"400 % and more with one share!"
These headlines, cobbled together in the editorial offices of stock letter mailers, repeatedly clog up the email inbox of many investors. They are sent out in large numbers and are intended to suggest to the recipient that he or she is a member of a small information elite and that stock market profits are just a mouse click away. Often, these messages conceal investments in highly speculative positions or the sender wants to push up the price of penny stocks. The 3-digit percentage points are then certainly in it, but only for the distributor of the "price explosion". However, the stock exchange offers again and again possibilities, again and again there are unique opportunities, again and again fantastic price increases arise again and again stock positions start from your low point in the direction of the all-time high and again and again investors find these gems. Are gold mining stocks currently buried gems?
The gold, silver and platinum mining business is easy to understand.
A company digs a hole and digs out of the dirt the supple precious metals, black oxides and stony nickel-copper sulfides. The effort involved, however, is immense; colossal excavator beasts gnaw up chunks of rock, massive pumps spew groundwater from subterranean labyrinths, underground train stations move rusty rail cars, and miles of protective fences prevent bears from entering in Siberia. If the cost of digging and panning is less than the world market prices for metal raw materials, then the business is worthwhile, and if not, then exploration is stopped. Since mining costs usually remain fairly constant, a leverage effect between commodity price increases and the company's profit performance leads to energetic share price performance. The bow and arrow comparison is old but apt. In the last 5 years, however, the business has turned the numbers in the books deep red. Is a color change already developing and is the sign also changing?
18 % Percent in 3 months
Gold gained almost $200 or 18% in a few weeks in an explosion not seen since 2013. Silver was also able to add more than 10%. The shares of gold mines had also started the afterburner and the gold mining index "HUI" was at times at a plus of over 100% related to a few months, a breathtaking performance. The precious metal fans were not rewarded for a long time more in such a way for your knightly loyalty, because both fundamentally and charttechnisch advocate commodity analysts for years the investment into these precious metals, the real development brought however even noble noblemen to howl.
Time and patience
The prices of Barrick Gold (WKN: 870450), Newmont Mining (WKN: 853823), Kirkland Lake Gold (WKN: 157217) and others have probably seen the worst of the commodity crash in August 2015. Up to your old highs of 2011 are still some 100 percent potential possible and there the inflation turbo is not yet included. In all likelihood, there are some gems to be found among mining stocks at the moment. The courageous investor should be aware, however: To get to the sparkling jewels the dirt must be cleared aside, time and patience must be available, chivalrous loyalty must be practiced. Then the 400% percent are also in there, completely without elite info mail.
