Merger and Acquisition (M&A) activity is growing in silver mining

In a previous article I pointed out how bright the future is for silver. For example, one of my predictions is slowly coming to fruition. Chart 1 shows how the total silver stock (green dots) is starting to decline, indicating signs of increasing silver demand (or decreasing supply). Even the registered silver (blue dots) has started to decline just recently.

Chart 1: CME Silver Stock

The silver price has been forming a base around $US 27/ounce in the latest months (Chart 2).

Chart 2: Silver Price

As a result of this positive development in silver, several mining companies have shown Merger and Acquisition (M&A) activity in the silver sector.

I'll discuss companies like Pan American Silver Corporation, High River Gold, Liberty Silver Corp., RX gold and silver, U.S. Silver, Vista gold, Endeavour Silver and Kinross Gold.

To read the article go here.

Is Greece Bankrupt Yet?

On 31 July 2012 Greece finance minister Christos Staikouras told on television that Greece is on the edge of bankruptcy. If no aid comes from the ECB, Greece won't be able to pay its ECB debt obligation on 20 August 2012. Greece has a repayment due of 3.8 billion euro.

Consecutive debt repayments and spending cuts in 2012 have reduced Greece's debt to GDP from 160% to  132% (Chart 1). This means Greece is going into the right direction concerning its debt.

Chart 1: Greece government debt to GDP

However, Greece depends entirely on the troika: European Commission (EC), the International Monetary Fund (IMF), and the European Central Bank (ECB). On Monday 24 July 2012, they announced the 31.5 billion euro bailout money wouldn't be available yet to Greece until September 2012. One of the reasons is because of the IMF refusing to give more aid as Greece will not be able to fulfill its promise to cut debt to 120 percent of annual economic growth in euro terms by 2020.

This means that insolvency is coming near and could have arrived as early as September 2012.

Insider Trading Update: Yahoo, J.P. Morgan Chase, Hewlett Packard, Akamai Technologies, Sipef

Today I present you notable bullish insider transactions for the last 13 weeks. Discussed companies are Yahoo, J.P. Morgan Chase, Hewlett Packard, Akamai Technologies, Sipef.

The analysis can be read here.