Tag Archives: HUI

We’ve been surprised at the recent action in the precious metals complex. During the recent correction the shares were showing quite a bit more strength than the metals. Then the shares took a dive below support yet the metals maintained their recent lows! How do we interpret this wild volatility in the relationship between the shares and the metals? Quite often we look at daily and weekly charts. Now is the time to take a look at the monthly charts which can help us get a better read on the larger trends at hand. Words: 636

You have probably read in multiple articles that mining stocks offer leverage to the movement of the underlying metal. This hasn’t been the case over the past several years, however, which has created some confusion in the precious metals investment community. While the gold price has more than doubled (+110%) in the past five years, the AMEX Gold Bugs Index (HUI) is up only 15% so why do people keep saying that mining stocks offer leverage? Well, because they do during certain periods of the bull market. [Let me explain the situation more fully and exactly where we are in the current bull market.] Words: 677

With President Obama being re-elected we can expect four more years of a Washington-centric controlled economy with a rolling program of borrow, print, spend and pretend; similar to the last four years....[What affect will such fiscal irresponsibility have on the U.S. dollar, gold and silver? Read on!] Words: 717

If you aren't already in, this coming Monday or Tuesday (Nov. 5-6th) should represent an exceptional buying opportunity as gold moves into its final intermediate cycle bottom. Now that the 38% retracement has been breached I would look for a final exhaustion move to test the 50% level early next week as we move into the elections. Words: 284

...Gold is about to undergo a profit-taking event...as a result of the USD beginning a rally, probably beginning today. I'm looking for the dollar index to test the downward sloping 200 day moving average [see chart below] before rolling over and continuing the secular trend. This should drive gold down into a final intermediate degree bottom around $1694 or so before testing the all-time highs at or slightly above $1900 sometime before the end of the year. [Let me explain why that is most likely going to happen.] Words: 401

By looking at the charts and fundamentals for precious metals and the miners it is our firm belief that the precious metals sector has bottomed out and the downside is very limited from here on out. While there doesn’t seem to be an immediate rush back into the sector we believe that the worst is over and that now is a great time to be acquiring physical metals and, more importantly, producers with growth profiles. That’s where we really see the value and upside potential. [Let us provide you with a specific course of action.] Words: 792

While juniors, mid-tiers and large producers will usually bottom around the same time, they each outperform at different times. In this missive we look at some charts to decipher when its time to buy [each category and when one or the other] should be avoided. Words: 470

We suspect that many precious metals investors are saying, “We don’t want to play anymore!” and our reply is, “You mean you want to quit right now? Right at the bottom of this cycle? You must be crazy - and that is crazy with a capital C!” True, this is a very challenging market environment for resource shares, but we know what the ultimate outcome will be: higher share prices. The only question is “when” and our opinion is that we are very close in time (within days or a week or two at most) of being able to say that the lows are behind us. Let me explain. Words: 785

The Fed’s recent inference that QE3 was not imminent has caused physical gold and silver and the HUI and the XAU to breach their downside support lines. These transitions set up the distinct possibility that we could well see $1,500 gold and the HUI and XAU at 400 and 144, respectively! Let me outline my analyses of the current situation and how it might unfold. Words: 386

Do not expect the gold mining sector to go up as a whole. Do not expect gold miners to leverage the gold price. The stock price appreciation will all depend upon the individual stock's prospects and management competence, as in how the general market rates other investment vehicles as a whole. [Let me explain.] Words: 687