Category Archives: Precious Metals

Shorts Covering In Resource Sector Rally

Shorts Covering In Resource Sector Rally
The time to accumulate undervalued resource assets is waning as prices rebound rapidly. The time to buy is when they are priced at major lows with massive short positions. Now the public is concerned about declining gold prices. But that concern may be coming to an end. The shorts may have already begun to cover in the junior mining resource sector as M&A increases.
Read more

Technicals Finally Reflecting Fundamentals In Resource Sector With Bullish Breakouts

Technicals Finally Reflecting Fundamentals In Resource Sector With Bullish Breakouts
It may seem like a confusing time to be a mining investor, but Jeb Handwerger, of Gold Stock Trades, insists it doesn't take a rocket scientist. "Stick to the fundamentals," he says. "The technicals will eventually reflect the fundamentals." In this interview withThe Mining Report from early December, Handwerger talks about what companies have the right foundation to shine after the market dusts itself off and starts to climb. As Jeb said in the interview, "Some people are thinking about leaving the sector. That's not the right approach. Gains could be exponential in the coming weeks. The right approach is to rotate into situations that will outperform, even if gold and silver stay flat. Stick to advisors who are finding the most compelling situations. Corrections take longer than people expect—the longer and the deeper the base, the more powerful the eventual upswing. It could be huge with the record amount of cash on the sidelines and the large number of shorts who may need to cover their position." Since this interview was published the Venture Index has jumped close to 100 points and broke the 200 day moving average.
Read more

Resource Sector Starts 2014 With A Boom Higher: TSX Venture Up 11 Consecutive Days

Resource Sector Starts 2014 With A Boom Higher: TSX Venture Up 11 Consecutive Days
Eventually, these downturns end in the resource sector and when they do massive rebounds begin. When you see record shorts like we are seeing now in gold it usually signals a major bullish turning point imminently ahead. The taper is not a signal to sell gold but to possibly buy. Inflation should start to pick up. Notice gold and silver are still holding the summer 2013 lows and the TSX Venture is breaking above the 200 day moving average. The TSX Venture is up 11 straight days. The small miners are a leading indicator and may be signaling the smart money is expecting gold to hold the $1200 bottom. This technical reversal may forecast increased interest of smart capital into the sector. This improving technical landscape in our featured companies and the TSX Venture closing above the 200 day moving average while gold and silver is basing may signify that the recent taper and improving economy may actually be the beginning of a coming boom to the entire resource complex.
Read more

Is U.S. Dollar Decline Going To Spike Gold and Silver Prices?

Is U.S. Dollar Decline Going To Spike Gold and Silver Prices?
Be prepared for a "V" shape reversal in gold, silver and the junior miners which have been basing for close to three years and are very oversold. Investors may be a little early in claiming good times are here again. The global economy and debt situation remains challenging. Gold and silver appear to have found support and may be on the verge of a major reversal higher. Look for a reversal above $1300 to break the recent seven week consolidation. I like silver even more than gold as demand is increasing for this white metal as an alternative to fiat currency and for its rising industrial applications. A breakout could occur past $22. Silver is in a three month uptrend which has stayed intact.
Read more

Take Profits In These High Flying Sectors and Consider The Historically Undervalued Miners

Take Profits In These High Flying Sectors and Consider The Historically Undervalued Miners
U.S. stocks are rallying on hopes on some sort of deal coming out of Washington.  Just like we have witnessed over the past several years, lawmakers will come to some sort of last minute deal to kick the debt can down the road.  Over the next week look for some sort of move to avert a default. The markets could rally short term on such a deal, but over the longer term the equity and housing markets appear to be ready for a major correction after rallying for two years.  We are witnessing bubbles in certain areas of the market which I encourage investors to steer clear from especially banks, housing, social media and biotech as these are very crowded trades filled with promoters, snake oil salesman, charlatans and day traders. Overbought bubbles end up in devastating losses.  Stay away from these high flying sectors and instead focus on the historic discounts in the mining sector.
Read more

Pullbacks In Gold and Silver May Be Buying Opportunities as Trends Turn Bullish

Pullbacks In Gold and Silver May Be Buying Opportunities as Trends Turn Bullish
When no one was buying and in fact shorting precious metals and energy, I was one of the only writers who said at the time, "This instability in the Middle East and around the world means investors should look for assets that maintain value during chaotic times. Precious metals and energy could be one of the safest areas to hedge against rising Middle East turmoil." Now 8 weeks later gold has rallied $200, silver has gone up more than $6 and oil is about to break through multi-year highs and could move to $150 a barrel. All over the headlines investors are scrambling for safe havens as the U.S. prepares to invade Syria.
Read more

Turning Point In Precious Metals and Miners?

Turning Point In Precious Metals and Miners?
Recent waterfall declines in gold and silver below 5 year trailing moving averages and hitting historic oversold valuations are indicative of a major once in a generation bottom. We are hitting thirty year lows in the resource arena. Eventually, the precious metals sector will turn back higher and hit new inflation adjusted highs. Look for a break above the 50 day moving average which on the GLD is right now $129.08 and on the SLV at $20.40.
Read more

Value Investors Entering Junior Mining Sector?

Value Investors Entering Junior Mining Sector?
Turn off the negative news that is broadcasted to misdirect and confuse investors. Follow the capital to quality situations like these few examples which are building value during challenging times. It is during these difficult times in the resource sector when the greatest opportunities are discovered. Remember American Barrick Resources started off as a 16,000 ounce producer in the 80's down market in gold and grew to be Barrick Gold Corp, the largest gold producer in the world.
Read more

The Worse Things Were For The Mining Sector, The Better They Will Get

The Worse Things Were For The Mining Sector, The Better They Will Get
Gold and silver may see physical shortages hit and that is when attention will be paid to the growing gold producers significantly expanding cash flow. Demand for precious metals have soared on this pullback. We should witness a powerful bounce after the recent shakeout. This should boost the beaten down large producers and eventually the early stage explorers.
Read more