Now, David isn’t saying we are in a commodities bubble, or that it’s about to burst.

So what is he saying? Why not read for yourself?

For a full report including what he’s buying and shorting right now, read my Jim Rogers post on our new website.

One is titled T. Boone Pickens Says CFTC Probe on Oil Waste of Time and the other is How to Profit From Peak Oil.

Just because oil prices have backed off a bit doesn’t mean this show is over. It’s just an opportunity to fill up some tanks for a little bit less; and, Prepare for what’s coming.

Continue reading on our new website – InvestLetters.com

Head on over there now and bookmark the site!

http://www.investletters.com

A Yahoo! Finance article, poorly formatted and hard to read, had the story this morning.

Palladium is well off its recent high of $590 per ounce in March, and quite well below its all time high of $1150 set in January of 2001. This years rise was in concert with platinums spike after it became known that South Africa’s Eskom power was not going to be able to supply the mines there with all the power they require, thus reducing supply.

Two favorite stocks for profiting from the palladium price increase are North American Palladium (PAL) and Stillwater Mining (SWC).

By David Galland, Casey Research

With the downturn in the precious metals markets making even the most stalwart investors question their instincts; it’s good to have some advice from the field about what is really going on out there. Here today David Galland, of Casey Research (publishers of Casey’s International Speculator) offers some insights into the current state of the precious metal… and what to look for in the companies that mine it.

I have just returned from my bi-monthly pilgrimage to Vancouver, known by many as the Mecca of Mining – or at least to the junior mining exploration sector – to check in on our research team there and to reacquaint myself with the buzz in this hotbed of hot stocks.

If I were pushed to name one impression over all others gained during my trip, it would be the general state of gloom hanging over the place. Were I a writer of the genre of Cormac McCarthy, I might try to describe the mood thus…

“He arrived to a dark sky and laid down on the cold cement and felt the wet of it soak through the back of his suit. He wanted to call a cab but wanted more to sleep here and now.”

This, of course, is a far cry from the Vancouver vibe in frothy times, when the deal flow is humming and the investors are biting at every new stock like trout at live bait. In those happier days, the community of junior mining “professionals,” a term I use loosely, are a positively effervescent lot. With their fine Italian leather shoes, shiny suits and attentively coiffed hairdos, they positively bubble over with the money they are making by selling large handfuls of the freshly printed paper that is mostly the stock of their trade.

But with a damp fog enveloping the sector since last August, the streets of the town are quiet, the conversations subdued. One sure sign of how dire the outlook is, is that I was asked four or five times, “So, what do you think about technology plays?”

(For those of you new to the Vancouver market, it may be helpful to think about it like one of those multi-colored, multi-cartridge pens most often found in close proximity to members of the local high school chess club. When red is the color of the day, then red it is. But when that falls from favor, a quick click and you are writing in green or perhaps turquoise. In the Vancouver market, when mining is out of favor, the promoters go “click” and just like that, their unwanted mining shells become technology plays.)

While I don’t sense that things have gotten quite that bad, there is no question that they are bad. But bad is a relative term, because it is in a market like this that the smartest speculators plant the seeds of fortune.

On that topic, a couple of further observations…

• It’s a buyers market. My many conversations over the past two days have been punctuated by tales of well-known promoter types being unable to close financings, even small ones. Translation: if you are going to invest at this point, be selective, try wherever possible to get into private placements where you can get a share and a warrant… and be firm on the terms you will require in exchange for your money. The mining promoters need you a lot more than you need them.

  On a practical level, when a mining promoter tells you that you better hurry up and get your money in because a deal is going to close, be skeptical. If you like the management, and you like the project, tell him that you are only investing in deals with a two-year warrant on good terms.

• Stick with quality. Make sure your portfolio is made up only of quality companies that are well cashed up and able to deliver on their aspirations. A number of “wannabe” companies are running out of cash and will either have trouble finding that cash or be forced to offer terms that will be significantly dilutive to existing shareholders.
• Watch the cost side of the equation. On companies that are in the feasibility phase, look hard at the potential for bad news on the capital expenditure front. Few things will send a stock down harder than the revelation that the mine they had expected to bring in for $400 million will now cost upwards of $1 billion.

As for the opportunity, the Wall of Worry about the sector now looms so high, it is almost as if we have been pushed back to the “Stealth” phase, the phase where no one wants to hear about the Canadian junior exploration stocks. That spells opportunity, because when there are only sellers and few buyers, the only direction a stock can go is up… once the dust settles. But only for the quality companies; the paper tigers are doomed.

The bottom line: Keeping your eyes firmly fixed on the prize and today’s soft markets means you can get positioned into great companies at deep discounts from where they should be trading. And certainly will be trading, when the broader market understands that the commodities bull market is very much intact and that if you want to buy into the sector, you invariably will have to do it on a Canadian exchange.

David Galland is managing director of Casey Research, publishers of Doug Casey’s International Speculator, now in it’s 28^th year. New subscribers are invited to try a subscription for three full months with the security of a 100% money-back satisfaction guarantee.  Learn more and sign up now.

Pickens says it has nothing to do with speculators, it has everything to do with demand outstripping supply.

Not good news for the U.S. economy.

If you are an investor and want to profit from peak oil and the resulting higher oil prices, I highly recommend a subscription to the Casey Energy Speculator from Casey Research.

Take a peek at what’s inside this issue and see if you don’t agree with me about it being timely:

• What’s up with Politicians? Around the globe several premier mining jurisdictions have either rumored or actually changed mining policy and tanked the stocks of all companies with any exposure to their country, province or fiefdom. {Were these guys short the stocks or what?}
• Bud Conrad and James Turk (of GoldMoney.com) take on the Dollar bulls. Any guess as to who wins?
• IMF selling gold: maybe and maybe not. Whose gold is it anyway?
• A special offer of a rare gold coin to Big Gold subscribers only.
• Have you heard about the ongoing controversy regarding the inventory of GLD and SLV? Find out in this issue.
• Is it “Sell in May and go away?” What do you want to own, when should you own it and at what price.
• The Big Gold portfolio – complete review & recommendations
• Special intelligence from the news hawk.
• And you’ll never guess what their recommending…

This is a fantastic and timely issue of a MUST HAVE newsletter for any resource investor.

You can try it out Risk Free, Click here to learn more.