One 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 evident than in the well-known mining equipment company Joy Global Inc…. Read More
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 back from below $1,600 was a positive sign…. Read More
Here’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 in the U.S…. Read More
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 will print and print and print until both the yen weakens and higher “targeted” inflation is seen) has been matched word-for-word by President Obama; in his inaugural statements, Obama signaled his intent to overcome any Republican resistance, and (similar to Japan’s plan) “print” the U.S…. Read More
Gold 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 above $1,800 was on November 8, 2011…. Read More
Gold 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 has said…. Read More
Gold 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.
Silver prices are currently moving nicely high—much stronger than gold…. Read More
When 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 mining stocks can receive for the extracted materials…. Read More