   |
|||
Boxing Day SaleKal Kotecha This is the time of year, when I’m out shopping, that I wished the prices were listed as Boxing Day prices. The same smart TV that I can buy today will be discounted on December 26th. Logic dictates that it would be better to wait. The good news is that Boxing Day prices are already here on junior mining stocks. This is a great time to buy, hold and wait for the next leg up. Currently the venture market is decimated and ripe for the picking but not all the fruit will taste as sweet as the others. Pick the ones with great properties and management. My picks can be found here. In regards to oil, does Saudi Arabia care that oil is trading at $55U.S./barrel? According to Business Investor, the Saudi’s cost of production per barrel averages $27—the cheapest in the world. So why not keep producing and starve out the Russian, American shale, Canadian Oil Sands and Artic producers? This erratic plan may work in the short term but is doomed to fail in the longer term. Technology will improve where the average cost of producing a barrel of oil from the world’s producers will dramatically decrease. The company I still like is Quantum Energy (QEGY). They are securing land around the Bakken shale region to build much needed refineries. They stand to make a profit no matter what price oil is at. They would charge a certain amount per barrel of oil refined. The Bakken formation went from 200,000 barrels a day in production in 2008 to over 1.2 million today. Currently the oil needs to be transported to refineries hundreds and in some cases thousands of miles away. What does cheap oil mean for producers, consumers and investors? Well, producers have to face the crude reality that lower prices are here to stay for a long period. They must cut costs and improve technology. It’s great for the consumer and GDP in general. With a deflationary environment the Federal Reserve can keep interest rates low and keep borrowing ‘from themselves’ at a low rate. For investors, this is a good time to pick up good companies at low prices. The world’s appetite for oil is not dissipating. If you are interested in receiving information in private placements that I will be partaking in, please email me at kal@juniorgoldreport.com To sign up for your free report please visit www.juniorgoldreport.com Happy Holidays to you and your loved ones and we at Junior Gold Report look forward to serving you in 2015. Happy Investing! ### Kal Kotecha Junior Gold Report is a website dedicated to informing the public about gold, silver, and metal companies. For Junior Gold Report's FREE newsletter, please visit the website. Kal Kotecha MBA is the editor and founder of the Junior Gold Report, a publication about small cap mining stocks that is read and enjoyed by thousands of investors. He was the editor and creator of the Moly/Gold Report, which focused on critical analyses and open journalism of companies profiting from the precious metals sector. The scope of his current activities include worldwide onsite analyses and reporting of developing companies. Kal has previously held leadership positions with many junior mining companies. 321gold Ltd |
