If everybody dumps the dollar, where does it go?

The dollar is as unpopular as ever. Continued low interest rates, massive inflationary threats and never-ending stimulus plans are creating a situation like never before.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): Nobody wants the dollar these days, but yet we all depend on the greenback to keep the business world spinning.

There is an interesting phenomenon taking place in China. As the Fed prints so much money that it is contemplating selling advertising space in place of presidential portraits, Asian investors are making major moves to capitalize on the situation.

Investors are firing up the carry trade like never before, borrowing dollars and buying yuan- or yen-based.

Meanwhile, the Asia banks that end up with a horde of dollars are nervously exchanging them for domestic currencies as they fear holding too many dollars will hurt their bottom line as the currency continues its rapid depreciation.

Normally, the forex markets is the place traders head when they need a good nap or a break from “real” trading, but thanks to the massive changes we have seen lately, the currency markets are anything but boring.

While my commentary has drifted away from the commodities carry trade in recent weeks due to my natural gas industry research efforts, the powerfully profitable trend is as alive as ever.

Think about it.

Reuters is touting an article today that discusses the “shortage” of dollars on the market. As banks dump their holdings, governments with huge trade surpluses are forced to take on the exchange.

With nearly a trillion dollars in its reserves, China already has more than enough greenbacks on hold. But it can’t put the money out to the free-market ravens. It would only make the situation worse.

The only thing it can do, besides letting its currency float (don’t expect that anytime soon) is buy something it needs with the cash… like commodities!

Tangible assets like coal, oil, platinum, silver, gold and iron are the perfect purchase. The trades are done in American dollars and they are actually appreciating in value. The more China buys and stockpiles now, the less it will have to rely on the open markets when its economy really gets cranking.

Even better, China is buying more time until it has to begin depleting its own massive supplies of domestic commodities.

The news from India earlier this week that it bought massive amounts of gold from the IMF surprised the markets, because most folks believed China would do the buying.

But with a massive trade surplus of its own, India needs to take advantage of the commodity carry trade just as badly as its neighbor.

It all adds up to great bullishness for the commodities markets. While crude and gold get most of the attention, buyers are not limiting their purchases to these two kingpins.

The entire complex is on the auction block and prices are going up. It is not too late to get in on the action.

Article first published on Today's Financial News

If everybody dumps the dollar, where does it go?

Peabody Energy: Playing China’s red-hot coal Industry

The coal industry is expanding, but the growth is not here in the United States. Once again, China is in play. So are Peabody Energy (NYSE:BTU) and James River Coal (NASDAQ:JRCC).

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): There is good news from the coal industry. But once again, it has nothing to do with domestic demand. China is in charge and all indications show it will be for quite some time.

The news comes from Peabody Energy (NYSE:BTU). The $12 billion coal miner released its latest quarterly earnings before the day’s opening bell. While the Street likes the top and bottom line, savvy investors will be interested in knowing where the growth is coming from and where it will come from in the future.

It is all thanks to China.

Reports show the economically expanding country imported some 21 million tons of metallurgical coal through August, more than ten times the amount imported last year.

During the same time, China imported 38 million tons of thermal coal. Last year, it exported 7 million tons of the stuff.

Thanks to tight pricing conditions mandated by Beijing, the seaborne market appears able to keep its top spot through future years, even though domestic production can fill the bill.

The country’s leaders want to use everybody else’s coal before digging itself into a literal hole of its own.

That is good news for Peabody and its competitors.

Market manipulation pays off

Thanks to China’s increasing demand for thermal and metallurgical coal, Peabody has a strong growth opportunity on its hands. The company is working hard to cash in on Chinese demand by increasing its Australian production.

Peabody’s Australian sales estimates for 2010 are in the range of 24 to 27 million tons, about 15% higher than 2009’s figures. To help accelerate Asian sales, Peabody created a new trading hub in Singapore, plus is working on an office in Jakarta and operations in Mongolia and China.

All of this growth is happening in Asia while the domestic market is slumping by double-digit proportions. Peabody says American coal generation is down by 10% so far this year, thanks to cheap natural gas and decreased summer demand.

Fortunately, the prospect of booming overseas sales is enough to keep investors happy. Shares of Peabody are up by about 3% so far today.

Peabody’s news is boosting much of the coal industry today. One of my favorite miners, James River Coal (NASDAQ:JRCC) gapped up by more than forty cents this morning.

While James River will not directly benefit from overseas sales, the increased demand and ensuing rise in coal prices will help boost the small, well-run miner’s future earnings. Best of all, it will benefit from the industry’s overseas expansion without risking its own capital in a market that could suddenly be flooded with plenty of China-mined coal.

This is an interesting industry to watch and is certainly worthy of your investment dollars.

If you are looking for security and long-term growth, Peabody is the stock for you. If you have a bit more tolerance for risk and are looking for a shot at profiting from future domestic growth, James River is worth a look.

Either way, you are getting a shot at a vital industry at a pivotal time.Similar Posts:

• James River Coal: A good company in an uncertain industry – May 1, 2009
• Lighting a fire under America’s coal industry – May 4, 2009
• Merger’s ahead: Alpha’s buying is just the beginning – May 12, 2009
• Commodity fever: The buying spree continues – August 13, 2009
• Bank the gains on these TFN energy picks Total (TOT), Chesapeake Energy (CHK), and James River Coal (JRCC) – September 16, 2009

Article first published on Today's Financial News

Peabody Energy: Playing China’s red-hot coal Industry

Silver Wheaton (SLW), Coeur d’Alene (CDE), Hecla Mining (HL) are racking up gains… who’s next?

Silver champions Silver Wheaton (NYSE:SLW), Coeur d’Alene (NYSE:CDE), and Hecla Mining (HL) have been putting gains into investors’ pockets. TFN readers suggest Mag Silver (AMEX:MVG) and this mystery stock may be golden, too!

by J. Christoph Amberger

Baltimore, MD — TFN: With one of our longer-term Hot Stock Confidential plays, Silver Wheaton Corp. (NYSE:SLW) up close to 50%, I had asked our TFN eNews readers about their views on silver-related equity plays.

TFN eNews reader Henry C., wrote in:

“I love SLW. Have owned it at 20 and at 4. Bullish on silver, even more than gold. The S&G ratio is still way out of proportion. I still believe in regression to the mean. Terrific management and policy of income production. No dividends, but they are using the funds for growth. Fine, I look to MPLs and Energy TR for income. I get income on the non-dividend assets with covered calls and selling puts. SLW is a great stock for that. High beta in today’s market.

“If my covered calls are exercised, I’m protected by the calls I have purchased. Of course, stop losses must be in place. Nobody is always right in predicting the vagaries of the market. Especially those manipulated by the boyz. If Ted Butlers recommendations to the CFTC bear fruition, limiting it to 1500 contracts per trader will result in massive short covering in both metals and limit manipulation in the future. It cannot get worse, only better.”

TFN eNews reader Gene G. wrote in: “I have done right smart this year with Coeur d’Alene (NYSE:CDE) and Hecla Mining (NYSE:HL). I sold CDE and HL last month and bought Mag Silver Corp (AMEX:MVG) and SLW.

“CDE is on my re-buy list if it gets reasonable again. I continue to hold one other silver stock. And while I may take profits on SLW and MVG, I will hold on to that one unless the world falls apart.”

(Editor’s Note: Hot Stock Confidential readers, too, are sitting on 52% and 39% gains taken on CDE and HL, respectively.)

Coincidentally, reader Michael H. had similar feelings about Gene’s “mystery” silver stock– which has a strong Chinese tie-in: “It’s all about China these days. Bought in July @ $2.68. Already up over 50%, way more room to run as silver will approach historic level of $100.00 an ounce within the next year. Don’t sell SLW. Bought that at 7.50. Booyah. Silver Silver Silver.”

Independent of Gene and Michael’s suggestion, Hot Stock Confidential editor Laura Cadden issued a recommendation for this particular silver company in today’s Hot Stock Pick of the Week: “If you look at its share price over the past five years, you can see just how undervalued it is. Then there’s the fact that this is a dividend stock — always a nice bonus!

“If you haven’t yet had enough of silver, I recommend you pick up shares under $5.50 and hold on for 20% gains!”

Find out what stock they’re talking about by becoming a member of Hot Stock Confidential: http://www.todaysfinancialnews.com/HSC/ridic/WHSCK904.html

Article first published on Today's Financial News

Silver Wheaton (SLW), Coeur d’Alene (CDE), Hecla Mining (HL) are racking up gains… who’s next?

HSC gainer #65: Sell Hecla Mining Co. (HL) for gains of 50-120%

Hot Stock Confidential subscribed to use today’s jump in silver prices to cash out of Hecla Mining Co. (NYSE:HL) for gains of 52%!

by J. Christoph Amberger

Baltimore, MD — TFN: Commodities are back up again, and so is silver. Today, one of our silver mining picks hit its 52-week high. For our official open positions portfolio, that means gains in excess of 50%:

On May 27, I recommended you “buy shares in Hecla Mining Co. (NYSE: HL) between $3.25 and $4!”

On July 8, you could have bought shares for as low as $2.30. Since we kept nagging our subscribers to buy more low throughout that period in our weekly portfolio updates, they had a shot at more than doubling their money on this one, for gains of up to 120%!

I say it’s time to make off with the gains. Sure, we might be able to squeeze another 10% gains out of this stock. But I’d rather book the gains at this level and look for new opportunities to make money!

We, of course, stick to our official Hot Stock Confidential entry price and only add 50-some percent to our tally.

HL is double-digit gainer #65 so far this year for HSC members.

Just how do we do it? Well, the best explanation I can come up with is this…

Article first published on Today's Financial News

HSC gainer #65: Sell Hecla Mining Co. (HL) for gains of 50-120%

Better than stocks, safer than gold

If you think gold has been on a good run, check out platinum. Its potential to make you rich is undeniable, no matter what the markets do over  the next six months.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): To say the markets are getting nervous is an understatement. Traders are flat out shaking at the knees. With report showing the nation’s housing sector remains weak, manufacturing activity is slowing and consumer sentiment is on the decline, smart investors are cashing in their gains and running back to the realm of safety.

That means assets like gold and Treasury Bills are hot commodities. As I write, the value of an ounce of gold is once again at the critical thousand-dollar mark, proving that investors are moving away from risk-filled equities and diving into tangible value.

But if you think the run in the gold market has been noteworthy, dig a bit deeper through the commodities quotes and check out the action of the ultra-rare metals, like platinum and its cousin palladium.

Whoa, Nelly!

While gold moved ahead by just over 10% in recent months, these two have surged by nearly 40% and over 55%, respectively.

There is a plethora of reasons platinum-group prices have surged over the past six months. One of the chief causes is our good trading partner, China.

With a buck buying less than it used to these days (the dollar is down again today), China is stockpiling every hard asset it can find. Beijing particularly likes platinum and palladium because of their vast industrial uses, increasing its August imports by more than 90% and 60%, respectively.

While some of the added importation can be attributed to economic growth, there is no doubt stockpiling is a major source of demand growth. This is a trend that will continue over the next 12 to 24 months as China’s economy rebounds and America determines its fiscal future.

If you haven’t figure out a way to take advantage of the situation yet, do it now. You still have 16 days.

If you are looking for the simplest way to take advantage of the situation, buy shares of the world’s platinum-group miners. Just yesterday, Hot Stock Confidential posted its latest special report online. In it, you will find out exactly which miner I believe is the best buy out there.

Here’s a hint: Its shares trade for less than buck.

Best small cap around?

If you are as bullish on this situation as I am, you will surely want to put the leverage of options to your advantage. Over at TFN Strategic Trader, that is all we do.

I recently wrote a special report detailing a unique opportunity that allows you to maximize your profit potential as China ramps up its commodity imports.

To read it and get your hands on this invaluable information, simply follow this link.

Finally, take this with you.

As the world’s economy stratifies into one enormous, undistinguishable layer, America’s position as a dominant force will greatly diminish. Recent political action and an emergence of far stronger economies have hurried the process.

Right now is the time to prepare for the change. As I wrote yesterday, China is already making its preparations.

What is stopping you from dedicating at least a small portion of your portfolio to this interesting situation?

Article first published on Today's Financial News

Better than stocks, safer than gold

Better than stocks, safer than gold

If you think gold has been on a good run, check out platinum. Its potential to make you rich is undeniable, no matter what the markets do over  the next six months.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): To say the markets are getting nervous is an understatement. Traders are flat out shaking at the knees. With report showing the nation’s housing sector remains weak, manufacturing activity is slowing and consumer sentiment is on the decline, smart investors are cashing in their gains and running back to the realm of safety.

That means assets like gold and Treasury Bills are hot commodities. As I write, the value of an ounce of gold is once again at the critical thousand-dollar mark, proving that investors are moving away from risk-filled equities and diving into tangible value.

But if you think the run in the gold market has been noteworthy, dig a bit deeper through the commodities quotes and check out the action of the ultra-rare metals, like platinum and its cousin palladium.

Whoa, Nelly!

While gold moved ahead by just over 10% in recent months, these two have surged by nearly 40% and over 55%, respectively.

There is a plethora of reasons platinum-group prices have surged over the past six months. One of the chief causes is our good trading partner, China.

With a buck buying less than it used to these days (the dollar is down again today), China is stockpiling every hard asset it can find. Beijing particularly likes platinum and palladium because of their vast industrial uses, increasing its August imports by more than 90% and 60%, respectively.

While some of the added importation can be attributed to economic growth, there is no doubt stockpiling is a major source of demand growth. This is a trend that will continue over the next 12 to 24 months as China’s economy rebounds and America determines its fiscal future.

If you haven’t figure out a way to take advantage of the situation yet, do it now. You still have 16 days.

If you are looking for the simplest way to take advantage of the situation, buy shares of the world’s platinum-group miners. Just yesterday, Hot Stock Confidential posted its latest special report online. In it, you will find out exactly which miner I believe is the best buy out there.

Here’s a hint: Its shares trade for less than buck.

Best small cap around?

If you are as bullish on this situation as I am, you will surely want to put the leverage of options to your advantage. Over at TFN Strategic Trader, that is all we do.

I recently wrote a special report detailing a unique opportunity that allows you to maximize your profit potential as China ramps up its commodity imports.

To read it and get your hands on this invaluable information, simply follow this link.

Finally, take this with you.

As the world’s economy stratifies into one enormous, undistinguishable layer, America’s position as a dominant force will greatly diminish. Recent political action and an emergence of far stronger economies have hurried the process.

Right now is the time to prepare for the change. As I wrote yesterday, China is already making its preparations.

What is stopping you from dedicating at least a small portion of your portfolio to this interesting situation?

Article first published on Today's Financial News

Better than stocks, safer than gold

Big Money: China buys a commodity of different sorts

China spent billions in the commodities markets over the past year. Now it is unloading $2 billion into a commodity of different sorts.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): China is digging its hands even deeper into the pockets of the American economy this week. While many investors debate a tire tariff, Beijing is de-nationalizing another $2 billion worth of American assets.

This time the cash-heavy country is buying a commodity of different sorts, distressed assets.

While not a traditional commodity like gold, aluminum or crude, debt-ridden assets became bundled into the class during the latest investment cycle. Now the opaque investments appear, at least to China, as one of the most undervalued assets on the market.

China Investment Corp., the same $200 billion sovereign investment fund that recently shelled out $850 million for a stake in commodity-giant Noble Group, plans to invest up to $700 million in three separate distressed-asset funds.

It is a deal backed by an ever-desperate U.S. Treasury designed to prop up an industry that refuses to budge on its own.

By unloading the assets to the relatively risk-adverse fund, the funds find well-needed liquidity, while China gets a shot at strong long-term growth potential.

Even better, it will own an even larger part of the American economy.

This is yet another extension of what I have dubbed the “Commodity Carry Trade.”

Getting bigger by the minute

China is desperately pouring the cash generated by its massive trade surplus into American assets as protection from a weakening dollar.

Frankly, I am not sure what aspect of this deal to be more frightened of, China’s increasingly large holding of American assets or the Treasury’s need to quietly back the deal.

After losing billions during last year’s financial-sector meltdown, China’s resurgence in the sector means the fund must have gotten a pretty sweet deal from Mr. Geithner and his gang.

While the nation’s financial and real estate sectors appear to be regaining ground, there are plenty of back-room whispers that argue to the contrary. Deals like this one are evidence the picture may not be as rosy as the Obama administration would like.

But it does prove China has more than enough cash on its hands and is willing to accept some risk, especially if it means protecting itself from a weakening dollar.

Anyway we dissect this story, the news is not good for the American economy. China’s dominance is increasing. The dollar is expected to weaken. And the nation’s financial and real estate sector still cannot thrive without the intervention of outside stimulus.

As investors there are several ways to take advantage of this situation.

Outside of moving to China, a smart move is to overweight the commodities sector. As I have said countless times over the past six months, the Commodity Carry Trade is leading to one of the biggest transfers of wealth in a generation.

As foreign governments dump the dollar in search of higher returns elsewhere, the dollar will weaken. Commodity prices will have to follow.

To continue reading about the subject, click here.

Article first published on Today's Financial News

Big Money: China buys a commodity of different sorts

Major breakthrough in the Commodity Carry Trade

The G-20 is set to meet later this week. Already we are hearing rumors of some big news and huge deals coming from the event. Gold bugs had better pay attention.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): This is a make-or-break week for gold prices. With an ounce of the precious yellow metal once again hovering at the critical thousand-dollar mark, investors are eagerly awaiting the markets next move.

Chances are it is going to be a big one. Here’s why.

It was no surprise when the International Monetary Fund (IMF) announced its plans to unload 400 tonnes of its gold holdings earlier this year. In a time filled with economic woes, the global lender needs the cash to issue new loans and shore up its own balance sheet.

The big surprise is who may be purchasing the gold.

The latest market rumors have China at the head of the line to purchase the $13 billion worth of gold the IMF is ready to unload. If it happens, the move would equate to about one-third of Beijing’s current holding.

It is a major breakthrough in proving the efficacy of the Commodity Currency Trade.

If you have been paying attention, you know China is no stranger to the gold market. Since 2003 – when it last reported its position – to earlier this year, Beijing increased the country’s ownership from 400 tonnes to 1,054 tonnes.

With some $2 trillion in foreign currency reserves, China is quickly securing its assets with an asset greatly removed from political and economic risk. So far, no government has figured out a way to print more gold, but they sure can print more money.

I’m talking about you, Uncle Sam

Later this week, when the twenty largest economies gather in Pittsburgh to discuss the world’s financial health, one subject that will undoubtedly be a hot topic is China’s expansion in the commodities market, especially the gold market.

If news breaks of a major Chinese gold purchase (even if it happens at a major discount to the market), look for a strong bull run over the next several months. Gold hitting the $1,250 per ounce mark would be the next destination.

If you have been following what I have dubbed the Commodity Carry Trade you know China is on a tremendous buying spree of any hard asset denominated in dollars.

A sudden concentration on gold will have several detrimental effects on the domestic economy.

First, while China has a huge stockpile of American dollars to exchange, it is not an unlimited fund. Every dollar Beijing spends on gold is a dollar less it can hand Tim Geithner and his Treasury Department.

With less incentive to buy American debt, interest rates will naturally rise. That’s bad news for an economy unwilling to grow even with ultra-low loan rates.

The lone piece of good news (even it is a bit of a stretch), is the equities market will tag along with the interest rate increases. Unfortunately, so will your bills and the price of everything you buy.

There is no doubt China is moving its assets to the commodities market. We have proven it over and over during the past several months.

The big question now is how fast is China making the move? We will find out later this week.

Pay attention to the news. It is getting very interesting.

Article first published on Today's Financial News

Major breakthrough in the Commodity Carry Trade

Commodities rally: China makes the world go ’round

The commodities market is soaring, leading us to another round of double- and triple-digit gains. Thanks to China’s recent moves, the gains will continue to grow.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): This is a critical period for America’s chief export, its burgeoning national debt. As the Obama administration works to spend the country into a sustained economic recovery, our national debt is about to smack into its Congressionally mandated debt ceiling once again.

Unless the $12.1 trillion “credit limit” is raised, the U.S. has just $349 billion to spend until we are officially in default mode, with debt coming due and no way to pay for it.

If we don’t fix the situation, financial calamity will certainly ensue.

Of course, Congress will eventually make the politically sensitive move to raise the limit as it has some 90 times in the past seven decades (the House already voted for a $13.029 debt ceiling), but it won’t happen before plenty of political bickering and maneuvering.

It’s your fault, not mine

You can bet your bottom dollar China is watching the situation closely. As the largest holder of Uncle Sam’s obligations, Beijing’s economic future is tied to our ability to repay our burgeoning debt… with money that is actually worth something.

So far this week, the value of the greenback has weakened intensely. As I write, it takes $1.47 to get just one euro, a figure just shy of yearly lows.

Of course, with a weakening dollar, gold bugs are getting anxious. Their precious metal has surged in value, all the way to $1,023 per ounce, just ten bucks shy of all-time highs.

The action has had all sorts of beneficial ramifications for savvy traders. Over at TFN Strategic Trader one of my more-touted options trades was worth triple-digit gains yesterday.

As the situation grows over the next month, the plays value will undoubtedly increase.

By the way, we locked in gains of 80%, 40%, 18% and a whopping 185% over the past week. How’s that for the power of leverage?

Looking forward, it is all about China and the commodities markets. The news from Venezuela this morning proves it.

While Hugo Chavez may not be a political favorite in Washington, the rest of the world has no problem dealing with the man and his country.

Buy, Buy, Buy

China proved it by inking a $16 billion oil deal. Add this latest sale to last week’s $20 billion agreement between Venezuela and Russia and suddenly our South American antagonist is producing an extra 900,000 barrels of oil each day, making it an even larger player in the world’s oil market.

There are two reasons this news is significant. First it shows China is not afraid to deal with American enemies. And most importantly, it shows the communist country’s dire need to exchange its greenbacks for something tangible – oil or any other dollar-denominated commodity.

This is going to be a very common theme over the next 24 months as the dollar weakens and interest rates rise. The more Washington debates the national debt and the increasing levels of spending, the more pressure China will feel to diversify its holdings.

The commodities market will feel the brunt of the pressure. We are already gaining from the recent bullishness. Fortunately there is much more to come.

Conditions are absolutely perfect for a massive commodities-market rally. If you are not in a position to take advantage of the action, make your move now.

To learn the best way to get the job done, read this report. If you would have read it two weeks ago, you could have already doubled your money.

Article first published on Today's Financial News

Commodities rally: China makes the world go ’round

Commodities market: Dig your way to riches

The commodities markets have been kicked into high gear. As America’s lenders change their mind, the world’s mining companies are on a surefire path to riches.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): If you can’t farm it, you have to mine it. It is a great message, no matter if you are an investor or an out-of-work cowboy.

Riding through the streets of Alaska’s ever-wet capital, you see all sorts of bumper stickers. There are three main categories – fishing, mining and Sarah Palin.

It is the miners getting all of the attention this week.

There are several reasons the world’s mining industry is opening a big ‘ole bottle of bubbly, but none more poignant than the fact that America is shelling out debt faster than a hot-rod blackjack dealer unloading his deck.

As Uncle Sam goes “all in,” the folks paying for Washington’s lavish lifestyle are getting nervous. For proof, I need just one set of numbers.

In July, foreign purchasers bought just $15.3 billion more debt than they sold. In June, that number was $90.7 billion. If the trend continues (and you know it will), we could be in serious trouble.

Here come the interest rates

With an all-out disdain for American debt, countries like China and Russia are finding other ways to convert their greenbacks into something more useful. The commodities market has been the first vehicle of choice.

The share price of just about every major mining company is all the proof we need.

Every day, I compile a list of the session’s big winners and losers. I study them, look for the cause of the volatility and determine how to profit from the action. Lately, my winners list has been filled with the folks pulling minerals from the ground.

One player getting plenty of attention from the bulls is Hecla Mining (NYSE:HL).

So far this month, the silver, gold, lead and zinc miner has watched its Street value increase by more than 60%. Shares are up by over 6% today as gold prices continue their exploration above the critical $1,000 level.

As the markets worry more and more about the notion of runaway inflation and a weakening greenback, gold miners like Hecla will continue to increase in value.

Shares are approaching the $5 mark today, but a $10 quote by spring is not out of the question.

Another double-digit commodity winner comes from Anadarko Petroleum (NYSE:APC). If you are a Hot Stock Confidential subscriber, you are familiar with this oil and gas producer’s winning ways.

Since I recommended buying shares of the company back in May, share price has jumped by over 30%.

The gains continue today as natural gas prices surge above the $3.50 level and as word spreads about the company’s latest deepwater discovery off of Africa’s western coast. The news makes Anadarko a major player in the region and the markets are rewarding the company in kind.

Progress in action

Finally, after spending a week in Juneau, I could not write a piece about the mining industry and not mention Coeur d’Alene Mines (NYSE:CDE), the owner of the ever-disputed Kensington Mine.

Over the past week, I had the opportunity to see the mine, talk with some of its employees and witness the hustle and bustle taking place as the site finally goes into action.

With metal prices on the rise, the mine could not have better timing. When the first minerals are pulled from the ground early next year, the company will get a hefty price for its product.

It is no wonder shares of the company are up by more than 100% in the last ninety days.

No matter your political slant or your views of the mining industry, there is absolutely no room to deny the fundamental value of tangible assets like commodities.

As the world’s wealth and power transfers from one continent to another, the rocks buried beneath the earth’s surface will be the only reliable asset.

If I were you, I would get my hands on some.

Article first published on Today's Financial News

Commodities market: Dig your way to riches

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