Gold & Silver Majors
September 13, 2024: BUY NOW (but remember, Physical is better and safer)...did you act on our February advice?
| HUI-Gold ratio |
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| HUI-index monthly: Compare today's bottom to the 2008 bottom... |
 Island reversal, huge bullish wedge...and a cigar! |
Our Medium Term BUY/SELL indicator |
The sector clearly shows a negative mood for Gold and Silver, and stocks have been moving down in a leveraged way compared to Gold and Silver. Quality mining shares are dramatically undervalued. The value is exceptional, so I think it will have a slingshot effect when gold and silver recover and investors gain some confidence. The upside impact on the price of the shares will be something to behold. Expect at least a 600% increase in the HUI index.
Gold and Silver miners are a strong BUY at present levels (Feb. 14, 2024)
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Miners are DIGITAL entities with counterparty RISK = DANGEROUS! Don't waste your time, energy, and money buying Gold Shares! Buy the REAL THING: physical gold and silver, and store it out of political reach. The current correction in gold stocks WAS the fourth-longest since 1879. The decline of 66% ranks in the top 10 of recorded history. I think the price level of these shares is an ABERRATION...August 2015 - January 2016
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On fundamental values, gold and silver shares trade at historic low valuations, as in 2008 when you were able to buy companies:
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- - for less than the cash in the bank
- - for less than $10 per ounce of gold in the ground
- - for less than 1,000 times the annual gold production
- - for a dividend yield of 2.5% or more
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Lower your costs and enlarge your positions during corrections (NOW) in the Gold sector. The long-term uptrend has been confirmed, and we expect a bull run to last for more months. Expect shares to suffer somewhat during Stock Market Bear Runs! Next month, we expect better results with increased dividends and higher earnings. The Hedge funds had their way with the gold shares, but logically this is ending. When you can buy companies whose resources are three times the company’s capitalization, the share is getting unreasonably cheap. It is very plausible that hedge fund managers use any negative news in the sector to play their little shorting game.
We prefer the Juniors to ETFs, Futures, Options, and Turbos. The other advantage Juniors have is that the Seniors will take them over as their gold ore reserves decrease. NEVER forget that by holding DERIVATIVES, you are using UNCONTROLLED and UNREGULATED investment instruments (which are mostly manipulated)
| The price will go up when time is up... | HUI - Gold and Silver bugs index | |
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Bullish Objective | 380-480 |
| Resistance | 280 | |
| Support | 180 | |
| Bearish Target | 120 | |
| Technical Pattern | SCREAMING Breakout |
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Math's today and Magic tomorrow. Significant short positions have impacted gold and silver shares almost entirely. Shorters hope to scare long-term and weak holders out of their positions. Shorters, however, MUST sooner or later cover their positions...
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Our Opinion: BUY and be patient!
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The most significant profits will be generated by Majors and Juniors, which have been incorrectly sold "en masse" by the stupid Herd (incl. Hedge funds)
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| Short term candle | Chart Comment | |
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The Central Bankers and US Authorities have fully orchestrated this correction. A Bank Holiday may be expected when the market tries to normalize itself!
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| Long term candle | ||
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| CAUTION: Royalties are DIGITAL shares and are part of the DIGITAL CASINO GAME! We expect Physical Gold & Silver to perform BETTER and are SAFER than DIGITAL MINERS. |
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Green-colored charts indicate bull trends, Red indicates bear trends, and White indicates sideward trends—and we don't know yet! |
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| McEwen (MUX) | Newmont (NEM) 1.18 oz gold/share 1.27% yield-4.65% |
Alamos(AGI.TO) Yield - 0.89% | Hochschild Mining (HOC.L) yield-n.a. |
Anglo Gold (AU) yield-1.29% |
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| Breakout - buy (Argentina, USA, Mexico-282) |
Can., USA, Mex., Cntrl & Sth America-mix- Australia, Peru, Indonesia, Ghana, Suriname -15.600 |
Mexico, Turkey, Canada, USA)-1300 - broken 50-day MA |
(RSA, Africa, Australasia, Americas-52,000-mix) 0.35% |
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| ASA (ASA) yield - 0.15% |
Barrick (Gold) yield - 2.69% |
Eldorado Gold (EGO) |
DRD-Gold yield - 3.37% |
Kinross (KGC) yield - 2.54% |
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| Mutual fund of miners |
USA, Can, Aus, Argt, Chile, Peru, Dom. Rep, Papua, Tanzania, Zambia & Saudi, Sahara-3,714 |
Gold production (EGO) to double over the following years -BUY (Turkey, China, Greece, Brazil, and Romania-7,400) *** | RSA-Joburg 1.76 oz/share - 2.20% | (Can, USA, Russia, Brazil, Chile, Ghana, and Mauritania-9,000) 0.04 oz/share -[2.4*] |
| Agnico Eagle(AEM) yield - 3.45% |
Centerra(GC.TO) yield- 4.44% |
Hecla (HL) yield - 0.53% |
B2Gold (BTO.TO) Yield - 5.49% |
Pan Am. (PAAS) yield - 2.79% |
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| Prod. cost $535 Can, Finland, Mex-5,000-mix-0.93% |
Kyrgyz Rep, Mongolia, Turkey, Canada-2,400 |
Silver worldwide-1,400 0.34% |
(Nica, Philipp, Namib, Mali, Colom, Burk F., Fin, Chile-2,700) | Silver - (Peru, Mex, Argent,Bolivia-4,100 - 0.63% |
| Coeur d'Alene(CDE) | Caledonia (CMCL) Yield - 5.29% | Endeavor (EDV.TO) yield - 4.26% |
MAG Silver (MAG.TO) |
Seabridge Gold (SA) |
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| Ag- world-2,000 [2.3*] |
W. Africa-2,400 |
Mexico - mixed-9 ***** |
AU, Ag & Copper | |
| Gold Fields (GFI) yield - 3.51% |
Harmony (HMY) yield - 0.25% |
Sibanye Gold(SBSW) yield - 6.65% |
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| RSA, Ghana, Australia, and Peru-9,000 - 0.36 oz/share |
RSA, Papua New Guinea: Cu, Ag, UR, and molybdenum -na% |
4.05% yield RSA, Kloof, Driefon,40,000 -Gold & Platinum-na% |
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| Money Flow is descending. | 12-month performance vs. SP500 |
12-month performance vs. Goud | ||
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As we forecasted months and weeks ago, Silver miners are performing best! | |
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Notes:
Gold and Silver miners' dividends are growing exponentially. (See fundamentals.) Focus on gold mines, as I expect them to perform better than silver mines. PF charts are NOT adjusted for dividends. Gold and Silver miners survived for 20 years when Gold was traded at around $250/oz, so why would they not when Gold trades at around $1300!?- BUY by preference those shares that sit in the bottom/lower part of their trend channel or have broken out and positively tested the breakout price.
- There is a general pattern of deleveraging or halfway stop during Leg 1 - 2008—and Leg 2 becoming more visible. Typically, after Leg 2, we have a Buying climax, but we aren't there yet!
- Positive bullish signals are: price sits on 200 days MA, Bullish divergence, Bullish wedge, Bullish flag, Bullish coil, Bullish cup, handle, oversold daily, weekly, and monthly technical indicators,...LOW POLE REVERSALS and BREAKOUT of BULLISH WEDGES.
- Kinross (KGC) is a decent senior gold mining company. Still, after taking a $2.49-billion write-down in February for the Tasiast mine, it has been a prime example of an overreaction and a potential buying opportunity.
- Pan American Silver - PAAS: almost debt-free/reduced exploitation costs – co’ to become one of the big three silver companies as silver production will double by 2015. Geoff Burns, Pan American's President and CEO, said: "We are incredibly pleased to have concluded the acquisition of Minefinders. This strategic transaction increases our near-term silver and gold production and cash flow. It reduces our average cash costs across our eight producing mines while geographically de-risking our overall portfolio. In addition, Pan American should reap the benefits of a sector-leading and well-sequenced growth profile.
- Randgold Resources is a steal. The company’s Tongon mine is its newest project and is currently being commissioned, but news flow has been slow and hasn’t drawn much attention. I look forward to seeing this issue resolved over the next couple of months.
- Banro (BAA) is one to buy and hold for the next couple of years.
- Silvercorp is one of the few companies that has successfully navigated China. Our models indicate there is much more upside available from these assets than where the stock is currently priced. SVM also has a very attractive relative valuation to its North American peers. In some cases, we have seen 5% of their market capitalization turn over fairly consistently every day over the last month – those shareholders are not around for the long term. [chart in the section of Gold and Silver juniors].
- SA Goldmines suffer because of the discussion about the nationalization threat of the SA Gold mines (ANC leader Malena used it in his election campaign - Elections were in Dec 2012 - Malena has been liquidated). The De Beers family sold some of its interests in SA mining companies to Anglo American but moved its HQ to Gaborone (Botswana). DE BEERS moved its HQ from London (UK) to Gaborone. [GDP of Botswana is steadily growing ≈ 8%]
- The run on the Bank of the Gold Cartel is unfolding. Much more gold and silver have been sold than can be delivered, and the implications for the gold and silver prices are mind-boggling.
- Leverage to Gold: Kinross 3,5: 1,Randgold: 4,9: 1,Royal Gold: 4,8: 1, Randgold: 1:1
- Each outstanding common share of Osisko will be exchanged for C$2.09 in cash, 0.07264 of a common share of Agnico Eagle, 0.26471 of a common share of Yamana, and one common share (one-tenth of a common share on a consolidated basis) of a newly formed company that will acquire certain assets of Osisko as part of the Arrangement ("Osisko Gold Royalties Ltd").
- TORONTO, July 2, 2015 - Alamos Gold Inc. (TSX/NYSE: AGI) and AuRico Metals Inc. (TSX: AMI) are pleased to complete the previously announced arrangement. Each former Alamos share was exchanged for 1 Class A common share of Alamos ("Class A Shares"), US$0.0001 in cash, 0.4397 AuRico Metals Shares, and each Former AuRico share held was ultimately exchanged for 0.5046 Class A Shares, and 0.2219 AuRico Metals Shares. Upon closing, Alamos has approximately 255,505,000 Class A Shares outstanding, with Former Alamos and Former AuRico shareholders owning approximately 50%, and AuRico Metals has approximately 118,120,000 shares outstanding, with Former Alamos and Former AuRico shareholders each owning approximately 50% of the shares not held by Alamos.
It is anticipated that Alamos will commence trading on the Toronto Stock Exchange ("TSX") and New York Stock Exchange ("NYSE") under the symbol "AGI," and AuRico Metals will commence trading on the TSX under the symbol "AMI" on July 6, 2015. Former Alamos and Former AuRico shares will be delisted from the TSX and NYSE that same day.
Table with low-risk step-in levels and potential objectives: (Eldorado Gold is also listed under Gold & Silver juniors) When selecting a stock, preference is given to those where the price sits on 200 days Moving Average and/or price sits on the bottom of the uptrend channel (blue line) note: Table and Objectives have been updated - Objectives are short/medium term - use trailing stops once the target has been reached!
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Updated January 18, 2012 - Durban Roodepoort Deep (Drooy) - a buy at these levels (DRD Gold)
We were initially advised to buy this stock at 75 cents. The potential objective is +1,015%...cheap again!. Durban Roodepoort runs the deepest Goldmines in the World...but lately, its behavior has been rather sloppy! Having said this, the stock is still cheap. Although South Africa has been managed differently since Mandela took over, the MAIN source of income is Mining, AND the white Anglo-Saxons have trained all black businesspeople.
With mining assets in South Africa, the company runs operations from exploration through to smelting. Shares are trading at $4.23 at the time of writing, toward the bottom end of their 52-week trading range of $3.96 to $6.23. The company is capitalized at $162.80 million at the current market price. Earnings per share for the last fiscal year were $1.21, placing the shares on a price-to-earnings ratio of 3.49. It paid a dividend of $0.06 last year (a yield of 1.40%), which was covered over 20 times by its earnings. It has the lowest price-to-earnings ratio of gold mining stocks.
November 2008 - Gold shares saw the most significant jump in years. This is how fast Gold and Silver shares can go up...
Returns on gold mines are swift and often unexpected. We have a BULL RUN!
Gold mines suffer somewhat because the trading business is redirected toward Gold and Silver ETFs.
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