Updated Mining Stock Trade/Investment Idea

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I want to predicate this by stating that any trade-in mining stocks right now is dependent on the ability of gold and silver to sustain an uptrend or a least move side-ways, without the successful intervention in the market by the Fed and its agent bullion banks. You can keep an eye on the industry using resources like the robinhood app and investing when the time is right. Of course, you can read the robinhood review before using the app but it’s something to really consider if you’re serious about your investments.

Having said that, I wanted to update a trade/investment idea that I first posted at the end of July. The short term play on this idea worked out. I think this idea offers the potential for a short term move of 10% and a longer term investment return of at least 30%. I also believe that this stock will outperform its peers and the HUI index.

You can access this trade here: Mining Stock Research Reports. It’s the first item on the list.

I have added some updated information and some graphs which I use to explain my investment rationale. I also have included an options strategy section with specific strike-price/strategy ideas. This idea was originally published at the end of July. If you think may you have already purchased it, please email me and I would be happy to share the updated material with you.

This stock has been hammered, along with almost every other mining stock since gold has been methodically taken lower through intense market intervention in the sector by the Fed and its agent bullion banks. It has dropped 33% from late July thru late September.

However, it has outperformed its peers during this period AND has diverged positively from the HUI index. It has carved out a series of higher lows since the 3rd quarter of 2013. On the assumption that the gold take-down has run its course and gold is headed higher through the end of the year – This stock is set up to provide either a profitable short term trading opportunity and/or a spectacular investment rate of return through at least the end of the year.

If my short term call is accurate, you can make 10x to cost of the report with just 100 shares of this stock.

5 thoughts on “Updated Mining Stock Trade/Investment Idea

  1. Not to pimp or kiss Dave’s butt here, but Ive been following Dave for years (on his original Dave in Denver blog @blogspot.com) and this guy has been on the money with his picks. No one is 100% right obviously but Dave has been damn good at least on my end. And this is on a sector that’s been oversold like crazy in the past few years, can’t wait to see when the tables have turn for the miners.

    Also Dave, again…thanks for your articles on the downfall of the housing sector even when the investors were buying up houses in 2013 (perhaps getting income from rentals which has now seen a downfall especially in the Southwest area) and looks like they are heading towards the exit doors.

    While I did sell my house for under ”market” value (I listed for 2% under market value), I see it dropping 25% within the next 10 months. Not only that, more and more inventory is coming out in droves as some people are starting to realize that their house has been overvalued.

    Wait till its obvious that there is a housing crash with prices dropping, tons of inventory coming out on a weekly basis that cant get sold……thats gonna be interesting to watch when many try to head out for the exit door at the same time.

    A simple Zillow/Redfin search on crappy shacks in southern cali or even Vegas homes just sitting there waiting to get an offer shows a touch on whats going on.

    1. Thanks for the feedback JS, I appreciate it. Once the gold/silver market breaks from the incredible and
      incredibly illegal paper manipulation, most observers will be in shock and awe at high this sector goes and
      the speed with which it moves…as for housing…look out belooooow

  2. Bullard fed bullhorn with his latest.
    things really must be imploding.

    OCT 28- 29 next, unless we see a redux, but in reverse of the Volcker surprise of early oct/1979, when he over the weekend jacked up the rate by a full 200 bps to prevent the dollar from imploding.
    at that time, debt/gdp was under 20%

    The meetings, all on Tuesdays and Wednesday, are scheduled for in 2014:

    Jan. 28-29;
    March 18-19;
    April 29-30;
    June 17-18;
    July 29-30;
    Sept. 16-17;
    Oct. 28-29;
    Dec. 16-17; and
    Jan. 27-28, 2015.

    http://www.bloomberg.com/news/2014-10-16/bullard-says-fed-should-consider-delay-in-ending-qe.html

      1. Everything happens for a reason.

        Ebola: cover story for crashing economy and bad Q4 corporate earnings reports. excuse for more QE. THey’re already setting that one up as two regional Fed idiots have said more QE may be needed LOL

        ISIS: CIA/Pentagon creation that has morphed into Conrad’s Mistah Kurtz. The NSA knows when Angela Merkel farts. You expect me to believe that this heavily armed, well-funded Islamic military organization sprung up from some New Testament reading 6 months ago and no one knew about it? ROFLMAO. Now ISIS is turning on its creators because every single Arab not part of the royal elitist families want the U.S. to get the fuck out of the Middle East and stop stealing their black gold.

        How’s that in a nutshell?

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