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Precious and Rare Earth Metal Stocks

Written By Brian Hicks

Posted November 25, 2009

My daughter Josephina is 6 years old and in the first grade.

Her homework assignment for the holiday weekend was to interview each family member and ask them what they’re "thankful for" this Thanksgiving.

I was the last of the family members she interviewed.

"Dad, what are you thankful for?" she asked with a beautiful smile.

I looked at her with loving admiration.

"My love…"

"Yes, Daddy."

"This Thanksgiving I’m thankful for… silver and gold."


Silver and gold, silver and gold
Ev’ryone wishes for silver and gold
How do you measure its worth?
Just by the pleasure it gives here on earth

– from the cartoon "Rudolph the Red-Nosed Reindeer"

The Report that Shocked the World

On November 18, Societe Generale released a 68-page report entitled "Worst-case Debt Scenario."

The report advises its clients on how to prepare their portfolios for a complete global economic collapse. The report argues that there will be few places to hide.

But that "gold would go up, and up and up as the only safe haven from fiat paper money."

And as you read this, gold has made a new record high of $1.183 an ounce.  Silver sits at $18.75.

I continue to buy each on weakness.

My old colleague and commodity expert James Passin was recently interviewed by Karen Roche of The Energy Report.

If you don’t know James, he’s been nicknamed the "Indiana Jones of frontier stock markets" because he’s willing to go to the ends of the earth to find winning, early-stage investments.

In the interview, James says…

We have had a rally in all assets, but hard assets also are benefiting in particular from extraordinary loose monetary conditions. Surplus liquidity is flowing into commodity products like exchange-traded funds (ETFs) that are buying commodity futures and physical commodities, creating a feedback loop, which is driving up the price of resources. But what we thought is that this would be a great year for resource stocks based on our view that capital markets would start to reopen. Resource companies tend to be capital-hungry. So as the cost of capital comes down and as capital becomes available, resource stocks tend to outperform resource prices. At the same time, last year there was a dramatic reduction in issuance of stock by resource companies. This has resulted in a highly bullish environment for resource stocks.

James’ thesis is supported by the performance of the Vancouver Venture Exchange, which is the epicenter for the global junior resource stock market.

Take a look at a 1-year chart of the Venture Exchange:

thankful for precious metals

The Venture has outperformed every market for the past year.

And I’m going on record saying that this bull market will continue for the next two to three years — at a minimum.

For the last three months, I’ve been building positions in small metals stock, both precious and rare earth.

Regarding precious metals, I would be remiss if I didn’t tell you that my colleague, Luke Burgess, has recently published a report about a little-known silver stock that has outperformed the Dow Jones by a factor of 122, and beaten the NASDAQ by 11,500% in the past… and is about to do it again.

I now own Avalon Rare Metals, Lithium One, Tasman Metals and of course, Argentex.

Precious and Rare Earth Metal Stocks: The Best of Both Worlds

My favorite is Argentex because it’s both a precious metals play (silver) and rare earth play (Indium).

I recommend Argentex to you on December 28, 2008… when the stock was trading for just 15-¢.

Today it trades for 80-¢.

But Argentex (OTCBB: AGXM) is going higher. Mark my words.

I think silver could be trading for $25 this time next year. If so, Argentex could easily double from current levels.

But it’s Argentex’s indium angle that has me all hot and bothered.

You see, indium is going to be an in-high-demand commodity. First, indium is used in products like liquid crystal (LCD) and plasma flat-panel displays. Demand for these elements has exploded applications in the last few years.

In fact, roughly 50% of global indium consumption goes into televisions and computer monitors.

But that’s not what has been so bullish on indium.  Indium is going to be a major component in green and clean energy technologies, such as solar.

We just published a new report about the latest news in rare earth metals and the single private company that will own the majority of the world’s share, come January 1. This news is something you simply can’t ignore if you want to cash in on the rare earth metals market that is vital to a future in clean technology — and set to skyrocket.

Argentex’s Argentina indium property holds some of the highest grades of indium anywhere in the world.

If you don’t own Argentex, I highly recommend you get a position before it takes off more.

This time next year… you’ll be thankful for Argentex.

Happy Thanksgiving,

Publisher, Wealth Daily