Gold Mining Stocks – Any Bargains Left?

by FI Fighter on March 8, 2016

in Precious Metals, Seeking Alpha

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Perseus Mining

With the recent run-up in the spot price of gold from the $1050 lows on December 17, 2015 to well over $1,260 today, the gold rush is back! With concerns over the slowdown in global economic growth increasing, even Deutsche Bank has come out and recently declared that it’s time to buy gold. In addition, I think it’s safe to say that the majority of gold mining stocks have also experienced a resuscitation as of late. These days, I know that gold must be entering near-overbought territory, given my cellphone keeps getting pinged throughout the day with friends and relatives asking for mining stock suggestions, which is something that seldom happened last year.

It’s been a pretty wild ride these past couple of weeks, no doubt. As the saying goes, in the early stages of a continue reading at Seeking Alpha

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{ 4 comments… read them below or add one }

1 SeanNo Gravatar March 8, 2016 at 10:25 pm

My thoughts are that on big picture basis miners remain historically cheap as a group. Take first majestic at 5, it has ran from 2.50 but look at where it is going in a favorable gold/silver environment. It was at 30 in 2011, probably going back there. Same with most miners in time. I suspect gold 2k will bring hui past 600.
That said I suspect gold not ready for prime time. Miners may have seen bottom but gold may be going back to test prior January lows. I would be cautiously buying in to miner weakness, especially moving in to later in month.
I cont to accumulate ngd, auy, mux, pvg, exk, sand and tgldx in to weakness.
Should be exciting over next several months.

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2 FI FighterNo Gravatar March 8, 2016 at 10:35 pm

Sean,

No arguments from me there. Totally agree with your take, and the miners are still trading at well below their peaks from 2011. Miners bottoming out before the metal itself is also what’s to be expected. I also wouldn’t be surprised if gold retests its January lows.

Despite that, as is human nature, interest only seemingly picks up when both the metal and the stocks are going vertical. Although it’s still extremely early, the majors and the Canadian mid-tiers seem to have led the surge so far. I think the West African stories are still lagging which is the premise behind the article.

Your stock picks are all good ones. Accumulating on weakness and pullbacks is the best way to play miners. I haven’t bought anything during this most recent run up and have no plans to.

If we don’t see another firesale like January 19, I’m probably done buying.

Cheers!

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3 JNo Gravatar March 9, 2016 at 10:56 am

Just wanted to congratulate you, and wish you the best of luck. I’m glad to see your still posting as I thought it might have been a while to see a new post as you take on retirement.

Cheers

Reply

4 FI FighterNo Gravatar March 13, 2016 at 7:59 pm

J,

Thanks so much! Appreciate the kind words!

Take care!

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