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Precious Metals Stocks

Written By Brian Hicks

Posted November 6, 2009

Editor’s Note Update: Before reading on, Wealth Daily would like you to read our up-to-date, extensive and exclusive report on precious metals investing which our editors, over the years, have compiled for your convenience. 


Just a few years ago, precious metal stocks were all the rage. As commodity prices skyrocketed between 2001 and 2007, it was not uncommon for precious metal stocks to return double- or triple-digit gains in a matter of weeks.

For precious metal investors at the time, it seemed like the stocks picked themselves. Gold and silver were breaking price records monthly — much as they are today — and the entire global investment community was seduced by the companies discovering them. You could almost randomly buy any precious metal stock getting attention and sell it a week or two later for a 20% gain or more.

And with gold prices now at $1,100 an ounce, precious metal investors like Greg McCoach and I are on a shopping spree for mining stocks. In the article below, Greg tells investors about a few precious metal stocks that have recently paid gains up to 2,357% and recommends ways for you to protect yourself financially from coming economic and monetary plights.

Today’s issue of Wealth Daily also includes a short feature from Christian DeHaemer. Chris will be traveling to Mongolia on Monday to get a first-hand look at the country’s booming commodities industry. His trip includes a visit to a brand-new gold/copper mine that’s expected to more than double Mongolia’s GDP.


Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire

Precious metal stocks continue to build momentum on the recent strength of gold and silver prices. But this tidal wave is just building momentum. . .

The wave of interest in precious metal stocks is rushing back. And investors are starting to make some money again.

In fact, 100% of the precious metal stocks in my Mining Speculator portfolio have made money in the past eight weeks.

Shares of precious metal companies like Victoria Gold (TSX-V: VIT) and Vast Exploration (TSX-V: VST), among several others, have more than doubled in the past few weeks. Other stocks have performed even better.

Share prices of junior precious metal company Mexivada Minerals (TSX-V: MNV) shot up 511% in less than a week in September after making a new gold discovery in Nevada. Take a look. . .


One of the best performing recent precious metal stocks has been Canadian-based Decade Resources (TSX-V: DEC). After the company reported impressive drill results from their Red Cliff project in northwestern British Columbia, share prices increased a whopping 2,357%. Early investors turned $5K into $122,850 in one month. Check it out:


Precious metal prices continue to look very strong. I would not be surprised to see gold as high as $1,250/ounce within the next few weeks, given all that is happening with the U.S. dollar and further derivative problems looming over the global financial system.

The mainstream financial media has been on an aggressive smear campaign against gold. Don’t buy it. It’s likely that precious metals will take a breather at some point and pull back a bit — maybe even below $1,000 an ounce.

But the long-term trend remains intact and precious metals will continue to power higher for many years. Take a look at a 10-year chart of gold prices. . .


In order for gold to reach a true inflation-adjusted new high from the 1980 high of $850 an ounce, gold would have to be $6,500 an ounce. That means precious metals are nowhere near their highs as so many analysts want you to believe. These are the same people that have been banging their “gold is dead” drum for the past 10 years, as the yellow metal keeps breaking price records.

They don’t get it! Forget about them.

I maintain that the best way to protect yourself financially from coming economic and monetary problems is to own physical gold and silver bullion and precious metal stocks.

Keep in mind, of all the precious metal stocks we evaluate, less than 5% are worth a second look. But those few companies can represent incredible opportunities to profit like Silver Standard Resources (NASDAQ: SSRI), which paid investors 852% per year for nine straight years. Click here to learn how investors are getting ready for a similar pay day. 

Good Investing,

Greg McCoach
Editor, Wealth Daily
Investment Director, Mining Speculator and Insider Alert


Mongolia Deals Are Lining Up
Christian DeHaemer

I’m boarding a plane for the 26-hour flight to Mongolia on Monday. The goal of this trip is to find out which companies will benefit the most from the current gold and mineral boom going on there.

You see, last month Mongolia’s government signed a $4 billion deal with Rio Tinto (NYSE: RTP) to that will produce the world’s largest gold/copper mine, called Oyu Tolgoi. 

This deal opened the floodgates. . . and now everyone wants a piece of the action.

Earlier this week, the Chinese Sovereign Wealth Fund invested $700 million in a coal project. And today, U.S.-based coal company Peabody Energy (NYSE: BTU) said it was “very interested” in Mongolia’s Tavan Tolgoi coking coal project.

“Without an investment agreement on Oyu Tolgoi, nothing on Tavan Tolgoi was going to happen. We’re very interested in Tavan Tolgoi. It’s early (in the process) and we’d look to do it with a partner,” said Peabody CEO Greg Boyce.

The change has been dramatic and fast. There is now a political stability that allows multinational corporations to invest great sums of money — over the long-term — in this remote, landlocked country.

And there’s more good news: One of the wealthiest men in Mongolia, cashmere tycoon Sukhbaataryn Batbold, was elected as the new prime minister. Mr. Batbold is leaving his position as the current foreign minister of Mongolia. 

In his speeches, Batbold talks about lowering the unemployment rate by encouraging foreign companies to develop mines. He is a capitalist democrat and is very popular.

Mongolia’s near-virgin status as a resource center, its propinquity to China, its new pro-western, pro-business government and the multi-billion dollar deals being signed all point to a massive economic boom that will be most identified by a flood of foreign dollars into Ulaanbaatar.

Not only will the Western and Chinese companies benefit, as they start building mines. . . but the companies in Mongolia will experience exceptional growth as they build the infrastructure to accommodate this boom.

That’s why I’m going to put boots on the ground.

This could be the last great opportunity of our generation.


Christian DeHaemer

Editor, Wealth Daily
(Founder, soon-to-be-launched Crisis & Opportunity)