Tag Archives: gold

Looking For Cash Flow? Check Out This New Nevada Gold Producer

Looking For Cash Flow? Check Out This New Nevada Gold Producer
One common criteria that value investors are looking for is cash flow and which companies have the ability to increase earnings. Keep a close eye on emerging gold and silver producers in mining friendly jurisdictions looking to increase production, resource growth and of course cash flow. Over the past few months I alerted you that there are emerging producers in mining friendly jurisdictions that may be a better bet than some of the large majors who have made some very risky moves in high cost projects in questionable places. I originally highlighted one junior miner in a piece entitled "Why Cash Flow Is Crucial To Gold and Silver Mining Investors", before the company began production. In that article I wrote,"I believe the recent acquisition of shares by Gabelli and U.S. Global Investors may just be the beginning of major institutions becoming aware of this emerging Nevada producer." Now three quarters later the institutions have increased their holdings from 5 million to 14 million shares in search of value and cash flow. In addition to Gabelli and U.S. Global, Century Management a value investing fund from Texas with over 2 billion under assets bought around 4 million shares in the last quarter.
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Keep Your Head When Others Are Fearful of Precious Metals

Keep Your Head When Others Are Fearful of Precious Metals
"If you can keep your head when all about you Are losing theirs and blaming it on you...And---you'll be a Man, my son! " -If by Rudyard Kipling Today a news item from the Wall St. Journal crossed my desk entitled, "A Fearful Time For Gold". Then I read another article entitled, "S&P500 In Longest Winning Streak Since 2004." These articles are an indication of what the majority is thinking and may be a contrarian buy alert for my readers. The majority of investors are usually wrong at turning points. Many investors are becoming impatient with gold selling into an oversold panic in the miners and looking for the latest fast money scheme in mortgages or real estate. Be careful of following this emotional move where investors take on too much risk in banks and housing and overly fearful and pessimistic in mining equities.
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Why Precious Metals, Uranium and Rare Earth Miners May Outperform in 2013

Why Precious Metals, Uranium and Rare Earth Miners May Outperform in 2013
To paraphrase the great trader Jesse Livermore, “We must be like a merchant who foresees future demand, purchases his line and patiently awaits for profit taking time.” Investors in wealth in the earth assets should listen to Livermore’s wisdom. In due time, these commodities which are low priced will come back into vogue. In order to be right in the market, the majority has to believe you are wrong. Great investors like Livermore and Baruch were able to have confidence to hold on even when the positions were not popular.
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Gold, Silver and Platinum Near Major Breakout Points

Gold, Silver and Platinum Near Major Breakout Points
We are approaching the end of the year where investors are facing a confluence of mixed signals such as tax loss selling, fiscal cliff discussions, the Greek bailout, future Fed actions and Middle Eastern geopolitical turmoil. Short term shakeouts like yesterday's early morning drop in precious metals should be expected...Nevertheless, we ignore the daily volatility and stick to the long term technicals and fundamentals which may be signaling that gold, silver, pgm's, uranium and heavy rare earths may reemerge as sectors where opportunity lies in 2013.
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Corrections In Gold And Silver Could Provide Buying Opportunity Before Election

Corrections In Gold And Silver Could Provide Buying Opportunity Before Election
This volatility in precious metals and mining equities while striking panic is just a test to shake us out. This is precisely a time not to be concerned. The more sophisticated buyers may be taking advantage of the situation to hold on and indeed add to positions for those who were not able to get in before this summer breakout. Remember, bull trends in gold and silver rise on walls of worry. Healthy pullbacks afford secondary opportunities. We may be basing and bottoming right now. A powerful reversal could occur after the election.
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Why The Chinese May Buy Undervalued Junior Miners

Why The Chinese May Buy Undervalued Junior Miners
At this very moment, Chinese investors are utilizing a novel approach buying natural resources as the U.S. dollar and long term treasuries are possibly on the verge of a major decline, leaving the Chinese overweighted in this risky sector.
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Gold and Silver Miners Breakout As Open Ended QE3 Announced

Gold and Silver Miners Breakout As Open Ended QE3 Announced
It must be noted that the spinmeisters know that when the general equity markets rally to new highs, then the probability favors the incumbents who usually win by a landslide. The S&P500 and Dow Jones is breaking into new two year highs which may make the voters feel that the economic storm has passed and good times are here again. These accommodative moves will be quite painful to investors who are sitting on a record level of cash and U.S. debt and have been shaken out of their gold and silver holdings.
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Precious Metals Breakout: Royalty Companies Outperforming Major Miners

Precious Metals Breakout: Royalty Companies Outperforming Major Miners
For several weeks, we have been attracted to silver due to rising demand as a monetary metal and declining supply due to the lack of new discoveries. Silver (SLV) is beginning to outperform gold (GLD). We are beginning to see major breakouts throughout the mining sector (GDX). The precious metal royalty companies are outperforming led by Royal Gold (RGLD) and Franco Nevada (FNV), some are making new 52 week highs.
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U.S. Debt Reaching Bubble Like Territory

U.S. Debt Reaching Bubble Like Territory
Recently Bill Gross, one of the top fund managers in the world echoed what we have been saying for many weeks, "that real assets such as commodities, energy, precious metals and mining stocks are a “better bet” amid negative real interest rates." China seems to be taking his advice and has established a friendly relationship with Canada to acquire natural resources. This was evidenced by CNOOC's acquisition of Nexen for over $15 billion. Maybe the smart investors are already exiting the dollar and treasuries as the investment herd crowds on in to the U.S. Debt bubble.
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Gold, Silver and The Miners Bottoming While Facebook Is Busting

Gold, Silver and The Miners Bottoming While Facebook Is Busting
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. This eerily reminds us of the dot-com bubble in 2000. Recall a company such as “theglobe.com” which made the largest gain in history on the day of its IPO only to be bankrupt two years later. The CEO was also in his twenties. The brokers were able to find myriads of buyers beating at their gates. As the French say, “The more things change, the more they remain the same.”
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