Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

mining stocks

Business Stalls for Equipment Manufacturers; Outlook for Precious Metal Companies Flat

By | September 3, 2013

Business Stalls for Equipment ManufacturersOne specific stock market sector that continues to be very challenging is the precious metals mining area. A combination of events has hit the precious metals producers: lower spot prices and rising costs being two of the main factors. It’s been the perfect storm for gold mining stocks, and the trend isn’t over yet.

And with reduced operating margins comes the big squeeze in capital expenditures. This is no more … Read More

Why Silver Prices Will Double from Here

By | 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 months of January to July of 2012 and … Read More

Best Turnaround Trade in Years May Be on the Horizon

By | February 28, 2013

Best Turnaround Trade in Years MayThe spot price of oil keeps taking it on the chin, while gasoline prices remain lofty, padding the pockets of the big integrated oil companies even more. What a great business to be in. Which is why, of course, a stock market portfolio should have some exposure to large integrated oil and gas companies.

U.S. domestic oil production continues to experience a renaissance, but Bakken oil stocks aren’t going up … Read More

Why a Buying Opportunity May Be Near for Gold

By | February 21, 2013

Buying Opportunity May Be Near for Gold Gold is currently looking somewhat dull on the chart, losing some of its luster following the bearish move of the spot price to below $1,600/ounce on February 15. Gold has since rallied back to above $1,600, but it continues to show extremely weak relative strength.

We are hearing more whispers predicting prices could falter more; but while I’m neutral at this point, the ability of the yellow metal to bounce … Read More

Realities of the New Housing Market; Institutions Buy and Rent Homes

By | January 25, 2013

Realities of the New Housing MarketHere’s the bottom line on the U.S. housing market and why it’s not really a recovery we can bank on:

The most important part of the U.S. housing market—first-time homebuyers—is missing from the action! We need first-time homebuyers in the market to see real growth in the U.S. housing market. After all, they are the ones who buy the fridges, stoves, dishwashers, and other goods that help increase consumer spending … Read More

Gold Mining Shares Best Opportunity of 2013?

By | January 25, 2013

Words of wisdom from Robert Appel, BA, BBL, LLB, our in-house gold bullion bug and “money watcher:”

“The markets seem quiet and controlled, but they are anything but that.

Among the more astute commentators (and we like to believe that this advisory enjoys the privilege of being in that category) it has been noticed that, just in the last few days, Japan’s declaration of a “currency war” (i.e., that it … Read More

Mining for Riches with Junior Miners

By | January 4, 2013

Mining for Riches with Junior MinersGold and silver are currently taking a breather on the charts, but if the global risk holds, I wouldn’t be surprised to see a rally in the precious metals this year.

I can see gold breaking to $1,800 an ounce, something that nearly materialized on October 5, 2012, when the price of cash gold traded at $1,795.78 prior to slipping. In fact, the previous time the precious metal was trading … Read More

Junior Miners Offering Great Upside

By | September 10, 2012

Junior Miners Offering Great UpsideGold flew above the $1,700 level last Thursday to $1,712, marking 15 new highs over the past month but still well down from its 52-week high of $1,790 in February. The breakout around $1,625 is positive. There is some resistance at $1,750 and $1,600.

I continue to like gold going forward, given the massive financial distress and possible exit of Greece from the eurozone despite what the European Central Bank … Read More

Mining Stocks Getting Exactly What They Need

By | September 7, 2012

Mining Stocks Getting Exactly What They NeedGold and silver prices are rising, and this is exactly what mining stocks need. After a well-deserved correction in gold prices, gold stocks were hit pretty hard as institutional investors abandoned the sector. Just like the spot price, speculating in gold stocks isn’t for the weak-stomached; volatility is standard in precious metals. But with volatility comes the opportunity for greater returns—if you buy the right companies at the right time…. Read More

Global Economy Warning from World’s Largest Miner

By | August 23, 2012

Global Economy Warning from World’s Largest MinerWhen it comes to getting a feeling of what’s happening in the global economy, starting with the basic commodity firms is a good first step. The global economy depends on mining stocks to extract valuable inputs, such as iron ore, that go into making things, such as steel. If the global economy starts to slow down, as it is now, less demand for the final product means lower prices that … Read More

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