The hammering that gold, silver and other precious-metals stocks have taken has turned what could — and, in some cases, should — be high-flyers into dust.
Keep in mind that gold dust can still be valuable … and potentially very profitable for investors when things start shaping up again.
Last week I got to talk to dozens of these beaten-down producers, explorers and developers at the Prospectors and Developers Association of Canada conference in Toronto.
And let me tell you, I found a few that I think can explode higher when the trend turns back in their favor. In particular, one that’s found …
A Mountain of Copper & Gold — But No Respect
Exeter Resources (XRA) is sitting on what’s been called “the last of the biggest gold discoveries by the industry,” its Caspiche copper/gold project in Chile.
Yet, the stock is down 62% from its highs.
I’ve visited Exeter’s properties in South America in the past. In fact, I recommended this stock to my subscribers when it was a tiny little company. Anyone who bought it on that recommendation made a lot of money.
Well, guess what — it’s a small stock again. Exeter recently sported a market cap under $110 million. Heck, it has half the market cap it had in June.
Does this stock deserve to be valued higher? Watch this video I shot with Exeter CEO Yale Simpson at the PDAC and you tell me …
(Direct link: http://www.youtube.com/watch?v=H9TFdB1x8JQ)
In the video, Yale gives us the scoop on an exciting announcement — Exeter has entered into joint ventures in Mexico on projects with high-grade targets.
If you’ve followed Exeter’s story for some time, you’ll remember that Exeter did extremely well with a high-grade project in Argentina. So well, in fact, that it was able to spin it off into a new company, Extorre.
Exeter sold Extorre to Yamana Gold (AUY) for a big ol’ pile of cash last summer.
That all sounds pretty interesting, don’t you think? Now, let’s look at a WEEKLY chart of the stock …
Putting it bluntly, this stock has been beaten like a rented mule. This is happening despite the company’s $53 million stash of cash.
Investors seem to be betting that things will never get better for Exeter. I’d say they’re wrong.
Looking at the chart, we might be seeing the early signs of a bottom in this stock, but time will tell.
I’m waiting for a buy signal on Exeter. I already got a buy signal on another publicly traded company I talked to at the PDAC conference last week, and I recommended that one to my Global Resource Hunter subscribers last week.
Now, we can’t be the only people on the planet seeing this. I just hope the other precious-metals investors are too finger-burned and shell-shocked from the recent brutal action in metals to act on it.
Why? Because I have more precious metals picks that I’m easing my subscribers into.
Could gold, silver and the miners run into trouble? Sure. Heck, gold and silver could roll back over like a pair of dying whales and drag the whole kicking, screaming industry down into the abyss.
But I don’t think that’s going to happen. I believe …
- Central banks around the world are going to continue to pump paper money as fast as they can print it. Usually, that’s bullish for gold.
- There are great mining projects that can’t get funding now — that puts a squeeze on supply.
- The flood of selling in the SPDR Gold Trust (GLD) and other ETFs that hold physical gold seems to have ended. This tells me some hedge funds that were getting wiped out are done for now, taking some downward pressure off gold prices.
- The Chinese economy is improving, putting more money in the pockets of billions of consumers who have a cultural affinity for gold. In fact, sales of gold bars for investment purposes jumped TWOFOLD in China during its recent Spring Festival.
Add it all up, and it’s more than likely that precious metals are near a bottom, and there are some great stocks that look cheap from a valuation as well as a price perspective.
Last week, I also recommended that Global Resource Hunter subscribers bag multiple gains … the latest in a string of gains for that service. Along with precious metals, I like energy, infrastructure, agriculture and more.
If you’re doing this on your own, be VERY careful. Have an exit point in mind before you buy a single share of stock. Know how much pain you’re willing to take. Be aware that we may see more downside before we see more upside.
I just think some of these bargains are worth looking at right now.
All the best,
P.S. Not only did I just give my subscribers marching orders to bank gains on two plays, but I also gave them a trio of new profit opportunities to direct their winnings into. I’m excited about the profit potential for each of these names.
There’s still time to get in on these new trades — grab your risk-free trial membership to Global Resource Hunter today and you’ll get instant access to my newest picks, as soon as I make them!