Junior Gold Stocks Rebound from Lows
January 31, 2012 By Leave a Comment
The junior sector had a very difficult year in 2011 but has led the recent recovery (at least statistically) in the precious metals sector. Two of our favorite exchange traded funds, GDXJ and ZJG.to are up 30% and 25% respectively. That exceeds GDX (large caps) which has rebounded 15%. These are significant gains but barely put a dent in the low valuations for the sector. Ratio analysis shows us how undervalued the smaller gold stocks are yet an examination of history shows this is not out of the ordinary at this point in a bull market. [Read more...]
Commodities Take Off!
January 27, 2012 By Leave a Comment
The Greek talks returned to the headlines this morning. I know I said this last Friday, and I was a little too optimistic and turned out to be wrong! But… I do expect this agreement on a private-sector involvement in Greek debt to get hammered out this weekend… It seems that the opposition from eurozone policymakers is backing off, and that has me optimistic once again.
[Read more...]The Gold Stocks are Tracking Past Equity Bull Markets
January 10, 2012 By Leave a Comment
All bull markets have similarities and all equity bull markets have strong similarities. They go through similar phases. Most bull markets start off slow and then build towards what we like to say is an acceleration into a bubble and potential mania. In last weeks editorial we noted how bull markets, prior to the bubble phase, tend to make major bottoms every three or so years. Yet, in looking at the present bull market in gold stocks and comparing it to the previous three equity bull markets (Technology, Japan and Gold Stocks) we find stronger and deeper similarities which confirms to us that the gold stocks are in the bull market of our time. [Read more...]
Commodity Price Volatility to Continue
January 2, 2012 By Leave a Comment
If 2011 was a wild year for energy and commodity prices, our expectation is that 2012 will be no different, as the news coming from Europe and other parts of the world should remain unsettling. One of the few exceptions to this environment will likely be that U.S. economic conditions will continue to improve and this should temper some of the volatility brought on by other economies around the world. [Read more...]
Commodity Price Volatility to Continue
January 2, 2012 By Leave a Comment
If 2011 was a wild year for energy and commodity prices, our expectation is that 2012 will be no different, as the news coming from Europe and other parts of the world should remain unsettling. One of the few exceptions to this environment will likely be that U.S. economic conditions will continue to improve and this should temper some of the volatility brought on by other economies around the world. [Read more...]
My Favorite Way to Own Silver
My favorite way to own silver is the Sprott Physical Silver Trust (NYSE:PSLV). This is a product of the Eric Sprott group, of Toronto.
Units of this trust were trading well above $20 a few months ago. But today, even after silver’s January rally, the units are trading below $15. That’s a 25% decline, which is in sync with the drop in the price of silver.
[Read more...]