Category: Gold and Silver Stocks 2013
The analysis published under this category are as follows.Saturday, June 29, 2013
Junior Gold Mining Stocks Cleansing / Commodities / Gold and Silver Stocks 2013
There’s not much arguing against gold stocks being the most hated sector in the markets these days. And with such a loathing, you can only imagine the visceral disdain towards the more risky juniors.
Provocatively it wasn’t too long ago that the junior subsector was a speculators’ paradise that offered legendary gains. These small companies are of course a vital component of the gold ecosystem. And the quality ones that made solid discoveries while skillfully advancing their projects towards development would righteously see their stocks soar.
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Monday, June 24, 2013
Australian Gold Stocks Sector Update / Commodities / Gold and Silver Stocks 2013
The Australian gold sector (XGD) is selling today (intra-day) at a record 53.56% below its 200dma. This is a rare event indeed as even the 2008 violent panic crash produced a low around 48% below the 200dma at that time. This current crash on the Australian XGD is a fall of 66% since October 2012 and a fall of 75% from the all-time high of 8498.9 in April 2011.
To understand this index you have to look at its makeup. The index is weighted and therefore dominated by our largest gold stock Newcrest which has fared very badly this month. Therefore the Newcrest weighting in the index has lessened over the recent month. This stock has fallen 56.1% since the 27th March this year and 36.63% since the 4th of June alone. With Newcrest down so far you have to ask where the rest of the sector is relative to old lows right now.
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Friday, June 21, 2013
Gold Stocks Bullish Volume / Commodities / Gold and Silver Stocks 2013
Even before this week’s latest Fed-tapering scare, gold stocks remained firmly entrenched as the most-hated sector in all the markets. They are as deeply out of favor as they’ve been in their entire dozen-year secular bull, hyper-oversold and radically undervalued. Given such epic antipathy, I figured they were also suffering from low trading volume. Turns out they are, with some surprises, which is a bullish omen.
It’s been several years since I’ve studied gold-stock volume in any depth, and I’ve been growing more curious about it as this year’s massive gold-stock rout wore on. Trading volume is pretty ambiguous as far as technical indicators go. While most indicators clearly flag excessive greed or fear, high volume can show both. Volume tends to surge when traders get excited, when either kind of emotion is running high.
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Friday, June 21, 2013
The Best "Bargain" Silver Mining Stocks to Buy Now / Commodities / Gold and Silver Stocks 2013
Tim Melvin writes: Precious metals related stocks have been under selling pressure all year, but smart investors are having a field day scooping up some of these best "bargain" silver stocks to buy right now.
Companies that mine gold and silver have seen their stock prices punished as the metals' prices have declined. So far this year gold is down 18% while silver prices have been punished even more severely, falling 28%.
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Friday, June 21, 2013
Junior Gold Mining Stocks From Distress To Misery For Investors / Commodities / Gold and Silver Stocks 2013
Gold prices have been taking a pounding of late with today’s session on the NYSE witnessing a close of $1277.80/oz, with poor man’s gold, silver, closing at $19.82. The gold Bugs index (HUI) also took it on the chin losing around 7.5%.
With this environment as a back cloth it is understandable that the juniors in this sector also had a torrid time with Market Vectors Junior Gold Miners ETF (GDXJ) losing 9.78% to close at $9.32. So it begs the question; is GDXJ now a buy?
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Thursday, June 20, 2013
Gold and Silver Stocks Cold Hard Look at the Unfolding Carnage / Commodities / Gold and Silver Stocks 2013
Before we look at the charts tonight I just want to make it perfectly clear that I’m not a gold basher or wish for bad things to happen to the precious metals complex. I first found the bull market in the precious metals stocks in the spring of 2002 after having the ride of a lifetime trading the tech stocks up until the spring of 2000 where I cashed out based on a particular chart pattern that told me to either expect a decent consolidation period to begin or it was the end of one of the greatest bull markets in history. It didn’t take long to see a major top had formed and the place to be was on the sidelines. During that great run in the late 1990′s the precious metals stocks were not even close to being on my radar screen. It wasn’t until I looked at a long term chart for gold, in the spring of 2002, that I seen a beautiful inverse H&S base that I couldn’t ignore. I didn’t know anything about the precious metals stocks at that time but with that beautiful H&S base I knew some of the precious metals stocks had to have a bullish look to them as well. I learned about the little juniors that everyone, who was connected to the precious metal complex, were talking about. This was game on for me and I have traded exclusively in the precious metals complex for the last eleven years. The chart patterns that gold, silver and the HUI created during their bull market were some of the most beautiful patterns a chartists like myself could ever expect to see.
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Tuesday, June 18, 2013
The Hidden Costs of Gold and Silver Miners’ Optimism / Commodities / Gold and Silver Stocks 2013
By Andrey Dashkov, Research Analyst:
The junior resource sector is struggling financially, something most investors seem to agree on – and rightly be wary of. Here at Casey Research, we've analyzed both producers and explorers to see how profitable (or value-adding) they may be under current market conditions. The rather obvious conclusion, shared by many company executives, is that now is the time to be frugal.
Monday, June 17, 2013
Undervalued Gold Miners Historically Contrarian Investor Opportunity / Commodities / Gold and Silver Stocks 2013
There is no doubt about it. Precious Metal mining companies are going through a time of testing. The financing markets are challenging. Investors have lost faith in the major gold and silver producers who have over-promised and under-delivered in high cost projects in questionable jurisdictions. Acquisition strategies have been poorly executed near interim tops at high valuations. Some could say it is the worst of times for this sector. However, long term contrarian investors say that the worst of times may be the best time to find the top junior mining situations for the next upturn.
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Friday, June 14, 2013
Contrarian Gold Stocks / Commodities / Gold and Silver Stocks 2013
Successful investing requires buying low before later selling high. And stock prices are the lowest when they are the most deeply out of favor. That perfectly describes gold miners’ stocks these days, this sector is loathed and despised after a horrendous year so far. But these battered stocks are now offering epic buying opportunities for contrarians who have steeled themselves to be brave when others are afraid.
Our subscribers have made fortunes trading gold stocks over the past decade. Between November 2000 and September 2011, the flagship HUI gold-stock index rocketed up an astounding 1664%! This dwarfed gold’s 603% gain over that same span, and the general stock markets as represented by the mighty S&P 500 actually lost 14%! Gold stocks were almost certainly the past decade’s best-performing sector.
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Tuesday, June 04, 2013
Gold Stocks Seller’s Remorse / Commodities / Gold and Silver Stocks 2013
I know an investor who is feeling some regret. He's come to the sinking conclusion that he may have made a mistake selling his gold stocks.
He recognizes now that he reacted emotionally to the crash, panicking at the plummet and dumping everything regardless of quality. He's kicking himself for doing so, because he succumbed to an impulsive move, locked in a loss, and realizes that the core reasons for owning gold haven't really changed.
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Monday, June 03, 2013
Marc Faber: The World Is a Mess, But Junior Gold Mining Stocks Could Double / Commodities / Gold and Silver Stocks 2013
The world's economy is in tatters and safe havens are few and far between, says legendary contrarian Marc Faber. The banking crisis in Cyprus has shown that even bank deposits are not safe. The publisher of the Doom, Boom and Gloom newsletter, surveying the world from his perch in Hong Kong, discusses the impact of unemployment in Europe, the economic slowdown in China, asset bubbles and the turnaround prospects for precious metals miners. Faber also reveals his investment strategy for these volatile times in this interview with The Gold Report.
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Friday, May 31, 2013
Is Gold Mining Sector About to Explode Higher? / Commodities / Gold and Silver Stocks 2013
Is it time to buy Gold miners?
The precious metals mining sector was slammed with Gold’s sharp drop in prices in April. Mining companies are more “pie in the sky” than owning actual bullion, so mining shares typically move much more sharply than Gold does (see the figure below charting the price performance of Gold against the Gold mining ETF).
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Thursday, May 30, 2013
Twitter Sentiment for Gold Shares Showing Strength / Commodities / Gold and Silver Stocks 2013
Blair Jensen writes: We’re finally starting to see some hopeful signs for gold (GLD) and gold stocks (GDX). In our last update we mentioned that the chasing of precious metals by traders had stopped and that we’d finally got some capitulation in sentiment (calculated from the Twitter stream). This was the first thing we were looking for in order to create an environment where gold could create a durable low.
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Tuesday, May 21, 2013
Gold Stocks Investors Its Time To Be BRAVE! / Commodities / Gold and Silver Stocks 2013
I used to half joke with some of my investing friends that the best time to buy stocks is during or right after a crash. Think 1987, 2000-2002, 2008-09, and now perhaps Gold Miners?? Well, before we get too far ahead of ourselves, lets examine evidence of a “Crash”: I like to use crowd behavioral, empirical, and technical evidence in combination.
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Tuesday, May 21, 2013
Gold Stocks Big Rally Forecast / Commodities / Gold and Silver Stocks 2013
1. Huge rallies begin from these conditions
Below is the NYSE Gold Miners Index which is tracked by the GDX ETF. Look at the RSI. Not only did it reach a multi-decade low but it has remained oversold far longer than during the comparable periods. In the four previous periods, the market rebounded suddenly and strongly in percentage terms. Meanwhile, the bullish percent index, a breath indicator is more oversold than in 2008. We plot the indicator with a 10-week moving average that shows it as far more oversold than in 2008. While this indicator does not go back that far, odds are it is likely at a 13-year low.
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Friday, May 17, 2013
The Key Reason to Buy Gold Stocks Now / Commodities / Gold and Silver Stocks 2013
Tony Daltorio writes: One of the most successful long-term strategies when hunting for the best stocks to buy is contrarian investing.
It's a rather simple strategy: buy something when it is out of favor and everyone else is selling, which leads to bargain prices. Then wait for sentiment to turn, sell and pocket your profit.
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Tuesday, May 14, 2013
Three Reasons to Buy Gold Stocks Today / Commodities / Gold and Silver Stocks 2013
A strong stomach and a tremendous amount of patience are required for gold stock investors these days, as miners have been exhibiting their typical volatility pattern.
That's why I often say to anticipate before you participate, because gold stocks are historically twice as volatile as U.S. stocks. As of March 31, 2013, using 10-year data, the NYSE Arca Gold BUGS Index (HUI) had a rolling one-year standard deviation of nearly 35 percent. The S&P 500's was just under 15 percent.
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Monday, May 06, 2013
Gold Gold Bugs and Stock Market Index Trend Forecasts / Commodities / Gold and Silver Stocks 2013
The daily chart of the Gold Miner's Bullish Percent Index is shown below, with the HUI denoted in green. The ratio has managed to rise to 6.67, accompanied by a small bounce in the HUI. Full stochastics 1, 2 and 3 are shown below in order of descent, with the %K above the %D in all three instances. Although there is somewhat of a bounce, trends suggest that one more leg down is pending...
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Saturday, May 04, 2013
Gold and Silver Bullion Shortage Could Benefit Undervalued Mining Stocks / Commodities / Gold and Silver Stocks 2013
When it looks as though things couldn't get worse for precious metal mining equities (GDX), that may be just the time to buy for contrarians. Not only are the junior miners (GDXJ) sloping to historic decade lows, but gold (GLD) bullion which has held up considerably well in comparison has been hit hard recently by short selling, bearish bank reports and margin calls.
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Friday, May 03, 2013
Gold Mining Stocks Profit Margins / Commodities / Gold and Silver Stocks 2013
Gold mining is a very tough business. Not only is it highly capital-intensive and chock-full of environmental risks, its revenues are entirely at the mercy of a volatile commodity. It requires some serious mettle to succeed mining gold.
But despite super-high barriers to entry and the countless risk factors that come with mining, the world needs gold, and somebody’s got to produce it. And believe it or not, a lot of money can be made in this business.
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