Tag Archives: gold miners

The best way to look at miners, in relation to gold, is to look at the relative strength of each which is most clearly illustrated through ratio analysis. Whether you are a fundamental or technical analyst, both schools of thought support the notion of investing in sectors that exhibit positive relative strength. For those unfamiliar, the idea is that relative strength tends to persist over time and that it is often best to invest in securities that exhibit positive relative strength. [So what does relative strength analysis suggest is the appropriate course of action these days? Let's take a look.] Words: 805

If you aren't already in, this coming Monday or Tuesday (Nov. 5-6th) should represent an exceptional buying opportunity as gold moves into its final intermediate cycle bottom. Now that the 38% retracement has been breached I would look for a final exhaustion move to test the 50% level early next week as we move into the elections. Words: 284

You don’t need [actual] deflation—a reduction in the outstanding supply of money—to have markets react to a decrease in the rate of money supply growth..., anticipate the eventual deflation [and begin to price it into the market. Remember 2008?] Oil prices fell from $147 in July of 2008 to $33 per barrel by early 2009. The S&P 500 went into free-fall starting in September of 2008 and bottomed out in March of 2009—falling almost 50% in six months. This is what has already happened to the gold mining sector but, remember, central banks may be on a counterfeiting holiday right now but they have a history of taking very short vacations.

I think the junior gold miners sector could up ten fold over the next few years based on gold just going to $3,000 or $3,500 [let alone to] $5,000 or $10,000 which I think is possible. Here's why.

Do not expect the gold mining sector to go up as a whole. Do not expect gold miners to leverage the gold price. The stock price appreciation will all depend upon the individual stock's prospects and management competence, as in how the general market rates other investment vehicles as a whole. [Let me explain.] Words: 687

With what is happening with the price of gold these past few days it is imperative to take a look at the long and short of it all (the trends, that is). In doing so it shows that we are still very much in a long-term bull market but in a short-term (yes, short-term) bear market. Let's take a look at some charts that clearly outline where we are at and where we could well be going. Words: 625

Whilst it is true, more often than not, that mining stocks move in the same direction as gold [and historically outperform that of the physical metal based on their better beta statistics] there are periods where this relationship does not hold. That is one of the reasons we currently have no interest in trading or investing in mining stocks. Why form a bullish view on gold and buy mining stocks based on this view, only to see gold rise and mining stocks fall? [Instead,]... our preferred strategy to optimize and maximize potential profits... is using options that are directed based on the price of gold with no other factors influencing their performance. [Let us explain why.] Words: 1235

With all the interest in physical gold, silver and other commodities these days, and the large/mid-cap companies who mine the metals and the juniors who are exploring for them, it begs the question: "Why has no one written about the 91% returns and the 60% leverage generated by the long-term warrants offered by a select few miners and royalty companies in 2010?" The information in this article and the links to a variety of resources will change all that and make you ready and able to reap the benefits from investing in this much misunderstood asset class. Words: 2585

The parabolic rise in Gold and in Silver still have a very long way to go as measured directly off of the late 1970’s Charts. In fact, we expect the arithmetic ratio targets for Gold and for Silver, based on the late 1970’s rise for each, to get blown away since we are seeing a logarithmic rise in dollar inflation compared to the late 1970’s. We have just hit the point where the more parabolic rise in Gold set off the leverage for the Gold Stocks in the late 1970’s. Therefore, we expect the real parabolic PM Stock Index Bull is just now commencing. Let me explain. Words: 1769

Millions of investors have stormed into US Treasuries. Some have even settled for negative yields on Inflation Protected Securities (TIPS). They are making a terrible mistake, [however,] because right now a handful of gold mining stocks offer much more upside and immediate yield than T-bonds. [Let me explain.] Words: 1119