they think they can to make things better. The only question is: “For whom?”
Read on to find out.

===========================
Plaza II Accord

Bill Bonner – Friday, October 15, 2010

Keynes was right about one thing…

Peace talks broke down last weekend. Observers had expected the IMF meeting on the weekend to result in the equivalent of the Peace of Amiens or the Surrender at Appomattox. But Treasury secretaries and central bankers went home, unpacked their bags, and resumed their premeditated mischief.

The dollar went down. Why would anyone pay 100 cents for an old, worn out greenback when the Fed promises to create trillions more of them, brand spanking new? Europe and Japan resumed firing with their new QE guns. Asian nations sent out snipers to intervene in the currency markets directly. And China and the US resorted to “trench warfare,” reported The Financial Times, neither apparently ready to give up an inch; that is, neither was prepared to allow its currency to buy more today than it did yesterday. In America, China has become an election-year bogeyman. The electorate seems convinced that any nation that stockpiles $2 trillion worth of America’s I.O.U. greenbacks must be up to no good.

So, the war goes on. But it is an ersatz war. All the combatants really want the same thing – to debauch their currencies at the expense of savers and creditors. Sooner or later, they’ll conspire to get the job done. A full 93% of US financial professionals believe the Federal Reserve Bank is on the case. It is expected to launch major debauch in November. Investors have run up almost all asset classes in anticipation. The Dow passed 11,000 on Friday. Soft and hard commodities hit new highs. And if, on a given day, gold does not set a new record, it is probably because the markets are closed.

What a remarkable period in financial history! We can hardly believe our luck. Absurd things are happening. John Maynard Keynes was wrong about practically everything. But he was right about this:

There is no subtler, surer means of overturning society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction and does it in a way that not one man in a million is able to diagnose.

And we get to see it live. And probably dead. The US dollar fell under the control of the debauchers, partially, in 1913…when America’s central bank was formed…then fully, in 1971, when gold backing for the dollar was completely eliminated. In the 100 years before the Fed was formed, the dollar lost not a penny of its value. In the almost 100 years since, it has lost almost all of them. If the greenback were to lose another 5% of its 1914 value, there would be nothing left at all.

Such slow larceny bothered no one. As long as the dollar slid gradually, and peacefully towards worthlessness it seemed almost natural, even healthy. Central bankers could mix with polite company and hold their heads up. None was arrested, as far as we know. None was so tormented by his crime that he had to be restrained or sedated. But now central banks are committing their felonies in broad daylight. Economists argue for more. But investors are confused and worried. Today, they buy gold. Tomorrow they may buy shotguns.

But what else can the managers do? After increasing for 61 years, the volume of credit in the US – and hence, the volume of sales – is no longer expanding. This leaves householders with debt to pay down and exporters with no alternative but to fight for market share. What to do about it? Lower the value of the currency! But in a correction, the natural thing is for prices to go down with a decline in demand. So, money tends to become more upright just when the managers would most like to see it slouch.

The poor central bankers. They are victims of their own delusions of competence. They have never actually managed anything successfully. When the economy is expanding, they exacerbate the boom. When it is contracting, they slow down the correction. And now, they fight a currency war not of their own choosing, but of their own making. The war is their response to the correction, which results from the bubble, which was caused largely by the managers themselves.

And now they’re looking for a hotel where they can do it again. It was at the Plaza Hotel in New York in 1985 that they managed their Treaty of Versailles. It ended the currency war of the early ’80s…and prepared the way for an even bigger war later on. Back then, Japan was the go-go economy. Like China today, Japan was the world’s leading exporter. It wanted to keep the yen low. The US meanwhile, was losing market share. James Baker and the other US managers threatened sanctions. Japan gave in. By early the following year, the yen was 40% higher against the dollar and Japan’s GDP growth rate had been cut in half. But the managers fixed that problem as they fix them all. In Japan, they cut rates 4 times in 1986, creating a flood of hot money. Four years later, Japan was the envy of the entire world. In January of 1990, the Nikkei Dow hit a new record – 4 times higher than it was when the Plaza Accords were signed. Then, the bubble popped. You don’t need to be reminded of what happened next. The Nikkei crashed. Real estate crashed. Everything crashed. The economy went into a 20-year tailspin, failing to create a single new job in two decades. Neither stocks, nor real estate, nor the economy ever recovered.

No one wants to follow the Japanese down that road. Ben Bernanke manages the dollar, desperately trying to avoid it. And Premier Wen of China said it would be “a disaster for the world” if Western nations tried to force China in that direction. He’s right. But he needn’t worry about it. Disaster is coming anyway. The managers will make sure of it.

Regards,

Bill Bonner,
for The Daily Reckoning
============================

And once more, the Banks are mired in controversy. Late on 12th June 2014, we heard that the UK., Chancellor of the Exchequer, will outline new laws to regulate the largely unregulated Foreign Exchange markets (For-Ex).
Every day, over $4 TRILLION changes hands globally in these markets, but several Big Banks – those closest to the Central Bankers, have been allegedly manipulating these markets for their own ends.
The Chancellor will make manipulating these markets a criminal offence.

I welcome the attempt to rein in the worst effects of the bankers actions, but it is a brave policeman, or Financial Conduct Authority, who will apply the new legislation, as Bankers have historically threatened governments of all political persuasions with dire effects if they apply regulations too rigidly.

If you don’t believe me, after the scandals that have come to light in the last five years, including LIBOR, Silver, Gold and other events such as the London Whale, then perhaps you need to read my free E-book, all 633 pages of it – “The Coming Battle”, which documents the worst excesses of these “Wizards of Oz” who pull the political strings from behind the curtain. These bankers who threaten governments, who manipulate stock-markets, Foreign exchange markets, Precious metals markets, and use their financial muscle, to wreak havoc when they fail to get the outcomes they feel they deserve.

But who can take them on?

The latest news from Iraq is ISIS appears to have taken control of parts of Western and Northern Iraq, and Eastern Syria.

Their goal it appears, is to create an Islamic Fundamentalist State. Part of me feels they deserve everything they get. BUT I should point out to all, and any who think that we ought to intervene again in the Middle-East, that our last attempts probably created this hotch-potch of anti-western sentiment – rapidly becoming a “Holy War”.

Besides just by ignoring the problem, these radicals will burn themselves out. Apart from the oil-fields in Northern Iraq, what do they have to sell? Oranges? Lemons? Mangoes? I am at a loss to call to memory anything that is exported from the middle-east apart from oil and/or gas. And therein lies the crux of their problem.

A modern economy has to pay for things that others have to sweat to build. German Engineering comes at great expense, and organisational and engineering expertise. British know-how in Financial Markets comes from a few centuries of having travelled the globe, and of having access to a large capital base, and expertise in how to make use of that. (And maybe that’s another topic of discussion for the future). Jamaica has the right climate for sugar cane, and so uses it to make Jamaican Rum. Mexico, has Silver mines, America has its software and computer hardware. Kenya has its tea and coffee plantations, and Japan, its electronics businesses. Each taking advantage of that country’s strengths.

Adam Smith the father of all economists, called it “comparative advantage”. What he meant was that each country should learn to make the best of its natural resources, and use its natural advantages to their fullest.

But as the world becomes more intertwined, the fruits and bounty of this planet will have to be paid for with real money, not money you can just print up at will. Money (Gold and Silver) has to be dug from the earth, smelted, refined into bars and coins, and thus the labour stored up in them – the knowledge, skills, ore, blood, sweat and tears, becomes a tradeable and valuable commodity. Pieces of paper with pretty pictures on, printed in their billions will not.

Education, research, and expertise gained over long periods gives countries an advantage in particular spheres. And asking the Lord Almighty, in whatever guise you see him, will not cut it anymore.

The Lord helps those who help themselves is a phrase I was brought up on. It is time for the middle-east to wake from its 1500 year slumber, and broaden its economic base through acceptance of certain verifiable truths.

Men are the captains of their own destiny not an all seeing prophet, or god from on-high. Such thinking should be reserved for the home and hearth.

Science, and the application of science – truths in physics, if you will, will improve the lot of the many. A country of fundamentalists, however ruled, who do not realise that they can only pay their way in the world by exchanging things of value, will, if ignored, like grapes of wrath, wither on the vine.

Forcing people to live a particular theocratic life in poverty, will mean they will take the first opportunity to leave. And the oil and gas will stay in the ground if others refuse to buy from these tyrants.

In the meantime, those oil and gas producers outside the middle-east, will be reaping the rewards as the oil price rises once more. Two small producers, I have had a smallholding with for over a year, for just such reasons are: Lenigas and Oil (AIM:LGO) and Sound Oil (AIM:SOU). Both have had good news of late and I believe are multi-baggers from here.

LGO operates in Spain and Trinidad and Tobago, and SOU operates in Italy.
As the world price of oil and gas rises due to the increasing political risks, these small businesses will find their product adds increasing amounts to the bottom line, and thus their prospects will rise alongside it.

Eventually, the public will wake up to the fact that the notes and coins in their wallets, and their bank accounts don’t represent real wealth, and demand alternatives to the currency dictated by governments. Alternatives that have stood the test of time, such as Gold and Silver, and newer alternatives such as the crypto-currencies, I’ve mentioned many times will stand out as value and wealth preservers – Bitcoin et-al, and Gold and Silver, will achieve their true place in the realm of matters economic just as they have always done when governments do stupid things like debauch the currency.

If you liked this post, please like it or even just copy and paste saying where from.

W.

Are you part of the 1%?

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I was reading my usual News sites, and some blogs, trying to keep up to date with the goings on in the money markets, and the world of finance, economics, politics and the precious metals markets, and someone mentioned something that made me stop and think…

The Occupy Wall Street movement, frequently talk about the 1%. That narrow class of Bankers and others of the financial elite who seem to control the planet through their manipulation of the money markets, and who use their financial and economic power to control governments and get the people to bail them out when they make a bad bet, and who threaten governments with economic and political mayhem, if they don’t get what they want.

Close Guantanamo? No problem… Well maybe next year…We need this war on terrorism, it’s good for jobs – in government.
Allow Saddam Hussein to sell oil in Euros? – Sure…(Er No. that would crash the dollar.)
Allow Iran’s Ahmedinajad to buy oil with Gold? No problem… Actually that would hurt the dollar too.
Allow Libya’s Ghadaffi to form a Gold Arabian Dinar currency union to sell oil? – Yeah Why not? Are you kiddin’?
Allow Syria’s Bashar Assad to build a pipeline from Iran through Shi-ite controlled Southern Iraq, and Syria, to the Mediterranean Coast, to allow Iranian gas to world markets and especially Europe? – Hey wouldn’t that be great! Not if you’re a western oil-major.

However, I digress.

In an article they quoted, that a web-site – “Zero-Hedge.com” regularly had 100,000 readers, but one article in particular had had 300,000 views.

Given that the population of the U.S. is a little over 300 million, and that the web-site is visited by overseas viewers – myself included, that means that less than 0.01% of the U.S. population have even a mild interest in precious metals – in particular Gold and Silver, or the state of the dollar.

That means that if you are one of the few… That VERY few, who hold even just a little Gold and/or Silver, you are part of that rare breed of humans – that 0.01%, who will benefit when the currency that now dominates world affairs, that has been the reason for much of the unrest we see around the world – in the middle east, in South American countries, with questionable political systems, with rulers who were supported merely because they satisfied the economic success of their currency Lords back home in the U.S.

When the world currency system that we currently have, implodes, as it inevitably must, then you will be glad you had the foresight to buy even a little insurance in the form of Gold and/or Silver or even Platinum or Palladium.

According to Agora Finance’s Editor in Chief, and co-author of several books on the subject of money and finance  – every un-backed currency that has ever existed has gone to zero.

You can count them throughout history – The U.S. Continental, the European currencies of yesteryear – the German Mark, the Austrian Schilling, the Yugoslavian Dinar and the Zimbabwean Dollar.

On average the lifespan of an un-backed currency is 30 years, and given that the dollar became un-backed by Gold, on August 15th 1971, when President Nixon closed the gold window, as a result of France and Britain asking for several billion dollars worth of Gold for its dollar reserves, as the Vietnam war saw the explosion of U.S. currency leaking out around the world, the dollar has had more than its fair share.

The rise of dictators in the middle-east happened largely because of rising populations in those countries, with political systems, that were and are still trapped in the hereditary system of government. Kings, and Royal families make those countries what they are.

Colonel Muammar Ghadaffi, Hafez Al-Assad and Saddam Hussein all seized power because their rulers looked to the West, and were corrupted with huge payments by western oil majors and their sponsors – the Fed – who ensured that gas prices in the U.S. didn’t cause economic misery and dislocation in the economy. Especially given that the war in Vietnam was costing the U.S. so much in Agent Orange, and bombs as their hundreds of B52s were carpet bombing Laos, Cambodia, and of course North-Vietnam, ushering in Pol Pot.

These last 40years have seen one Royal or dictatorial household after another supported, so that cheap oil can be had back home in the good ol’ U.S. of A.

And now that the instability in the middle-east has driven oil prices up to such a level that recovering the shale oil and gas, is cost effective, and that it is likely to last more than 100 years, and make the U.S., energy independent by 2017 or even sooner, has prompted a fall-out between the Royal Saudi-kingdom and the American political class, as Saudi oil, once so necessary is not needed nearly so much cutting the income of the Saudis. And of course the Saudi’s whose mortal enemies are the Shi-ite Iranians, are now selling oil in dollars once again, as they negotiate over Nuclear reactors, and the fuel that they need.

But that’s just detail, right?

Those who heeded the portents of what was to come, in the early 1970s, bought Gold at just $35.00 per ounce. In the run up to the oil crisis of 1973, the price of Gold would rise to $200, giving those early adopters a substantial profit. BUt then as now, the price halved over the next two years falling to $100.

Those who bought at the top and sold on the way down must have smarted, but the wise ones, know that Gold is not a metal to be traded, but an insurance policy you take out when Governments do stupid things like debauch the currency.

The wise ones, the clever ones (or just the stubborn ones) held onto their Gold and collected on their insurance, and sold out 5years later.

By then the price of oil had risen four-fold, Ayatollah Rouhollah Mousav Khomeini had become the religious and political leader in Iran, and Gold had risen to over $800 per ounce, even spiking to $850 per ounce, as all the above ground Gold (as it always does) rose to the price to absorb all the Dollars in the world.

When the next J curve in the price of gold and silver comes, those who are smarting now, and those who take advantage of the current low price of Gold at circa $1200/oz for Gold and $20/oz for silver, will be the ones with smiles from ear to ear.

Will you be one of the 0.01% or even the 1% who makes their purchases and sales with knowledge and wisdom, or the 99% who watches this from the sidelines.

There’s an old saying…

There are three kinds of people.

Those who make things happen,
those who watch things happen, and
those who say – “What happened?”

Which one are you?

Until next time.

W.

 

2014 – New Year’s Resolutions (New Year’s Revolutions?)

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So, 2013 is over, and it’s back to work for most.

As I’ve previously stated, I would be introducing a few investment areas for further research.

Over in the U.S., their economy grew at its fastest pace for a few years in 2013.  The stock market grew at over 30%, and the pull-back expected by many didn’t appear.

Gold lost over 20% of it’s value, and Silver too, had a big sell-off. No surprises from me there.

Early reports suggest it has been a mixed picture for Britain’s High St. retailers during the Xmas period – Debenhams and M&S having a difficult time, while House of Fraser and John Lewis were  up by substantial margins.

On the wider front, RT’s Max Keiser interviewed David Blanchflower on his show this morning, David (Danny) Blanchflower used to be one of the members of the Monetary Policy Committee, at the Bank of England – now he lectures at one of the US’s premier universities – Dartsmouth College, and declared that the QE programme as it was implemented in the UK., could have been improved, by buying Business assets and instigating a Bond to back business lending to small and medium sized Businesses.

As it was, BoE Governor, Mervyn King had other ideas.

Britain’s Daily Telegraph seems to think that 2014, will be a year of good economic numbers – especially if you’re invested in FTSE100 companies. The FT has not fared as well in the last two years as both the Euro-zone, and the U.S. which had relaxed monetary limits with the Fed’s QE programme and the ECB’s LTRO programme. Also the FT100 index has a higher complement of Mining outfits with Antofagasta, BHP-Billiton, Fresnillo and Randgold Resources to name but a few.

The argument therefore goes that, a recovery in these which form a large part of the weighted index, would raise the index to a new high. The previous peak in 1999, as the millenium approached 7,000 has not been bested, but is likely to be this year, with suggestions this might be as high as 7,500 or even one optimistic report of 8,000+.

That said, a great deal will depend on events in the US, Europe and middle and far-east.

China, and Japan are getting closer to a military struggle as resources are competed for beneath the South China Sea, and Japan’s debt to GDP ratio of 270% by year end, will add to problems for the world’s third largest economy. China’s lax financial regulations mean that some large corporations do not have the financial exactitude that we expect in more western regulated markets, and thus it is difficult to ascertain a complete financial picture of those corporations. That said, China’s stock markets seem at low levels compared to the west, and thus a small investment in some of these larger corporations, might be a prudent move.

Fed tapering which is expected shortly might be the catalyst that leads to higher interest rates, and this ultimately might lead to lower market valuations.

Europe is still mired in difficult financial conditions, as the Greeks are still existing on essentially the largesse of the German people.

In Greece, several extreme right-wing groups are regularly protesting at the conditions imposed from outside by the “Troika of the EU, ECB and IMF.

Oil prices which are still high for several reasons are unlikely to fall much though, as increased production from the US, as fracking production has risen five-fold in recent years, is off-set by rising demand in OPEC exporting nations, coupled with a fall-off in supplies as Libya, Syria and Egypt suffer because of rising tensions there.

This changing supply/demand dynamic though will benefit the dollar which may begin rising in value as the Fed’s QE programme gets withdrawn, though it is expected that Janet Yellen will stand by the currency if interest rates begin to rise precipitously.

Which brings me to some of the research I’ve been doing into companies that are likely to benefit over the next few years.

Commodity Companies

Sempra Energy  listed in the U.S., owns a subsidiary, called Cameron LNG, who back in 2005 began production of a LNG import facility close to the national pipelines in Louisiana, and which it is now known has been retro-fitted to enable it to export the glut of Natural Gas to the emerging markets of China and India, via the soon to be opened, enlarged Panama Canal.

Another such organisation is Cheniere Energy who last year signed an agreement with British Gas to supply it with LNG for the next 25years. Cheniere is the owner of one of just 4 LNG terminals, that have the authority and capability to export when they finally get full approval.

Though both these companies’ prices have risen substantially, I expect them to rise still further over the next 5-10 years as the fracking revolution expands in the U.S.

On the minerals front, demand for copper and Precious Metals is still strong in the East, but especially both India and China, with China importing over 1,000 tonnes of the yellow metal in 2013, and with their goal to have a fully tradable currency by 2015, they will I suspect still continue to be big buyers in 2014.  This together with the recent report of a flight from UAE into India, in which almost every passenger on the flight had 1 Kilo of Gold on their person, suggesting India’s love affair with Gold will continue despite attempts by their Government to reduce consumption. Though rising silver demand suggests some of their money is now going into Silver too.

In Mongolia, a mining outfit bought by Rio Tinto and re-named Turquoise Hill Resources (traded on the Toronto Stock Exchange) is primed to supply its Chinese neighbour with Copper, Gold and Silver and has 45 million ounces of Gold and over $300BILLION worth of Copper at its Oyu Tolgoi mine.

Only Mongolese Government incompetence and/or Chinese economic collapse will likely stop this from being a huge success story.

Over in Mexico, a company I’ve mentioned before is currently installing a newly refurbished mill and is likely to be producing at the cost of less than $15/oz by late 2014. As it has already delineated 130million ounces of silver, and I expect a small rise in silver prices by year end, it will be profitable providing it can free itself from its debt facility at some point this year. With as few as 50million shares in issue, each share currently at less than 25p, has the rights to 2-4 ounces of silver per share, depending on a 5th round of exploration slated for this year with expectations to extend their reserves to in excess of 200 million ounces when fully delineated.

Technology Companies

In the technology sphere, two companies producing Graphene, with one of them a sizeable outfit by British standards, and who developed the heat-shield that served to get the Mars lander safely onto the Martian surface last year, will be successful over these next few years. Graftech International is currently below $10, and holds key patents in this emerging technology. They have also recently signed agreements to work with Samsung and Apple who will take advantage of their technology in the near future.

Graphene-Nano-chem, a British listed company is a company which will produce Graphene based chemicals from waste materials at its Malaysian facilities, which will provide graphene enhanced lubrication drilling fluids, used in the Oil and Gas sectors among others.

That just about wraps this post up for today.

W.

Anyway, just for the FCA compliance, Any mention of the companies named above is not a solicitation, but is for education and general informaton only. For the record I am a holder in Arian Silver.