The best time to buy gold is when the market hates it, especially when it comes to junior explorers with market caps under $1 billion, asserts Ralph Aldis. In this interview, Aldis shares his main modeling themes and companies that fit the bill.
As the West flees the precious metal, another set of gold buyers has come forward with the aim to preserve wealth. While mining production is around 1,134 tons so far this year, gold delivery on the Shanghai Gold Exchange is 918 tons.
The upside to gold stocks is that investors historically have received a 2-to-1 leverage by owning gold equities instead of the commodity. We believe that effective management can help miners gain more leverage over the metal for their shareholders.
Smart companies are beginning to ignore analysts' insistence that production growth is always good, and to focus instead on growing their margins by lowering capital expenses. This is good news to US Global Investors Inc.'s Brian Hicks and Ralph Aldis.
Labor problems and low prices have platinum mines closing in South Africa, and potential for acquisitions ripening. Analysts George Topping and Michael Scoon of Stifel Nicolaus discuss supply trends for platinum group metals as well as iron ore and other commodities.