Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

Penny Mining Shares, U.S. Dollar and Gold

Commodities / Gold & Silver Stocks Mar 05, 2010 - 07:29 AM GMT

By: Dudley_Baker

Commodities

Best Financial Markets Analysis ArticlePenny mining shares are poised for incredible gains in the next 12 – 18 months. But before we discuss the details we believe it is necessary to lay a foundation with a brief discussion of the U.S. Dollar and gold.

Seems the world is fixated on the U.S. Dollar and many see it going substantially higher. In our opinion, the charts do not support that conclusion and we see the dollar having topped out and now heading lower.


A declining U.S. Dollar normally gives gold a strong under tone and therefore, we see gold now moving up to retest the highs reached in November 2009 of around $1220. This retest will be shorted lived and gold, we believe, will surge to highs of well over $2000 within 12 months.

This monster move in gold will take the junior mining shares substantially higher as well. The missing factor is mass psychology. Remember back in 2006 when gold was hitting $725 the shares were on fire with monster gains being achieved. With gold over $1100 there still has been very little excitement in the mining shares even though some solid gains are being made. We see positive mass psychology moving back into the juniors with the potential for outrageous gains in the entire sector.

Also in looking at the bigger picture and viewing gold priced in Euros, things look even better for gold as it is hitting new highs right now giving us a preview of the action of gold in U.S. Dollars.

The chart below in gold looks as though we have bottomed and are now hitting higher.

The chart on the U.S. Dollar looks to us as though we have topped out in the 80 to 81 range.

We really like this chart on the Venture Exchange Composite Index which we view as a proxy for the juniors. The last year has been a nice and steady rise with the 50 day moving average pointing the direction. Even with the recent correction phase in gold and the juniors the 50 day moving average has stayed in an up trend indicating to us, great underlying strength.

Penny Mining Shares

Having provided you with a brief background above, let’s talk about the penny stocks.
I’m sure many of you have invested in some of these penny shares at some time in your life. We see different definitions of a ‘penny stock’. Some think a penny stock is one that sells for less than $5. Some say $4 and others say $1.00 or less. For our purposes, we like to keep it simple and say and stock selling for less than $1.00.  In the mining sector, there are probably more than 1,000 companies with shares selling for less than $1.00.

The attraction to the penny mining shares is the monster possible gains in the correct investment environment. These penny shares can go up 500% to a 1,000% in the blink of an eye. Yes, there is a high risk associated with this sector but the risk is managed by allocating only a small portion of your investment dollars to this sector.

If we are correct in the potential gains in gold we believe this will translate into a very positive environment for these junior mining shares, the warrants trading on these juniors and penny shares in general.

The Chairman of two major mining companies recently said that he sees a mania phase coming with its epicenter in Asia, China and India specifically.

The question for each of you is:
1. Are you already in the game? If so, great, just be patient.
2. If not, are you preparing to enter ‘the game’ and buy a basket of these undervalued junior
    mining or energy shares or the long-term warrants or LEAPS  trading on them?
3. Are you going to wait until prices rise substantially and start to peak before entering ‘the
    game’?

Yes, most investors will wait and wait and wait and then buy near the top and then complain that they couldn’t make any money and they will blame the markets, the penny stocks and everyone in the business before taking responsibility for their own poor judgment and timing.

We are being given the rare possibility of a once-in-a-lifetime-opportunity, what will you do with it?

For those readers unfamiliar with our services:

  • PreciousMetalsWarrants.com provides an online database for all warrants trading on the natural resource companies in the United States and Canada.
  • InsidersInsights.com tracks the buying and selling of corporate insiders with a focus on the junior mining and natural resource sectors. Buy and Sell Alerts are issued as deemed relevant based upon our analysis.

We encourage all readers to sign up for our free weekly email.

Dudley Pierce Baker
Guadalajara/Ajijic, Mexico
Email: support@preciousmetalswarrants.com
Website: PreciousMetalsWarrants
Website: InsidersInsights

Dudley Pierce Baker is the owner and editor of Precious Metals Warrants and Insiders Insights. Articles are written by Dudley Baker along with contributing editors, Arnold Bock of Mendoza, Argentina and Lorimer Wilson of Toronto, Canada. PreciousMetalsWarrants provides an online subscription database for all warrants trading on junior mining and natural resource companies in the United States and Canada and a free weekly newsletter. InsidersInsights alerts subscribers when corporate insiders of a limited number of junior mining and natural resource companies are buying and selling.

Disclaimer/Disclosure Statement:PreciousMetalsWarrants.com is not an investment advisor and any reference to specific securities does not constitute a recommendation thereof. The opinions expressed herein are the express personal opinions of Dudley Baker. Neither the information, nor the opinions expressed should be construed as a solicitation to buy any securities mentioned in this Service. Examples given are only intended to make investors aware of the potential rewards of investing in Warrants. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions involving stocks or Warrants.

Dudley Pierce Baker Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


18 Aug 10, 08:00
charts

you could update your charts


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules