Mining #Stocks Rally: Good News for #PreciousMetals? Mining Stocks Rally: Good News for Precious Metals? In recent days, the Gold Index ($HUI) closed at its highest level in over a year.
The surge is a sign that we may not be embarking on a new bull market for physical precious metals. In just a few months, miners such as Endeavor Silver Corporation ($EXK) and Barrick Gold Corporation ($ABX) have seen their share prices rise 30% and double, respectively. Usually, such a move signals a shift in the physical precious metals market. Mining stock prices are not exactly correlated to moves in the price of the underlying metal, but a substantial upward trend implies investors see much higher prices on bullion.
There is less risk in physical metals than mining companies, which are operating businesses which can go bankrupt, get hit lawsuits, environmental disasters, and new regulations, face ballooning energy, equipment, and labor costs, etc. But in a bull market, mining stocks can vastly outperform and are worthy of strong consideration for some of your investment dollars. Photo Source Follow Us. 3 Reasons the #Silver Price is Bound to Rise. 3 Reasons the Silver Price is Bound to Rise. Many analysts believe the current low silver price is an opportunity to profit.
Here are a few of the reasons they think that. Silver managed to close Thursday at $17.37 per ounce after taking a steep fall to $17.04 the previous day. The drop followed the news that litigation alleging silver price fixing on the parts of Deutsche Bank (NYSE:DB), The Bank of Nova Scotia (TSX:BNS) and HSBC Holdings (NYSE:HSBC) has been centralized in a Manhattan federal court; a strong US dollar also didn’t help matters. The subsequent rise came after Wednesday’s dramatic stocks sell off. While it’s good to see silver making some gains, it’s admittedly difficult to be positive about its price given that the metal was above $21 just three months or so ago. Will Silver Go Up This Year? Find out why in your free report. For instance, as Silver Investing News (SIN) has discussed at length, a low silver price means it’s a great time to buy.
But why do they think that? Company news Junior company news Related reading: How Big Is Your #Gold and #Silver Picture? How Big Is Your Gold and Silver Picture? - Money Metals Exchange - Commentaries - Advisor Perspectives. Whether you surf the Internet for information about the precious metals and mining stocks or receive newsletters by snail mail, you're exposed to predictions by all and sundry: How high will prices go?
How long will it take? Will they remain elevated if/when they reach record nominal and/or inflation-adjusted highs? Truth be told, all of us are "inquiring minds who would like to know. " We want to believe that someone somewhere can predict the future. It could be on a site like GoldSeek.com, where newsletter writers publish a portion of their work a short time after subscribers have read the current issue (perhaps from a subscription costing $10 a month...or $3,000 a year). At the edge of propriety, a small number of "tire kickers" – the bane of the subscription newsletter industry – sign up, take a position in the recommendations, and then cancel their subscription.
My Biggest Lesson from the 1970s Epic Gold-Silver Bull Market... An example from my past might be instructive. But then...