Chiron Financials TOP 5 Predictions for 2011

8/8/2019 Chiron Financials TOP 5 Predictions for 2011

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One of our deepest fears of the 20th century would have certainly been the fear of another majo

world war as many great countries in the last century were on the hunt for global supremacy.The bigger the army or the bigger your bomb meant everything, my how it has all changed as warsare now being won without a single shot being fired, the old Japanese saying “ A pen is moremightier than a sword” is certainly being shown these days..

t’s our first newsletter for 2011 and sticking to tradition we always begin with our top 5 predictiofor the year and what a year it is shaping up to be, only a week old & already so much has changedThe state of QLD at one stage was close to 50% underwater and 50% of the worlds coking coalsupply, (used to make steel), is now under water too, this will impact Australia’s 4th quarter GDP

figures in a big way. Japan will also be heavily affected from all of this as they will now have to wafor up to 6 months for their regular shipments of coal to come back online.

Rio Tinto and Xstrata have both announced the cancellations of some large coal orders scheduled fJapan in January and it looks to be weeks before all is known when flood waters finally subside.

n the last 3 months Japan has now experienced China stop all of its rare earth commodity shipmeo them and now this week Australia cancels their much needed coking coal for steel production,

certainly not good news for strong Japanese Industrial production.

While Mother Nature can be blamed for Japans coal shortage in early 2011, the same cannot be sai

for their current rare earth shortage, thanks to China as they continue to flex their muscles andstarve Japan of the much needed Rare Earths it needs...

On that note we will start with our first prediction for 2011 and it should be no surprise to any of you either for those who follow our regular reports..

“COMMODITY WARS TO INTENSIFY”

“AS PRICES HEAD HIGHER IN 2011”



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COMMODITY PRICES TO HEAD HIGHER IN 2011

Soft commodities & selected Base metals will soarYet Rare earths will outperform them all

One of the easiest things to predict in 2011 is higher commodity prices, as our world’s population

continues to grow, we are seeing demand for these commodities increase exponentially at a recorpace and any increase in supply for base metals still looks to be many years away.Soft commodities like Cotton and Sugar have had a fantastic 2010 and 2011 looks set to be similar

the year unfolds. 2010 has seen both Sugar and Cotton experience price increases of greater than100% off their April / May 2010 lows..

Commodities are slowly becoming a new weapon of mass destruction and one country stands outmore than any other – China, it now controls more than 50% of new global base metal explorationprojects and a huge 95% of all rare earth commodities production & Exploration like:-

Lithium - (used in all our batteries and now moving big time into cars)Neodymium - (used in high powered magnets, electric motors and wind turbines)Cerium – (used in all new fuel cell technology)Tantalum – (used to form ordinary Tin and other super alloys)

Yttrium – (used in TV’s, radar and all microwaves)Praseodymium – (used in aircraft engines and energy efficient light bulbs)

China has learned well from the U.S, as all throughout the 80’s and 90’s the U.S placed tradesanctions against many countries that failed to cooperate diplomatically with them, only differencn the past was it was easy for the sanctioned country to look elsewhere for another supplier..

Well not any more as China has cornered the rare earths market in 2010 and 2011 looks set to be big year where we could see a major display of its power and how it controls the globes rare earthminerals.

A NEW STYLE OF WEAPON HAS BEEN BORN

RARE EARTHS

“WHO ELSE WILL CHINA THREATEN WITH RARE EARTH RESTRICTIONS IN 2011”



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METALS IN 2010 RARE EARTHS IN 2010

Silver:- $15 to $30 = 100% return Neodymium (Nd):- $2k to $9k = 350%Copper:- $3 to $4.50 = 50% return Cerium (Ce):- $500 to $6k = 1200%Nickel:- $8 to $12 = 50% returnGold:- $1,100 to $1,400 = 29% return **** Actual prices are contract

Prices as these rare earthsAre not traded on an exchange

Praseodymium (Pr) - $2k to $9k = 350% increase in 2010Yttrium (Y) - $1,000 to $7,500 = 650% increase in 2010



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Want to invest in Aussie rare earth companies and benefit financially from China’s big plans, Iknow I do and Aussie investors are one of the lucky ones..

95% OF RARE EARTH PRODUCTION COMES OUT OF CHINAAROUND 4% COMES OUT OF CANADA

&A SMALL 1% COMES OUT OF AUSTRALIA

( THIS IS SET TO CHANGE IN 2011 )

**** Here is a great wrap up of some of our top Aussie rare earth companies ****

Arafura Resources – A.F.U = Cerium, Neodymium and praseodymium reserves all in one spot calledthe Nolans Bore deposit north west of Alice Springs N.T..Production of its rare earths deposit is scheduled for 2013 and a new capital raising to fund theconstruction of its production plant is scheduled for early 2011 with an additional 9 million sharesplacement, this may offer investors a perfect entry point to climb onboard...

Galaxy Resources – G.X.Y = Tantalum Oxide, Lithium, Gold and Uranium Explorer and Producer inW.A with a solid known reserves & stockpile of Lithium / Tantalum, story is with this one they mothballetheir rare earth production plant back in 2008 when prices fell, $100 / lb is needed to make its Tantalummine economical, with current prices now north of $150 / lb over the last 6 months you guessed it, timeto crank up their rare earth production plant again... With known reserves of 15.88Million tonne of rareearth ore containing 1.5% Lithium and 6% Tantalum, this stock is one of my favorites...

Gippsland – G.I.P = Tantalum Pent oxide miner bases in Tassie and in Egypt, their Egyptian minedeposit of 142 Million tonnes Tantalum is one of the worlds largest and pure rare earth deposit goingaround, did I mention they have a cool 9.91 Million ounces of Gold too, certainly worth keeping an eyeon this one, I am...

Lynas Corp – LYC = All Rare Earths and only rare earths, kind of a specialist just wanting to specialisin rare earths only, their Mt Weld deposit is spectacular and is set to come on line as a production planearly 2012.. A well know stock and fairly priced right now...

Navigator Resources – N.A.V = Gold producer and Rare earth oxide explorer in W.A, currently runnina very large advertising campaign to obviously get more investors as it is hard when you are unknown.

Plans to increase Gold production to 150,000 ounces a year should fund their Rare earth projects,known rare earth stockpile is around 75,000 tonnes of oxide from their Cummings range mine..Keep this one on your watchlist...





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“PHYSICAL GOLD WARS WILL INTENSIFY”

“GOLD WILL ONCE AGAIN OUTPERFORM MANY ASSETS IN 2011”

Anyone thinking Gold is in a bubble may have to think again or stop listening to what they hear o

TV or what they read in the newspapers, some simple facts tell us we are nowhere near a top forGold yet and here are a few simple facts why:-

1) Gold in U.S dollars continues to outperform with a steady 29% increase in price in 2010, Gold Australian dollars even less with around 7% increase, hardly a record performance nor thebehavior of something in a bubble.. When Gold increases 100% one year and then another 100

the next year, I recon then it would be safe to say we have reached the bubble stage.** In 1979 Gold increased 125.7% and Silver a huge 273% **

2) History is a wonderful thing especially for those who take the time to research human behavioand our past Gold bull markets, one thing stands out more than anything and that is all our Gobull market highs in the past have occurred at a time where High Inflation has peaked also..Our Gold bull market lately has been climbing on the back of “DEFLATION FEARS”..Inflation will return again one day & when it does you will be glad you are holding some Gold.

3) The longer it takes for the global banking system to function properly again, the more investowill slowly wake up and realise that “NO” paper currency nor all the Kings men can ever put thbanking system together again, well not back to the way it was before 2007 anyway.

Things have changed forever just like 9/11 changed air travel forever..CENTRAL BANKS WILL CONTINUE TO BUY UP GOLD BIG TIME

GOLD V’s ASX V’s $AUS OVER LAST 10 YEARS10YR $AU GOLD = 200% / 10YR ASX = 50% / 10YR $AU = 40% / 10YR $US GOLD = 300%



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Our current global uncertainty is certainly fueling this Gold Bull right now, over the last 3 years Go

as almost doubled in both U.S dollars and Aussie dollars, it’s a shame the same can’t be said aboutAussie Gold stocks.. Our Gold stocks look very attractive right now and you should all know how muf a fan I am by buying some for your portfolio, 2011 could be the year for them to really shine.

Our favourite Gold stocks for 2011 are as follows:-

1) N.C.M – Newcrest Mining = The biggest and the best Aussie Gold producer and being in the to50 should guarantee market liquidity if for any reason liquidity dries up again like it did in2008 when liquidity just disappeared.. With N.C.M’s takeover of Liher Gold now all behind ulooking forward I am sure another acquisition lies just around the corner, solid positive cashflow, low dividends and debt free, what else are you going to spend your money on?

N.C.M offers us the best Gold stock exposure, although volatile it is offers us a low risk trade2011, $50+ here we come in 2011..

2) A.X.M – Apex Minerals = Patience has been the key for many investors with this one, myself Ihave been holding 1 Million shares in this company for well over a year now and finally it islooking great after so much uncertainty.. When a company drops its production costs from$1,300 an ounce down to $800 it certainly will get noticed, all of a sudden what used to benegative cash flow is now all of a sudden positive again..Fair value for this stock is currently around $0.15 cents to $0.20 cents if production ismaintained at their current cost rate, that’s not bad seeing the share is trading around 3 cenHigh risk = High reward and A.X.M now offers us an improving risk / reward trade for 2011.

3) R.M.S – Remellius Resources = A Solid Western Australian small cap Gold producer with a stro10 year production outlook, currently producing 17,000 ounces of Gold a quarter with plans double production over the next 6 - 12 months. This stock has been red hot over the last 3months as it has increased close to 200% in such a short time, when I look back over the lastyears of Aussie gold producers I compare this one to the likes of LIHER Gold when it wastrading at $1.00 back in 2004, long term investors will certainly be rewarded here..Medium risk = High reward stock...

“AGAIN EMAIL OR RING ME IF WANTING MORE INFORMATION ON ANY OF THESE STOCKS”

*** FOR ANYONE WHO THINKS GOLD IS EXPENSIVE - TRY OUR RBA INFLATION CALCULATOR ****(GOLD REACHED AS HIGH AS $850 IN 1980)

http://www.rba.gov.au/calculator/annualDecimal.html

http://www.rba.gov.au/calculator/annualPreDecimal.html

“BUY PHYSICAL GOLD IT’S THE BEST PROTECTION”



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“EURO V’s $U.S – THE BATTLE CONTINUES”

The race is still well and truly on as to who can print as much dollars as they can, we have the U.in one corner with their Q.E.2 and $600 Billion last month and in the other corner just recently t

Euro with a cool $200 billion Euro’s rescue package of Ireland and a major commitment to printstacks more if needed for Portugal or if Greece requires another injection of capital.With fundamentals like these it is no wonder the rest of the world is looking for an alternative foour world currency and if the Euro and the U.S dollar continue to fall it will only make anyalternative suggestions easier to be accepted, there’s now even a rumor going around that we maeven go back to a Gold standard soon, Hmmmm...

Fast forward 2 years from now its December 2012 and the Euro is at $1.00 U.S, the Pound is also $1.00 U.S and our Aussie dollar somehow stays around $1.00 U.S:-

“HOW EASY WOULD IT BE THEN TO FORM A ONE WORLD CURRENCY”“TIME WILL TELL FOLKS”

“THE EURO AND THE U.S DOLLAR WILL DEPRECIATE MORE IN 2011”“TOILET PAPER CURRENCIES OF 2011”

A NEW WORLD CURRENCY IS COMINGAND IT AINT GOING TO BE THE EURO OR THE U.S DOLLAR

THE I.M.F HAS EVEN GIVEN IT A NAME – “BANCOR”



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Government Bond sales made the news a heck of a lot in 2010 as troubled DEBT ridden countries tried t

access more capital to keep their deficits flowing, when private investors stopped buying any new debt, in

came the Federal reserve’s, central banks and the I.M.F to rescue them..

One of my top 5 predictions for 2010 was for more DEBT DEFAULTS and boy did we get a few of them w

Greece and Ireland joining Iceland on the list of bankrupt nations, moving into 2011 many people are

predicting Spain and Portugal to be the next victims of the great bond wars sweeping the globe..

2010 has taught us a few things and one of them was how both the U.S federal reserve and the European

central bank joined the I.M.F to ensure no major crisis occurs from any country defaulting on its debt

obligations.. The miracle of a printing press and the acceptance of central banks buying as much of their o

government bonds as they want will only stretch out the inevitable Bond collapse of 2012..

“SECRET BOND WARS WILL INTENSIFY IN 2011”

Austerity measures sweeping across Europe in order for them to trim government deficits will also intensi

more in 2011 leading to an even slower growth rate for some nations, Germany may be the only European

country in the Euro to escape these Austerity measures...

Very few are tipping Japan and America to start defaulting on their debt obligations in 2011, unless a QE3

(Quantative easing take 3), is introduced I will be one of them. While the world remains so focused on the

P.I.G.S of Europe almost everyone is forgetting about the even bigger mess on the other side of the globe..

Just the state of California alone and its debt levels are bigger than Ireland, Greece, Portugal and Spain an

boy is California in trouble.. Arnold Schwarzenegger has stepped down from being Governor of Californas they now look towards a strong businessman to lead them out of the trouble they are in, desperation sho

last month when they tried legalizing Marijuana certainly didn’t help things especially after its referendum

defeat.. The U.S Federal reserve looks set to be very busy in 2011 as it becomes at times the only buyer of i

own government bonds, already China has made it public they are decreasing U.S bond holdings and you

would have to wonder if there is anyone else stupid enough to start buying them besides the U.S Fed..

U.S Government 10 year bonds are now sitting around a 3.5% yield, while the overnight cash rate remains

0.5%, that’s a gap of 3%, here in Australia where we have a low risk of Government bond default yet high

interest rates our 10 year yield is currently 5.75% while our overnight cash rate is 4.75%, that’s a very

healthy gap of only 1% showing very low risk of a bond default..

Once a country experiences a 10 yr yields gap more than 4% above the overnight cash rate

It normally signals big trouble ahead for that country

“ITS NOT A SECRET ANYMORE”



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“OUR MOST DANGEROUS WAR OF THEM ALL ENERGY”

“CRUDE OIL TO BREAK & STAY ABOVE $100”

Oil remained in stealth mode throughout all of 2010 as it just slowlykept creeping upwards all year, despite many economists telling usour global economy cannot support Oil prices above $80..

“WELL HERE WE ARE EVEN IN THE $90’s”

OPEC would love to see Oil back above $100 and countries like Rusand Venezuela rely on Oil prices north of $70 in order for theireconomies to prosper, These countries along with China shouldensure $70 becomes a floor price for crude Oil in 2011..

In 2010 we also seen a new uptrend established once again forUranium oxide, it was in free fall for 2 years throughout the GFC..Over the last 3 months we have even seen Aussie Uranium stocksdouble in price again just like they did in 2006 and 2007...

Are the hay days back for Alternative energy, I don’t know but whatdo know is China alone is planning to increase its Nuclear powergeneration from 40 Gig watts to 80 gig watts over the next 5 years.

Alternative energy is back and this time I recon its here to stay too, Crude takes a tumble again don’t expect alternative energy to followthis time. Many investors including myself felt the pain of the GFCcollapse and none more so than Alternative energy stock investors

Despite Coal now being a dirty word it will still serve its place in powgeneration for many years to come, there ain’t many Aussie Coalcompanies left now that produce the finer coal needed for Electricitpower stations as 90% of our coal is used for making steel..

We already have touched on the Rare Earth phenomenon sweeping

the globe right now and it ain’t going away any time soon..Neodymium – Wind TurbinesLithium – Electric & battery

“LOOK OUT FOR NEW HIGH PERFORMANCE SILVER SOLAR PANEL



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Oil / Gas – Australia’s largest Oil producer is Woodside Petroleum (W.P.L) and surely the best

stock on the ASX to play out our next leg up in Crude oil, none better or stronger.. There is 3 great

Aussie oil/ gas stocks worth keeping an eye on and they all look like they should have a brilliant2011. Santos (S.T.O) and Oilsearch (O.S.H), are both big players in the Liquid Natural Gas projects2012 – 13 should see both of them triple their production as 2 huge projects come online... For thesmall cap investors out there look no further than Nexus Energy (N.X.S), as it really cranks up itsproduction in 2011, just 9 months into production and finally ironing out their teething problems,only way is up now – finally cash flow positive..

Uranium – Possibly the hottest energy sector of 2011 if our Australian government change a 30

year old legislation which is now way out of date.. Our best picks are the ones who will benefit thmost from any law change and they are Paladin (P.D.N) and Summit Resources (S.M.M), both stochave doubled already over the last 3 months, don’t chase them, remain patient and wait for a goo

dip to enter, one will come eventually, don’t be scared to climb on board...

Solar – The current government solar power incentives look set to stay for another year or so as

many states aim to reach new Carbon emissions targets by 2015.. Our best solar stock in Australiby far a little old Western Australian small cap called Dyesol (D.Y.E), the company remains debt frand is on verge of something Huge with their Surevolt automotive system, imagine a flexible solarpanel which can be directly molded to any car panel like paint,, “Its coming sooner than we thinkdid I mention the worlds largest steel producer is its J.V partner – Tata Steel..

Wind – I have been following this one for many years now, although a name change back in 2009

his stock has a wonderful future and is likely to play a major roll in transforming our nation from iold carbon ways.. Infigen (I.F.N) is a quality Aussie Wind Farm Company and set to grow now fina

after some old skeletons in their closet have been burnt.

Geothermal – Ok this technology is awesome however very much in its developmental stage still

here is a real lack of operating test units in the ground globally.. Australia has 1 Geothermalgenerator operating in the cooper basin in S.A ran by Geodynamics (G.D.Y), patience will beewarded with this one, it is too important to fail and has the backing of some big boys, did I mentt is just around the corner from the world’s largest hole in the ground – “Olympic Dam”...

Fuel Cells – Lucky last yet still just as important as any energy source, imagine your own small

private power station the size of your fridge, Ceramic fuel cells (C.F.U) are now 12 months intoproduction of such a unit, soon to go public with these units and Japan has already purchased th

irst 2 years of production orders..

“THE WORLD IS CONSTANTLY CHANGING”“CHANGE WITH IT OR GET LEFT BEHIND”



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For more information on any of the above subjects and to protect yourselffor the year ahead please contact me to discuss your individual options.

James McMurtrie – 0418 770 759

OR

[email protected]

James McMurtrie

Equities Advisor / Authorised Representative

Meridian Financial Pty Ltd ABN 76 006 275 592 AFS License 243320Suite 4, 844 Nepean Hwy, Moorabbin VIC 3188 Phone: (03) 9525 5177 Fax: (03) 9525 4254

Please Note Disclaimer

The information contained in this newsletter is for educational purposes

only and is not providing specific financial advice, of any kind.

As the information presented is a guide only, you must always seekprofessional personalised independent financial and legal licensed adviceso it can be tailored to your specific circumstances, needs and objectives.

There is absolutely no alternative for your own personalised, suitable, andtailored advice when it comes to building wealth.

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Chiron Financials TOP 5 Predictions for 2011