Senin, 18 April 2011

Gold and silver Red Hot: PDAC 2011 Conference is one indicator of the top term?

Gold mining stocks, in particular small exploration companies have very small market capitalisation and trading with sparsely. This means that very few shares are traded on the basis of a daily average, and the price to buy all the stocks in a given survey company can be very low in comparison with other assets. The reason why these survey companies are cheap compared with most of them have nothing!
These small companies are often nothing more than a few men, who persuaded the other men to give them the money, so that it is a very fast pace, may spend. I like what Mark Twain said, "the gold mine is a hole in the ground with a liar, standing next to her." Most of the companies at the PDAC Conference have nothing but a piece of almost worthless bush land and hope. It is very dangerous for your investment dollar.
It may appear these penny stocks are cheap in comparison with other sectors, but the reason is that they have nothing. If you buy 10,000 shares at 50 cents in any one of hundreds of companies, which have not been useless, such as what series-successful natural resource investor Rick rule of global resource Investments Ltd., blend in Moose pasture Mining, easy to see your investment decreases by more than 75%When the hype dies down.
Of course the penny stocks do some smart investors, as a rule, 10 times their money again and again, but the good of the company are as rare as the needle and the people who can identify, even rarer.
When the participation of the mine indicate that as the PDAC will increase by more than 10 times about 10 years and the price of gold and silver is white hot, it may be an indication that many of these shares are at least for the correction; means that they are too far too fast, and will likely fall to a level which is also supported on the market.
Personally, if silver is $ 18 per ounce on a pole, I wouldn't be surprised. The price for one more than doubled in less than one year! I think in the long run, silver goes much higher, so I'm waiting for the position of the kernel, but I recently gains in junior mining stock by silver and even sold some 5 oz silver bars, which were "less liquid" than my favorite, Canadian Maple, silver 1 ounce bullion coin. Will these purchases, the price falls.
Silver falls to around 33 dollars an ounce, I'll buy a $ 29, buy more, 25 dollars an ounce more still ... if he gets $ 20 or less, you all I have on white metal I add! It seems that Silver very well supported at about 18 dollars an ounce, because it is trading around this level for many months.
I could be completely wrong, and silver and gold continue to be on more new heights.
For the record, I think that is very low and is a long time. VIX index, which tracks the volatility. It's complicated, but basically when the NYSE falls, VIX climbs. If we see the increased volatility and investors and traders to "cash", we saw the dollar rally. Junior mining stocks, silver and other hot commodities and kill the asset class.
When things cool off, you will be able to buy these shares at much lower prices.
Some of you may say, "it's crazy, a new war in North Africa, Japan in ruins, civil unrest and political instability throughout the world, as the baby cannot continue at $ 5,000 an ounce?" Honey, it's different than silver.
Physical gold is insurance against Governments printing money and it always was. This does not mean that you will have a better price in the coming months. We'll wait and see if PDAC is Top short-term in the inventory of natural resources.

In this, you'll learn how to trade gold and silver. You can earn a lot of trading in gold and silver, but keep in mind that there should be investment may not be speculation. Special attention should be paid when you do business Online gold.


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