Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

Anyone here looking at precious metals stocks? (vanity)
July 1, 2015 | me

Posted on 07/01/2015 4:09:01 PM PDT by Leaning Right

Some precious metals funds I've been following are approaching lows not seen since 2002. China is buying gold. Russia is buying gold. India is buying gold. Yet these mining stocks continue to fall.

I'm thinking this might be a buying opportunity. But I'm usually wrong. And ideas from the FR market sages?


TOPICS: Business/Economy
KEYWORDS: gold; goldstocks; miningstocks; preciousmetals; stocks
Please note that I'm talking about precious metals stocks, not the metals themselves. That's a whole other topic!

Thanks to all who respond.

1 posted on 07/01/2015 4:09:01 PM PDT by Leaning Right
[ Post Reply | Private Reply | View Replies]

To: Leaning Right

Bad news for the Alaska Gold Rush boys...


2 posted on 07/01/2015 4:21:42 PM PDT by martinidon
[ Post Reply | Private Reply | To 1 | View Replies]

To: Leaning Right

I think gold is going below $1,000 per ounce and perhaps to the $950 range. I’m not buying yet, but stocks are different than the metal.


3 posted on 07/01/2015 4:39:26 PM PDT by aMorePerfectUnion ( "Forward lies the crown, and onward is the goal.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Leaning Right

Generally there is an inverse relationship with mining stocks and the metal itself, weird but I believe it is true. Mining stocks are sort of like pork bellies.


4 posted on 07/01/2015 4:44:56 PM PDT by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: wastoute

After 2008 crash I went heavy on gold stocks. I recovered 75% of everything I had lost with gold stocks, then got out just in the nick of time.

You can make money if you time it right but it is not for the faint of heart. At some point it’s worth getting in.


5 posted on 07/01/2015 5:14:00 PM PDT by Free America52 (The White guys are getting pissed off. We beat Hitler Hirohito and Krushchev. Obama will be easy.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Leaning Right
Gold mining stocks are subject to risks and influences other than simple metal prices and supply and demand for it. Competition, interest rates, technical considerations, currency values, politics, manipulations by nation-states and large investors, and other factors all play a role and are too difficult to model and hedge for any but the best informed and well-heeled investors.

Emotional influences -- especially your emotions -- can also affect market prices and investment strategies and decisions. For many investors, gold's emotional appeal and belief in its enduring value make for disabling effects. They lose sight of market fundamentals and basic investor maxims about cutting losses, making quick decisions, and hedging risks. They fail to take profits when they can and tend to let fear and greed get the upper hand.

I once knew a wealthy Canadian, a retired businessman worth near a hundred million dollars who started speculating in the gold market in the late 1970s on the reasoning that the dollar was doomed to continuing decline. For a time, he did remarkably well, but then lost almost everything when the market turned against him as Reagan's economic policies took hold and the dollar rose in value. Oddly, the Canadian was a stalwart conservative who greatly admired Reagan and agreed with his policies even as he failed to reckon with the effects of their success on his speculative position in the gold market.

The bottom line: the gold markets, including that for gold mining stocks, are especially opaque and tricky for investors. I would avoid gold and gold mining stocks, and if I did get in, I would not put more at risk than I was willing to lose. Above all, I would not fall in love with gold or become a believer if I became an investor in it or in gold mining stocks.

6 posted on 07/01/2015 5:14:09 PM PDT by Rockingham
[ Post Reply | Private Reply | To 1 | View Replies]

To: Leaning Right

everyone is buying in volume, yet the metals are dropping.

of course, this is counter to econ 101

unless you factor in the federal reserve.

what they’re doing is buying gold at the end of the day using freshly minted cash ... then sell the gold at a loss just before open (they don’t care, as they print as much as they need)

why?

this sets the momentum of gold for the day, keeping it from elevating too much.


7 posted on 07/01/2015 5:38:21 PM PDT by sten (fighting tyranny never goes out of style)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Rockingham
IMHO gold and silver are insurance policies against crisis, not investments....the time to buy them is when they are cheap.... and like insurance policies...hope u don't have to redeem them....over time they appreciate and unlike regular investments have little chance of going to -0-

(I prefer silver because it has actual valuable uses besides jewelery and from my research there is less available ounces of silver then gold because of it)...Do your own DD

8 posted on 07/01/2015 5:46:16 PM PDT by M-cubed ( Their hope is to find a way to pick a nominee who, if elected, would actually stay the course the w)
[ Post Reply | Private Reply | To 6 | View Replies]

To: M-cubed
I have experienced several instances after hurricanes when electric power was out for an extended period. In those times cash was always accepted. Similarly, in Greece today, in the context of a banking crisis, cash -- in euros -- is prized above all else.

Calling gold and silver "insurance policies" overstates their value in that they would be most suited for dire circumstances after a general collapse when cash is no longer accepted. If that ever happens though, food, water, guns, and ammo would likely often be more valuable in trade than gold and silver.

Even better would be living in a defensible rural home with family and reliable neighbors, and a working garden, greenhouse, chickens and goats and perhaps beef, well water, a stock of gasoline, and EMP hardened off the grid solar electric power. After a general collapse, it would take a lot of gold and silver to buy that, and reliable men with guns to hold it.

9 posted on 07/01/2015 7:43:24 PM PDT by Rockingham
[ Post Reply | Private Reply | To 8 | View Replies]

To: Free America52

But the stocks went down as the metal went up.


10 posted on 07/01/2015 7:58:30 PM PDT by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Leaning Right

11 posted on 07/01/2015 8:01:36 PM PDT by Daffynition ("We Are Not Descended From Fearful Men")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Daffynition

Lead as a precious metal? I must be getting older, because it took me more than a moment to get your post.

Well played, Daffy.


12 posted on 07/01/2015 8:11:41 PM PDT by Leaning Right (Why am I holding this lantern? I am looking for the next Reagan.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Leaning Right

There’s a big difference between precious metals and precious metals stocks, which usually means mining companies. We’re in a deflationary period and the dollar will go up in value. That means gold and silver will decline in dollar terms. Mining companies will probably not do well.


13 posted on 07/01/2015 8:43:22 PM PDT by captain_dave
[ Post Reply | Private Reply | To 1 | View Replies]

To: Leaning Right
Thanks for not taking me too seriously.

Some folks 'round here are of the same opinion ....my broker is not one of them.

14 posted on 07/01/2015 9:03:21 PM PDT by Daffynition ("We Are Not Descended From Fearful Men")
[ Post Reply | Private Reply | To 12 | View Replies]

To: wastoute

I have held gold mining mutual funds for years.

They sort of reflect gold demand, but due to my technical mining process exposure to some of the majors, it seems they values more reflect their position in the market, their prospects for being able to produce at good economics and any proprietary technologies they may have to distinguish them from other miners.

I bought in when gold and the MF was pretty low. I stick with them, as playing Day Trading style is too subject to rapid and sometimes short lived big moves. Over the long haul they have appreciated much more than not.

My 2cents worth.


15 posted on 07/01/2015 10:03:49 PM PDT by X-spurt (CRUZ missile - armed and ready.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Leaning Right; jiggyboy; PA Engineer; blam; TigerLikesRooster; Cheap_Hessian; CJinVA; Jet Jaguar; ..

Goldbug ping..


16 posted on 07/01/2015 10:05:27 PM PDT by Jet Jaguar
[ Post Reply | Private Reply | To 1 | View Replies]

To: X-spurt

Just plain good sense. Know the sector, go fo the long investment. Good job.


17 posted on 07/01/2015 10:52:23 PM PDT by wastoute (Government cannot redistribute wealth. Government can only redistribute poverty.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Leaning Right

precious metals stocks and physical metals might be down for 5-10 years due to the oil/gas/energy complex being down due to the fracking revolution. Flight to the USD for safety (Greece situations) also hurts precious metals.

But precious metals ownership (gold especially) will preserve wealth during a deflationary collapse which could happen within 3-5 years


18 posted on 07/02/2015 6:05:37 AM PDT by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
[ Post Reply | Private Reply | To 1 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson