There was a great article in the Wall Street Journal recently highlighting Aegis Value Fund’s 40.5% gain over the past 12 months. Aegis Value, which is managed by Scott Barbee, has benefited greatly from the rise in gold stocks this year.
Deutsche Bank recently suggested that based on the continued strength of the US dollar vs the Euro and the Pound, the European mining sector is headed for a 20% drop. Copper has fallen 9% from its peak in Q1 2016, the USD has grown by more than 2%, and the European market has overperformed by 30%.
Once the territory of science-fiction movies, recent large-scale adoption of automated heavy equipment is allowing mines to greatly reduce their labor costs. Trucks, loaders, boring and drilling machines and more are now available with remote or semi-autonomous capacity. Other upcoming automation advances, such as fully-automated long-haul trains (which are now being tested), will continue to expand the range of tasks that require few or no workers to be involved.
When people talk about the best ways to invest in gold, what does that mean to the average investor? Do you think of running out to the local bullion dealer to begin stockpiling gold bars in your basement? Or perhaps visiting a local jeweller or pawn shop to buy a bunch of gold chains or coins?
With the recent drop in the price of gold and silver, shares of precious metal stocks have been dropping rapidly. As this collapse of gold and silver stocks seems to be occurring across the board, it begs the question: Is this an apocalypse for these companies, or is it rather a rare opportunity for investors to buy solid mining stocks at discount prices?
Goldgroup Mining Inc. is a Canadian-based gold production, development and exploration company with a specific focus on projects within Mexico. Goldgroup trades on the Toronto Venture Exchange under the ticker symbol GGA and on the OTC under the symbol GGAZF.
First Majestic Silver Corp has three mines in operation, a fourth scheduled to come online shortly, and several recently-acquired exploration properties. With a focus on silver projects in Mexico, First Majestic Silver has grown rapidly over the past few years. Read our report on First Majestic Silver:
First Majestic Silver Corp.
Novadx Ventures is a Canadian coal producer, with operations focused in the Central Appalachian region of the southern United States. Novadx trades on the Toronto Venture Exchange, under the ticker symbol NDX, has two coalmines in production: the Rosa Mine in Alabama and the Rex No.1 Mine in Tennessee.