The IncaKolaNews Weekly -- Mining, LatAm, Stocks and more

Back in May 2008, soon after I made my decision to participate the world of internet blogging, social networking, independent analysis/journalism and information exchange I stumbled upon a incredible site by the name of IncaKolaNews. It is run by a humble, well informed, intelligent guy who goes by the name of Otto.

He's down on the ground in Peru, and by "down on the ground" I don't mean living in a nice Miraflores apartment facing the Pacific Ocean in the capital Lima.

Otto is the real deal and offers a very insightful view into the real world of South American politics, mining and finance.

Check out his site @ http://incakolanews.blogspot.com

Here are some highlights as to what the INK Weekly will offer subscribers. I have copy and pasted this information from this page where you can click to read a more in depth summary.

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* Fundamental analysis of mining stocks. The weekly will include at least two NOBS reports per month (perhaps more), a format that has proved very popular with site regulars. These reports are likely to cover mostly junior miners but may include other regions than LatAm or different industrial sectors if good opportunity arises. The NOBS reports will likely aim at highlighting buying opportunities, but may also cover updates or even hold/sell calls if a company catches my eye. The reports will also eventually cover the 'Stocks to Follow' portfolio.

* Stocks to follow. I plan on developing a short list (likely not more than ten stocks at any given moment) of companies that I believe will offer strong profit-making opportunities. Once again, Latin American exposed stocks will be favoured but other regions will not be excluded for simple geographical reasons. The performance will be tracked using a model portfolio. Additionally, as 'selling well' is equally as important as a successful buy call, the IKN Weekly will not hesitate in giving 'take profit' or 'stop loss' signals. Regular readers of the blog will know how I normally call my trades on site and the principle will be the same.

* Regional Politics, but not any old gossip. Regional political or economic developments that offer the investor a potentially profitable knowledge advantage are the matters that will interest us in The IKN Weekly. What Hugo said to Evo about Barack will not interest us. The type of political development in Ecuador that allowed this blog to call Dynasty (DMM.to) a buy just days before the beginning of its 300% upmove in December will most definitely interest The IKN Weekly.

* Market Watching, providing impressions, thoughts, opinions on whatever happens in the sector during the week and how you as an investor might benefit going forward. This would really be a catch-all category covering many aspects of the junior mining investment world, but a topical example would be as in yesterday morning's blog content mentioning International Royalty Corp. (IRC.to) (ROY). I wrote that IRC.to would be a good way to play the positive news from Barrick about Pascua Lama. It subsequently rose 13% from C$2.63 to C$2.97, with the final push made when IRC.to published its news release promoting the Pascua Lama link late Thursday.

Click here to read more about the INK Weekly or to sign up now!

Lets talk CHINA GOLD

Last week the Internet was a buzz with news that China officially announced that it would increase its gold reserves.

Newsworthy yes, but as Otto over at IncaKolaNews in this article magnificently articulates... major news reports and analysis seemed to miss the bigger picture.

I myself posted a small analysis on this topic last Friday, April 24, 2009.

I may have mislead readers slightly with the gold chart I included. I was not suggesting gold is a good investment at the moment. I am no gold expert, and I definitely am not in any position to say whether China's move to buy more gold will affect the global price of gold.

However, I have read a good deal about gold in history text books and in the news in recent months with the global slowdown. It is clear gold remains as it has throughout history, a store of value.

My analysis simply to articulate the following:

China is concerned about the possibility of inflation eroding the value of the money countries like the United States will eventually have to pay back. As developed economies lower interest rates and print money to spur growth their currencies will eventually weaken as money floods the global economy. Likewise, the RMB (Yuan) will likely continue appreciating as China's economy continues to develop. and modernize. All this is not good news for the money China has stashed away in its rainy day fund.

I highly recommend readers who periodically access this site for commodity or China related news or who have simply stumbled upon this post READ -- Otto's analysis on the impact China's gold purchases on the greater market.