The Chinese have also been buying mining companies around the world in an effort to increase the country’s reserves; this is a reason why I like some of the smaller mining companies.
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New York, NY (PRWEB) April 06, 2012
With the current weakness in gold, George Leong, contributor to popular financial web site and e-newsletter Profit Confidential, does not feel it is time to dump gold stocks. In fact, he believes this price weakness should be viewed as an opportunity to accumulate stocks.
In his recent article, Mining Stocks: Six Potential Moneymaking Picks, Leong states that he favors the metal plays and especially the mining companies and junior gold miners.
“China and India continue to be the world’s top buyers of gold and this is expected to continue,” says Leong. “The Chinese have also been buying mining companies around the world in an effort to increase the country’s reserves; this is a reason why I like some of the smaller mining companies.”
One of the promising mining companies that Leong suggests looking into is small-cap gold miner Jaguar Mining Inc. “The stock surged in late 2011 on news of a potential $1.0-billion takeover bid from China-based Shandong Gold Group, but the bid never came to fruition for whatever reasons,” says Leong.
Leong is also investigating Keegan Resources Inc., which continues to report positive feasibility results specifically at its Esaase Project in south west Ghana. “I like this stock as an aggressive small-cap play with above-average price appreciation potential.”
Another Canada-based company Leong is looking into is Taseko Mines Limited. “The firm mines for copper and gold in Canada and is profitable with above-average price appreciation potential.”
Leong’s advice is to buy a mixture of exploration-stage gold mining companies along with small to large gold producers. “Under this scenario, you can play both the potential aggressive gains of exploration stocks and the steady returns of the large gold producers.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.