1) Tesla must hit its second production target date on the Model X. Tesla’s developing something of a reputation for missing its production targets. It happened with the Model S, and it already happened once with the Model X.
Speculation’s running rampant that Apple’s angling to get into the automotive industry. There are two theories here:
- Apple wants to make its own car.
- Apple’s working on software for autonomous or semi-autonomous vehicles.
On the face of it, the idea of software for self-driving or partially self-driving cars seems more likely. But it’s unclear if Apple’s content to stop there. Let’s look at the facts we do have.
Most investors have a hard time conceptualizing just how large Apple has become. They’re the single largest stock on any U.S. exchange with a market capitalization north of $750 billion. That means they’re 3/4 of the way to a $1 trillion market cap.
To put that in perspective, the entire U.S. economy’s GDP (our country’s entire economic output for a year) is calculated at around $16 trillion!
CNN Money logs 20 analysts who are tracking Tesla’s shares. They have wildly different forecasts for the company’s stock price over the next year with one predicting shares will fall to $70 and another predicting shares will rise to $400. Tesla closed at $211 today.
When you look at the median forecast of those 20 analysts, though, the overall projection is bullish.
Silver price forecasters are all over the map in their predictions for 2015. It’s hard to deny there’s something interesting happening in the silver market, though. After falling 20 percent in 2014, silver prices have surged nearly 10 percent in the first six weeks of 2015 with prices now hovering around $17.25 per ounce.
These gold and silver miners appear to be heating up:
- Solitario Exploration & Royalty (XPL). Four-week return: +18.18%. Solitario recently announced its initial NI 43-101 compliant resource estimate for its high-grade Bongará zinc project in northern Peru. The June 23 report showed “Measured and Indicated Resources totaling approximately 2.8 million tonnes grading 13.0% zinc; 1.9% lead and 19.3 g/t silver; or 15.5% zinc equivalent and Inferred Resources totaling approximately 9.1 million tonnes grading 10.9% zinc, 1.2% lead and 12.2 g/t silver; or 12.4% zinc equivalent.” HC Wainwright initiated coverage on the stock after the news and set a price target of $1.80 on the stock (which is currently trading at $1.56).
- Minco Gold Corporation (MGH). Four-week return: +14.36%. Minco’s stock popped on news that it’s selling its Gold Bull Mountain Project located in Hunan Province, China for total consideration of RMB 7 million (approximately CDN $1.2 million). The company will now “focus on its core exploration properties in Gansu, China and its continued efforts to dispose of its other non-core assets and to diversify its investment outside China.”
- Revett Mining Company (RVM). Four-week return: +13.59%. Early in June, Revett Mining announced it’s on schedule to resume full production at its Troy Mine in roughly a year. Permitting for the Rock Creek project in northwest Montana also appears to be going well.
- Tasman Metals Ltd. (TAS). Four-week return: +12.37%. Notes: Tasman’s Norra Karr project contains one of the world’s largest rare earths deposits. The stock has a $1.75 price target in the next 12 months. Tasman’s currently trading at $1.09.
- Endeavour Silver Corp (EXK). Four-week return: +11.36%. Endeavour, which operates several silver mines in Mexico, reported strong results earlier this month. Silver production in the Second Quarter, 2014 was up 9% to 1,669,609 ounces.
In a recent interview with Christopher Menon, Marc Faber predicts we could see a dramatic sell-off in stocks (around the magnitude of 20-30%) that could begin in the coming months. His credentials? Apparently, he correctly predicted the 1987 stock market crash. Why does he think we’re doomed to repeat that fate? Three reasons:
1) 12-month new highs have diminished.
2) Volume is slack. When volume is high, it’s on days when the market is going down.
3) Sentiment is too one-sidedly bullish.
Faber believes investors can protect themselves by moving into precious metals, specifically physical gold bullion. My favorite part of the interview comes when Menon asks if Faber believes gold could rise to $10,000 or more. Faber’s response? “You’d better ask this question to Ms Yellen and to other central bankers, it all depends on how much money they will print.”
The white metal is up more than 10% YTD, and, interestingly, silver and gold have now broken above their key 50, 100 and 200 day moving averages. Goldcore believes that trend will continue.
I love to see actual silver price predictions with dates on them. SilverSeek offered that up in an article last week:
“Most analysts, particularly in banks, were bearish from 2001 until very late in the first phase of the bull market,” Goldcore writes. “We believe that they will be surprised again when the intermediate top at $50/oz and $1,911/oz in September 2011, is passed, likely by the end of 2015.”
The white metal is up more than 10% YTD, and, interestingly, silver and gold have now broken above their key 50, 100 and 200 day moving averages. Goldcore’s even more bullish longer-term:
“It is important to remember that silver rose to a recent nominal closing high $48.41/oz on April 28, 2011. This means that silver is nearly 60% below its record nominal high of just over three years ago.
“After more than 3 years of a brutal correction and subsequent consolidation, we believe silver is set to rise above that record nominal high in the coming months. We continue to be bullish on gold, platinum, palladium and particularly silver.
“We believe that silver will likely surpass its non inflation adjusted high near $50 per ounce and its real high or inflation adjusted high of some $140 per ounce in the coming years.”
Silver prices haven’t done much over the past year. They were at $20 an ounce last July, and they’re at $20.80 today. That’s a gain of 4%. During the same time frame, the S&P 500 is up nearly 18%! Suffice it to say, it’s been a bumpy ride for gold and silver investors.
Still, the precious metals markets are showing signs of thawing. The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ), a collection of junior gold mining stocks, is up more than 33% year to date. Silver streaming company Silver Wheaton Corp. (NYSE:SLW) is up more than 28% and Pan American Silver Corp. (NASDAQ:PAAS) is up more than 26%.
Sean Rakhimov, editor of SilversStrategies.com, believes that if and when silver prices crest $26 an ounce, prices will climb higher: all the way to $32 an ounce. If prices reach $32 an ounce, the next major stopping point for the white metal will be $50 an ounce.
“My outlook for silver for the next two or three years is somewhere between $50 and $100/oz,” Rakhimov says in an interview with The Gold Report. “It could be shorter; it could be longer, but that’s not critical. I’m going to stay with it for the cycle; it could be another 10 years to the end of the cycle. I do not expect this next leg to be final but I expect it to be a substantial run
comparable to 2010–2011 when silver went from roughly $10 to $49.50/oz. The next move could go from about $20 to roughly $100/oz, but that will take time. Am I going to take money off the table along the way? Maybe in some stocks that got ahead of themselves or that are not responding to the price move. But I would not touch any of my physical silver.”