RSSCategory: Articles: Gold Silver Stocks

Junior Gold Stocks Could Be Bottoming But Investors Must Be Extremely Selective

Junior Gold Stocks Could Be Bottoming But Investors Must Be Extremely Selective

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 […]

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Ground Vibrations In The Gold & Silver Market

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.

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Investing In Resource Markets In 2013

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.

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Global Silver Mine Production

Global Silver Mine Production

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 […]

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Brazil Resources Inc: High Potential Gold Exploration Miner

Brazil Resources Inc: High Potential Gold Exploration Miner

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 […]

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How to Play Your Gold Stocks Now

How to Play Your Gold Stocks Now

After a year or more of depressed prices, gold and silver stocks reversed with a vengeance. GDX (the ETF proxy for the Gold Miners Index) was up in just two months (August and September). Those who followed our lead and bought or averaged down this summer have profited handsomely. It’s been a fun ride, and I’m convinced we’ll see many more surges like this before it’s all over. What was perhaps more important about the surge in gold stocks, though, was the leverage they demonstrated, which is one of the primary reasons we invest in them. Here’s a comparison of GDX to GLD from August 1 to November 1. This […]

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Gold Cycle Analysis: Mining Shares Weak But Gold & Silver Bullion Strong

| November 17, 2012 | Articles: Gold Silver Stocks
Gold Cycle Analysis: Mining Shares Weak But Gold & Silver Bullion Strong

A remarkable event has taken place in the gold and silver markets in the past two days. It didn’t go unnoticed to anyone following these markets. The gold and silver mining shares have been sold off hard. The drop was out of proportion and did not reflect the actions in the stock market nor in the metals. The fact that the miners have been leading bullion up since August, raises the question if this marks a structural shift in the direction of the shares and the metals, or if both assets will start moving separately in the coming weeks and months. This article explains the answers on these questions based […]

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Gold & Silver Stocks – A Dramatic Change in Fundamentals or a Short Term Anomaly?

Gold & Silver Stocks – A Dramatic Change in Fundamentals or a Short Term Anomaly?

Stock exchange is a very volatile, emotion-driven place. Even though most of the time one can predict future moves in particular assets with decent effectiveness, every once in a while abrupt and unexpected market moves take place. And we have just seen such violent and heavy declines in precious metals mining stocks. Sadly, no one is able to foresee the future with 100% certainty and this is why diversification is such a crucial concept in investing. It would have certainly protected gold & silver investor’s profits or at least diminished their losses had they invested not only in mining stocks but also in metals themselves. Now, the following question arises – is […]

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Gold Up, Gold Stocks Get Pummeled

Gold Up, Gold Stocks Get Pummeled

It’s been another one of those odd ball trading sessions where gold prices managed to finish the day up $2.50 to close at $1727.40/oz, but the gold mining stocks, as evidenced by The AMEX Gold BUGS (Basket of Unhedged Gold Stocks) Index, known as the HUI, fell 21.55 points to 447.96 or a staggering 4.59%. If we look back two years to the start of 2011, gold was trading at around $1400.00/oz so we can clearly see an increase in its value. At the same time the HUI was trading at around 560 so we can clearly see that this sector has suffered a decrease in value. So those investors […]

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Putting Gold and Gold Stocks in Proper Context

Putting Gold and Gold Stocks in Proper Context

The precious metals complex had a great rebound at the end of the summer but is now in the midst of a correction. Recently we wrote that the correction was nearing an end. We believe that to be the case. A short-term bottom could occur sometime this week. However, the precious metals sector was unable to retain much of the very strong momentum it previously had. Thus, the metals and stocks will need some time to confirm support and generate positive momentum before they have a chance of breaking to new highs. That being said, we wanted to take a broader view and analyze the sector in its current context […]

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Silver ETF Impact

Silver ETF Impact

Silver is no doubt tiny on the grand commodities scale. But its attractiveness, spearheaded by a 1000%+ bull-to-date gain to its latest high, has spawned a wide range of products for investors to partake in. And one of the most unique and powerful is the SLV iShares Silver Trust ETF. This ETF’s objective is quite simple, to mirror the price of silver (minus a small management fee of course). But while simple in its objective, two unique traits have allowed SLV to take the silver market by storm. First is SLV offers a bridge for stock-market capital to track the price movements of a high-flying commodity, which historically had only […]

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Why The Large Miners May Acquire Near Term Gold Producers In Europe

Why The Large Miners May Acquire Near Term Gold Producers In Europe

There may be an increase in Mergers and Acquisitions in the mining sector.  The majors are seeing share price increases which puts them in a stronger financial position to be able to buy undervalued miners with near term production.  Miners are looking to Europe where a cheap Euro means better margins and costs for European miners. Look at Greece which is developing four major mines.  For years, Greece was a difficult jurisdiction for miners to operate.  However, the economic collapse with soaring unemployment in the country forced the government to find ways to create jobs. Greece is focusing on revitalizing the mining sector by fast tracking four mines that are […]

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Why The Miners May Outperform Gold After The Election?

Why The Miners May Outperform Gold After The Election?

Regardless of who wins the election, we believe that precious metals and especially the undervalued junior miners should be included in one’s portfolio.  We are living in volatile times, where we see possibly many catalysts to cause a breakout in precious metals. The world has chosen a Keynesian approach which may cause gut wrenching hyper-inflation.  Remember Central Banks all over the world are adding to their gold reserves especially emerging nations.  Countries such as China is overweight in U.S. dollars and treasuries and have already began buying undervalued natural resource assets and early stage precious metal miners.  They are opening banks in Canada and the U.S. to finance natural resource […]

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Is Santa Coming Early for Gold & Gold Mining Stocks?

Is Santa Coming Early for Gold & Gold Mining Stocks?

If you own physical gold, gold mining stocks or plan on buying anything related to precious metals before year end, you are likely going to get excited because of what my analysis and outlook shows. Since gold topped abruptly a year ago (Sept 2011) with a massive wave of selling which sent the price of gold from $1920 down to $1535, technical analysts knew that type of damage which had be done to the chart pattern could take a year or more to stabilize before gold would be able to continue higher. Fast forwarding twelve months to today (Oct 2012). You can see that gold looks to have stabilized and […]

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