Mark my words:
A. Gold and silver are now in their final bottoming process, with a bottom not too far off in time or price.
B. Once the bottom is confirmed, gold will be on the launching pad for a move to $5,000 plus over the next few years; silver, to more than $125.
C. Most investors will miss a good portion of the metals’ next bull runs higher. Chief reason: They will be waiting for signs of inflation to reappear, when inflation will actually have little to do with the next leg up in the precious metals.
D. Most investors, just as importantly, will be buying the WRONG mining companies as another way to profit from the next bull run higher in the precious metals.
They’ll focus on tiny, beat-up junior exploration companies, when, in fact, only a select handful of juniors will reap the benefits of the next precious metals bull market.
Or, they’ll focus on senior miners, laden down with too much debt, or seniors that have started to re-hedge their resources and reserves, thinking gold and silver are in long-term bear markets.
Which brings me to the focus of today’s column: A list of mining companies I want you to have that are now on my radar screen. Companies that I may soon be pulling the trigger on.
|Only a select handful of juniors will reap the benefits of the next precious metals bull market.|
Of course, specific recommendations are reserved for members of my publications — including the Real Wealth Report and its more active sister trading services, the Gold and Silver Trader and Power Portfolio.
Members will get all the details, including exactly what and when to buy, how much to buy, what price to pay, how to reduce risk, and how to maximize profit potential by trading in and out of them.
And many of the companies I recommend may not even be on the list I have for you today. They are strictly reserved for members only.
Plus, I am now seriously looking at warrants on mining company shares. Warrants are a bit like options, only you don’t have serious time decay when you purchase them, and unlike options, they can represent a convertible security that can be transformed into direct shareholdings.
And even better, many warrants are trading at fractions of a penny!
But since I’ve been inundated with emails asking me what miners I like going forward, I think everyone has a right to know what I am looking at.
So here we go. A list of 10 you might want to keep handy:
1. Goldcorp Inc. (GG)
2. Yamana Gold, Inc. (AUY)
3. Newmont Mining Corp. (NEM)
4. Agnico Eagle Mines (AEM)
5. Freeport-McMoRan Copper & Gold Inc. (FCX)
6. Hecla Mining Co. (HL)
7. Eldorado Gold Corp. (EGO)
8. New Gold, Inc. (NGD)
9. Franco-Nevada Corp. (FNV)
10. Randgold Resources Limited (GOLD)
[Editor’s note: To see more mining companies I’m looking at, head over to the Money and Markets Facebook page. Don’t forget to “like” it while you’re there.]
Now, on to a brief review of a few other markets.
First, the dollar: It’s bottoming and about to explode higher against the euro. Chief reasons: The war cycles, which favor the dollar, and the terrible condition Europe is in.
The best ways to profit: Consider a long dollar ETF, such as PowerShares DB US Dollar Index Bullish Fund (UUP) and ProShares UltraShort Euro (EUO) for a short position on the euro.
Second, the stock market: We now have the first leg down in place. Expect a bounce, then another leg down. Final support should come into play somewhere between 14,300 and 14,965 for the Dow Industrials. Then a big move up, to new highs.
For the next leg down, consider an inverse ETF such as ProShares UltraPro Short S&P 500 (SPXU) or the ProShares UltraPro Short Dow30 (SDOW).
Then, when the Dow bottoms, consider a leveraged ETF for the upside, such as the ProShares UltraPro Dow30 (UDOW) or the ProShares UltraPro S&P 500 (UPRO).
Third, commodities, in general. There’s a bit more downside coming, mainly in the ags, in base metals like copper, and in crude oil. But not all that much.
Precious metals should bottom first, but when the rest of the sector bottoms, fasten your seatbelts: There’s going to be tons of money to be made as the commodity sector enters its next bull run higher.
Best wishes and stay tuned …
P.S. I just put the finishing touches on a complete Dow 31,000 Preparedness Kit with five distinct reports for you, including Outrageous Opportunity: How to Position Yourself to Profit in the Bull Market of a Lifetime. To get them — absolutely FREE — turn up your speakers and click here now.