Gold Stocks

Gold stocks are a speculative stock market sector specifically dealing with publicly traded gold miners and exploration companies. They fall under the category of risk-capital equity securities and, because their underlying businesses are based on a resource commodity, are mostly considered to be speculative.

Up until recently, gold stocks have been good performers on the stock market, following the spot price of gold commensurately. The current market for gold stocks is subdued due to the significant price consolidation taking place in the gold market. In addition, higher production costs on an industry-wide basis have made profitability more difficult for many gold mining companies.

Gold stocks come in all sizes and market capitalizations. Some large-cap gold miners offer shareholders quarterly dividends. Many micro-cap explorations companies are just that; they raise money to explore for gold and then come back to raise additional money if they find the precious metal in sufficient deposits to warrant building a mine.

If There Ever Was a “Buy Low, Sell High” Play, This Is It

By Thursday, February 13, 2014

Only Place I See Value in this Stock Market TodayWhen it comes to investing, history has taught us one very important lesson: ideal buying opportunities are formed when there’s significant pessimism towards an investment. In other words, to make it really big, you need to have the guts to buy an investment when everyone else is selling it…when it’s completely out of favor wi… Read More

Uncertainty in Emerging Markets Creating Certainty in Only One Market

By Thursday, February 6, 2014

This Is the Only Play that Will RewardFasten your seatbelt, dear reader. We’re in for a global financial crisis, a currency fiasco, and a stock market collapse all in the same year!

I’m being too bearish? Not after you read this…

In their search for economic growth in 2009, the Federal Reserve and other major central banks in the global economy started lowering inte… Read More

If Gold’s a Bad Investment, Why Is This Country Buying 150% More of It?

By Wednesday, January 15, 2014

150114_PC_lombardiI see more negativity towards gold bullion these days than ever before. And the more pessimism I hear and see, the more bullish I get on the precious metal.

After a bull market in gold bullion that lasted 12 straight years, 2013 was the correction year for gold bullion. It was the year that “separated the men from boys,” the investors … Read More

Two of My Favorite Gold and Silver Stocks

By Wednesday, October 9, 2013

gold stocksIf there ever was an environment illustrating how risky and tough resource investing can be, the current conditions for gold stocks are the textbook example.

Resource investing is a risk-capital only endeavor. When it comes to equities, resource-related stocks should never make up the core of a long-term investment portfolio. In … Read More

Why Silver Prices Will Double from Here

By Monday, August 26, 2013

U.S. economyAs gold bullion prices declined in the period from April to June of this year, so did silver prices. And just like gold bullion, the bullish case for the white metal’s prices continues to build.

Demand for the white precious metal is not just robust; it is rising. The chart below compares sales of silver coins at the U.S. Mint in the mont… Read More