The following is an excerpt from the March issue of The Morgan Report. This followed a lengthy discussion of how silver and gold both performed during inflationary and deflationary periods. Most of what I wrote was based upon the work of Roy Jastram and his work on Silver the Restless Metal and the Golden Constant.

Excerpt starts here (read more…)

Chart courtesy of Stockcharts

We mentioned in the last update that in the short term we could see an oversold dollar bounce back albeit slightly with a corresponding knock on effect on gold, this has now happened and the dollar did manage a short weak rally which capped the progress of both gold and silver. July and August could present us with a dip which should be used as an opportunity to acquire a few more of your favorite shares, as we still anticipate that both gold and silver prices will set new records before this year is out (read more…)

The recent correction in silver prices from $16.23 to its close of $13.84 yesterday, has hit silver stocks fairly hard, with many losing 20-30% since the beginning of the month.

However amongst this sea of red in the silver sector, great trading opportunities may be just around the corner (read more…)

With the HUI having risen from 280 to the 400 level at the beginning of June 2009 we took the view that it was time to take some action that would protect our portfolio. Gold was at $980/oz and the US Dollar was looking extremely oversold with the possibility of a bounce on the cards.(read more)

Chart courtesy of Stockcharts

Silver has backed off recently and could possibly go a little further down, presenting us with a super buying opportunity. The technical indicators have left the overbought zone and passed through the half way stage heading south. The job now is to wait and try and spot the bottom before making any more purchases in the hope of picking up a bargain or two (read more…)

Chart courtesy of Stockcharts

Eagle Plains Resources primary objective is to enhance shareholder value through mining gold along with the acquisition and development of early-stage exploration projects. The company currently controls over 35 gold, silver, uranium, copper, molybdenum, zinc and rare earth mineral projects, one of which contains an NI 43-101 compliant Inferred Resource. The stock has been beaten down but now appears to be making a reasonable attempt to recover.

In a recent news release the company announced that they are making good progress with the “Yellowjacket JV” as follows (read more…)

Chart courtesy of Stockcharts

On 28th May we decided to lock in profits of over 80% gained on Randgold Resources Limited (GOLD) when we sold all of shares for $68.69. The question now is can we use Randgold as an insurance against a possible fall in the gold stocks sector.

We believe that we are in a strong bull market for precious metals and therefore we want to keep hold of our core position of Agnico-Eagle (AEM) Kinross (KGC) Yamana (AUY) as we expect them to be trading a lot higher by the year end. However gold itself took a hit on Friday and the US Dollar bounced from an oversold position to gain 1.63% in a day as we can see from the chart above (read more…)

Chart courtesy of Stockcharts

On the 2nd June 2009 Hecla Mining Company (HL) announced that they had sold a number of shares and warrants in order to pay down debt as follows:

Under the terms of the offering, Hecla will sell approximately 17.4 million shares of common stock and Series 4 warrants to purchase approximately 12.2 million shares of common stock at a price of $3.45 per unit (read more…)

Chart courtesy of Stockcharts

As we can see from the above chart Silver Wheaton’s (SLW) progress has been sparkling over the short term, although this chart suggests that SLW is overbought the future looks good with the added spice of the acquisition of Silverstone Resources Corporation.

Just a gentle reminder that this is a pure silver company with a business model that consists of making upfront payments to mining companies of less then $4.00 per ounce of silver (read more…)

The chart below must put a smile on the faces of all the patient silver bugs out there as it has blasted from the $12.00 level to close yesterday at $15.73

Chart courtesy of Stockcharts

A combination of the Korean nuclear threat, a falling US Dollar, rising oil and rising gold prices all helped set the stage for silver to make a largely un-noticed leap forward to position itself at the front of the pack (read more…)