Tag Archives: silver

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.
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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.
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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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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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Platinum Price May Outperform Gold and Silver As Strike In South Africa Intensifies

Platinum Price May Outperform Gold and Silver As Strike In South Africa Intensifies
We have serious supply concerns as the majors delay large mines and South Africa one of the largest producers of gold, platinum and palladium is facing the worst and most violent labor crisis in decades. This will not end quickly and may continue to plague the South African mining industry. This will not only put pressure on the supply of gold, but could cause platinum to spike as more than 80% of the world's supply originates from this questionable jurisdiction
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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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