The Market Traders

Andy Millette

Trading Note

While people scramble to make sense of what is going on in this crazy world, we here at the Market Traders remain steadfast in our views that the 6 billion people who inhabit this earth are going to require huge amounts of commodity resources going forward. The frightening disconnect between this reality and the battered down junior resource market will soon start to right itself as the world awakens once again to the notion of the ongoing Commodity Supercycle.

One area of the resource market that has been absolutely smashed to bits is the Uranium sector. But, that may be about to change in rather stunning fashion. Consider the following points: Read more »

Malcolm Bucholtz B.Sc, MBA Analyst

Trading Note

Orsu Metals ( TSXv:OSU) was formed in June 2008 by way of the amalgamation of Lero Gold and European Minerals Corporation.

Since being formed in June 2008, Orsu's main focus has been ramping up operations at Varvarinskoye. Varvarinskoye is the first new mine to open in Kazakhstan since the nation became independent in 1991. President Nazerbayev has even visited the site several times in a show of his support. Here at www.themarkettraders.com we too have been watching this story with piqued interest as well.

You see, anytime a new mine goes into production, the entire mining industry – and thousands of investors - watch. Getting a mine into production can take a decade or more of exploration, development, financing, construction and so on. There are so many variables – commodity prices and the market for financing being the primary two – that can delay a new mine or even kill it. So it really is a big deal to see a mining project move forward. Read more »

America currently imports about 70% of its oil. Granted, a goodly chunk of this comes from friendly nations like Mexico, Saudi Arabia, Canada, Norway etc.... But if one stops to consider that many of the big oilfields in the world have reached ( or are reaching ) their peak, and if one further considers that 30% of the world's oil reserves are held by foreign nationals that are not warm and fuzzy friendly to America the storm clouds visible on the horizon take on some real meaning. Read more »

In previous blogs I have talked about Vladimir Putin's strategy to build an empire for himself in Russia using energy as a leverage tool. I also noted in a previous post that I felt the invasion of South Ossetia by Georgia had tentacles that reached all the way to quite possibly MI6 in Britain and the CIA in America. My reasoning was that by drawing Russia into carefully planned skirmishes, its empire building plans could be cooled off.

Well, if the recent events involving Georgia and South Ossetia were designed to cool Russia down, they have well succeeded. At this time of writing, the Russian stock market has taken a severe drubbing and in fact is still closed to prevent further capital flight.

I would say, Mr. Putin is probably right now re-thinking his whole approach to empire. As we complete the second inning in what will be an exciting game, the score stands at America 1 Russia 0.

SCORE America 1 Russia 0 Inning 2

Rising Powers, Shrinking Planet is a must read. Published in 2008, author Michael T. Klare does a stand-up job of shaking the reader out of his comfort zone.

Consider the following points:

80% of known oil reserves in the world are controlled by National Oil firms. Granted, Saudi Aramco is one such National Oil Firm that is friendly towards America but that too could change should the Saudi Royals come under duress from the fundamentalist Islamic movement. America is thus at the mercy of the world for its oil ( and its way of life ).

50% of the world's oil production comes from 116 giant fields - many of which have hit peak production.

By 2012 the world will be using 96 million barrels of oil a day. The IEA reckons that the global oil industry will be hard pressed to meet this demand. Read more »

If you are looking at the Canadian resource sector and starting to salivate over all those beaten down share prices, thinking “ if I buy now, I will make huge profits when these markets turn higher”…..STOP !!! Don’t move !!! Read more »