With gold and silver prices testing new highs, we turn to several leading resource experts -- Mary Anne and Pamela Aden, Mark Skousen and Larry Edelson -- for their favorite plays in the sector.
In The Aden Forecast, the Aden sisters explain, "Gold and silver recently moved well into record high territory, and it looks like they are poised to head even higher.
"Most impressive, gold's leading indicator still has room to rise further before it reaches the high area. This tells us that gold's current C rise is very strong and it's now likely headed to our next target level near $1200. Meanwhile, December gold will remain super strong above $1,020.
"Silver is hitting new bull market highs. If silver can break above the $19-$20.80 levels (the 2008 highs) in the weeks ahead, the rise could take off and this is indeed a good possibility.
"Gold shares are similar... new bull market highs and room to rise further. They continue benefiting from both rising gold and a rising stock market. We recommend that you keep all of your metals related positions; buy new ones only in gold, silver and the strongest shares.
"We continue to recommend exchange-traded funds such as the iShares Silver Trust (NYSE: SLV) and the SPDR Gold Trust (NYSE: GLD).
"Among our individual mining stock recommendation, we continue to like Silver Wheaton (NYSE: SLW) as well as Eldorado Gold (NYSE: EGO)."
In his Hedge Fund Trader, Mark Skousen says, "Silver is benefiting from two trends: a bet on the recovery in the global industrial world (where silver is used in photography, appliances, and production processes) and its rising value as a monetary metal.
"Demand for silver coins, such as the American eagle silver dollar, has overwhelmed producers.
"The use of silver in industrial applications fell to 447.2 million ounces in 2008, down from 453.5 million ounces the year before, according to The Silver Institute, a nonprofit industry group.
"A good play on silver is Hecla Mining (NYSE: HL) , the oldest U.S.-based precious metals mining company in North America and the largest producer of silver in the United States.
"Headquartered in Coeur d'Alene, Idaho, Hecla owns the Lucky Friday mine in Idaho and recently acquired 100% ownership of the sixth-largest silver mine in the world, the Greens Creek joint venture in Alaska.
"This transaction has dramatically increased Hecla's annual silver production in 2009. Hecla is expected to produce 10.5 to 11 million ounces this year, while at the same time sharply reducing its cash cost per ounce of silver by a third to less than $3.00 per ounce of silver.
"Hecla should be highly profitable as it enters 2010, a big turnaround (it lost $80 million in 2008). CEO Phillips S. Baker, Jr., states, 'If prices for metals remain at their current levels, we should generate substantially more operating cash flow this year than anytime in Hecla's hundred year history.'
"In fact, revenues rose 35% to $74 million in the most recent quarter ended June 30. In our view, it's time to look at silver. Let's buy Hecla Mining."
In his Real Wealth advisory, Larry Edelson adds, "My indicators suggest the next leg down in the dollar and the next leg up in gold has begun; as such, we are adding IamGold (NYSE: IAM) to our portfolio.
"The financial crisis may have passed in the private sector - but only to soon re-emerge in the public sector as Washington begins to drown in a nightmare of unpayable debts.
So while inflation is not yet obvious to everyone, what is becoming abundantly obvious is that Washington is broken beyond repair. This is why the dollar is falling.
"And that is why savvy investors all over the world are beginning to lose confidence in Washington and our currency ... and why it's all leading to a massive renewed bull market in natural resources, especially gold.
"IamGold is a bi-level gold producer I've been following for some time now and I believe with the next leg up in gold, the company is poised to hit the big time.
"The company has more than 1 million ounces of annual gold production from eight mines on three continents, in West Africa, the Guiana Shield of South America and Canada. And IAG is aggressively in expansion mode.
"With 12.4 million ounces of proven and probable gold and another 26.4 million of potential gold resources, I figure the company's assets are worth as much as $39 billion.
"However, the company's market cap is a mere 1/8th of that at about $5.3 billion. That market cap is sure to grow in a raging gold bull market.
"Moreover, the share price has recently thrust higher through chart resistance at the $14 level, and the chart to the right shows that the next cycle push higher should now be well underway, with a rising projection into late February of next year."
Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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Reader Comments (Page 1 of 1)
10-21-2009 @ 9:53AM
Davey Rockeyfeller said...
It's the falling dollar due to the fact that America is being bankrupted and losing money daily. The globalist corporate banksters top being the Rothchild's and here the Rockefellers and Goldman Sachs and busting us down into their New World Order and invested all the money into Chindia's rapid rise. You'll line up to be "chipped" for your own "safety" in about 30 years probably at birth then. Until that day play the dollars fall with commodites, golds, silver, oil, commodity currencies, and Chindian and Bric stocks while dumbed down Americans waste their lives and money enforcing it in the middle east spraying DU weapons all over the place. U-238 has a half life of about 2.5 billion years so I wouldn't plant a garden over there anytime soon. Thanks moron scientists I lived by Nuclear Metals which made the stuff and have lung disease but then the dogs and kids who died had it worse huh? Idiots.