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Re: goforthebet post# 635

Thursday, 08/04/2016 9:10:23 AM

Thursday, August 04, 2016 9:10:23 AM

Post# of 756
With the market, one can never know for sure, but gold/silver are in an uptrend and if stocks become a strong sell, that money has to go somewhere.

IMO, precious metals will explode as people flea to defensive sectors and that will push the miners, just like we saw from 2007 to 2011.

When precious metals are in a bull trend, the miners are always more profitable than holding the commodity by itself. Their profits rise without any added costs to produce an ounce...
Low oil prices also helps the miners. Oil is a major expense on a mine.

One of my favorite plays this year has been RGLD. They are a royalty incubator just like EMXX and have been on fire. People are starting to figure out why this business model is just as profitable, but with much less risk than others plays in the sector.

Miners have ran a lot already, but history suggests that there are more positive catalyst than negative ones when PMs start seeing these types of gains. Upcoming earning reports will be stronger for the miners, most likely for several quarters in a row... and when PMs get hot, the miners are never shy about undergoing mergers, buyouts, asset purchase agreements, royalty deals, major financing, etc which just draws more interest to the sector.

Nothing is a sure thing, but these are the odds imo.




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