Natural Resources

[[wysiwyg_imageupload:2420:]]By Frank Holmes

Oil markets took another dose of global geopolitics this week when the International Energy Agency (IEA) unexpectedly announced that it would be releasing 60 million barrels of oil from strategic petroleum reserves (SPR) around the globe. Thursday's surprise announcement gave oil prices a 4.5 percent hair cut and oil prices closed Friday at $91.25, down 20 percent from their April 29 peak.

[[wysiwyg_imageupload:2413:]]By Frank Holmes

Frank Holmes and the co-managers of the U.S. Global Investors Global Resources Fund (PSPFX), Evan Smith and Brian Hicks, participated in a special webcast for the Peak Advisor Alliance last week. Here are some candid portions of the Q&A:

 

Q. How are interest rates currently affecting commodity prices?

A. The magic number for real interest rates is 2 percent. That's when you can earn more than 2 percent on a U.S. Treasury bill after discounting for inflation. Our research has shown that commodities tend to perform well when rates fall below 2 percent.

VANCOUVER, BC -Edgewater Exploration Ltd. (TSX-V:EDW)(OTCQX:EDWZF) ("Edgewater" or the "Company") is pleased to announce that it has received a strong endorsement from the Mayor of the Municipality of Cabana de Bergantiños in Galicia, Spain where the Company's Corcoesto Gold Project ("the Project") is located. The Company is in the advanced stages of gold exploration at Corcoesto and has recently started the initial phases of mine permitting with the Galician authorities. The State of Galicia is an autonomous region of Spain and all permits necessary to initiate mining are granted locally by the Galician Government authorities. Recently, the Government of Galicia certified a 90 year mining lease for the Corcoesto Gold Project.

By Adam Hamilton

Commodities prices have been exceptionally volatile in recent weeks, with big daily rallies and plunges intermingled. Seemingly without rhyme or reason, commodities surge one day as traders crave riskier bets but then fall the next as they flee risk. While this commodities risk trade often looks capricious and schizophrenic, it actually has a logical and consistent driver. The state of the stock markets.