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Mining stocks?
BleachedAnusDawg
Member Posts: 11,949
I put some of my IRA cash in a MF that includes a mining stock. Reading more about mining right now and people say this is a time to buy. Anybody following this sector?
Comments
Top ten holdings of this fund are NUE CLF X CMC STLD AA NEM RS RGLD and CDE.
Thanks for the question. I will take a look at these stocks and buy those I like instead of buying more XME.
Analysts seem to prefer NUE STLD RS and RGLD.
C'mon. Any input is appreciated.
I stay away from Gold, though. Like others have said, it has little use.
It takes forever to get a gold/silver mine into production - and given where prices were 5 or 6 years ago, there's not a ton of new mines coming online any time soon, particularly in relatively safe political countries like the US. Some crazy shit goes on in Africa where all of a sudden, the mine owner isn't any longer when the government in power decides they want it.
What you mean to say is, that as a means of exchange, gold has little use since the Rothschilds took the US off the gold standard..
But there are countless uses of gold which is why there is a physical shortage of the metal.
Yes, there are other uses.
Supply exceeds demand. Price of gold is dropping.
Tell me more about this shortage?
Or, if you are trying to actually add value and refute my point, when will gold stop freefalling?
Freefalling? Over what time frame?
Miners can make good money down to about $1350. The smart ones can go below that. You'd be fairly surprised at how much activity there is in the mining space on majors trying to acquire juniors. Silver is driving a lot of the activity as most every gold property will throw off silver as well.
Buy the miners, not the commodity. it's not like oil where all the junior producers are hedged against WTI. Much more of an 'open' market for the sales of physical gold -the demand of which is going through the roof for the products mentioned above.
With regards to mining stocks, stay the fuck away from anything that sniffs of Vancouver, BC/junior mining. It's been a while since the BC/Toronto paper traders have been running their pump and dump scams (mining has been in the toilet) - there's lots of projects out there with big ounces touted. But getting into production is an entirely different beast. Super expensive CAPEX and a lot of governmental red tape, particularly in the US and Canada. Good to go along for the ride on the way up, but rest assure you're being played unless they are well into permitting and environment/archeological studies. Better still if you can catch them right before they actually get a construction/mining permit in hand. Then the big boys like Rio Tinto or Kinross or Barrick are coming in for an acquisition.
Otherwise, the scam is to pump up the project, run the stock up and then 'sell' the project to another Canadian junior mining company (usually in stock) and watch them run it up again while the first company exits out via trades where they have limited cash invested.
US projects are relatively safe but do your due diligence as to who is behind it and what phase they are in the development cycle.