Sunday, January 8, 2012

Gold stocks to buy

SuperFan Badge SuperFan badge holders consistently post smart, timely comments about Washington area sports and teams.Culture Connoisseur Badge Culture Connoisseurs consistently offer thought-provoking, timely comments on the arts, lifestyle and entertainment.Post Writer Badge This commenter is a Washington Post editor, reporter or producer.Post Forum Badge Post Forum members consistently offer thought-provoking, timely comments on politics, national and international affairs.Weather Watcher Badge Weather Watchers consistently offer thought-provoking, timely comments on climates and forecasts.World Watcher Badge World Watchers consistently offer thought-provoking, timely comments on international affairs.Post Recommended Washington Post reporters or editors recommend this comment or reader post.Beacon Equity Group Disclaimer This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.Read up on your favorite stock market newsletters.Sharper your stock trading skills with our stock market education section.The market appears to have bottomed, the technicals are improving, and valuations of both producers and juniors are quite compelling.All bull markets have to endure a plethora of corrections and all bull markets have to endure a handful of major corrections. The gold stocks are no different. In fact, due to nature of the mining business and the high-beta status of these stocks, it is very easy for investors to forget that they (the gold stocks) are in a real structural bull market. Corrections and crashes are commonplace and yes, even in a bull market. Yet in 2011 the gold equities did not crash. They merely digested and consolidated the massive recovery gains from 2009 and 2010. This persistent consolidation has left many scared, frustrated and distrustful of the sector at precisely the wrong time. Gold stocks have quietly completed a major bottom, their first since 2008.There are several strong reasons why my firm believes the gold stocks have completed a major bottom. The bullish percent index (number of stocks on a point and figure chart buy signal) dipped to 10%. The last time this happened was in 2008 when the gold stocks bottomed. The two big downturns in 2008 occurred with the bullish percent index at 30% and 70%. Presently, the entire sector is oversold and thus there is very little room to fall but much room to rebound.The gold stocks have just made their fourth major low since this bull market began. The bull is moving into its 12th year yet many feel like giving up on the gold stocks. They don’t have the understanding or the patience that is required to make money in this sector and in a bull market. They are dismayed by the fact that the metals have far outperformed over the past five years. However, this is nothing new. Check the previous chart and you’ll notice that the gold stocks made little progress from 1966 to 1972. The same can be said for the Nasdaq from 1987-1991.Given all we know, this is likely to be your best buying opportunity for the next few years. The market appears to have bottomed, the technicals are improving and valuations of both producers and juniors are quite compelling. Sounds like a major low to me!The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.NEW YORK, NY, Jan 03, 2012 (MARKETWIRE via COMTEX) -- Gold mining stocks have come under significant pressure in recent months amid widespread weakness in precious metals. According to the Associated Press much of the decline in gold can be blamed on questions about Europe's efforts to resolve its sovereign debt crisis and what the impact on the global economy will be. A slowdown in growth in China has also been a factor. The Paragon Report examines the outlook for companies in the Gold industry and provides equity research on Yamana Gold, Inc.The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the gold industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.Great Basin Gold Ltd. engages in the acquisition, exploration, and development of precious metal deposits. It explores for gold, silver, and aggregate. The company is currently focused on its two producing mines in the world's two richest gold regions: the Hollister Project on the Carlin Trend in Nevada, USA and the Burnstone Mine in the Witwatersrand goldfield of South Africa.The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimerThe year has started with pump prices at record highs, and the stage is set for a volatile 2012 that could see sharp increases. Here's why.As you review your investments, think about how this year might be different as well as how it could bring more of the same as 2011 in your portfolio.The action you requested requires a MarketWatch Community display name.MarketWatch Community is a free service that lets you discover, organize and share MarketWatch stories with other readers.The action you requested is only available to MarketWatch members.By registering, you are agreeing to MarketWatch's Terms of Service and to receiving periodic news and special offers via email about MarketWatch enhancements, products and services.Please register to gain free access to WSJ tools.An account already exists for the email address entered.This service is temporary unavailable due to system maintenance. Please try again later.another account. Please enter a different usernameThe email address you have entered is already in use.From time to time, we will send you e-mail announcements on new features and special offers from The Wall Street Journal Online.Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visitDow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visitThe quest for a vaccine against AIDS is gaining momentum, with research published Wednesday identifying promising new candidates that protected monkeys against a powerful strain of the virus and which soon could be tested in humans.Excessive pay for bosses at struggling companies represents a market failure and shareholders will be given more powers to block bumper deals, said Prime Minister David Cameron.The email address null is already associated with another account. Please enter a different email address:The email address null is already associated with another account. Please enter a different email address:LINKS TO ACTUAL PAGE CONTAINING WEB SLICE FUNCTIONALITY.Data today is expected to show European consumer confidence slumped to the lowest in more than two years in December, while retail sales in the region fell in November and German factory orders declined, according to the median forecasts in Bloomberg surveys of economists. The U.S. economy probably generated 155,000 jobs in December, compared with 120,000 the previous month, based on estimates before a Labor Department report.The euro was at 98.67 yen from 98.63 yesterday, when it touched 98.48 yen, the weakest since December 2000. German Chancellor Angela Merkel will meet French President Nicolas Sarkozy on Jan. 9 in Berlin to talk about increasing fiscal coordination among euro-region states ahead of the European Union leaders' summit at the end of the month.The Shanghai Composite Index erased an earlier loss of as much as 0.7 percent amid speculation the central bank will lower banks' reserve-requirement ratios. The monetary authority said today it has suspended bill sales until after the Lunar New Year break, which ends Jan. 29. The Hang Seng Index fell 1.1 percent today, poised for the biggest slump in three weeks.Elpida Memory Inc., which makes computer memory chips, tumbled 5.4 percent in Tokyo. Nomura Holdings Inc. cut its 2012 growth forecast for global shipments of dynamic random access memory after prices of the chips used to help computers juggle programs fell.Oil for February delivery declined 0.1 percent to $101.70 a barrel in electronic trading on the New York Mercantile Exchange. Energy Department data showed crude supplies climbed 2.2 million barrels last week, compared with a forecast for a 1 million barrel decline in a Bloomberg News survey. Oil has risen 2.9 percent this week on concern that sanctions against Iran will curb supplies.The European Commission is forecast to confirm today that an index of household sentiment in the single-currency area fell to minus 21.2 from minus 20.4 in November, according to the median estimate in a Bloomberg News survey before the report. Retail sales in the region probably dropped 0.4 percent in November, while German factory orders fell 1.8 percent, economist projections show.The man who captured the most famous single moment in Bay Area sports history recalls it all.Be the first to share your thoughts on this story.Another factor helping gold Friday was renewed interest in physical buying. Nigel Moffatt, treasurer and manager at the Perth Mint Depository, said there has been an increase in Chinese and Indian buying during the first week in January."We did not produce many kilobars in the past three weeks due to zero demand out of India and very limited Chinese demand due to Chinese dealers being overstocked," said Moffatt.The Bombay Bullion Association said that in the first quarter India might import 143 tons, just half of what it did in 2011 primarily due to higher prices as the rupee continues to depreciate against the dollar. This comes after very low demand in the fourth quarter.Nadler instead is watching gold ETF inflows, which he said were 50% lower in 2011 versus 2010. Nadler said that the gold ETFs added 134 tons during the year versus 291 tons in the second quarter of 2010 and 465 tons in the first quarter of 2009. Redemptions were minimal, however, thePursche, on the other hand, said he expects investor demand to pick up in 2012 as Europe resolves its debt issues and global growth increases.China recently lowered its reserve ratio requirements, which means banks are allowed to hold less cash in their coffers. A more dramatic rate cut hasn't materialized, but China's two-day Financial Work Conference begins Friday. The country holds the economy policy meeting every five years to lay out its plan for its economy, which might help shed some light on its monetary goals.Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.Get money-making ideas from the hottest investment vehicle on the planet. Our experts show you how to play various ETF sectors to help pump-up your portfolio.Quotes delayed at least 20 minutes for all exchanges. Market Data provided byTheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.The fact that gold producers are paying a dividend is worth exploring. First, it means gold producers have cash flow. Now whether or not the best use of free cash flow is to return it to shareholders instead of pouring it into new exploration is for the punters to decide. But the fact is, gold is set to finish higher for the 11th straight year. Higher prices are boosting cash flow for producers.Producers are paying dividends partly because they have the cash, but also because they have competition. Exchange Traded Funds (ETFs) have become a popular vehicle for precious metals investors to hitch a ride on rising prices. Low-cost ETFs have generally been bullish for gold bullion prices. But they may have also sucked out liquidity that in the past would have gone into gold stocks.One further note to all this. The scandal at MF Global will turn out to be incredibly bullish for gold andImagine leaving your car to be valet parked while you go eat dinner with your wife. You eat a pleasant holiday meal, perhaps a Wagyu beef steak from the Margaret River, washed down with a 2007 Forrest Hill Cab Sav. When the valet comes back with your car, 28% of it - all of the boot and most of the rear tires - are gone. That would ruin your dinner.It's possible that no one but the paranoid and the idle are going to take note of what happens to MF's customers. But it's also possible that investors inmay return to the share market in order to get exposure to precious metals. Keep an eye on that for 2012 - the return of gold stocks!Gold stocks carry their own risks, of course. But a small reallocation by investors from ETFs and futures and to share could be a big boost for shares, which have lagged the bullion price this year. And of course all of this assumes bullion prices are not in a bear market but on the verge of a mania phase.What do you think could happen when ordinary people realise that what's theirs may not really be theirs when they need it? Definancialising your life - extracting the value of your labour from the financial system and converting into a permanent store of value - is what we've been banging on about for years now. It's not too late. But you might want to hurry.

No comments:

Post a Comment