Luke Burgess - Angel Publishing

Gold Prices Hit Record High in India

Gold and silver prices in India hit a new all-time high today.

The price of gold in India reached 19,470 rupees (Rs) per ten grams in New Delhi on healthy buying from jewelers ahead of Akshaya Tritiya, the annual festival holiday during which it is considered auspicious to buy gold. In terms of U.S. dollars, India's new gold price record high is $1,185.54 an ounce.

Silver prices also rose to a record Rs 31,775 per kilogram (US$19.35 an ounce) on increased offtake by the industrial and coin minting sectors.

Despite rising gold prices, the demand for gold in terms of tonnage in India nearly doubled during the first half of 2010, rising 94% to 365 tonnes. In terms of value, gold demand in India rose 122% to over $13 billion during the same period.

India's gold demand is expected to increase a further 25% during the second half of 2010.

India seems ready to retain its title as world's largest consumer of gold with demand increasing for several years to come.

But with almost no domestic gold production to speak of, India must import all its gold to feed demand. And investors may be able to leverage increasing Indian gold demand with shares of mineral companies that produce gold for export to India.

In my latest free report for Wealth Daily, I give an overview of India's currently booming gold market and two gold stocks that could be positioned to profit from the rising demand for gold in India. You can read my latest free report by clicking here or finding it on the Wealth Daily website called: India's Gold Bull Market

Good Investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits

China's Gold Demand Increases 26%

The World Gold Council reported that Chinese gold demand increased 26% in the second quarter amid booming interest in retail investment demand for gold.

During the second quarter, 48% of China's gold demand came from the retail investment market, which increased 25% from the previous year.

As a result, the country retained its position as the world's second-largest consumer of gold as the demand for gold in China from April to June was 112 tonnes.

China outperformed all other countries in the world in terms of the growth rate in the retail investment volume for the metal.

Wang Lixin, General Manager of the World Gold Council in China

In the long-term, gold demand in China is expected to balloon as mounting inflation concerns and a faltering global economic recovery has recently caused an increase in retail investment demand.

The government recently released new guidelines to encourage the development of the domestic gold market. This will spur interest for gold as an investment and boost liquidity in China's domestic gold market.

These new regulation also strongly support foreign investment in China's gold industry. And companies with well-established Chinese gold positions may be well-leveraged to take advantage of sharp increases in domestic demand.

In a recent report for Wealth Daily, I discuss how the liberalization of China's gold industry could have drastic effects on the delicate supply/demand balance for gold and send the price of gold skyrocketing higher as millions of new gold investors in China bust into the global gold market.

Plus, I discuss two junior gold stocks that are looking to profit with gold projects in China. You can read my latest free report by clicking here or finding it on the Wealth Daily website called: China's Gold Bull Market

Good Investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits

Morgan Stanley Upgrades Gold Fields (NYSE: GFI)

Gold Fields (NYSE: GFI) was upgraded from Equal Weight to Overweight by Morgan Stanley last week.

The company is one of the largest unhedged gold producers in the world with operations focused on North America, South America, Africa, Australia, Asia, as well as a partnership in Finland.

Gold Fields produced 3.6 million ounces of gold in 2009 from its nine producing mines, making it in the fourth largest gold producer in the world by volume.

The company is looking to expand operation at it's South Deep gold project in South Africa. Gold Fields anticipates increasing gold output from South Deep by 166% from 300K ounces in 2010 to 800K ounces by 2014.

In the past 52 weeks, shares of Gold Fields have traded between a low of $10.88 and a high of $15.88. GFI is currently above its 50-day moving average of $13.61 and above its 200-day moving average of $13.20.

With 75% of the company's total production coming from its South African and Australian gold mine, Gold Fields is an important exporter of gold to India, where gold demand is skyrocketing as investors begin to buy the yellow metal to hedge against economic turmoil.

I recently published a new report for Wealth Daily that discusses the investment highlights mining companies that are working in countries that export gold to India. You can read my latest report for free by clicking here or finding it on the Wealth Daily website called: India's Gold Bull Market.

Good Investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits

AngloGold to Boost SA Gold, Uranium Production

AngloGold Ashanti (NYSE: AU) is planning to boost gold and uranium production from its South African mines.

The company says that it will maintain annual gold production of 1.75 million ounces over the next five years with large projects scheduled to increase output further in the next decade.

To help achieve this, AngloGold's Mponeng Mine – one of the deepest and richest gold mines in the world – will undergo a $162 million expansion in order to raise production.

Other expansions of gold projects are yet to be approved by AngloGold's board.

The company is also expecting to increase uranium production 54% to 2 million pounds per year. Overall, AngloGold expects to produce 80 million pounds of uranium from the company's mine dumps.

As a South African gold producer, AngloGold plays an important role in meeting gold demand in India. To learn more about Indian gold demand and how AngloGold is helping to supply gold to India amid rapidly increasing demand, check out my latest issue of Wealth Daily called India's Gold Bull Market.

Good Investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits

India's Gold Bull Market

Due to a sharp decrease in foreign exchange reserves following the Indo-China War in 1962, the government of India enacted the Gold Control Act.

This legislation made the private ownership of gold bullion illegal and created a huge black market for the yellow metal.

The Gold Control Act was repealed in 1992 after Indian government needed to sell 40 tonnes of the country's gold reserves to deal with more forex problems that had the country on the verge of default.

What happened next would change the gold market forever...

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How India became the world's #1 gold consumer

Following the repeal of the Gold Control Act, the demand for gold in India began to sharply rise.

Indian gold demand immediately shot up 75% in the year after the Gold Control Act was terminated.

Overall, gold demand in India increased 174% from 260 tonnes in 1991 to 713 tonnes in 2008.

Top 5 Gold
Consumers in 2009

India – 480 tonnes
China – 428 tonnes
USA – 263 tonnes
Germany – 134 tonnes
Turkey – 107 tonnes

Total gold demand in India fell 33% last year as global consumer spending dried up in the face of the worldwide financial recession.

Nevertheless, India is still the world's largest consumer of gold in terms of both tonnage and value.

Last year, India alone accounted for 20% of the global consumer demand for gold. This includes 24% of global demand for gold jewelry, which is has traditionally been one of India's strongest markets.

The Indian jewelry market is one of the largest in the world, with a market size of $13 billion. It is second only to the U.S. market of $40 billion.

Two Key Facts about
India's Gold Markets

Half of India's annual gold consumption is contributed by demand in just four states: Karnataka, Kerala, Tamil Nadu, and Andhra Pradesh.

India's gold market is estimated to have more than 300,000 jewelers – mostly small, family-run businesses.

Gold jewelry forms around 80% of the Indian jewelry market. And during the first half of this year, the volume of growth increased 67% to 273 tonnes. In terms of value, gold jewelry demand increased 94% to $10 billion.

Indians traditionally invest in gold by buying gold jewelry. But other gold investments — including gold exchange-traded funds (ETFs) — are rapidly gaining in popularity as investors seek a safe haven and become more aware of the benefits of investing in gold in a non-material form as opposed to holding it as jewelry.

The eight gold ETFs that trade on the Bombay Stock Exchange have nearly doubled their bullion holdings in the past year to 11 tonnes.

The volume of gold for investment in India grew by 264% to 93 tonnes during the first half of 2010. In value terms, Indian gold investments accounted for over $3 billion — an increase of 300%.

Overall, total Indian gold demand in terms of tonnage nearly doubled, increasing 94% to 365 tonnes. Worth over $13 billion, the value of India's gold demand increased 122% during 1H 2010.

Indian gold demand in the second half of 2010 is likely to be at least 25% higher, even as gold prices hit a record high in India.

Analysts at China's National Spot Exchange recently published a report predicting gold imports to India may total 600 to 625 tonnes by the end of the year, despite strong gold prices:

This level of prices is already accepted, so during this period compared with last year, the demand will be higher. Last year was the first year when prices went up to this level. This year, prices have been around this level so people feel it might break the all-time high. Indians are not selling gold, they are buying.

— Anjani Sinha, CEO, National Spot Exchange Ltd.

The demand for gold in India is very healthy, but supplying Indians with gold has always been a problem.

That's because less than 4 tonnes of gold are produced in India every year. This output provides less than 1% of India's annual gold demand.

These low levels of production are no surprise. In the entire country of India, there are known to be only about 2 million ounces of gold resources.

That means that India's total gold resource could only supply current demand for about 33 days. So to solve the supply problem, India must import its gold.

And with demand in India continuing to rapidly rise, countries that export gold to India will find eager buyers willing to pay premium prices.

And here's where we might be able to squeeze out some healthy profits...

How to profit from skyrocketing Indian gold demand

Approximately 65% of gold Indian gold imports come from South Africa and Australia.

And after looking around, I found two gold companies that have significant gold production in both South Africa and Australia...

AngloGold Ashanti (NYSE: AU)

Share Price:	$43.50
Market Cap:	$15 billion
Website:	www.anglogold.com

Savuka Gold Mine, South Africa

AngloGold Ashanti is a leading global gold mining company with 21 operations on four continents.

Last year, AngloGold produced a total of 4.6 million ounces of gold, making it the world's third-largest producer of the precious yellow metal.

South Africa

AngloGold Ashanti has a major presence in South Africa. The company operates seven gold mines in South Africa that are grouped into the West Wits and Vaal River regions.

AngloGold's South African Division produced 1.9 million ounces of gold in 2009 at total cash costs of $472 and ounce.

This year, the company is implementing a three-phase mine improvement strategy in order to boost South African gold production. Output in the first half of the year, however, has been seasonally weak. AngloGold's South African mines produced 831,000 ounces in the first six months of this year.

Australia

AngloGold currently has one operating gold mine in Western Australia. The Sunrise Dam Gold Mine produced 401,000 ounces of gold at a total cash cost of $646 an ounce last year.

A second Australian project, the Tropicana Gold Mine, is in development and scheduled to open in 2013.

The Tropicana Gold Mine is also located in Western Australia and is jointly-owned by AngloGold Ashanti (70%) and Independence Group NL (30%) (ASX: IGO).

A pre-feasibility study carried out in 2007 by AngloGold Ashanti estimated the cost to build a mine at Tropicana will be $450-$500 million with annual production of about 400,000 ounces of gold. The project is estimated to have a mine life of 15 years with an overall production of 3.6 million ounces of gold.

Total gold production from South African and Australian assets:
2.3 million ounces in 2009

Percent of total company-wide production:
50 percent

~~SIGNUP_WD~~

Gold Fields (NYSE: GFI)

Share Price:	$14.50
Market Cap:	$722 million
Website:	www.goldfields.co.za

Agnew Gold Mine, Australia

Gold Fields is one of the world’s largest unhedged producers of gold with operations focus on South America, Africa, and Australiasia.

The company produced 3.6 million ounces of gold from its nine producing mines last year, putting it in the fourth on the list of world's largest gold producer by volume.

South Africa

Gold Fields has four large-scale gold mines in South Africa. They are the Driefontein, Kloof, Beatrix, and South Deep Mines.

Together Gold Fields' South African mines produced over 2.0 million ounces of gold last year and at average cash cost of $515 an ounce.

The company expects to increase South African gold production with the continued development of its South Deep project.

Gold Fields expects to increase production from South Deep from 300,000 ounces in 2010 to 800,000 ounces by 2014.

Australia

Gold Fields controls two operating gold mines in Western Australia. Together these mines produced 620,000 ounces of gold at an average cash cost of $536 an ounce last year.

This year, Gold Fields has been busy working on its Australian gold projects. The company is drilling to explore several new gold targets and upgrade resources to reserves. Gold Fields is also continuing to implement efficiencies and cost reductions and developing plans for new gold mines in Australia.

The company's efforts are paying off. Gold Fields was recently upgraded from Equal Weight to Overweight by Morgan Stanley.

Gold production from South African and Australian assets:
2.7 million ounces in 2009

Percent of total company-wide production:
75 percent

Conclusion

India looks poised to remain the world’s foremost gold consumer with increasing demand for many years to come.

The country's demand will continue to be satisfied almost entirely from imports, as very little supply comes from domestic sources.

Investors may be able to leverage rapidly rising demand for gold in India by owning shares of mining companies that produce gold for export to the country.

Good Investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits

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China's Gold Bull Market

The Chinese government is making strategic moves that could have dramatic effects on gold's delicate supply/demand balance.

This maneuver could force gold prices screaming higher as hordes of new Chinese gold investors come clamoring into the market.

For investors today, the new measures promise at least two things:

The gold bull market is secure with prices expected to continue marching higher.
Companies with Chinese gold assets may be well-leveraged to take advantage of soaring domestic demand.

Here's how China's new gold strategy could fundamentally alter the global market... Plus two small gold companies that are hoping to profit with well-established positions in Chinese gold assets...

Gold: The China Impact

The Chinese government just announced that it will allow more of its domestic commercial banks to import and export gold.

Up until now, the international trading of gold was restricted to only five of China's largest commercial banks. These include the Chinese divisions of HSBC and Standard Chartered.

But new regulations will allow smaller financial institutions to freely trade on the Shanghai Gold Exchange and internationally.

The liberalized trading rules will eventually give hundreds of millions of Chinese citizens new access to gold-linked investment products.

And this creates the perfect scenario for gold's price to finally soar over its inflation-adjusted record high of $2,500 an ounce.

China’s gold market liberalization sends a strong demand signal and it's very positive for the price of gold. It is a structural demand shift which must result in higher gold prices as the global equation has changed now significantly with more gold consumers and investors.

– LGT Capital Management, voted "Private Equity Manager of the Year" 2007-2009

The international gold market is now paying a lot more attention to China's gold demand, not just from an official reserve asset perspective, but also private demand. Behind India, China is the second-largest physical consumer. Therefore any step to integrate, liberalize, and expand this market should, in time, foster a rising appetite for gold.

– UBS, the world's second largest manager of private wealth assets.

The demand for gold in China has already increased during the first half of this year as concerns over the global economic recovery spurred investment.

China National Gold Group Corp., the country's largest state-owned gold producer, even reported a 40% increase of gold bar and coin sales over the past six months.

The total volume of gold traded on the Shanghai Gold Exchange jumped 59% in 1H 2010 to a stoutly 102.1 million ounces (3,175 tonnes).

China's gold investment demand market is strong. But only 0.00197 ounces of gold are currently bought annually per person for investment.

But rising personal incomes and a higher standard of living for hundreds of millions of Chinese will continue to encourage legions of new investors into the gold market.

The New Chinese "Golden" Class

The Chinese people are well known to be earnest savers. The average savings rate in China is 30% to 40%. Compare this to the average 6% savings rate in the United States.

But according to the World Gold Council, U.S. gold investment demand per capita is 5.6 times higher.

The people of the United States are not the biggest investors of gold. That title belongs to the Indians.

But if the Chinese began buying gold for investment purposes on the same level as Americans, total world gold demand would shoot 10.2% higher.

World Gold Investment Demand

World investment demand for gold has increased 250% in the past ten years.
Sales of official gold coins like the American Gold Eagle have increased 618% since 2007.
Gold demand for ETFs has increased 20,470% since 2002.

This could throw the delicate supply/demand balance into a sharp deficit as another 12.4 million ounces (351 tonnes) would be required from global gold supplies, which have already failed to significantly increase in almost two decades.

Right now China is the world's largest gold producer. The country is expected to increase mine production by 5% this year to 330 tonnes, again solidifying the nation's position as the world's #1 producer.

But despite the country's position among global gold production leaders, nationwide output will not be able to satisfy China's ravenously growing demand for gold as a safe-haven investment.

The demand for gold in China increased 26% in the second quarter of 2010 amid booming interest in retail investment demand for gold. Nearly half of gold demand in China came from the retail investment market, which increased 25% from the previous year.

And this is exactly why the Chinese Government recently decided to "increase the number of commercial banks who are qualified to import and export gold" and warm up to foreign investment. It allows the country to more effectively balance the supply and demand of gold.

In the past, the Chinese government has specifically encouraged its citizens to own gold and silver.

Last summer, the Chinese government introduced the state's first ever opportunity to invest in official silver bullion. (video)

Recent de-regulation of China's mining sector and the streamlining of permitting and approval processes has created a premier investment environment for mineral exploration, development, and production companies.

Dozens of companies are already working to quickly develop gold projects to supply the Chinese feeding frenzy for the yellow metal. Here are two companies that are quickly developing gold projects in China...

Mundoro Capital (TSX: MUN)

Share Price:	$0.80
Market Cap:	$31 million
Website:	www.mundoro.com

Maoling Gold Project in the Liaoning Province

Mundoro Capital is a well-financed and debt-free exploration and development firm focused on the advanced-stage Maoling Gold Project in Northeast China.

The company was invited into the country by the government in 1999 to help develop the Maoling gold deposit.

A Chinese joint venture company, Liaoning Tianli Mining Company Ltd., was formed to develop Maoling into a national model for large-scale, environmentally friendly, and economically sustainable gold mining operations. The joint venture company left Mundoro with a 79% interest in Tianli.

After three years of extensive exploration, which included the drilling of 176 holes totaling over 46,000 meters, the Maoling Gold Project is now a multi-million ounce, feasibility-stage gold project.

An official resource statement (published February 2006) estimated the Maoling gold deposit to contain 4.8 million ounces of gold in the Measured and Indicated mineral resource category and an additional 4.4 million contained gold ounces in the Inferred category.

For the past few years, Mundoro has been planning the development of a large-scale, open-pit mining and milling operation at Maoling.

However, the company has recently received letters from its Chinese joint venture partner suggesting the termination the Maoling gold project.

Without regard to its JV partner's suggestion, Mundoro says that it does not intend to end the joint venture and believes the work completed at the project proves it could be developed and sustained.

~~SIGNUP_WD~~

Inter-Citic Minerls (TSX: ICI)

Share Price:	$1.31
Market Cap:	$138 million
Website:	www.inter-citic.com

Trenching at the Dachang Gold Project

Inter-Citic Minerals is a gold exploration and development company that is rapidly advancing its 83%-owned Dachang Gold Project, a newly-discovered high-grade gold deposit in Western China.

A recently published NI 43-101-compliant update estimates that the Dachang Gold Project contains 1.88 million ounces of gold in the Measured and Indicated resource category and 1.51 million ounces in the Inferred category.

Last year, a Preliminary Economic Assessment estimated that total capital expenditures for the construction of a mine at Dachang would be just over $100 million. The assessment estimated production costs of about $400 an ounce with a total capital payback in under two years. Overall, the Dachang gold deposit is modeled to produce 165,000 ounces of gold annually for nine years.

Inter-Citic is currently drilling 25,000 meters into several new gold exploration targets. This year's exploration program is geared to expand the company's resource base and firm up final production models. Meanwhile, Inter-Citic continues to advance the feasibility and permitting processes for the Dachang mine.

The company's success has already attracted the attention of major mining investment firms including the Zijin Mining Group, China's largest gold producer with over 2.5 million ounces of annual output. With a market cap of over $20 billion, Zijin recently acquired 19.15% of Inter-Citic.

Other investors include two Hong Kong tycoon families, which own approximately 30% of the company.

So, In a Nutshell...

Gold prices will be bolstered by the liberalization of China's new international trading rules that will give hundreds of millions of savings-smart citizens access to gold, the universal safe-haven.

New measures will also continue to strongly support foreign investment. And companies with well-established positions in Chinese gold assets may be leveraged to take advantage of sharp increases in local demand.

Good Investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits

P.S. To learn more about China's rapidly developing precious metal industry, check out my recent Wealth Daily article called China's Silver Bull Market.

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China's Silver Bull Market

A Chinese silver bull market is about to make history.

And with the world's largest population, increasing silver demand for investment and manufacturing could help drive prices worldwide — and spur significant gains for companies with silver assets in China.

The Chinese have used silver as a monetary unit for over a thousand years. But it was until only recently that China's silver sector was opened to investment.

And now, thanks to de-regulations of the silver market, China has become one of the premier silver mining countries in the world — with booming global investment interest.

The New Premier Silver Mining Country

Under the Mao Zedong administration, the Chinese government imposed strict controls over the silver market beginning in 1949. This made the private purchase of silver bullion illegal.

And it prohibited international companies from any ownership or rights to develop mineral projects in the country. This meant China's silver resources could not be fully explored or evaluated with modern techniques.

But after Mao's death in 1976, the Chinese moved away from a state-controlled economy.

And over the next three decades, China loosened the reins on the silver market and deregulated its mining sector, piece-by-piece.

5 Global Reasons to
Invest in Silver Now

Investment demand for silver has skyrocketed 522% since 2007.
World governments are hoarding silver; official sales have plummeted 83% in the past three years.
Above-ground silver supplies dropped 86% last year.
Industrial demand for silver has increased over the past decade, despite a 236% increase in prices.
Silver outperforms gold during bull markets.

Today, the country has streamlined the permitting and approval process and allowed silver companies to advance projects faster than many other countries in the world.

As a result, foreign investment has transformed the Chinese silver industry in the past ten years, turning it into the third-largest silver producer in the world today.

Since the de-regulation of the market, rapid economic growth boosted demand for silver — needed in everything from investment bullion and jewelry to electronics, photography, and silverware.

Rising personal income levels and a higher standard of living for billions of Chinese is expected to continue increasing silver industrial demand in the country over the next several years.

And now, thanks to a decade of wealth accumulation by Chinese citizens, there are also billions of potentially new silver investors that will further lift silver demand.

This is especially significant when you consider the average savings rate in China is 30%-40%.

China has the world's biggest potential for silver consumption.

Li Xiaoni, Vice President of China's Chamber of Commerce

The combination of growth in domestic consumption and manufacturing for export may continue to result in double-digit growth in Chinese silver demand.

And for silver companies working in the country, a healthy domestic market means premium prices.

Additionally, the geologic setting for silver deposits in China is particularly favorable, with the majority of known silver deposits poorly explored and exploited leaving the potential for significant new discoveries or expansion of current deposits.

A handful of public companies are working in the country today. Many have already made significant discoveries and advancements. Here are two Canadian companies that have done quite well over the past 12 months with significant silver assets in China:

Silvercorp Metals (NYSE: SVM)

Share Price:	$6.32
Market Cap:	$1.04 billion
Website:	www.silvercorpmetals.com

Ying Mine from above

Since commencing production in 2006, Silvercorp Metals has become the #1 primary silver producer in China and the 13th largest primary silver production firm in the world.

The company has enjoyed high profitability and large returns due to the exceptionally high-grade nature of its Ying deposit and the incredibly low-cost jurisdiction in which it operates.

Silvercorp has the lowest production costs among its industry peers. Most recently, the company's cash cost for production was an average $5.64 per ounce.

As a result, Silvercorp also has the highest gross profit margin compared to its competitors.

Since 2007, the company has increased silver production by 142%. And over the next three years, Silvercorp expects to continue boosting output by 84% from 4.6 million ounces in 2010 to 8.5 million ounces in 2014.

Meanwhile, Sivercorp continues to grow its resource base through continuous exploration of existing projects acquiring new development projects in multiple jurisdictions.

In total, the company has silver reserves and resources including:

proven and probable reserves of 122 million ounces
measured and indicated resources of 262 million ounces
indicated resources of 265 million ounces

Silvercorp is well-financed and has strong operations and large resources, not to mention no long-term debt.

~~SIGNUP_WD~~

Minco Silver (TSX: MSV)

Share Price:	$3.05
Market Cap:	$124 million
Website:	www.mincosilver.ca

Mine Development Plan for the Fuwan Silver Deposit

Minco Silver is an exploration and development firm focused on the Fuwan silver deposit, located in southeastern China.

This deposit is situated along the under-explored Fuwan silver belt, believed to host up to a total of 400 million ounces of silver.

Minco's Fuwan silver deposit currently contains resource estimates of:

55 million ounces of silver reserves
101 million ounces of silver resources in the indicated and inferred category

The Fuwan deposit is also fortunate to be located near well-developed infrastructure including immediate access to modern road, electric, water, railroad facilities, and a variety of services such as skilled and unskilled labor. This allows Minco to advance the Fuwan project at lower capital costs compared to similar sized projects.

In September 2009, a Bankable Feasibility Study suggested a silver mine at Fuwan could produce 5.5 million ounces per year for 9.2 years.

The study estimated a 91% silver recovery rate from the ore and cast cost per payable ounce of silver of $5.65.

The construction of the Fuwan mine is expected to begin during the fourth quarter of this year. This mine will make Minco Silver a major player among silver producers in China.

To sum things up...

De-regulation of China's silver industry has created a primer mining environment, and rapid economic growth is driving domestic silver investment and manufacturing demand.

Shares of companies with silver projects in China may have considerable leverage over their global industry peers as a healthy domestic market will command premium prices.

Good Investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits

P.S. To learn more about China's rapidly developing precious metal industry, check out my recent Wealth Daily article called China's Gold Bull Market.

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The World's Hottest Region for Gold Exploration

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Just 300 miles north of Las Vegas

Nevada is one of the largest sources of gold in the world. By itself, the state contributes over 7% of total world gold production, making it the fourth largest producer in the world behind, China, South Africa, and Australia.

The majority of Nevada's vast gold resources is contained in the second largest economic gold anomaly in the world — second only to South Africa — called the Carlin Trend.

Ancient geologic forces induced high temperatures and pressure that produced numerous hot springs along an area about 5 miles wide and 40 miles long, known today as the Carlin Trend.

These hot springs brought an abundance of dissolved minerals toward the surface; among these minerals was a fortune of gold.

In the past two decades alone, over 200 million ounces of gold have been discovered... And over 70 million ounces (worth $84 billion today) were produced from the Carlin Trend.

Some of today's major gold production companies like Barrick Gold (NYSE: ABX) and Newmont Mining (NYSE: NEM) directly owe their success to this exceptionally rich belt of gold deposits.

Similar gold trends surround the Carlin Trend, where other major multi-billion-dollar gold discoveries have been made:

the Battle Mountain-Eureka Trend
the Getchell Trend
the Independence Group
the Alligator Ridge Group

In these surrounding trends, world-class multi-million ounce gold deposits continue to be discovered.

Some discoveries are believed to be large enough to rival the famous Carlin Trend, and this drastically increases the investment potential for junior gold exploration companies working in these areas.

Junior gold stocks in the world's #1 gold region

For junior gold companies, Nevada is one of the best places in the world to explore.

New major gold discoveries continue to dot the Nevada landscape; every year, millions of ounces of gold continue to be discovered in Nevada.

So it's likely that there is still a lot of gold to be discovered.

Junior gold companies also benefit from the $3 billion dollars that major gold companies have spent on infrastructure over the past 20 years.

And just being near other large gold processing facilities is important...

If a junior gold company can make a discovery along one of the major gold trends, they have a better chance at being bought out by a major gold company that's working in the area.

Barrick Gold's Goldstrike Mine — 1.3 million ounce annual production; 12 million ounces of reserves

Buyouts of junior gold companies — which are typically large paydays for investors — have become common today as major gold producers are in desperate need of acquiring new deposits.

Rapid development of production quickly diminishes a company's gold reserves. And majors need to replace their reserves by the millions of ounces each year to keep up with production and demand.

The fact is the major gold companies just don't have as much talent as the juniors in making discoveries.

That's because talented mine finders want to work for themselves instead of for the majors. It's also because they stand to make a lot more money out on their own.

A top geologist with a major that makes a big discovery might get a sizable bonus and a new credenza in their office...

Meanwhile, a junior mining executive who makes a big discovery could make tens of millions of dollars — or more.

In addition to the benefits of the potential for major new discoveries, access to modern infrastructure, and close proximity to potential buyout candidates, mineral exploration in Nevada is as good as it gets when you consider political and environmental risk.

Nevada was rated highest among all states for gold mining investment attractiveness by the world-renowned Fraser Institute.

Nevada is one of the easiest places in the United States to work as an exploration company.

There are no problems with environmental or political concerns as there are in so many other places in the United States and around the world.

Gold brings in enormous revenue and jobs to Nevada, and mining companies are all highly responsible in reclaiming the land when they finish with their projects. This situation looks like it should continue unimpeded for many, many years.

Also, since Nevada is in the United States — and gold is priced in dollar terms worldwide — gold mining companies in the U.S. don’t have the currency exchange risk we see in places like South Africa and elsewhere.

A South African gold mining company has to produce gold with costs being in the local currency, and the company's revenue being paid in U.S. dollars. And when the company exchanges the currency, it takes take a big hit. This is not a problem for mining companies in the U.S. and Nevada.

The hottest new gold trend in Nevada

To the south of the Battle Mountain-Eureka Trend, experts believe they may have discovered a new band of gold deposits that may eventually rival or even surpass the famous Carlin Trend.

They call it the Cortez Trend.

This area is named after the recent Cortex Hills gold discovery, now owned by Barrick Gold (NYSE: ABX).

Cortex Hills is home to 14.1 million ounces of gold reserves — worth almost $17 billion out of the ground at today's prices.

The Cortex Hills mine produced 518,000 ounces of gold last year at total cash costs of $510 per ounce. This year, Barrick expects production to more than double, and to cut total cash costs by as much as 42%.

Some new interpretations of the Cortez Trend have caused many experts to believe that it may be the next Carlin Trend-sized region.

But what's different about this trend is that instead of just major companies controlling the best land positions, a host of junior mining companies are staking highly potential claims...

2 junior gold stocks working in the Cortez Trend

Miranda Gold (TSX-V: MAD)

Share Price:	$0.45
Market Cap:	$23 million
Website:	www.mirandagold.com

Miranda Gold Corp. (TSX-V: MAD) is a well-financed junior gold exploration company with a large portfolio of 13 gold exploration properties in Nevada. Six of these properties are located within the Cortez Trend.

The company has ten of its projects joint-ventured with companies including Barrick Gold and Newmont Mining, which spent a total of $2.5 million on gold exploration of Miranda's projects last year.

In 2009, the company aggressively acquired two new projects in the region while exploring four others, with 8,500 meters drilled in total.

This year Miranda expects to continue executing successful joint-ventures with two new partnerships (currently in the negotiation stage) and gold exploration (with over 8,000 meters planned).

The company just initiated a 2,200 meter drill program at one of its projects in the Cortez Trend called Red Canyon.

Miranda will drill eight holes there to expand upon last year's drill results, which recovered grades as high as 36 meters of 5.25 grams per tonne of gold.

Coral Gold Resources (TSX-V: CLH)

Share Price:	$0.30
Market Cap:	$10 million
Website:	www.coralgold.com

Coral Gold Resources (TSX-V: CLH) is exploring a portfolio of strategically-located exploration claims along the Cortez Trend.

Coral's primary property is the Robertson Project — an advanced-stage exploration project that's located adjacent to Barrick Gold's large Cortez gold mine.

Over the past 20 years, Coral Gold and various venture partners have spent more than $25 million exploring the claims. This activity has led to the discovery of five mineralized zones that, in total, contain 3.4 million ounces of gold resources.

Coral Gold is currently receiving the assay results from exploration drill testing which began at the beginning of June. The most recent results showed one hole intersected 1.5 meters of ore grading over 13 grams per tonne of gold.

Conclusion

To recap...

There are many benefits to investing in junior gold mining stocks with projects in Nevada — especially those that have projects located along major known gold trends, including:

Higher potential for the discovery of major gold deposits;
Modern infrastructure has already been built by majors working in the area;
Buyouts are more likely from nearby major gold companies;
There are little to no political or environment speed bumps;
All gold produced can be sold in local currency.

The gold trends in Nevada — including the Carlin and Cortez Trends — are some of the hottest exploration areas in the world right now.

New discoveries for junior gold mining companies exploring the area should result in big investment gains for shareholders.

Good Investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits

What the coal industry doesn't want you to know can

Make you a lot of money!

Click here for more.

Investing in Mexico's Rising Silver Star

Last week we discussed why now, more than ever, you should own silver as an important precious metal investment.

We talked about price ratios, diminishing global supply, government hoarding, and the recent trend of investors buying the precious metal up like there's no tomorrow.

But now, I want to get more specific.

Because while it's good to know that silver investment demand has gone up 522% since 2007 — or that above-ground silver supplies dropped by 83% in the last 2 years — none of this information is going to make you any serious money in the next few days or weeks.

However, a unique opportunity just crossed my desk that I think could turn out to be one of my biggest winners of the year. It's a newly-formed junior silver company that could be sitting on one of the largest silver deposits in Mexico. Here's the full story...

Mexican silver: 500 years of tradition meets the 21st century

Geography is one of the most important aspects of silver exploration, development, and production.

The reason for this has to do with everything from politics and infrastructural development to local wage standards and even the dietary habits of laborers.

~~SIGNUP_WD~~

Without getting into the details of why a high-fat, carbohydrate-rich diet (like the kind prevalent in much of Latin America) is conducive to long, efficient work days, I will say this...

After years of analyzing market trends and profit margins of all the world's major silver producing nations; after countless visits to exploration and mining companies; after meeting with hundreds of company executives, geologists and mining technicians... My definitive conclusion is that Mexico is the world's premier silver exploration and mining country.

A Dozen Reasons to Invest in Mexico's Silver Sector

Mexico has a 500-year history of mining.
Mining is an integral part of Mexico's national and local economies.
Mexico is the most politically stable country in Latin America.
Mexico has favorable tax structures.
Mexico has a strong government commitment to natural resource development.
Mexico's mining law has rational environmental policies.
Mexico has excellent infrastructure including modern road, rail, power, and water facilities.
Over 10 billion ounces of silver have already been produced in Mexico.
Mexico is still the second-largest silver producer in the world with over 104 million ounces of output in 2009.
Most silver deposits in Mexico are high-grade and amenable to low-cost underground and surface mining.
The Mexican mining community is well-trained and fully in tune with the latest mining technologies.
Mexico remains under-explored; major discoveries have been made over the last 20 years by application of modern geological and geophysical concepts and methods.

Now, to many of you, this may come as no surprise.

After all, Mexico has been famous for silver production for over five centuries now — with cities like Taxco and Zacatecas known globally not just for silver mining, but for jewelry as well.

As industrial consumption and fears of global economic hardship send investment demand through the roof, a new generation of junior silver companies are buying up property across Mexico to tap into what may be the biggest silver bull market ever.

There's one in particular that I want to tell you about today... A company that really stands out among Mexico's large silver sector.

This company is a newly-formed junior exploration firm that is still well under the radar of most investors. It's focused on the discovery of large-scale silver and base metal deposits in what are known in modern geology as carbonate replacement deposits.

Carbonate replacement deposits

These types of large mineral deposits are responsible for the production of 4 billion ounces of silver in Mexico, 40% of the country's total silver output.

Carbonate replacement deposits occur along major regional geologic structures. And the company has two very prospective projects that lie along the same regional structure that hosts several of the largest carbonate replacement deposits in Mexico.

The largest carbonate replacement deposit in Mexico — and in the world — is the Santa Eulalia Mine in the state of Chihuahua.

Santa Eulalia has produced over 500 million ounces of silver, worth nearly $10 billion today.

Examples of other large carbonate replacement silver deposits in Mexico include:

Naica – Naica has produced over 160 million ounces of silver, 2.2 billion pounds zinc, 2.9 billion pounds of lead, 9 million pounds of copper, 260 thousand ounces gold, and significant amounts of molybdenum and tungsten.
San Martin – San Martin has 60 million ounces of silver reserves and resources. The mine has been in continuous production since 1983 and produces approximately 1.5 million ounces of silver per year.
Ojuela – The Ojuela mine produced nearly 100 million ounces of silver.
Velardeña District – Velardeña has 431 million ounces of silver-equivalent resources.
Real de Catorce – The Real de Catorce mining district has produced over 230 million ounces of silver.

As carbonate replacement deposits, the company's projects may contain sizable mineral resources. And right now, they're putting all the pieces together to form what could be...

Northern Mexico's next big silver discovery

The company recently recovered rock samples that tested to have a very high silver content.

And right now, the new company is drill-testing its projects for the first time in history, which could prove to be the catalyst that drives share prices much higher in the coming weeks and months.

One of their properties encompasses 21,500 acres in Coahuila State, just down the road from the capital city of Saltillo; another property with 20,800 acres is located in Chihuahua state.

With over 40,000 acres of geologically favorable property, the company has the potential to make a discovery that would follow in the footsteps of the Santa Eulalia Mine in Chihuahua, which has produced over $8 billion in silver to date.

For a company this small (it's currently trading at 42 cents, with a market cap of just $7 million), even a small silver discovery could lead to significant investment gain.

However, with similar geology to large silver mines like Santa Eulalia, more realistic results are far, far higher...

A success of that magnitude would mean thousands of percent gains for shareholders who hold the stock today. But to this company's management team, it would be just another in a long and distinguished track record.

Officially headquartered in Vancouver, this company's management team has over 100 collective years of mining experience under its belt.

Their geological consultant alone has been responsible for over $3 billion worth of mineral discoveries around the world including gold, silver, uranium, and other metals.

This outfit has been designed from the ground up to be a perfect melding of location, aggressive low-risk exploration, blue sky potential, and managerial assets.

To learn more about this unique opportunity, follow this link.

Good Investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire

Wonder Asset that's Being Chased by China and India

We're on the brink of the biggest bull market of the 21st century...

The commodity: An asset that two of the world's fastest growing economies cannot live without...

The sum they're spending: Over $2.1 trillion.

But you can start making 100x your money, TODAY, with this single stock play.

Why Silver will Always Beat Gold

If you’re like most Americans today, you’ve grown tired of hearing words like "inflation", "national debt", and "credit crisis".

For years now, it’s been hammered into your brain — the fact that your government has been writing checks it can’t cash, and in the process, diluting every cent you’ve managed to store away in your savings account.

And for almost as long, you’ve probably been hearing financial advisors and so-called economic gurus telling you about how certain investments can protect you during these times of uncertainty.

Without a doubt, recent historical rises in gold prices have gotten your attention; made you think.

Maybe you’ve even started to view the jewelry in your house more as currency than personal possessions.

Perhaps you’ve even thought about buying some gold yourself… Turn some of those depreciating dollars into stable wealth by locking in at a good price.

Well, let me stop you right there.

Although gold is historically the most prominent method of storing and transferring wealth, there’s a reason why men like George Soros, Warren Buffett, and Bill Gates have invested heavily in its slightly less glamorous cousin…

I'm talking about silver.

Actually, there’re a couple reasons why right now — more than ever before — silver is not just the superior hedge against inflation…

But a serious profit vehicle in its own right. And today I'm going to tell you why.

The Magic Ratio

If you average out the price ratio between gold and silver throughout history, you land on a single magical proportion: 16 to 1.

And even experts who do not subscribe to fixed pricing relationships generally agree that a price ratio of around 20 to 1 should be considered normal. What is not normal is the current ratio of — wait for it — 66 to 1!

To investors, this means one of 3 things:

1.) That gold is overvalued;

2.) That silver is undervalued; or

3.) A combination of the two.

Any way you look at it, silver’s price cannot be predicted to drop in any of these scenarios.

And since these same experts are continuing to predict gold’s rise towards $2,000, a realistic target price for silver should be between $100-$125/ ounce.

Already, that’s over a 500% gain over today’s price of $18...

Silver’s Two Faces

Silver isn’t just a precious metal; it is also one of our main industrial metals. One of the most conductive substances known to man, it’s used in everything from photography, to compact discs, to semi-conductors, to medical equipment. Basically, if something is high-tech, it contains silver.

The metal’s so heavily used, in fact, that for the last several decades, the world’s total silver supply has barely been able to keep up with demand — even though the 20^th century saw historic production increases.

Demand ramped up in the last quarter of the 20^th century to the point where, for almost two decades (between 1998 and 2007), silver was in a fully-fledged global deficit.

It wasn’t until the worst economic disaster in three generations that supply finally dropped to below production levels.

~~SIGNUP_WD~~

However, with photography alone consuming 128 million ounces of silver annually as of 2007 (that’s more than 3 times the US’s total Silver reserve), and other industrial processes accounting for another 312 million ounces, the world’s total available silver (both produced and hypothetical) is steadily — and irretrievably — decreasing.

So while gold is constantly being transferred based on price fluctuations and demand alone... silver, as an element, is actually vanishing.

The Broadest Options

With China and India buying up silver at unheard-of rates (Chinese silver demand tripled between 2004 and 2007), the industry has had no choice but to create new ways to own the metal.

There’s never been so much variety in the way you can own silver as there is today.

For those looking for that wealth-saving hedge, there are a number of silver bullion producers that are minting high-quality, high-purity coins for minimal premiums. A perfect example of this is the 1 ounce Mexican Libertad.

However, for those interested in riding silver’s imminent rise will look for something less tangible, like silver ETFs, or, the most aggressive option: silver mining stocks.

And it’s that last option that I wanted to talk to you the most about.

Because with so many people piling into gold exploration companies for all of the reasons mentioned above, the case for silver is just that much stronger.

With the magic ratio currently at such a disparity — 66 to 1 vs. 16 to 1 — those moving into silver exploration today stand to make about four times what their counterparts can expect to cash in investing similarly in gold.

Sounds nice, I know... And the fact is that investing in silver mining right now may not just be the most profitable angle to take with this most consumed of precious metals — but also the easiest.

To learn more about the only silver investment you’ll need to make this year…

Just click here.

Good investing,

Luke Burgess

Editor, Wealth Daily
Investment Director, Hard Money Millionaire

Big Pharma's Nightmare is Your Ticket to 1,000% Gains...

It's no secret Big Pharma makes a killing from the vaccines that keep us healthy.

But what if there were a technology that could make it so we never had to get another vaccine ever again?

You can bet Big Pharma would be shaking in their boots... and the company that develops that vaccine would be destined to become very rich.

We've found just a company. They're working on the last flu shot we'll ever need... and they plan on making investors like you a whole lot of money.

Click here to learn more about the breakthrough that could earn investors up to 1,000% gains.

Top Silver Stocks for 2010

An unprecedented crisis in the silver market could easily hand you a long series of double... triple... even quadruple investment gains.

And today I'll tell you how.

You probably already know that every commodity fortune ever made was created by an imbalance of supply and demand.

When the demand for a certain commodity is high and supplies are low, prices skyrocket. And investors holding the commodity in question get rich.

This is exactly what has happened in the case of many natural resources just in the past decade alone:

Crude oil shot up 620% in 6 years
Gold is now up over 380% since 2001
Natural gas soared more than 550% in 4 years
Uranium spiked 830% in 4 years
Copper increased nearly 530% in 7 years
Palladium more than tripled in 3 years
Platinum prices grew 430% in 6 years

As demand grew and supplies dwindled, the prices for these natural resources ballooned in value.

But none of these commodities experienced the supply/demand crisis that silver is currently facing.

Take a moment to chew on this...

According to GFMS Limited — the world's leading authority on precious metals markets — the total amount of above-ground silver supplies dropped by 86% last year.

This left the world with just about 20 million ounces of silver reserves.

At the same time, the world demands about 2.5 million ounces of silver per day.

That means the entire global supply of above-ground silver could be completely wiped out in just eight days!

Fortunately, silver production companies have been able to keep up with demand — but just barely...

Last year, silver miners were only able to increase production by just over 3%. And for the past 10 years, there has been no surplus in silver supplies.

This extremely tight supply/demand dynamic of the silver market has been terrific for investors that own the physical metal. Silver prices have increased nearly 350% since 2002.

But shareholders of the companies that pull the silver out of the ground have done even better. Here are three recent...

Silver stocks beating the markets

Silver Wheaton Corp. (NYSE: SLW)

Silver Wheaton is the largest precious metals streaming company in the world. The company has thirteen long-term silver purchase agreements and two long-term precious metal purchase agreements.

These agreements allow the company to purchase all or a portion of the silver production at a low fixed cost from high-quality mines located in Mexico, the United States, Greece, Sweden, Peru, Chile, Argentina, and Portugal.

For 2010, Silver Wheaton expects to produce 22.2 million ounces of silver and 20,000 ounces of gold, for a total production of 23.5 million ounces of silver-equivalent.

By 2013, annual production is expected to increase significantly to 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver-equivalent ounces.

Pan American Silver Corp. (NASDAQ: PAAS)

Pan American Silver is the second largest primary silver producer in the world. The company owns and operates eight silver mines and four development projects in Peru, Mexico, Bolivia, and Argentina.

Pan American's growth strategy is based on the continued increase of low cost silver production through the efficient operation and expansion of its existing mines, an aggressive exploration program, and the acquisition and development of new silver-rich deposits.

The company has increased silver production by 105% since 2004. Last year, the company produced 23 million ounces of silver from its Latin American assets. For 2010, the company anticipates increasing production slightly to 23.4 million ounces.

According to the latest estimates, Pan American Silver has 234 million ounces of silver reserves and 940 million ounce of resources in the measured, indicated, and inferred category.

The company also mineral reserves of 679,000 ounces of gold, 717,000 tonnes of zinc, 302,000 tonnes of lead, and 67,000 tonnes of copper.

Fresnillo plc (LSE: FRES)

Fresnillo plc is the third largest silver producer in the world and Mexico's second largest gold producer. The company operates four producing mines and one development project, all located in Mexico. In total, Fresnillo has mining concessions covering approximately 1.75 million hectares across the country.

One of the main drivers of Frenillo's growth is the investment in exploration and the development of projects and prospects with the potential to become low-cost operating mines. The company's disciplined approach to investment includes the evaluation of economic ore grades, maximum extraction costs, and an established reserve base.

In 2009, Fresnillo increased silver production by 9% to a record 38 million ounces. The company also increased gold production by 5% to 277,000 ounces.

The company plans to bring one new mine into production each year until 2014. As a result, Fresnillo anticipates increasing silver production by another 50% to over 56 million ounces in the next four years.

In my most recent Energy and Capital report, I give details on another company that is expecting to ramp up silver production this year by 66.7%.

This increase in production is expected to boost quarterly operating cash flow by over 650%, which is exactly why the world's biggest investment and financial institutions have been hoarding this stock.

To read my latest report for free, simply click here.

Good Investing,

Luke Burgess
Editor, Energy and Capital
Investment Director, Hard Money Millionaire

The overnight comeback of North American oil

This $4-a-share driller is the front-runner in a forgotten oil field that’s all of a sudden the hottest energy territory in the Western Hemisphere.

Their new drilling technology is the key -- here’s the proof that two-year gains of 1,239% or more await those who move fast...

Afghanistan Mineral Discovery: A $1 Trillion Find

There's gold in that thar war!

Geologists working with the Pentagon claim to have discovered $1 trillion worth of precious and base metal deposits in Afghanistan.

U.S. and Afghan officials are hopeful that these mineral deposits will convert the war-torn country into a global mining giant, fundamentally altering the economy of Afghanistan and perhaps the war itself.

But there are serious doubts over the logistics of actually mining the metals in the near term.

And for investors, there are much better opportunities in safer, more stable regions of the world.

Mining in Afghanistan

Mineral discoveries in Afghanistan is nothing new. The country has a mining history that can be traced back for over 6,000 years.

Historical mining in Afghanistan was principally focused on the production of gemstones, with some of the world's oldest known mines established to produce lapis lazuli for the Egyptian Pharaohs.

More recent exploration in the 1970s resulted in the discovery of significant resources of metallic minerals and non-metallic minerals.

However, no commercial mining activity has recently occurred in Afghanistan, due to the current political and security situation within the country.

But now the American geologists who have uncovered the mineral treasure are saying the recent mineral discovery could change the impoverished nation into a wealthy mining powerhouse — creating job opportunities, alleviating poverty, and uniting the people of Afghanistan.

The new discoveries include large veins of:

precious metals such as gold and silver
base metals like copper, iron, lead and zinc
rare earth elements including beryllium and lithium

Some of these discoveries are believed to be larger than any previously known resources.

In fact one internal Pentagon document described Afghanistan and the new "Saudi Arabia of lithium."

Precious metals in Afghanistan

Small-scale mining of precious metals has taken place in Afghanistan for centuries. Today, there are over 100 known precious metal deposits in the country.

These deposits are principally gold with or without silver and base metals. Only a handful of silver-rich deposits have been discovered to date. But prospective geologic systems exist in certain parts of the country that have the potential to yield silver.

Base metals in Afghanistan

There are around 300 documented copper deposits, occurrences, and showings in Afghanistan

The largest and most well-known copper discovery in Afghanistan is the world-class Aynak deposit. Worked for over 2,000 years, Aynak is what geologists call a sediment-hosted stratiform copper deposit. These types of deposits are some of the richest and largest copper deposits in the world.

Among the best examples of this type of deposits are those of the Zambian Copper Belt, which have to date produced over 1 billion tonnes of copper.

Afghanistan also has very significant iron resources. In Central Afghanistan, the world-class Haji Gak iron deposit is home to over 3 trillion pounds of iron. Haji Gak is one of several iron deposits within Central Afghanistan, but is the largest located to date.

Rare earth elements in Afghanistan

The existence of rare earth elements in Afghanistan has been known since the 1970s. Among the rare earth elements found in the country are beryllium and lithium.

Beryllium's traditional application is in radiation windows for X-ray tubes. However, because the radioactive metal burns cooler and allows more energy to be extracted, beryllium is quickly becoming the most sought after fuel for nuclear power plants.

Wealth Daily's resident alternative energy expert, Jeff Siegel, details the exciting new nuclear applications for beryllium in his latest report, The Most Profitable Nuclear Advancement in 50 Years. Check out Jeff's report right here.

There is only a handful of places in the world to find beryllium. A total of approximately 10 beryllium occurrences have been identified in Afghanistan's Laghman and Nangarhar provinces.

Because of its heat capacity — the highest of all solids — lithium has traditionally been used in coolants for heat transfer applications.

Today, the rare metal is in very high demand for batteries. Lithium batteries find applications in many long-life, critical devices, such as artificial pacemakers and other implantable electronic medical devices.

Small lithium batteries are also very commonly used in portable electronic devices — PDAs, laptops, watches, thermometers, and calculators.

And one of the fastest growing applications for lithium batteries right now is in hybrid electric cars.

In his most recent report for Wealth Daily, my colleague Nick Hodge details the booming market for lithium batteries in hybrid electric cars in his latest report. You can read Nick's report here.

Several lithium occurrences have now been identified in Afghanistan in the Laghman, Nangarhar, Badakhshan, and Uruzgan provinces.

The future of mining in Afghanistan

Officials are hopeful that the mining sector will eventually become the backbone of the now tiny Afghan economy, which is currently dominated by the illicit opium trade.

But while the mineral potential of Afghanistan may seem very optimistic, there are some serious roadblocks that will hinder rapid development...

For one thing, Afghanistan lacks even the most basic infrastructure for mining, such as railroads, electricity, and water pipelines. It will require billions of dollars in investment to build the infrastructure needed to develop and support a mining industry.

Finding this investment will extremely prove difficult — if not impossible — considering security issues and the corruption in the Afghan government.

And much of the mineral wealth found to date are located in or around Taliban strongholds, which could encourage fighting to gain control of the deposits.

Without a dynamic change in security, investors will not be willing to put up the massive capital required to develop and build mines.

And in the near term, it's unlikely that any of these minerals will see the light of day.

Good Investing,

Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire

Wait Just Two Weeks... and You Could Miss Out on These 11,000% Gains

Things move fast in the world of energy... and that includes the profits.

The biggest paydays only come to those who put their chips in at the exact right moment, and that's why I'm writing to you today.

As nuclear energy asserts itself in the United States, this microcap company could easily pay out 11,000% gains — or more — to those who time this opportunity correctly.

U.S. Silver Eagle Sales Hit 24-Year Record

Continuing financial uncertainty is quickly boosting silver's appeal as a precious metal. And as a result, the white metal is rapidly the investment of choice for those who recognize its traditional role as a safe haven asset.

GFMS Ltd. – the world's leading authority on precious metal markets – reported that silver investment increased by a whopping 184% to 137 million ounces in 2009 compared to the previous year. This was the highest level in the past two decades.

Sales of silver bullion coins increased by an impressive 21% to post a new record of 78.7 million ounces last year, mainly driven by a pop in retail demand in the United States.

Of particular note, demand for the U.S. Silver Eagle bullion coin reached record highs in 2009, with 28.7 million Eagles sold. Take a look:

For the month of May 2010, the U.S. Mint sold 3.6 million Silver Eagles — the highest monthly sales since 1986, worth approximately $67 million. May marks the third month so far in 2010 that Silver Eagle sales have topped 3 million units.

Silver is quickly becoming the preferred investment to safeguard against a fragile global economy. And as investment demand continues to grow, silver prices will march higher. The time to invest in silver is now.

Luke Burgess
Editor, Wealth Daily

Surging Auto Sales Push Palladium Prices

Thanks to a booming resurgence in the global automobile industry, a rare speciality metal is gearing up for explosive profits.

One small group of investors has already raked in $22.19 million in profits since the beginning of February from this amazing natural resource.

And you can join them today with one simple investment.

Here's how...

BP Changes Oil Forever... and Hands You a Shot at 508% Gains

Thanks to the catastrophic Gulf oil spill, the oil industry is being transformed before our eyes.

Oil is about to make a huge move back onto land... and these 3 small American companies are already in prime position to lead the charge.

Find out how you can piggy bank their good fortune all the way to 508% gains by July 2012.

The metal I'm talking about is palladium.

Palladium — along with platinum, rhodium, ruthenium, iridium, and osmium — is part of a group of elements referred to as the platinum group metals (PGMs) or platinum group elements (PGEs).

The rare silvery-white metal is used in a wide variety of applications: electronics, dentistry, jewelry, and chemical, among others.

But the principal application for palladium is in catalytic converters for automobiles, for which — especially in diesel engines — the metal has few substitutes.

Roughly half of annual palladium supplies go into the production of automotive catalytic converters, which convert up to 90% of harmful gases from auto exhaust into less harmful substances.

As such, the demand for palladium is generally correlated to the health of the global auto industry, which has rebounded from the brink of collapse.

Automakers around the world have recently been reporting strong sales figures as the industry continues to see signs of recovery:

Ford says its sales rose 22% last month compared to May 2009, marking its sixth month of gains topping 20%.
Chrysler posted a 33% gain in sales in May, marking the first month in more than two years the company sold more than 100,000 vehicles.
GM's sales rose 17%, led by new products such as the Chevrolet Equinox midsize crossover, Chevrolet Camaro muscle car, and Buick LaCrosse sedan.
Toyota reported that its U.S. sales rose 7% in May from a year earlier, as incentives continued to spur demand.
Honda Motor says sales rose 19% from a year ago, with the Accord and Civic sedans and Pilot SUV all up more than 30%.
South Korea's Hyundai had its best May ever, with sales up 33%.

Overall, global sales of light vehicles are expected to rebound to pre-crisis levels within a few months and then rise approximately 3% annually through 2025.

Global Sales of Light Vehicles

Automobile sales have been also increasing in the world's #1 car market, China. China's automobile sales jumped 71% in the first quarter this year.

Experts predict sales of automobiles in China to reach 16.5 million vehicles in 2010 — nearly a 30% increase from the 2009 level. After that, Chinese auto sales are expected to increase approximately 69% through 2025.

Chinese Light Vehicles Sales

A strong recovery in auto demand around the world will drive demand for autocatalysts and palladium.

This rising demand for autocatalysts has begun to spur heavy investment interest for palladium, pushing prices over 230% higher since December 2008.

Investing in Palladium

Like other precious metals, the traditional way to invest is buying palladium coins and bars.

Two of the most popular palladium bullion products right now are the Canadian Palladium Maple Leaf Coins and the Pamp Suisse Palladium Bars.

Palladium coins and bars can be bought and sold like any other precious metal. However, the liquidity of direct palladium bullion investment is not as good as gold and silver due to low circulation of palladium coins and wider spread between buying and selling price.

Investors can also trade palladium futures. Futures contracts on palladium are actively traded on the NYMEX Exchange.

But one of the easiest ways to take advantage of rising palladium prices is with the ETFS Physical Palladium ETF (NYSE: PALL). This fund has become very popular this year; physical palladium holdings have increased a whopping 7,805% since first being listed in January.

With investment and industrial demand rising, palladium is getting more and more difficult to obtain.

So the companies that mine palladium are in a unique position to handsomely profit.

As a more speculative approach, buying shares of companies that mine palladium can yield the biggest gains. A 10% spike in the price of palladium may well lead to a 50% gain in the mining company's shares.

In my most recent palladium report, I detail my top two palladium mining stocks that will best play the growing bull market for this versatile metal.

Good Investing,

Luke Burgess
Editor, Energy and Capital
Investment Director, Hard Money Millionaire

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You probably already know that every commodity fortune ever made was created by an imbalance of supply and demand.

When the demand for a certain commodity is high and supplies are low, prices skyrocket. And investors holding the commodity in question get rich.

This is exactly what has happened in the case of many natural resources just in the past decade alone:

Crude oil shot up 620% in 6 years
Gold is now up over 380% since 2001
Natural gas soared more than 550% in 4 years
Uranium spiked 830% in 4 years
Copper increased nearly 530% in 7 years
Palladium more than tripled in 3 years
Platinum prices grew 430% in 6 years