These are scary times for precious metal investors. Resource equities are in the tank and, adding insult to injury, the gold price took a precipitous fall just days before summer, notoriously one of the slowest seasons for precious metals.
The 2004 and 2006 silver parabolic moves took CDE from being a $28 stock to the $75 neighborhood and quickly and the current silver parabolic is likely to surpass the magnitude of each of the four preceding silver parabolics.
New entrants are flooding into the ETF space, and the heightened competition they are bringing will help curtail the worst abuses. Not only will management fees and expense ratios plunge, there will be a far broader range of offerings.
Interest in taking advantage of the recently introduced tax breaks for investments in exploration and smaller enterprises has not been significant, possibly because of the number of conditions attached to the legislation, BDO Spencer Steward director Ursula van Eck said yesterday.