RSSCategory: Articles: Gold Silver Stocks

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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Keeping the Decline in Gold Stocks in Perspective

Keeping the Decline in Gold Stocks in Perspective

As the gold stocks continue to fall to new lows and struggle to find a bottom, it is important to keep things in perspective. Before we get to the visual comparison with the 1960s and 1970s, we want to touch on the reasons why the gold stocks have underperformed in recent months and years. First, the sector had a terrific run that would have to be corrected. From late 2008 until the end of 2010, GDX advanced more than 4-fold from $15 to $64. Silver stocks, juniors and mid-tiers had a larger run that lasted nearly 30 months. It takes not months but quarters to correct that type of move. […]

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It’s This Bad Because It’s a Bottom

Eric Coffin, editor and publisher of the Hard Rock Analyst newsletter, has never heard so much negativity from investors. “Everybody thinks the world is coming to an end,” he tells The Gold Report. As a contrarian, all the doom and gloom tells him the market is about to pull out of its tailspin. In this exclusive interview, Coffin talks about the hard-hit juniors in the Yukon and why it’s an area play he still believes in. Companies mentioned: ATAC RESOURCES LTD. – BEAR CREEK MINING CORP. – COLUMBUS GOLD CORP. – ETHOS GOLD CORP. – KAMINAK GOLD CORP. –MAJESCOR RESOURCES INC. – PRECIPITATE GOLD CORP. – PROSPERITY GOLDFIELDS CORP. – RIVERSTONE RESOURCES INC. – SILVER RANGE RESOURCES LTD. – […]

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Caribbean Island Gold

Scott Jobin-Bevans, immediate past-president of the Prospectors and Developers Association (PDAC), candidly assesses the political, environmental and technical challenges facing foreign companies exploring for gold and other minerals on the Caribbean island of Hispaniola. In this exclusive interview with The Gold Report, we learn that the majors are paving the way for junior mining firms on the island, which holds much buried treasure, despite environmental and political challenges. Companies mentioned: BARRICK GOLD CORP. – EURASIAN MINERALS INC. – EVERTON RESOURCES – GOLDQUEST MINING CORP. – MAJESCOR RESOURCES INC. – NEWMONT MINING CORP. – PANTERRA GOLD LTD. – UNIGOLD INC. The Gold Report: Scott, you live and work on Hispaniola, which is divided into two countries, Haiti […]

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Fear and SPX Toppings

Fear and SPX Toppings

With the US stock markets surging nearly a third higher in just 6 months, the odds are rising for a major topping. As the best times to sell high, recognizing these events in real-time is very important for traders. But it is a big challenge due to the gradual way toppings unfold. An indicator that can really help is the famous implied-volatility fear gauges. They tend to exhibit unique and identifiable behaviors at toppings. This is counterintuitive at first, as the dangerous emotion of fear is rightfully associated with bottomings. Traders get scared when the markets sell off sharply, and fear flares as new interim lows are hit. Toppings, on […]

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A Weak Economy Remains Gold’s Best Friend

A Weak Economy Remains Gold’s Best Friend

It was Bob Prechter of Elliott Wave fame, likely among others who noted that correlations between all asset classes are quite strong during a Depression. This is true in a cyclical sense but not in a structural sense. Stocks tumbled in the 1929-1941 period while commodities, led by Gold and gold producers, increased in value. We’ve experienced similar phenomena in the past 12 years. Cyclically, there has been a correlation between these asset classes. Structurally, stocks have been in a bear market and resource sector has been in a bull market. The driving force has been a weak economy and bear market which usually leads to more inflationary policy, which […]

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Catalytic Events Moving Gold Stocks

Sagient Research Systems is known for its investor research in the drug and medical device field, but the firm has also tailored its scientific approach to market-moving catalysts in the precious metals industry. In this exclusive interview with The Gold Report, Senior Analyst Jocelyn August discusses looming events in a select group of natural resource stocks that are expected to move as information flows out. Companies mentioned: AURIZON MINES LTD. – COEUR D’ALENE MINES CORP. – GENERAL METALS CORP. – NORTH AMERICAN PALLADIUM LTD. The Gold Report: Jocelyn, you are following catalysts that affect resource stocks. Tell me about that. Jocelyn August: We have started looking at catalysts in the natural resource sector. Originally, our CatalystTracker was designed […]

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A Defensive Portfolio with Gold Stocks Is the Best Offense

Paolo Lostritto, mining equity research analyst with National Bank Financial, attributes development companies’ current struggles to both the recent trend for capital and operating cost increases and to the European sovereign debt crisis. But there are opportunities as long as investors look for companies with free-cash-flow growth and solid balance sheets. In this exclusive Gold Report interview, Lostritto shares some names of companies that have these attributes. Companies metnioned: CHANNEL RESOURCES LTD. – FRANCO-NEVADA CORP. – OREZONE GOLD CORPORATION – ROYAL GOLD INC. – SANDSTORM GOLD LTD. – VOLTA RESOURCES INC. The Gold Report: Paolo, a lot has changed since we talked in January 2011. Specifically, National Bank Financial purchased your former employer, Wellington West Mining. More generally, the […]

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Invest in Africa Now

Last year, Africa was the region that witnessed the strongest growth in gold-mining operations. In an exclusive interview with

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Equities Will Catch Up to Higher Gold Price

Ongoing inflation pressures and China’s investments in the African gold supply chain point to a higher gold price, according to Matt Badiali of Stansberry & Associates. Bullion in all its forms belongs in every portfolio and when it comes to equities, investors have their choice of business models—dividend payers, prospect generators and royalty companies. In this exclusive Gold Report interview, Badiali outlines companies whose equities should catch up to the higher gold price. Companies mentioned: ATAC RESOURCES LTD. – BARRICK GOLD CORP. – ENDEAVOUR SILVER CORP.– FRANCO-NEVADA CORP. – KEEGAN RESOURCES INC. – MAG SILVER CORP. – NEWMONT MINING CORP. – PRETIUM RESOURCES INC. – RIVERSIDE RESOURCES INC. – ROYAL GOLD INC. – SEABRIDGE GOLD INC. – SILVER WHEATON CORP. The Gold Report: Matt, […]

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Tower Hill Mines: This Gold Miner Is Trading At A Significant Discount To Bullion

Tower Hill Mines: This Gold Miner Is Trading At A Significant Discount To Bullion

The gold miners are hitting new lows while equities are hitting new highs. Obviously this has caused some of our readers great concern as the fundamentals clearly do not support such a move where wealth in the earth assets are trading at significant discounts, while U.S. bank assets are trading at a premium. Does this possibly mean we should sell our mining assets trading at historic discounts to their asset values for propped up banks and housing stocks?…No, this may be a trap. Indeed the large gold miners have been underperforming, but gold, silver, the juniors, uranium, rare earths are bottoming and have not violated their 2011 lows. Graphite stocks […]

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Navigating Gold Equities During the Weakest Quarter

Barry Allan, vice chairman of Mackie Research Capital Corp.’s mining group, is guarded about gold equities from March to May, statistically the weakest period. However, Allan remains bullish on gold stocks through the end of the year and has Buy recommendations on more than 70% of his coverage universe. In this exclusive interview with The Gold Report, Allan points to where he’s finding value during this period of seasonal weakness. Companies mentioned: ARGONAUT GOLD INC. – AURICO GOLD INC. – AVION GOLD CORP. – LA MANCHA RESOURCES INC. – LAKE SHORE GOLD CORP. – PREMIER GOLD MINES LTD. – SOUTHERN ARC MINERALS INC. The Gold Report: When we last spoke in May 2010, small-cap mining plays were poised to go on a bull […]

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Gold and Silver Stocks are currently deeply undervalued, is this a once in a lifetime buying opportunity?

Gold and Silver Stocks are currently deeply undervalued, is this a once in a lifetime buying opportunity?

A lot has been written lately about the undervaluation of the Gold & Silver mining stocks. One has not to look further than the charts of the major gold & silver indexes like the XAU, HUI or GDX,  and compare them with the broad market indexes like Dow Jones Index or S&P 500 in the US or similar indexes worldwide. The picture becomes even worse when looking at the junior mining companies in the GDXJ. It seems like the gold & silver mining sector missed the rally of Q1 2012. One could ask himself how that’s possible, given the good to outstanding results that a lot of mining companies reported […]

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Bottom Forming In Precious Metals and Miners

Bottom Forming In Precious Metals and Miners

We are encountering storms in the market rarely seen.  The volatility has affected many mining equities with many high quality assets selling at record low prices.  Portfolios have rarely seen such see saw price activity as they have this year.  Sacrosanct rules are simply not working.  The markets are thwarting and aborting attempts to use time tested approaches. The great Scottish Poet Robert Burns described the current market by writing, “the best made plans of mice and men go oft astray.”  He also observed “alas in this world there is more offal than poetry.”  But poetry hardly pays and compost does. Gold Stock Trades (GST) tries to tell it like […]

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