"Averting the dollar crash with historically discounted gold and silver junior miners"

Baley

Link that pretty much sums up the bull argument for metals and mining stocks:

Averting the dollar crash with ... miners

derryb

turning our debt problem into a debt ceiling problem was nothing short of an intentional diversion from the real problem.

roadrunner

Jeb's calls the past 2 years have been astoundingly bad. He has been pounding the table for the gold, silver, uranium, and rare earth miners as great buys after since the first dump in late 2011. He left a lot of burials
in his wake. What he still doesn't realize is that the majority of juniors will probably be out of business in the next 1-3 years. If you have the guts to buy junior miners dirt cheap and hold them for years you can probably
do very well. But be prepared to see many of them lose even more from their current share prices. A prime example is Northern Dynasty that holds the biggest undeveloped gold/copper project in the world. I think Barrick
and at most a couple other miners have larger overall deposits. NAK may never become a producing mine and their partner AngloGold walked out on the project just a month or so ago. The share price has fallen from $21 to
$1.50 over the past several years. The richest gold deposit in the world and it's located in a "safe" jurisdiction (USA), yet it may never get mined. Juniors have it tough.

Justacommeman

I've actually been starting to nibble on JM's with house money………….A lot of the Canadian's are especially enticing.

Juniors are like the scourge of the earth right now. Even Miley Cyrus is more popular

MJ

cohodk

I like the miners around these levels. I liked them more at last weeks prices.

Baley

One problem with miners is Governments worldwide, who regulate and tax the industry. The metals are off their highs, and global mining companies paid too much for assets during the peak and now have to write off losses, cut costs, and triage spending, focusing on the most promising projects. Unfortunately, statistically, only about 10% of prospective sites actually get drilled, and only 1% of those eventually become profitable mines.

Junior miners have it especially tough raising capital, because investors know that the larger more established miners have a better chance of bidding for the richest fields and negotiating the regulatory landscape. Companies in the aggregate are suspending activity in almost 3/4 of their projects contemplated a couple of years ago, and are cutting back on exploratory work to work proven mines.

The Mexican government is seeking additional taxes on earnings and surcharges on sales of gold, silver, and platinum, with the money designated for develpment of infrastructure in the mining regions; however, these new taxes may reduce investment, so the governments must seek to optimize tax rates to maximize revenues.

There's a bill in Brazil to increase royalties and fees for licenses, causing concern that junior miners will not be able to compete with the likes of Rio Tinto and Vale SA in bidding for leases. This will also curb speculation in locking up mining rights with the intent to resell rather than develop the area.

Junior miners may also have more difficulty meeting increased environmental regulation by governments worldwide in a cost-effective and scalable manner, particularly with metals prices down and then sideways; this could change if they return to 2011 highs or higher, but those prices continue to fade into the rear view mirror for now..

derryb

dollar crash was merely postponed. Debt ceiling problem remains a debt problem. Miners are a bargain, particularly GDXJ.

Justacommeman

AEM, not a junior but a miner never the less is up 18% today after an earnings beat……………….MJ

jmski52

One problem with miners is Governments worldwide, who regulate and tax the industry.

That is pretty much THE problem.