Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Are Gold and Silver Mining Stocks Still Worth Your Investment?

By

Even though the short-term outlook for mining stocks is a bit unclear, the medium term case is very bullish -- especially for the junior mining stocks.

PrintPRINT
Last Tuesday we posted an essay entitled Gold & Silver Mining Stocks Hold Well Despite Metals' Correction and we summarized it in the following way:
The correction in the precious metals market may not be over at this point, but when it is over, miners might finally outperform the underlying metals once again.

Let's see if this is still the case by examining the HUI Index (INDEXNYSEGIS:HUI) chart (charts courtesy of http://stockcharts.com).



In this week's medium-term HUI Index chart, we have mixed implications for the short term, but the outlook is definitely bullish for the medium term. The recent declines have not been that significant given the corresponding move in gold prices – and in case of the last several days, moves in the general stock market.

Speaking of the general stock market, let's take a look at how stocks fared recently.


Click to enlarge

At the moment of writing these words, we have the S&P 500 (INDEXSP:.INX) at 1413, which is a bit below the 2008 high, but considerably above the red rising support line that you can see on the above chart. Consequently, even if what we've seen so far this week is a beginning of a major decline in the stock market (which we don't think is likely because of the upcoming elections – the powers that be definitely don't want to see plunging stocks right before voters go to their booths), we will see a pause quite soon.
< Previous
No positions in stocks mentioned.
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.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE