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Mining stocks for PGE, Au & Ag..................

GeomanGeoman Posts: 2,491 ✭✭✭
Being the precious metals forum, I thought I would ask if others have invested in mining stocks. While I collect mainly US Silver coins, I also am interested in precious metals - both as a collector and an investor. That being said, do any people here "invest" in mines that produce precious metals, besides buying coins (which is the end product)?

I do tend to believe most people would rather have the physical possession of gold, silver, etc in the hands. But the possible return on PM mining stock vs. physical coins seems much greater. Gold goes up, bullion goes up (10%, 20%, etc.). However, some mining companies could see larger returns. I should mention that I am a mining Geologist and did my Master's on a Cu-Ni/PGE mining prospect in northern MN. So I may be a little bias. But some of these companies developing new mines have the potential to produce 10-fold on your investment. PolyMet is one company that is interesting (I do own PolyMet stock), Duluth Metals is another. This isn't a plug for these companies, rather just some local examples I know of. I am sure there are other mines across the US/Canada etc that people could list. Rather, I wanted to see people's opinion of mining stock vs. physical ownership of PM coins.

PGE = platinum group elements.

Comments

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Mining stocks lead the gold market from 2001-2004 and then lagged bullion from 2005-2008. In fact the stocks were hammered to the tune of 65-85% haircuts during the deleveraging of 2008. It was if the PTB wanted to really punish the miners. It looks like the start of this next move in bullion to over $1000 will favor miners over bullion once again. But it may not stay like that as the period of 2001-2008 showed.

    Yes, there are some of us here who buy and sell miners looking to get the additional leverage over bullion. At least you own a certificate of probable gold/silver in the ground by a producing miner so to me it's better than owning a share of a bank stock. One can also get leverage over bullion by buying bullion shares in a 2X or 3X ETF. But you own strictly paper in that case. Generic slabbed gold coins (pre-1933) offer leverage to bullion gold and is another way to play it. If gold rises/falls 10% you will often see generic gold coins (ex. MS63 $10 Indian) move 20-30% at the same time. And in this case you have the benefit of the coin in your hand.

    Check out some of the threads and there will be talk about trading miners. However there is not a whole lot of interest in discussing individual miners around here. And that makes sense since it's a coin site.

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • WeissWeiss Posts: 9,941 ✭✭✭✭✭
    Sure, I own tons of mining stocks--but not individually. I own a fair amount of natural resources/metals mutual funds which own mining stocks.

    Example: TGLDX (Tocqueville Gold)

    Top 10 equity holdings:

    Randgold Resources, Ltd. ADR
    Goldcorp, Inc.
    IAMGold Corporation
    Newmont Mining Corporation
    Franco-Nevada Corporation
    Ivanhoe Mines, Ltd.
    Royal Gold, Inc.
    Osisko Mining Corporation
    Buenaventura Mining Company Inc. ADR
    We are like children who look at print and see a serpent in the last letter but one, and a sword in the last.
    --Severian the Lame
  • any mining stocks thta pay a good dividend?

    I have been day trading

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