Mining Stocks – Precious Metals Are Hated Again (My Fall Shopping List)

by FI Fighter on October 25, 2017

in Precious Metals, Precious Metals Updates

Gold and silver stocks are out of favor and back in the toilet again! Well, maybe not the entire sector, but in the world of mining stocks, almost nobody is a fan of advanced stage developers right now…

Can it get any more boring?

The trend ain’t your friend…

Here’s a six month chart.

  • Erdene Resources (ERD.TO/ERDCF) is down -43.4%.
  • Pure Gold Mining (PGM.V/LRTNF) is down -13.1%.
  • GoldQuest Mining (GQC.V/GDQMF) is down -28.7%.
  • Dolly Varden Silver (DV.V/DOLLF) is up 6.67% (but down -13.5% in the last month).
  • Balmoral Resources (BAR.TO/BALMF) is down -32.9%.
  • Sarama Resources (SWA.V/SRMMF) is down -55.6%.

It’s BEET RED these days!

Everyone likes to think of themselves as a contrarian… Well, if you want to attempt to “buy low” and hunt for deep value discounts, the above stocks are a good place to start…

No, these companies certainly aren’t perfect, but what stock really is? If you deep dive enough, you’ll be able to find faults with just about everything…

Sure, tax-loss selling could cause many of these stocks to slide even further, but it doesn’t cost anything to add stocks to your watchlist!

With that said, from a Risk/Reward angle, I like what I’m seeing with these stocks… The above names (along with many others) are back on my radar/watchlist again…

I did add some more shares of ERDCF this morning, but as we get deeper into tax-loss selling season, I’ll look to try and pace myself as I attempt to add some more cheap merchandise to the portfolio…

 

Nobody is much a fan of advanced stage gold/silver developers these days, which I guess is just fine by me.

 

Buying anything at 52 week highs feels sooooooo good! Trying to time the bottom and catch falling knives feels soooooooooo wrong (scary)!

 

Happy Hunting!

{ 12 comments… read them below or add one }

1 AnkitNo Gravatar October 25, 2017 at 7:08 pm

Same here, added more ERDCF, CANWF, MGDPF and LRTNF, love this deep. will be adding more. going ALL IN soon.

Reply

2 FI FighterNo Gravatar October 25, 2017 at 7:19 pm

Ankit,

Yes, those are great companies too! Big fan of Orca and Marathon Gold and I own a bunch of those…

Orca is up a bit, which is why I didn’t mention it but it’s still one of my favorite developers and their management team is top notch. I really like Marathon Gold as well and own a lot of shares, but its valuation is a bit higher so I guess I won’t tune in and back up the truck unless it falls a lot more. But it’s one of my favorite developers too!

Cheers!

Reply

3 Matt BurgessNo Gravatar October 25, 2017 at 7:36 pm

Awesome post. Been watching a lot of these but Im not seeing any screaming table pounding buys like I did at the end of 2015.

Marathon is interesting but not a steal of a deal at these prices. Orca is a buy under .50 cents I would say. GQC may take a stab in the low .20s its very cheap on a per oz basis.

Going to have to bust out a spreadsheet like the nerd I am and start making my own shopping list lol

Reply

4 FI FighterNo Gravatar October 25, 2017 at 7:42 pm

Matt,

Not quite yet for screaming, table pounding buys, but I think enough of a dip to warrant closer monitoring of the situation. 🙂

Yeah GQC got hammered on the heels of the news release about DR reforming their mining laws… More onerous if it goes through, but they’ve got a ton of cash in the bank and Cachimbo could be a major new discovery. Downside is moderate since shares are becoming cheaper by the day.

All the best!

Reply

5 AlexNo Gravatar October 25, 2017 at 8:27 pm

You’d like frank curzio podcast that came out today with marinnkatusa talking deep value and lithium and copper even used your hockey comment you use.

Reply

6 PhilNo Gravatar October 26, 2017 at 1:47 am

I recently setup a TD ameritrade account when I ran into a pdf talking about the ‘big 4’ for international stock trading:

http://www.321gold.com/editorials/macfarlane/macfarlane033116.pdf

it mentions: Scottrade, Fidelity Investments, Charles Schwab, and Interactive Brokers.

I’m currently looking at fidelity of the four and was thinking closing shop with TD ameritrade. IB looks to be for experienced users (saw a review on youtube. Schwab looks to be a pain in the butt as noted by someone on ceo.ca tryin to make trades after hours. scottrade looks to have high fees for international trades. I wanted a 2nd opinion before jumping through multiple hoops. Thanks.

Reply

7 vinitNo Gravatar October 26, 2017 at 10:14 am

Thats a nice shopping list. I also bought tons of ERDCF, CANWF. Wonder if you would buy more of Silver miners like AG,AXU? Those also looking very attractive now.

Reply

8 AnkitNo Gravatar October 26, 2017 at 1:36 pm

AXU looks good, added more. also check USAS too, hard to get under $4, I think it has only 40M OS and 162M cap, USAS move up very quick when silver and gold rebound, I found Marathon Gold (MGDPF) and Ameican Silver corp (USAS) stays solid even most of the miners are down with gold.

Let’s hope Gold and Silver rebound soon as i am all in and in RED 🙂

Reply

9 FI FighterNo Gravatar November 5, 2017 at 9:30 am

Ankit,

All RED is something I am very used to seeing, unfortunately…

Cheers!

Reply

10 FI FighterNo Gravatar November 5, 2017 at 9:30 am

Vinit,

In regards to silver miners, my short list would be: AAU, DV.V, AXU.

I’m not really a fan of producers in this low price environment (too much pressure, risk, zero margins), so am avoiding companies like AG, EXK, IPT.V, etc.

Cheers!

Reply

11 ChenNo Gravatar October 27, 2017 at 5:38 am

You should start a newsletter with your picks, I would pay for it!

Reply

12 FI FighterNo Gravatar November 5, 2017 at 9:27 am

Chen,

Thanks for the suggestion, I’ll look into seeing what I can do!

Cheers!

Reply

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