RSSCategory: Articles: Gold Silver Stocks

What Can We Infer From the Gold:Dow Ratio?

What Can We Infer From the Gold:Dow Ratio?

There is all the talk of Greece leaving the eurozone and we are already seeing a slow-motion runs on Greek banks. The Financial Times reports that €5 billion has left Greek banks in just the last two weeks and the more that Greek citizens feel it is possible that their country will leave the euro, the more incentive they have for pulling their money out and sending it abroad. There are no rules in place for a country to leave the eurozone and it is anybody’s guess as to how severe the impact of such a move will be. These are uncharted waters and the sailing could get very rough. […]

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Gold, Silver and The Miners Bottoming While Facebook Is Busting

We are witnessing a few cautionary signs that indicate a radically overbought U.S. equity and bond market.  Stealthily, the precious metals, and mining equities are bottoming.  The strong uptrend in the equity markets since October of 2011 has caused many investors to join the herd in the latest investment fad entitled, “Social Media”. Take a look at Groupon, Zynga, LinkedIn, etc.  Their vogue will not last forever.  Sentiment for the social media sector may be reaching an euphoric extreme, while the mining stocks have fallen into public disfavor.  The miners are bottoming at historic low valuations while the initial public offering of Facebook is valued at 100 times trailing earnings.  […]

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The Real Price of Gold Holds the Cards for Gold and Gold Shares

The Real Price of Gold Holds the Cards for Gold and Gold Shares

We often write about the real price of gold (RPG) as it is a leading macro indicator and leading indicator for gold stock fundamentals. The RPG is simply a measurement of Gold in terms of various markets such as commodities, stocks or currencies. If the RPG is broadly outperforming then it could be signaling credit stress and even an economic contraction. If equities and commodities are outperforming Gold then it signals an improving economic environment and an improving credit environment. We also note that a strengthening RPG in itself is a catalyst for improving margins for gold miners. Furthermore, since a rising RPG is a contractionary signal, it can also […]

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What Is Volume Telling Us about Gold Stocks?

What Is Volume Telling Us about Gold Stocks?

By Jeff Clark, Casey Research I’ve read articles from more than one analyst claiming that gold stocks are down on low volume, implying there’s a lack of interest in precious metals. While on the surface that seems like an obvious statement, their point is that most of the recent volume has been coming from sellers and thus exaggerating the recent decline. I decided to test this hypothesis, because if correct, it has investment implications, starting with the fact that at some point you run out of sellers; and if and when buyers return, the ensuing rise could be spectacular. I also wanted to compare volume now to the waterfall decline […]

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The People Have Spoken and Precious Metals Will Soar

The elections in Greece and France have shown that in democratic societies the people are the ultimate deciders of how well the best-laid economic plans will work out in the long run. In this exclusive interview with The Gold Report, Leonard Melman, veteran precious metals analyst and publisher of The Melman Report, talks about the implications of the recent European elections on the prospects for the gold and silver markets. He also discusses some of his favorite stock picks for taking advantage of the huge rebound he sees in the metals markets later this year. Companies mentioned: ABZU GOLD LTD. –BARKERVILLE GOLD MINES LTD. – BULLFROG GOLD CORP. – COMMERCE RESOURCES CORP. – EL TIGRE SILVER CORP. – GMV MINERALS INC. – GREAT PANTHER […]

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Gold-Stock Capitulation

Gold-Stock Capitulation

Gold stocks have been pummeled mercilessly this month, their price action looking almost apocalyptic. The psychological stress spawned by such extreme weakness is intense, breaking the wills of this sector’s few remaining bulls. This week their selling cascaded into a full-blown capitulation, a mass surrender by weary investors. While exceedingly miserable, these events flag major long-term bottoms. Over the course of gold’s powerful secular bull, the gold stocks have been a sentiment roller coaster. Early on their gains were enormous, gold stocks even rocketed higher while the general stock markets plunged in a brutal cyclical bear. Though they were nearly obliterated in 2008’s once-in-a-lifetime stock panic, as expected they soon […]

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Is Major Decline in the Precious Metals Stocks Underway?

Is Major Decline in the Precious Metals Stocks Underway?

All eyes are on Greece which is heading toward national elections six weeks after the last vote. Many feel that a Greek euro exit would be a chance to cauterize a festering wound and move on. There are also those that feel that Greece could be the first of several dominoes to fall, much larger economies such as Spain, Italy, for example. Meanwhile, Spain’s 10-year borrowing costs had hit as much as 6.5 per cent on Wednesday with the risk of the country paying astronomical prices to borrow in the future. Spain has now issued more than half of its total debt needed for this year, yet concerns that Madrid […]

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Bottom in, but is it September 2008 or October 2008?

Bottom in, but is it September 2008 or October 2008?

We began the week by making a ballsy prediction about the precious metals complex. We believed a major bottom could happen this week. In the wake of the European debt crisis and potential “credit events,” the precious metals became extremely oversold based on a number of metrics. Technically, we saw that Gold and Silver were nearing the December lows which produced a good rally. The gold stocks were nearing the 50% retracement of their 2008-2011 bull move. The combination of an extreme oversold condition and technical support usually produces bottoms. It wasn’t a difficult call but putting it on paper was. With the low in, the question now becomes, is […]

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Ghanaian government causing headache for gold & silver mining companies

Ghana is one of the most resource-rich countries in West Africa, and is especially well-endowed as far as gold is concerned. After the abolition of apartheid, South African mining companies in particular started expanding all over the continent. In the last decade exploration companies and gold producers as well as supply companies have invested a total of US$6.5 billion in Ghana. But efforts on the part of governments across the continent to extract more taxes from mining companies have also been increasing – with worrying implications for many businesses. Concerns have centred on Zimbabwe and South Africa – in the former the government forced foreign investors to transfer their shares […]

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Growing Fear Of Financial System Could Start Flight Out Of U.S. Bonds Into Gold and Silver

Growing Fear Of Financial System Could Start Flight Out Of U.S. Bonds Into Gold and Silver

Around the year 1650 A.D. the word highwaymen entered our language.  It referred to robbery committed on a public road against travelers.  Now we use the phrase “highway robbery” for which we pay the tolls to travel on modern day roads.  The highwaymen alas are among us and we have elected them.  At such times it would not take much more in the destruction of mining equities to make investors feel as if they have been seduced by sweet talk and abandoned to the wolves of Wall Street by latter day highwaymen. Simply put it has been one in which the elites have shrugged their collective soldiers, leaving the rest […]

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Finding Opportunity in Silver, the Devil’s Metal

Silver has been called the most volatile of metals. But volatility produces opportunity, according to Chris Thompson, a top-ranked StarMine analyst with Haywood Securities. In this exclusive interview with The Gold Report, Thompson forecasts a strong year-end for the devil’s metal, despite price weakness so far in Q2/12, and shares the names of a select group of companies that stand to profit. Companies mentioned: AURCANA CORPORATION – AURICO GOLD INC. – BEAR CREEK MINING CORP. – COEUR D’ALENE MINES CORP. – ENDEAVOUR SILVER CORP. – EXTORRE GOLD MINES LTD. – FIRST MAJESTIC SILVER CORP. – INTERNATIONAL NORTHAIR MINES – KIMBER RESOURCES INC. – MAG SILVER CORP. – MIRASOL RESOURCES LTD. – SOLTORO LTD. – SOUTH AMERICAN SILVER CORP. – TAHOE RESOURCES INC. The […]

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A Contrarian’s Guide to Volatile Markets

Trotting the globe in his unrelenting quest for investing opportunities, Bob Moriarty had just completed a 21,000-mile travel-a-thon when he picked up the phone for this exclusive interview with The Gold Report. He liked a lot of what he saw, found plenty of bargains along the way and is willing to name names. Ever the contrarian, he is picking up stocks when everyone else is dumping them; he plans to cash in when the mass of sellers morphs into a mass of buyers and drives prices up. Companies mentioned: ABZU GOLD LTD. –ARGENTEX MINING CORPORATION – CANACO RESOURCES INC. – COMSTOCK MINING INC. –CORAZON GOLD CORP. – EVOLVING GOLD CORP. –GOLD STANDARD VENTURES CORP. – MAG SILVER CORP. – NETCO SILVER INC. – TEMBO […]

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Gold Is Not a Growth Industry—It Can Just Pay Investors Big

John Hathaway is the senior managing director of Tocqueville Asset Management, where he manages all gold equity products and strategies. In an exclusive interview with The Gold Report, he shares why he is and will remain bullish on gold, the advice he most often gives mining companies and the investing advice that has stayed with him for almost 50 years. Companies mentioned: AGNICO-EAGLE MINES LTD. – ANGLOGOLD ASHANTI LTD. – INTERNATIONAL TOWER HILL MINES LTD. – NEWMONT MINING CORP. – OSISKO MINING CORP. The Gold Report: When we spoke last October, you were bullish on gold and gold equities. You blamed lagging gold‐mining stock performance on competition from exchange‐traded funds (ETF), lack of […]

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HUI Gold Stock index: chart and comments on 8 May 2012

HUI Gold Stock index: chart and comments on 8 May 2012

The HUI is reeling once again as it continues losing value against the price of an ounce of gold bullion. The index has fallen below chart support at the round number of 400 and is currently near the lows of the day as I write this. As you can see from the following chart, it is approaching what I consider to be one of the most significant levels of chart support from a technical analysis perspective, and that is the critical 50% Fibonacci retracement level. The mining shares as a whole, have now retraced exactly HALF of all their gains from the bottom that was produced back in late 2008 […]

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