Welcome to GuruFocus Investment Space.

Please Join Us to share your investment ideas with more than 100,000 GuruFocus users.

Join      Log in

smithpaul Blog

smithpaul's Space » All Blogs » View Blog

Renewed Action in Anticipation of the Fed’s New Monetary Policy

178 views  2012-09-27 00:36
In the article “Mining Stocks Getting Exactly What They Need,” Clark notes that what’s required for gold and silver stocks to really advance, though, is the return of institutional investors to the sector, which he believes will happen if gold and silver prices keep ticking higher.

“Silver prices are currently moving nicely high—much stronger than gold,” reports Clark. “Silver prices have lagged spot gold for quite a while now, and some of the best values that recently developed on the stock market are silver stocks.”

According to the Profit Confidential contributor, there are actually very few stock that are more expensive, with higher multiples and the best properties and prospects for profitable growth going into 2013 and continuing into 2014.

“…there are actually very few attractive gold and silver mining companies on the stock market at this time,” Clark states. “Costs have been rising substantially at many precious metals companies, and profitability at a lot of companies has been hit.”

In the large-cap space, Clark points out companies like Barrick Gold, Newmont Mining, and Goldcorp, which have all had a very tough year on the stock market. Despite the fact that these large-cap companies pay a decent amount of dividends, their share prices are still in the doldrums and price-to-earnings (P/E) ratios aren’t anything special, notes Clark.

While renewed action has only just begun, Clark concludes that “gold and silver prices are rising, and this is exactly what mining stocks need.”

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.


Comments Comments (0 )

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)