precious metals stocks
Posted: Friday Sep 14 9:20:39AM 2012
Bernanke and Dragi have promised to print more money for a long time. Looks like July/August was the short term bottom for metals prices and for junior mining stocks.
My SLW options have tripled. (WHY DIDN'T I BUY MORE?)
SSL is up 7%
EDV is up 14% instead of negative
AUN is above break even and climbing
AXM is still struggling. Financing won't be done until early 2013 last I heard so price will be stuck in this range until then.
Investors are still going to favor big, liquid stocks first. But our juniors will be tagging along for the ride and sooner or later there will be a junior mining party. It's already started........
Posted: Thursday Aug 23 9:04:16AM 2012
SAND/SSL.v Sandstorm Gold increased their financing and the price tanked today. I bought a few shares of SAND, newly listed on the NYSE at 9.77. Long term type holding. Sandstorm apparently needs cash for new deals that are pending. This is an ideal time for streaming companies. juniors are having a terrible time getting financing, their shares prices are in the dump so they don't want to issue shares but they need to move their projects towards production. SAND is a viable alternative, especially if Gold is a byproduct of the mine or expansion. Even if it is a gold mine, they can reserve a small percentage for the streaming deal and still get substantial funds to complete their expansion or buildout.
SSL.v has outperformed almost all mining stocks this year. Hoping this selloff is a short term reaction to the financing and SAND will continue up from here. Either way, it's a good way to increase exposure to Gold over the medium term.
Posted: Tuesday Aug 21 8:23:52AM 2012
Gold broke thru $1625 today and mirrored silver's breakout yesterday. Both are up today.
My SLW options from 8/9 are up 70% as of today. Edv.to still underwater but less so with today's gain.
Rio.to has done well. Bought at 4.42 on 8/9 and it's 4.75 now. Performed much better than other gold stocks over the past few months and still has upside.
GDX and GDXJ both popped in the past couple of days. Maybe the good ole days are coming back!
Posted: Thursday Aug 9 10:53:55AM 2012
Silver and gold stocks may have broken their long downturn. I bought some long options on SLW this week along with some EDV.to. SLW performs very close to the GDX index of senior gold producers but could outperform if silver outpaces gold, which I think is a possibility.
EDV recently announced a big purchase of Avion Gold, creating a 300-400,000 oz gold producer in West Africa. Mali, where Avion has their mine has been in turmoil and that has hurt Avion stock. There is risk but Endeavour has been in West AFrica for many years and I assume they have concluded the risk/reward is worth it.
I also like AUN.v, a growing silver play located in the US. Should be a 5 million oz silver producer by 2013 as their Shafter mine ramps up to full production capacity.
I also bought some Rio Alto, RIO.to, for a relative. This Peruvian gold producer is solidly profitable and has substantial production of around 50,000 oZ/qtr.
Those not interested in picking specific stocks could do well with GDX or GDXJ, index funds for senior and junior gold producers.