Category: Articles: Gold Silver Stocks
We first introduced Brazil Resources Inc. in the fall of 2012, when we applied Casey Research’s The Eight P’s of Resource Stock Evaluation to the company. We’ve decided to revisit this company, look at its progress over the past six months and explore some of the upcoming catalysts BRI has in store for the next 12 months.
The markets are tyrannically cyclical, every sector out of favor eventually returns to favor again and vice versa. That law of sentiment is as immutable as stock prices ultimately reflecting underlying corporate earnings. Based on today’s still-battered gold prices, a 0.511x HGR would put the HUI at 731. This is 157% higher than it was in the middle of this week even after recovering 3/7ths of its gold-panic losses!
Where are we in the bear cycle? Is the bottom in or could it get worse? As counterintuitive as it seems, it is only in times like these where seeds are being planted for once-in-a-decade future profits.
This article contains some simple but powerful truths for natural resource investors. By being contrarian in resource investing some investors truly became billionaires. “When shares are on sale, people are scared.” Miners with excellent management teams are much more likely to survive and become a winner.
Today Silver Wheaton Corporation declared its first quarterly cash dividend payment for 2013 of US$0.14 per common share. This dividend will be paid on April 2, 2013. This is good news for shareholders in that it is the highest quarterly dividend to date by SLW.
Bear markets, like we are in now, beget bull markets. Bull markets beget bear markets. When you are feeling terrified, you have to be aggressive; when you are feeling brilliant, you have to sell. If you do not do that, you will be a victim. It is just the way it works. If you ignore the fact that these are capital-intensive and cyclical businesses, you are roadkill on a good day.
Founded in 2004, Silver Wheaton (SLW) is what is known as a metals streaming company. For SLW viewed overall, once one takes the time to review its business model, that business model is comparatively easy to understand. SLW can be said to be a different form of royalties company.
Rick Rule explains that the junior and exploration mining sector looks not very promising. His research framework reveals how to pick the winners. For investors, this all boils down to risk management, as only ten to twenty percent of the companies will do well.
In the junior miner group of the gold sector, there are a montage of factors at play in determining the most compelling buy. Brigus Gold Corp., DRDGOLD Ltd, and Primero Gold Corp are attractive for a variety of features. These junior miner stocks are worthy of consideration for rounding out a portfolio to allow for exposure to the gold sector of commodities with profitable entities that have sales and EPS rising.
Gold stocks have been underperforming for close to two years now, which is a very long time compared to the previous runs. In an interview with The Gold Report, author of the book “The Great Super Cycle” and newsletter writer David Skarica points to a Maximum Pessimism Trade. The key point that David Skarica makes about the gold stocks is the following: Unfortunately for gold investors, historic valuations of gold stocks linked to the price of gold have remained undervalued for too long. If you look at valuation metrics of large-cap gold stocks compared to the price of gold, many of these stocks are historically at very cheap valuations and that [...]
This article presents the outlook for investing in resource markets in 2013. We consider Sprott Global Resource Investments the most respected company in resource investing. That’s why we bring the view of Rick Rule and Mishka Vom Dorp in this article. Rick Rule believes that junior markets overall will go (much) lower. He expects that 80% of the 4.000 junior exploration companies are non-viable. They will attempt to reach their intrinsic value, which is zero. Occasionally, however, we will witness pretty dramatic escalations. In addition, Rick Rules expects all sorts of amalgamations in the coming 24 to 36 months.
In order to satiate the world’s growing hunger for silver, a lot of pressure has been placed on its supply chain. And with total annual supply recently exceeding 31k metric tons (1.0b ounces) for the first time ever, the suppliers of this white metal have so far made a valiant effort to meet demand. Silver demand is on the rise for a variety of reasons, in large part due to big increases in investment demand. And this has naturally created a structural imbalance that has spawned a major secular bull market. A bull in silver of course translates to higher prices. And silver’s much higher prices have provided ample incentive [...]
Gold and silver exploration companies that develop economically viable projects will be the big winners in the years ahead. However, the number of exploration and development companies that will survive is estimated to be between 10 and 20 percent, according to expert Rick Rule. Stock picking becomes critical. Casey Research created a framework for investors, The Eight “P’s” of Resource Stock Evaluation. This framework is based on the analysis of eight criteria which aid in evaluating natural resource companies and measuring their quality as an investment. We created a brand new section on GoldSilverWorlds that is dedicated to apply this “Eight P investment model” to the most promising gold and silver mining [...]
Gold And Silver – Markets Provide Us The Best Information
Even with the sharp decline from last month, and the overall decline since September of 2011, there is still bullish spacing. It occurs when the current swing low is above the last swing high, from 2008. It tells us that buyers have been willing to buy into the market without waiting to see how the last swing high will be tested, an overall bullish condition.
Gold Settles Higher On May 23d – Finds Support From Drop In Dollar
With the present economic conditions in the US, there are various ways in which the fluctuations in the price of dollar will make the gold price rise and fall according to the rates. If you’re an investor, you should take into account the bigger picture so that you can take an informed and measured decision in the long run.
Gold & Silver Price Overreact to Fed Speech
The metals have been subject to the same type of trading behaviour. It became blatant once again today. In fact, it is the third time this week that we witness extreme speculation in the metals. Silver, for instance, saw its peak today at $23.20 and its lows at $22.15, a difference of almost 5% intraday. Note that the peak on the charts was during the speech of Mr. Bernanke. A bit later, prices came down triggered by one specific sentence in the speech.
11,278 Followers Follow
Ground Vibrations In The Gold & Silver Market
Two important things occurred in the gold and silver market over last handful of trading days. Firstly, the CME lowered gold margins by nearly 10%. The second important event, is that the HUI is breaking out of it’s downtrend.
Continue Reading