Anyone into Metals right now?
How and why?
Answers
312 points
mjrenn answered one year ago …
Tickerhound Warren Bevan is into metals and he had this to say today:
http://www.preciousmetalstockreview.com/downloads/Summer%20Lows.pdf
164 points
Prudent answered one year ago …
Metals are going up with short term correction along the way. Invest in Rio tinto and also smaller resources holding stocks
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543 points
warren answered one year ago …
Thanks mjrenn, it is a great time to be entering on any pullback. As in that update, prices have yet to fail to go up after this time of year. And as mentioned the recent takeovers combined with gold staying above 1K should lite the fire in the metals industry very soon.
So many compaies are so much better off than when gold and silver were half the price of today...yet the share prices are far from their all time highs. I smell money!!!
Warren,
www.preciousmetalstockreview.com
356 points
Dusty answered one year ago …
On Friday and Monday I bought GLD and SLV. I have read a lot of pro gold commentary recently. Of course, the instant I hit the 'buy' key the price of the securities dropped. Lynn Carpenter at IDE had two weekly discourses on gold, last week and this. She says to watch where GLD is right now. If it drops below $90 it will have a very good chance of hitting $75. If it climbs above $97 and holds, it will go up a long way. Quote/unquote, sort of.
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warren answered one year ago …
I don't see how it could drop that far. Did you read my missive? Higher prices are very very likely. Especially for the shares.
Warren
149 points
Philip answered 11 months ago …
This is the seasonal low time for metals. Just look at the earnings numbers for last quarter and you get a good idea of how much the cost of producing an ounce of gold has risen in the past year.
The $200-300 rise in gold has been eaten up by the rise in the cost of producing an ounce of the metal.
By product (zinc, copper etc.) prices have tanked. Companies that produced gold at a negative cost have lost a good portion of that advantage. Keep your powder dry and wait for the real turnaround.
They wont run out gold stocks. I believe the gold / silver etf is eating into the gold stock market.
The HUI and XAU may give you the easiest way to play the turnaround when it arrives.
356 points
Dusty answered 11 months ago …
I am 'confident' that the price of metals will rise. I am unhappy that I just jumped in. I think I know better than to buy early in any/most weeks. That is, Thursdays seem to be Selling Day and share prices tend to fall (?); also by Thursday the Market Trend for the week is clearer. Had I waited to buy that last Deal, I would have ended-- a couple of weeks later-- with more shares for the same amount of cash.
There is a possibility that China may back down its cosumption of resources for a while now that the Olympics are under way. Overconsumption and overproduction in preparation, now a pullback until excess inventories are used up. Match that with a drop in orders from the prime customer (the U.S.; Europe seems to be following our lead into a recession, too) and also that the price of gold has slowed consumption in India. Where the price of gold and silver will go this cycle may be just wait and see?
356 points
Dusty answered 11 months ago …
This is a note FWIW: Reference the previous posts I made. Today I dumped my gold and silver. There is a 31 day waiting period before it is legal to buy back into those securities of course; that may change the nature of my game in the event of the unexpected. Gold is in a serious correction. I felt it was better to bail than to try to ride the roller coaster. Maybe if the gold curve bottoms so that by late September or early October it shows signs of a significant rise in the reasonable future I will try to pick up some GLD again. Most probably I will not touch metals again this year or cycle.
With what I really think is about to happen in the American economy and Markets I am trying to put my money in Canadian based securities that have very good dividends. It is not a matter of finding them but of picking and choosing. The point is to get out of USD's and to position in securities that have a record of stable returns and whose businesses are basically essential services or commmodities, like oil, natural gas, electricity, electric transmision systems and also pipelines. Just a boring steady cash flow into my bank account.
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