If gold/silver have truly bottomed here, the pawn shops bank coin. Why? Because they have a shitload of gold in inventory, being held as collateral against egregiously high interest rate loans. Companies like EZPW and CSH make absurd amounts of cash when gold is on the rise. Believe it or not, gold is the #1 household asset in America. Everything else falls victim to deflationary pressures. But people have lots of rings and necklaces lying around the house and the pawn shops are glad to accept them at rip-off prices.
Being a novice investor in the miners, I have a disadvantage of not knowing the businesses intimately. However, I do know how cycles work and understand that the most leveraged companies perform the best during periods of reflation. Using the tools available to me inside of The PPT, here are most leveraged gold/silver stocks out there, primed to rip higher should the metals continue to run.
GOLD
BAA
ANV
GFI
AU
ABX
NEM
IAG
AUQ
KGC
SILVER
CDE
HL
SSRI
SLW
The vast majority of these companies have clean balance sheets, which makes me suspicious. If any of you metal experts can shed some light as to how these miners are financing themselves, I’d greatly appreciate some feedback. From what I understand, mining for gold and silver is a very cost exhaustive process, requiring vast amount of capital. You see it in the coal miners, laden with debt, blowing up and going out of business. However, for some reason, the gold miners stay afloat.
Nevertheless, the vast majority of the miners are down 80-95% from their highs. Out of 47 gold stocks listed, 40 are down more than 50% from their all-time highs. So whatever run these little bastards have enjoyed, year to date, are childish parlour games compared to the potential here.
Again, I am comparing this to solar circa 2012.
A great opportunity might be presenting itself here. Let’s be vigilant not to miss it.
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what about MCP?
Mcp is rare earth crap
Oh just rare crap
Il add GG and AEM to the gold list, big money wants large cap and these are the best into their sector.
Le Fly,
The best silver stocks are $EXK $AG $MUX. The best gold stocks are $PVG $TGD $SAND
I could go company by company and tell you the reasons against investing in all of the ones you listed, but the basis for investing in the mining sector is quality of management, mining jurisdiction, production growth, cost controls, and a clean balance sheet. I also like to look for companies small enough that outsized returns are possible. The six listed above excel in all of these categories and are arguably the best managed mining companies out there.
CDE has been perpetually mismanaged for years. When AG bid for Orko silver early last year, they countered with a higher bid which AG elected not to match. So they paid up for a property that is not economical at current silver prices and that isn’t near their existing properties, thus can’t benefit from any cost saving synergies. Plus they get a significant portion of their production from Bolivia, one of the highest risk mining jurisdictions in the world. Since you took a position in this one, figured I’d at least explain why I avoided it.
Given the depressed conditions in the space, all metals related stocks will see big rallies. But as more sophisticated investors start to put money to work in an area that has been avoided for a long time now, they will start doing the due diligence I’ve done and it’s not a stretch to assume most will reach the same conclusion I did. As the rally matures, quality names will outperform the lower tier companies.
Large cap miners should be completely avoided. Low risk or ‘safe’ money should be put into the large cap streamers RGLD and FNV. Their stocks always, always beat the large cap miner stocks. Higher risk/higher reward money should be put towards companies that match the criteria I outlined above, and the six companies I mentioned are all prime candidates despite their already egregious gains from the lows. These stocks will be 5 baggers at least over the next 18 months.
Hmm
Thank you
some good choices mr. hmmm,
but dont forget streamers, SLW, FNV, also Primero & BTO
mr.p knows quality (below)
my fav spec plays ANV, HMY, RIC, GPL,
also to note, RC has hit it out of the park with seabridge and IMG
so glad you finally joined the party,
hope you turn that -18%, to + 50% and more professor fly !
PVG an explorer with 0 REVENUE hahaha , you obliously DONT KNOW SHIT IN THE MINING INDUSTRY.
AG
You missing quality on your list:
RGLD FNV AEM GG SWC
KGC is crap
Learn to read.
I said these are the most leveraged gold stocks, not the best.
Oopsy … you are right than, they certainly are….
RGLD was always the JakeGint favorite – unfortunately it’s no longer down that much and hardly cheap.
One of his silver favorites, SLW is probably a better pick – AG or EXK being second.
FNV is a legend but same problem as RGLD, barely off it’s highs
The worst picks are ABX NEM or GG, populated with idiot management and their share prices shows it
That said gold and silver companies are generally run by morons so it’s kind of a given…
The golden silver plated knife is still falling. The people who run mining companies are thieves, imo. More often than most industries anyways.
Indeed. The precious metals are the most hated investment ever. The miners are worse then lepers with aids. Seems even the bugs missed this recent move. Where are all the cheerleaders? Where is Gint?
Remember how Mark Twain defined a gold mine… A gold mine is a hole in the ground owned by a liar.
I’m from the land down under there (Australia). Have a look at some Aussie gold miners – our lucky country is awash with it. Best in breed co’s.
SLR (+10%) PRU (+15%) OGC (+9%) TRY (9%) – these were today’s gains!
These guys have a higher cost for producing ounces so have higher correlation with price movements and therefore big leverage to price swings in gold. Our biggest producer is NCM.
Fly is a trader so when he buys a stock I suspect he is already thinking about when and under what circumstances he should get out (all good traders think like this).
He wants to make $$ on a stock trade.
He doesn’t want to marry it.
Totally agree. Who cares for homo conspiracy theories. Trade the price action for profit!!!!
Check kgji
Beside Australia, South Africa and Canada are awash as well. YRI-T as a big producer and NGD-T as a mid should be on anyone wathclist. Pierre Lassonde a hall of famer in the mining business is behind NGD. He’s the founder of FNV, a success story. NGD should be the next one.
Kind of a cross post, but I rode GDX based leveraged stocks up until yesterday and now have JDST and DUST, Monday might bounce though.
Good idea, since stock picking in the minig sector is difficult since not all the information is reflected on financial statement and is on site. I think mining stock has to be evaluate site by site and GDX and GDXJ + any leverage or inverse leverage ETF should be look at.
$FCX
Nobody likes GLD?
Why not just buy gold directly, Fly? Just getsome GLD or heck buy some shiny coins. Why play gold through miners and other ne’er do well businesses and run management risk?