Peter Schiff of Euro Pacific Capital - Top Three Investment Themes for 2011

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Peter Schiff, President and Chief Global Strategist of Euro Pacific Capital Inc, made a public three key investment theme predictions for 2011.

Peter Schiff has made a number of accurate economic prediction over the last half decade from the real estate crash in December 2006 to the bullish rise of precious metals. For 2011 he offers three key investment themes 1) US dollar demise, 2) Buy emerging markets and foreign currencies 3) Buy precious metals and commodities. Below we offer a synopsis of Shiff's investment ideas for 2011. Peter Schiff did not offer specific investment vehicles to capitalize on his 2011 themes however Market Equities Research Group offers below some possible ways for exposure to gold including a review of Metnaor Resources Inc. a new gold producer in the making utilizing their 100% owned Bachelor Lake Gold Mill with two projects of significance located in stable, mining friendly Quebec that together are expected to take the company to mid-tier producer status (between 150,000 oz - 200,000 oz Gold per annum) within 2.5 years.

A full review of Metanor is available at online.

Peter Schiff's Three Investment Themes for 2011:
1) US dollar demise: Schiff does not see much safety in the US dollar. Recently we saw the long end of rates rising because the bond vigilantes are coming out of a coma as they realize the Fed is out of ammunition here. All the Fed can do is try to boost the economy artificially with cheap money; they brought interest rates down to zero, they couldn't do anything else so they tried quantitative easing to try to get the long rates to go down but instead they shot up (see 30 Year T-Bond rates) -- it was a complete failure and now much higher interest rates are in order (The Fed would argue the rates are up because the outlook for the economy is more favorable). In response all the US will do is keep borrowing and printing more money which is not good for the economy and not good for the dollar. Schiff thinks the bear market in bonds is finally here with legs to it and that foreigners will not want to keep dollars as the Fed prints cash. Schiff says it is not just a dollar collapse, it is a bond collapse too; "avoid any kind of long term bonds, avoid treasuries, and avoid municipal bonds."

2) Buy emerging markets and foreign currencies: Stay invested in companies that are exposed to the growth that is occurring outside the USA; you want to look at the new emerging consumers, the people that have been saving their money and producing -- those are the consumers of the future. You have to stay with businesses that are going to benefit from this change in global wealth as the world moves away from a US centric model towards other nations. Schiff is focusing on Asia where people work hard, are producing and have savings. You want to invest around the world where there is legitimate economic growth based on savings, under consumption, and capital investment so you get a lot of value and you stay out of the US dollar - because when you are investing abroad not only do you get the growth of those stocks you get protection; foreign stocks with foreign earnings offers you protection from US dollars demise. Schiff is also focusing on countries that have a lot of natural resources that they are able to export to take advantage of the strength in other markets.

3) Buy precious metals and commodities: The Fed will print a lot of money to slow the rise of interest rates and that will be terrible for the dollar so you will want to own the precious metals - stay with gold, stay with silver.

Simple ways to gain exposure to gold are to buy a senior producer focused ETF such as Market Vectors-Gold Miners (GDX), or a junior focused ETF such as Market Vectors Junior Gold Miners ETF (GDXJ). However the problem with these ETFs is that they funnel attention to a select few companies whereas there is a large universe of fast growing gold stocks that offer exceptional risk-reward scenarios. One such company that appears poised for upside share price appreciation in 2011 is Metanor Resources Inc. which has two projects of significance located in stable, mining friendly Quebec that together are expected to take MTO.V to mid-tier producer status (between 150,000 oz - 200,000 oz Gold per annum) within 2.5 years. Metanor is a new gold producer in the making utilizing their 100% owned Bachelor Lake Gold Mill in the prolific Abitibi Mining District of Quebec with large resource growth prospects on several fronts. The Barry property alone justifies a market cap for MTO.V several times the current as Metanor has found the gold system and is now tracking it -- the independent international professional geological firm SGS Geostat has now identified Metanor's Barry deposit as comparable in potential to rival other major deposits in the area such as Osisko's Malartic gold deposit (currently at 8.87 million ounces in the proven and probable gold reserve category) or Detour Lake's Detour deposit (currently at an open pit mineral reserve of 11.4 million ounces of gold).

Metanor Resources' 100% owned gold milling facility is readily capable of producing a projected ~60K oz gold per annum once the high grade underground ore at Bachelor Lake is accessed, has infrastructure replacement value of ~$150M, and sits geographically as the only mill located within 200 km in a gold rich district that possesses additional resources exceeding 1.5M oz. Metanor has amassed properties within this area, near their Bachelor Lake Gold Mine & Mill and the Barry open pit, and will play a central role mining the resources in this region for decades. With only 144,410,739 shares outstanding and currently trading under CDN$0.60/share, the current valuation appears to present exceptional opportunity.

A full review of Metanor is available at online.

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URLs.


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