Risk On Rally Benefitting Oil, Equities And Industrial Metals

By Jeb Handwerger:For many months, I have witnessed a trend towards resource nationalism which is taking a major toll on the potential supply of platinum (PTM) where over 90% comes from South Africa, Zimbabwe and Russia.

Jeb Handwerger submits: It is the best of times for equities and precious metals and the worst of times for the U.S. dollar (UUP). It is prudent to focus on the sectors with long secular uptrends as these patterns tend to last longer than expected and produce the greatest returns.

Jeb Handwerger submits: Many of the great declines in the stock market over the past 30 years have been related to oil.

By Jeb Handwerger:During silver (SLV) and gold's (GLD) terrific move in 2011, very few analysts warned that a correction could come to shakeout all the Johnny come lately's (momentum traders) who were pushing gold and silver to nosebleed levels.

By Jeb Handwerger:We are still climbing the wall of worry as wealth in the ground metals becomes increasingly cheaper in a world that is threatened with the ghosts of depressions and deflations past. We observe the doubters who regale us with the view that the miners are underperforming bullion and the general equities. They claim that housing, financials and the dollar has bottomed.

By Scott Gibson:The price of silver has been in a slow steady recovery since it gapped down in hard selling on September 22 and 23 of 2011.

Jeb Handwerger submits: The virtues of gold (GLD) and silver (SLV) are being addressed far and wide. My readers know the steady drumbeat of praise that is reaching a crescendo for the white metal scares the hell out of me. The driving forces behind silver’s price come from investors, industrial demands and a global shortage.

Jeb Handwerger submits:Gold [SPDR Gold Shares (GLD)] is breaking into new 52-week highs and silver [iShares Silver Trust (SLV)] is at its highest point in more than 30 years as Libya, one of the largest oil producers, faces a civil war. Libya is not following Tunisia and Egypt with a somewhat moderate transition; this revolt has been extremely violent and bloody.