New York, NY (PRWEB) September 21, 2012
Profit Confidential expert Mitchell Clark reports that, after a well-deserved correction in gold prices, gold stocks were hit pretty hard as institutional investors abandoned the sector. However, the sector is beginning to see renewed action, as gold and silver prices are going up in anticipation of the Federal Reserve’s new monetary policy.
“Silver prices are currently moving nicely high—much stronger than gold,” reports Clark. “Silver prices have lagged spot gold for quite a while now, and some of the best values that recently developed on the stock market are silver stocks.”
In the article “Mining Stocks Getting Exactly What They Need,” Clark notes that what’s required for gold and silver stocks to really advance, though, is the return of institutional investors to the sector, which he believes will happen if gold and silver prices keep ticking higher.
According to the Profit Confidential contributor, there are actually very few stock that are more expensive, with higher multiples and the best properties and prospects for profitable growth going into 2013 and continuing into 2014.
“…there are actually very few attractive gold and silver mining companies on the stock market at this time,” Clark states. “Costs have been rising substantially at many precious metals companies, and profitability at a lot of companies has been hit.”
In the large-cap space, Clark points out companies like Barrick Gold, Newmont Mining, and Goldcorp, which have all had a very tough year on the stock market. Despite the fact that these large-cap companies pay a decent amount of dividends, their share prices are still in the doldrums and price-to-earnings (P/E) ratios aren’t anything special, notes Clark.
While renewed action has only just begun, Clark concludes that “gold and silver prices are rising, and this is exactly what mining stocks need.”
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.