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How This "Overweight" Gold Miner’s 21st Century Approach Will Get Us a 50% Gain

By , Executive Editor, Money Morning • @privatebrief -

buying gold

If you're like most of us, I'm sure that at one point or another you've reached one of those crucial career junctures - you know, a point in time when circumstances forced a really tough job choice... or when you made a gutsy career call on your own.

For Rob McEwen, that critical career juncture came in the late 1990s, and it was accompanied by some tough-to-swallow realizations:

He was about to lose his company...

But before long, those fits and starts would lead him, his company - and us - to some of the best profits in the mining sector...

Gold Mining Stocks Get a Boost from M&A Activity

By , Resource Specialist, Money Morning -

gold mining stocks

Investors in gold mining stocks have a great catalyst for profits right now: increased deal-making among gold mining companies.

Low gold prices are likely the impetus for increased M&A activity. It's a trend that's likely to heat up in the short and medium term as pressure builds to minimize losses and squeeze out profits.

This all means profits ahead for certain gold mining stocks - here's where to look...

This Northern Metals Boom Will Give Us More Than 10 Times the Returns of the S&P 500

By , Resource Specialist, Money Morning -

Junior miners can be among the most speculative, most volatile stocks on earth.

They boom, bust, and repeat. Only they do this with more extreme swings than most any other market.

The Nasdaq Composite for example, home to tech and biotech stocks alike, is up by nearly 120% over the past five years, while junior miners doubled... but then gave it all back.

In the last three years, junior miners have, as a group, lost about 58%, while the S&P 500 is up 52%.

But it's looking increasingly like we're entering a brand new boom phase, with junior gold miners up as much as 45.8% this year - with a lot more in store... Full Story

Strangest Gold Market News of 2014: Top Refinery Loses 2.7 Tons of Gold

By , Associate Editor, Money Morning • @TaraKateClarke -

Gold market news, July 30, 2014: On July 25, South Africa's Rand Refinery - the biggest processing facility for gold in Africa and one of the biggest worldwide - announced it will receive a shareholder loan to make up for "lost" 87,000 ounces (2.7 tons) of physical gold in its inventory. The press release describes what amounts to a $112 million loss at current gold prices, making this one of the strangest stories to hit the gold market in 2014.

This is incredibly embarrassing...

Our New Best Stocks to Buy List Focuses on Commodities, Small Caps, Dividends

By , Associate Editor, Money Morning • @TaraKateClarke -

stocks to buy

While commodities have been dominating our best stocks to buy lists lately, that's not the only asset hitting our radar...

Our new best stocks list includes a blue chip giant that's beating the broader market by roughly 50%, five small-cap stocks on the rise, and one generic drug-maker to buy now.

Get these, plus a full-year outlook on dividend stocks, in this roundup...

Profit from These Two Gold Mining Stocks as Prices Rise

By , Associate Editor, Money Morning • @KyleAndersonMM -

Gold mining stocks

With gold prices crossing $1,300 an ounce last week, Money Morning's Resource Specialist Peter Krauth has pinpointed gold mining stocks that are set to cash in on the rising price of gold.

Gold prices suffered in 2013, down 28%. But these gold mining companies strengthened their operations during a down gold market, and are poised to capitalize with gold prices recovering.

As gold prices climb, these companies offer great profit opportunities...

Newmont Mining (NYSE: NEM) Stock Will Shine Again

By , Money Morning -

The Future of Gold Prices

Owning some gold has long been a part of the Money Morning investing philosophy. After all, gold offers some insurance against the dollar-debasing policies of the U.S. Federal Reserve.

One of the easiest ways to acquire the yellow metal is to buy a gold mining stock such as Newmont Mining Corp. (NYSE: NEM).

At first glance, investing in any gold mining stock looks like a lousy idea. Over the past year, nearly all gold mining stocks have plummeted along with the gold prices - but much further.

See how gold mining stocks will rebound here...

My Two Favorite Gold Mining Stocks

By , Global Investing Specialist, Money Morning -

With the world’s central banker’s printing money like mad, you would think investing in gold mining stocks would be a no-brainer.
Yet even with these misguided policies cheapening the dollar, the Market Vectors Gold Miners Index (NYSE: GDX) is down 40% from its peak last September and 48% from its all-time highs in 2011.
So why all the pain for investors?
Better yet, have any gold miners fallen so far they are screaming buys right now?
Here's the deal...

With Gold Prices Flat, It's Time for Junior Miners to Shine

By , Money Morning -

After a heady couple of years, the Midas metal has lost momentum. Gold prices have slipped about 2% in July to fall just below where they started in 2012.

And gold mining stocks have felt the brunt of it more than the metal itself.

For the past few years, the miners have been chasing the metal. The general expectation was that the mining stocks would eventually catch up to gold prices.

But now it looks like the metal is retreating to meet the miners.

The Market Vectors Junior Gold Miners (NYSE: GDXJ), an exchange-traded fund (ETF) that represents the junior miners, is off more than 25% since its inception in late 2009. The big miners represented by Market Vectors Gold Miners (NYSE: GDX) are essentially flat over the same period.

Yet gold prices, as measured by the SPDR Gold Trust (NYSE: GLD) are up almost 40% in the same general timeframe.

So where does that leave gold investors?

Well, it's probably not an ideal time to buy gold if it's pausing here (which it seems to be doing) after a multi-year rally.

And the big miners have their hands full as gold prices have stalled and gold demand has fallen. They may be fully valued, at least for the time being, since they won't be undertaking new projects or acquisitions until things get better or worse.

Beat Gold Prices with a Junior Miner

That leaves the junior miners. They're undervalued enough that they still have some headroom, even given today's tepid metals market. And if things start to improve, they become buyout targets for the big miners.

Read More…

Everything You Need to Know About Junior Mining Stocks

By , Resource Specialist, Money Morning -

Let's make something clear up front: junior mining stocks are not for the faint of heart.

Legendary investor Doug Casey calls them "the most volatile stocks on earth."

They can and do regularly undergo massive swings, both positive and negative.

It's a really tough business. Many flame out.

But all it takes is just one 10-bagger to make up for all the dogs in the pound.

Thanks to a new discovery, a takeover bid or full-blown investment mania, it's not uncommon for some of these stocks to return as much as 1,000%, 5,000%, and even 10,000%.

Those are not typos. In fact, there are countless examples.

Aber Resources was a $3 stock in 1993 before it made a big diamond discovery. Four years later, the stock hit $28/share, handing early investors over 900% returns.

Then there's Diamond Fields Resources. Its shares were $4 before geologists made a massive nickel discovery in 1994. Not long after, the stock hit a pre-split equivalent of $160 for a 4,000% return.

That phenomenal 4,000% return was repeated in 2006, when Aurelian Resources Inc. made a high-grade gold discovery in Ecuador. Shares of the junior miner went from $0.89 to almost $40.

So what makes a stock a "junior miner"?

In a pure sense, junior mining companies have market caps somewhere between $5 million and $100 million.

But here's the thing the makes them not for the faint of heart.

Usually, junior miners don't make any money. They just raise money from investors to explore properties for gold, silver, base metals, oil, gas, potash, or uranium, just to name a few.

And even if they make a significant find, junior miners rarely develop it themselves. Instead they sell the project to a major miner, who can more easily raise the required funding and has the experience to build and operate a mine.

OK, so now you're pumped with the idea that one of these little mining companies could help you retire in two years.

And you're right, they can. But not so fast.

The truth is you need to approach this mining subsector with a game plan -- an investment "toolkit" if you will - to help you to cast aside the dogs and focus on the "diamonds in the rough."

Essentially, there are four main areas you need to vet in order to decide if a given junior miner is one to add to your portfolio.



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