Commodity Trade Mantra

Posts Tagged ‘Mining Companies’

If Gold Rises a Little, Gold Stocks Could Go Up a Lot

Gold started 2014 with an upswing off the multi-year low of $1,180 in Dec, 2013. By March, gold was trading at nearly $1,400. Silver too rose from a low of $19 last Dec to a high of $22 by mid-March. Many small gold and silver mining companies saw a bigger improvement in share price during this period too.

2013 Results: Top Primary Miners Real Cost To Produce Silver

Due to Fed’s QE policy of propping up the stock& bond markets while hammering precious metals, the top primary miners gave away their silver at a loss in 2013. While some of the top 12 primary miners stated adjusted income gains, all the companies suffered net income losses — a staggering $1.7 billion loss for the group.

Gold Price Going Up or Mines Will Close Within 6 Months

If we get to the point where lots of mines are closing, then simple supply and demand fundamentals will start kicking in. We are about six months into a low gold price environment. We will either see lots of mines shutting down or gold prices going up, allowing mining operations to run at a profit.

Avoid Regret: Accumulate Gold Bullion Now

Continuing their negative investor sentiment outlook, the short and long term forecast by analysts and hedge funds are expecting gold bullion to remain weak – A factor to consider beyond simply looking at investor sentiment, is the massive change in production by mining companies.

Invest Now in Precious Metals or Mining Stocks?

Investors might hold onto bad equities because they believe that the price of the underlying metals will rise – Since the current precious metals bear market started in 2011, it could be another one or two years before things turn around.

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