Investing in precious metals 101

PM Miners: Of Blood in the Streets, and Catching Falling Knives

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  • Mon, Mar 04, 2013 - 10:47pm

    #1

    Jim H

    Status Diamond Member (Offline)

    Joined: Jun 08 2009

    Posts: 1798

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    PM Miners: Of Blood in the Streets, and Catching Falling Knives

Every time I think we are at the stage of a final, cathartic puke on the mining stocks.. they take another 5% down day.  Today is another of those 5% (average) down days… and you just have to wonder when the world wakes up to the fact that these companies own Gold and Silver in the ground, and that this is where the puck is going (real money, real stuff, vs paper).  

GDXJ, junior miners ETF, is at a 52 week low, down 3.8% right now

GDX, major miners ETF, is at a 52 week low, down 3.0 %

IAG (IamGold) P/E down below 7.. a deep value stock.. also sporting a 3.8% dividend.  Down 5.9% as I write…  

Miners have never in my experience been more out of favor.. even many Goldbugs have disowned them as just another "paper" investment that is prone to manipulation, etc.  But there are real companies out there, with rights to real metal in the ground.  Unless something has fundamentally changed about how the world works, I believe that there will be fortunes made by those who are saving dry powder now and can invest in the right mining stocks. 

Is today the final capitulatory end of the selling?  How low can they go?  Will they ever go up again?  Will metals ever go up again?  

I will update the thread with my knife catching exploits… bought some RVM on Friday, and it's the only miner going up today.. so I am not bleeding yet    : )

Oh, and Bitcoin is over $36 today.   

 

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