Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down

The list reads like wind chills in Chicago on a cold winter day: Coeur d’Alene Mines Corporation (NYSE:CDE), Silver Wheaton Corp. (NYSE:SLW), Alto Group Holdings Inc. (OTC:ALTO), Hecla Mining Company (NYSE:HL), Endeavour Silver Corp. (AMEX:EXK) all close down dramatically for a second day. What to do now?

by J. Christoph Amberger

Baltimore, MD: The price decline in metals stocks — and especially silver miners — continued on Thursday.

Coeur d’Alene Mines Corporation (NYSE:CDE) closed down another -6%;

Silver Wheaton Corp. (NYSE:SLW) down -7.26%;

Alto Group Holdings Inc. (OTC:ALTO) down -11.63%;

Hecla Mining Company (NYSE:HL) down -8.89%;

Endeavour Silver Corp. (AMEX:EXK) down -6.57%.

Some of them (HL and SLW) are currently showing mildly bullish aftermarket activity. Some have reported, or are about to report, record crops of silver. EXK, for example, announced on Jan 14. that it set a new record for silver production in Q4, 2009, up 12% quarter-on-quarter to 779,345 oz silver. (Gold production also jumped to a new quarterly high, up 90% to 4,591 oz gold in Q4, 2009.)

Looking at the price charts, it bears pointing out that, apart from volatile penny shares such as ALTO, most silver stocks haven’t fallen past their quite high early-January levels — despite substantial corrections.

I see no imminent change in U.S. monetary policy: Interest rates will continue to be low — reducing the comparative opportunity cost of owning precious metals. Neither will there be a let-up in the push of green technologies, many of which could boost industrial silver demand.

The next few days may be a good chance to stock up on silver shares — maybe with a hedged “insurance policy” short or long-term put option on iShares Silver Trust (ETF) (NYSE:SLV).

My favorite silver portfolio constellation is:

Well, just click through to my blog!Similar Posts:

• Midas touch: Rising gold prices guide Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Hecla Mining (HL) to strong gains – September 3, 2009
• Dip in metals miners could spell buying opportunity – January 20, 2010
• Silver Wheaton (SLW), Coeur d’Alene (CDE), Hecla Mining (HL) are racking up gains… who’s next? – October 15, 2009
• Silver prices up, so are HSC miners Coeur d’Alene Mines (CDE) and Silver Wheaton Corp. (SLW) – August 29, 2009
• Cup half full: Silver Wheaton (NYSE:SLW) packs on gains as gold prices rocket – November 11, 2009

Article first published on Today's Financial News

Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down

Dip in metals miners could spell buying opportunity

Precious metals and mining stocks took it on the chin yesterday. Mining penny share Alto Group Holdings Inc. (OTC:ALTO) posted the steepest drop, losing almost 40% in a single session. My old favorite Silver Wheaton Corp. (NYSE:SLW) closed down -4.6%.

by J. Christoph Amberger

Baltimore, MD: Whatever effect the anticipated breach of the liberal deadlock on power had on Tuesday, it sure didn’t carry over to Wednesday. My anticipated knocking of the Dow on the 11,000 level simply didn’t materialize.

Chinese officials hinted that the world’s biggest metals consumer would be reining in loan growth and slowing spending… on infrastructure, construction, and the on-spec hoarding of metals and resources.

Precious metals and mining stocks took it on the chin. Mining penny share Alto Group Holdings Inc. (OTC:ALTO) posted the steepest drop, losing almost 40% in a single session. My old favorite Silver Wheaton Corp. (NYSE:SLW) closed down -4.6%.

I think this pullback especially of the silver sector will be temporary. As we approach the release of Q4 2009 earnings, I think a number of precious miners will surprise with their numbers: Plenty of them will be seeing the positive effects of having re-opened dormant mines starting summer 2009… and as mines started producing, revenues will have taken impressive jumps.

One of my favorite mining penny shares in this regard is a canadian miner who has plenty of new revenues coming in…

I’ll tell you that stock right on my blog site!

Similar Posts:

• Silver prices up, so are HSC miners Coeur d’Alene Mines (CDE) and Silver Wheaton Corp. (SLW) – August 29, 2009
• Midas touch: Rising gold prices guide Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Hecla Mining (HL) to strong gains – September 3, 2009
• Cup half full: Silver Wheaton (NYSE:SLW) packs on gains as gold prices rocket – November 11, 2009
• Top Precious Metal Stocks – December 10, 2009
• Silver Wheaton (SLW), Coeur d’Alene (CDE), Hecla Mining (HL) are racking up gains… who’s next? – October 15, 2009

Article first published on Today's Financial News

Dip in metals miners could spell buying opportunity

Best Gold Stock: Buy this junior gold miner under $2

"With 333.75 million shares outstanding, $1.75 currently buys you 1.67 ounces or $2,034.65 worth of this Canadian gold miner’s reserves!"

by J. Christoph Amberger, TodaysFinancialNews.com

Baltimore, MD (TFN): Blame the weakening U.S. dollar for gold’s rise. Or the lousy yields on the dollar and most other currencies. Or the U.S. government’s unchecked rush into generational mega-debt. Or the Made-in-China commodities bubble.

But today, gold traded at $1.215 an ounce.

The gold bubble will not deflate any time soon. How long will this last? As long as the Federal Reserve punishes dollar savers with non-existing interest rates! And that’ll be another year: Not because the world is abandoning ‘fiat currencies’ as the gold bugs proclaim… but because holding dollars is a losing game now — rigged by the U.S. government!

So far, the TFN team has been rubbing our hands as gold went up: Bullion may be up twenty percent for the year. But some of our silver stocks are beating that by multiples!

In the last few weeks, we took 32% gains in just over a month on Silvercorp. (SVM) and 16.2% on Anooraq (ANO) — which was double-digit gainer #71 for members of our premium investment research service, Hot Stock Confidential, so far this year. We have a 70% gain lock on Silver Wheaton (SLW)… and 52% and 39% gains solidly booked on Hecla Mining (HL) and Coeur d’Alene Mines (CDE), respectively.

Bear with me as I put this into the specious fuzzy math of financial newsletter marketers — imagine this as a bold, red headline in Courier font:

"With 333.75 million shares outstanding, $1.75 currently buys you 1.67 ounces or $2034.65 worth of this Canadian gold miner’s reserves!"

But seriously: As gold prices keep moving up in the great game we call the Commodities Carry Trade, this U.S.-traded stock could snag you a cool 30% gain before New Year’s. The company has just secured capital to continue development and expoloration. The Canadian dollar is working in our favor.

Great Basin Gold trades on the Toronto Stock Exchange under the symbol TSE:GBG. (The slightly higher price reflects the exchange rate of the U.S. vs. the Canadian dollar. If you can buy it without higher transaction cost, we’re all for buying it in Canada. (As a U.S. investor, you automatically benefit from any appreciation of the Canadian dollar.)

For ease of tracking sake, we will be following the U.S.-traded shares at Great Basin Gold Ltd. (USA) (AMEX:GBG).

Buy under $2 with a profit horizon of 20-30% by April 2010.

Similar Posts:

• Sell Great Basin Gold Ltd. (GBG) for 19.2% gains: HSC cashes in on record gold prices – December 3, 2009

Article first published on Today's Financial News

Best Gold Stock: Buy this junior gold miner under $2

HSC double-digit gainer #70: 32% on Silvercorp. (SVM)

Record high gold prices are fueling a bull market in silver stocks. One of our TFN Hot Stock Confidential silver picks, Silvercorp. (NYSE:SVM) just exceeded our adventurous profit predictions by 50% — even as our wealth-preservation stop loss was triggered.

by J. Christoph Amberger

Baltimore, MD TFN: Gold is an asset notorious for not generating returns other than speculative gains. It doesn’t pay interest or dividends. But at this point, neither does the U.S. dollar. Or the yen. Or the euro, pound sterling, Icelandic krona:

The comparative opportunity cost of holding gold has been eliminated! Plus, the cash flows out of the dollar have created an asset bubble that will keep inflating!

How long will this last?

As long as the Federal Reserve keep punishing dollar savers with non-existing interest rates! That may be at least another year…

Not because the world is abandoning “fiat currencies”… but because holding dollars is a losing game now — engineered and maintained by the U.S. government!

So far, we’ve been rubbing our hands as gold went up. Gold bugs may be up twenty percent for the year. But our silver stocks are beating that yield by multiples!

In case you didn’t notice, our Hot Stock Confidential silver picks have been soaring over the past couple of days. A good thing, unless you have to make a decision on how to proceed from here!

Our core pick Silver Wheaton (NYSE:SLW) is now up 66% over our buying range. Laura Cadden’s Silvercorp. (NYSE:SVM) exceeded her original profit horizon of “20% in 4 months” by ringing in at 36% as I write.

In the medium to long term, we see only upside for gold and other precious metals. In the short term, there’s lots of potential for pullbacks.

Establishing stop losses in situations like this is a matter of “damned if you do, damned if you don’t”. It works like lines at a supermarket checkout: The one you chose inevitably slows down to a crawl the minute you line up.

The moment you set a stop loss, it usually gets triggered.

We’re going to take this risk — but allow ourselves just enough rope to hang ourselves with, basing our stop loss on the maximum recommended entry price of the original recommendation. This morning, we recommended:

For SLW (”buy below $10″), we recommend you establish a 50% stop loss at $15…

For SVM (”buy under $5.50″), we recommend you establish a 30% stop loss at $7.15…

SVM’s stop loss was triggered after lunch, kicking us out of the position with 32% gains over our official entry price in just over a month!

This was double-digit gainer #70 for HSC Members so far this year… and maybe one of the 70 very good reasons why HSC Member T.G.recently wrote to us to say, “Just want you to know I have tried several stock recommendation services. None comes close to being dead on target as HSC has. I have finally found my home for investing.”

Our next Hot Stock Pick is coming out this Thursday. With gold futures at record highs of US$1,151 an ounce today, we’re going to stick with a precious metals pick: At today’s levels, the gold reserves of this junior Canadian gold miner are worth a whopping $460.4 million!

Let’s put that into the fuzzy math of financial newsletter marketers: With 333.42 million shares outstanding, $1.70 currently buys you 1.38 ounces or $1,589 worth of that gold!

As gold prices keep moving up in the great game we call the Commodities Carry Trade, this U.S.-traded stock could snag you a cool 30% gain before New Year’s.

Hot Stock Confidential members will be receiving this Hot Stock Pick of the week tomorrow before noon. We hope you’ll be one of them. Join up right here!Similar Posts:

• Silver prices up, so are HSC miners Coeur d’Alene Mines (CDE) and Silver Wheaton Corp. (SLW) – August 29, 2009
• 22% gains on Seattle Genetics, Inc. (SGEN) – August 26, 2009
• Cup half full: Silver Wheaton (NYSE:SLW) packs on gains as gold prices rocket – November 11, 2009
• Coeur d’Alene Mines Corporation (CDE) is up over 40% – September 10, 2009
• Set trailing stop to lock in double-digit gains on U.S. Geothermal – May 26, 2009

Article first published on Today's Financial News

HSC double-digit gainer #70: 32% on Silvercorp. (SVM)

Cup half full: Silver Wheaton (NYSE:SLW) packs on gains as gold prices rocket

Shares of silver-related companies like Silver Wheaton (NYSE:SLW) rallied in response to gold’s record-setting prices.

by J. Christoph Amberger

Baltimore, MD — TFN: Gold prices jumped to new records trading up to $1,117.65 per ounce as the United States continues its heedless rush into debt… the dollar declined to a 15-month low… and China plows every red cent it makes into hoarding commodities.

Silver stocks rallied. This was pertly in response to news that New York-based asset manager Van Eck Global launched its new Market Vectors Junior Gold Miners ETF (NYSE Arca:GDXJ). Read more

Silver Wheaton (SLW), Coeur d’Alene (CDE), Hecla Mining (HL) are racking up gains… who’s next?

Silver champions Silver Wheaton (NYSE:SLW), Coeur d’Alene (NYSE:CDE), and Hecla Mining (HL) have been putting gains into investors’ pockets. TFN readers suggest Mag Silver (AMEX:MVG) and this mystery stock may be golden, too!

by J. Christoph Amberger

Baltimore, MD — TFN: With one of our longer-term Hot Stock Confidential plays, Silver Wheaton Corp. (NYSE:SLW) up close to 50%, I had asked our TFN eNews readers about their views on silver-related equity plays.

TFN eNews reader Henry C., wrote in:

“I love SLW. Have owned it at 20 and at 4. Bullish on silver, even more than gold. The S&G ratio is still way out of proportion. I still believe in regression to the mean. Terrific management and policy of income production. No dividends, but they are using the funds for growth. Fine, I look to MPLs and Energy TR for income. I get income on the non-dividend assets with covered calls and selling puts. SLW is a great stock for that. High beta in today’s market.

“If my covered calls are exercised, I’m protected by the calls I have purchased. Of course, stop losses must be in place. Nobody is always right in predicting the vagaries of the market. Especially those manipulated by the boyz. If Ted Butlers recommendations to the CFTC bear fruition, limiting it to 1500 contracts per trader will result in massive short covering in both metals and limit manipulation in the future. It cannot get worse, only better.”

TFN eNews reader Gene G. wrote in: “I have done right smart this year with Coeur d’Alene (NYSE:CDE) and Hecla Mining (NYSE:HL). I sold CDE and HL last month and bought Mag Silver Corp (AMEX:MVG) and SLW.

“CDE is on my re-buy list if it gets reasonable again. I continue to hold one other silver stock. And while I may take profits on SLW and MVG, I will hold on to that one unless the world falls apart.”

(Editor’s Note: Hot Stock Confidential readers, too, are sitting on 52% and 39% gains taken on CDE and HL, respectively.)

Coincidentally, reader Michael H. had similar feelings about Gene’s “mystery” silver stock– which has a strong Chinese tie-in: “It’s all about China these days. Bought in July @ $2.68. Already up over 50%, way more room to run as silver will approach historic level of $100.00 an ounce within the next year. Don’t sell SLW. Bought that at 7.50. Booyah. Silver Silver Silver.”

Independent of Gene and Michael’s suggestion, Hot Stock Confidential editor Laura Cadden issued a recommendation for this particular silver company in today’s Hot Stock Pick of the Week: “If you look at its share price over the past five years, you can see just how undervalued it is. Then there’s the fact that this is a dividend stock — always a nice bonus!

“If you haven’t yet had enough of silver, I recommend you pick up shares under $5.50 and hold on for 20% gains!”

Find out what stock they’re talking about by becoming a member of Hot Stock Confidential: http://www.todaysfinancialnews.com/HSC/ridic/WHSCK904.html

Article first published on Today's Financial News

Silver Wheaton (SLW), Coeur d’Alene (CDE), Hecla Mining (HL) are racking up gains… who’s next?

HSC gainer #65: Sell Hecla Mining Co. (HL) for gains of 50-120%

Hot Stock Confidential subscribed to use today’s jump in silver prices to cash out of Hecla Mining Co. (NYSE:HL) for gains of 52%!

by J. Christoph Amberger

Baltimore, MD — TFN: Commodities are back up again, and so is silver. Today, one of our silver mining picks hit its 52-week high. For our official open positions portfolio, that means gains in excess of 50%:

On May 27, I recommended you “buy shares in Hecla Mining Co. (NYSE: HL) between $3.25 and $4!”

On July 8, you could have bought shares for as low as $2.30. Since we kept nagging our subscribers to buy more low throughout that period in our weekly portfolio updates, they had a shot at more than doubling their money on this one, for gains of up to 120%!

I say it’s time to make off with the gains. Sure, we might be able to squeeze another 10% gains out of this stock. But I’d rather book the gains at this level and look for new opportunities to make money!

We, of course, stick to our official Hot Stock Confidential entry price and only add 50-some percent to our tally.

HL is double-digit gainer #65 so far this year for HSC members.

Just how do we do it? Well, the best explanation I can come up with is this…

Article first published on Today's Financial News

HSC gainer #65: Sell Hecla Mining Co. (HL) for gains of 50-120%

Coeur d’Alene Mines Corporation (CDE) is up over 40%

With silver prices soaring, our favorite silver miner Coeur d’Alene Mines Corporation (NYSE:CDE) is inching toward our first profit target. Time to lock in gains!

by J. Christoph Amberger

Baltimore, MD — TFN: On May 27, 2009, I recommended to members of TFN’s Hot Stock Confidential:

“Buy Coeur d’Alene Mines Corporation (NYSE:CDE) at current levels under $14.50, with a six-month target of 50% and the potential of doubling your money at or above $28.00 by summer 2010.”

We recorded our entry price at $13.96… and promptly saw it go down to $10.45. Today, the stock is trading at $20.30. Plus…

We’re close to our initial 50% gain target, with 2 more months to go. And of course, given that Washington seems hell-bent to wreck the dollar, I’m sticking to the possibility of a cool double by next summer. (Those of you who joined us in June and followed our advice in the weekly updates may actually already have a near-double on your hands.)

Now, I don’t know about you. But after a rollercoaster ride, I like to hold on to something firm. Having watched the stock decline before… and knowing that market volatility will not change in the near future… I’d like to see a minimum payback of 40% for the pain.

Which is why I recommed we establish a 40% stop loss at $19.55 for CDE.

Article first published on Today's Financial News

Coeur d’Alene Mines Corporation (CDE) is up over 40%

When copper turns to gold: Katanga Mining (KAT) chalks up 76% gains in a week!

Canadian-based copper and cobalt mina Katanga Mining (TSE:KAT) had good news today. For Hot Stock Confidential Members, the news was even better!

by J. Christoph Amberger

Baltimore, MD — TFN: As Washington keeps adding to its grandiose and unpaid-for schemes, the dollar keeps falling and commodities…? Well: Depending on when you look, they’re either dropping on justified expectations of sustained economic shrinkage. Or rising on hyper-active rumors that somehow the Chinese will buy ‘em all up.

We don’t mind either way: Our Hot Stock Confidential open positions portfolio has both short and long positions on key commodities. Currently, our short on gold is down. But our silver plays are up!

Better even, the Canadian copper and cobalt miner we recommended last Thursday is going through the roof right now!

Katanga Mining (TSE:KAT) announced today “its intention to accelerate the ramp-up of its project in the Katanga Province in the Democratic Republic of Congo to 150,000 tons of copper and 8,000 tons of cobalt per annum through the earlier completion of the construction of Phases 3 and 4.”

I’m big on the announcements of plans. As is the President. How far these plans are supportive of investment decisions, I leave to your judgment. But I wasn’t complaining at all that judgmental when I saw that investors were pouring money into our Toronto-traded Copper Kaiser of the Congo.

I issued a sell alert that locked in 76.8% gains for our members in less than a calendar week… or 4 trading days.

I’d love to take credit for picking this one… but this stock was suggested for further scrutiny by HSC Member Chris W.

This, by the way, is double-digit gainer #55 so far this year for HSC members. See the fun you’re missing?

Article first published on Today's Financial News

When copper turns to gold: Katanga Mining (KAT) chalks up 76% gains in a week!

Midas touch: Rising gold prices guide Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Hecla Mining (HL) to strong gains

Rising gold and silver prices push our silver picks Coeur d’Alene Mines Corp. (NYSE:CDE), Silver Wheaton (NYSE:SLW), Hecla Mining Co. (NYSE:HL) well into the black

by J. Christoph Amberger

Baltimore. MD — TFN: Gold’s been going up, knocking at the $1,000-an-ounce gate. Why exactly I can’t tell you… its principal bullish factor, inflation, being vortually non-existent in today’s deflationary market.

That leaves the fear of reckless U.S. Congress wrecking the dollar with huge new debt loads… and of an Administration that seems dead-set on crippling U.S. economic competitiveness for decades to come.

Valid fears, indeed, fueled by every redistributionist soundbyte slopping out of Washington.

Silver, too, has been gaining steadily. Our Hot Stock Confidential silver mining play Coeur d’Alene Mines Corp. (NYSE: CDE) is up 23%, Silver Wheaton (NYSE:SLW) is up 18%, and — after a horrendous 40%-drop ofer our May recommendation — Hecla Mining Company (NYSE:HL) has clawed back to a gain over 2%.

(HSC Members who used the dip to buy, as we kept recommending in our weekly updates, have almost doubled their money since May.)

We think there’s plenty more short-term potential. But despite my bullish long-term view on silver, the high volatility in the precious metals markets makes me inclined to take profits in the double-digit range, rather than hang on for the heftier triple-digit gains I foresee in the long term.

Article first published on Today's Financial News

Midas touch: Rising gold prices guide Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Hecla Mining (HL) to strong gains

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