Penny Mining Stocks

How to buy gold

2012-05-15T20:49:53Z

A question we get asked quite a bit from readers is how do I buy gold?

There are four main ways to invest in gold.

1.Buying gold buillion as in in coins, bars or jewelry

2. Investing in gold futures

3. Investing in gold Exchange Traded Funds (ETFs).

4. Investing in gold mining companies through stocks.

Watching the Dow/Gold ratio is an indicator that tells when gold is at the high, middle or low end of the scale is value.

During the years 1929 to 1942 and again during 1968 to 1980, the Dow/Gold ratio was around 20 and actually was outperforming the stock market. Today, that ratio is a little below 8. Those who bought gold in the slump in 1980 at the Dow/Gold ratio of 1 are starting to see an investment growth. This can be rewarding if you have patience.

Gold bullion

Any gold coin before 1933 is an excellent investment. The United States Mint website has a handy coin dealer’s database on their website. Buying broken gold jewelry, other gold items and collectibles can be an enjoyable way to collect gold for investment, but one must be aware of scams both on the selling and buying end and must take into consideration the premium values places on jewelry for the craftsmanship and design. Any jewelry over 14 karat gold is a good risk. Scrap gold is one of the safest and most enjoyable way to invest in gold.

Gold bullion is a relatively safe method also, and probably the best for the new investor. This is the method for investors willing to wait long term; as gold will resist inflation even after economies improve.

Gold Futures

Commissions for Gold futures, purchased through commodity traders, are negotiable. You are contracting to buy Gold at a higher value than you are actually outlaying in cash, with a belief in the future value. Investors should only invest capital that they can afford to lose. The benefit here lies in using leverage but using leverage also involves risk.

Gold Exchange Traded Funds

ETFs are purchased through the regular stock market avenues, with the same thoughts and processes of buying any stock. Buy low and sell high. We will do another post on gold etfs explaining the advantages of investing this way.

Gold Mining Companies

A very popular method of investing in gold is through gold mining companies. These are gold companies that are producing and/or are exploring for gold. You can buy these shares through the stock market. The Toronto Stock exchange is home to many of these gold mining companies. These companies are very volatile and can have explosive moves to the upside or downside depending on various factors. We will have a more in depth post all about gold mining companies in the near future.

Copper and copper stocks

2012-05-10T17:02:56Z

Copper and Copper Stocks

Copper is the leader of the pack when it comes to base metal stocks. In the next five or six months, base metals are expected to show a surge and Copper will be right at the top. Research Analyst Vishal Gupta, of Frasier Mackenzie, who has a background in geology, mentions three copper stocks that deserve watching:

Foran Mining Corporation, at the Mcilvenna Bay project, in Canada.
Arian Silver Corporation, a company active in Zacatecas, Mexico.
Red hawk Resources, at Copper Creek in Arizona.

From Copper coins in 8000 B.C. to the newest semi-conductor manufacturing in silicon chips, Copper is one of the first metals ever to be extracted and used by man. In 5500 B.C. early man found out how to make copper into tools, and by combining with tin to make bronze, it was even more useful around 3000 B.C.

Copper is easy to mold, shape, stretch and resistant to corrosion. It is a conductor of heat and electricity and used in building construction, power generation and transmissions, electronic products, industrial machinery and copper wiring and plumbing materials.

In the automotive field, copper is used in:

Motors
Wiring
Radiators
Connectors
Brakes
Bearings

A small vehicle has around 44 pounds of copper in its construction and almost 100 pounds go into hybrids and ATVs.

Newer uses today include the antimicrobial properties of Copper that reduce transfer of disease and germs; circuitry; microprocessors and copper rotors in electric motors. The Copper-Nickel alloy is used in hulls of ships as it doesn’t corrode in salt water, and it reduces drag and increases fuel efficiency because sea life like barnacles don’t adhere to it.

Copper goes “green” by being the most widely recycled metal worldwide. About 1/3 of all copper consumed is recycled. It is easily re-melted to use directly or reprocessed into refined copper without losing any valuable properties. 160 minerals are derived from Copper; the most common are chalcopyrite, malachite, azurite and turquoise.

Graphite stocks

2012-05-07T17:59:30Z

Graphite and Graphite Stocks

Graphite, also called “black lead” is black, soft to the touch, and has been around and in various uses for hundreds of years. Also, new uses are being found continually, and some have called it the “perfect” mineral! It is conductive, a dry lubricant, resistant to high temperatures and one of the strongest substances known to man. It does not have one major market, but many.

The three forms of graphite; crystalline flake, amorphous and lump are found in Canada, Brazil, Europe, India and over 80% of the world’s graphite is produced in China. Both the United States and Europe have classed Graphite as a strategic metal.

Graphite is used in:

Lead for pencils
Ceramic paint
Refractory molds
Brake Linings
Foundry Facings
Dry Lubricants
Electrodes
Nuclear Reactors
Lithium Ion batteries, in smartphones, laptops, hybrid-electric cars

Graphite has been reported as the next “big thing” with the demand for lithium ion batteries. Each hybrid-electric car requires 40 pounds of graphite. Graphite Stocks have hit new highs recently, while gold and silver have hit two year lows. Global demand for graphite is expected to increase. The Graphite boom may be just beginning.

China, who produces over ¾ of the world’s graphite is consistently cutting exports and adding tariffs on graphite exports, and will be working on keeping a big piece of the profit pie internal. New graphite mines are needed.

To invest wisely in Graphite stocks at this time, it is prudent to note the size and quality of the corporation’s mineral deposits; the ability of the company to economically source the mineral; how soon they will be up and operating, if they are in experimental stage; the company’s track record in production and sales; and to look at the company’s 90 volume on all trading systems.

List of Graphite Stocks to invest in.

Penny stocks – What they are and how to trade them

2012-05-02T21:13:49Z

The very first thing that you need to know when investing in Penny Stocks is what exactly constitutes a Penny Stock?

The answer is that any stock that trades at a relatively low price and market capitalization, usually outside of the major market exchanges, is considered a penny stock.
The term itself is a bit of a misnomer because there is no generally accepted definition of a penny stock. Some consider a penny stock to be any stock that trades for under $5.00. Other investors consider any stock trading off of the major market exchanges as a penny stock.

Confusion can and does occur because there are some very large companies, based on market capitalization, that trade below $5 per share, while there are also a lot of very small companies that trade for $5 or more. In the end the most important factor to determine whether a stock is a penny stock is the assessment of its value.

In general the typical penny stock is offered by a very small company with highly illiquid and speculative shares. The company will also generally be subject to limited listing requirements along with fewer filing and regulatory standards.

Some penny stocks do not meet the requirements for listing on the major stock exchanges but may be publicly traded. Generally, these lower-valued stocks are then traded on lesser-known exchanges and are called over-the-counter (OTC) stocks or ‘pink sheets’. They call them that because of the color of paper that has traditionally been used by the National Quotation Bureau. Pink Sheets are now the most popular outlet for penny stocks.

When it comes to trading Penny stocks there are a few basics that you MUST know and follow. Penny stocks are considered a highly volatile market and following the rules will help you to keep from losing thousands of dollars.

One of the first rules, especially if you are a new or novice trader, is to select a reputable broker. By ‘reputable’ I mean a broker that passes muster with you state’s Securities Commission. A discount broker is preferable, meaning a broker who only executes your orders for a fee. A broker that does penny stock recommendations and research will, in the end, cost you much more in commissions and fees and so is not advisable.

Another good rule is to be very careful with how much money you initially put at risk and how much profit that you want to try and make with each trade. Until you have a lot more experience start small with both. Now is the time to be disciplined and avoid big losses. Don’t let your greed get the best of you and you will stay in the game much longer. You don’t have to be overly afraid of taking some risk but don’t go overboard until you have more experience.

When investing in penny stocks remember the old adage about ‘not putting all your eggs into one basket’. Diversity is your best bet, as it is with any investment portfolio. In fact the basics of trading any stock can be used and followed with penny stocks.

Definitely stay away from any penny stocks that you were offered in unsolicited emails or that are sold by offshore brokers. Con artists are all over the place and will take you for everything if you let them. Better to find a broker online who specializes in penny stocks and can place your orders for you. These brokers are required to get written confirmation from you with any transaction due to the fact that trading in penny stocks is considered speculative.

Research any company you are considering investing in. Read articles in business newspapers and do an Internet search on the company owners. Also find out if there is a market for the product a company is selling before you day trade in its stock.

In many ways purchasing software for buying and trading penny stocks is the best way to go because it will let you buy and sell for a small fee but also get a lot more info that you can then customize for yourself.

Finally, listen to any and all news about penny stocks that you can get your hands on. Press releases, online message boards and chat rooms are a veritable treasure trove of great, unbiased information. By paying close attention you may get some very valuable information.

Good luck.

Junior Mining Stocks

2012-05-01T20:19:55Z

May 1st 2012 discussion on the state of the Junior Mining Sector with Tekoa da Silva and Peter Grandich. Is this the bottom or not?

Mining Stocks Nightly Video

2012-05-01T00:47:49Z

Mining Stocks Nightly Video for Monday April 30th.

The beginning of video talks about the gold price and the $1650 per ounce level. Gold is currently trading at $1665 and you can see a live gold price on our gold page.

First bit of news: Globe says Iamgold purchases Trelawney Mining. Discussion on why gold majors are not purchasing up these gold juniors at these bargain prices.

Next bit of news: Goldcorp - Goldcorp’s El Morro permit suspended by Chilean court. Joint venture with Newgold so NGD also dropped a fair bit today. Stateside discusses and questions when will see premium on Canadian stocks and Nevada (safe jurisdictions).

Cliffmont Resources :Cliffmont receives permits to drill 5,000 m at San Luis. Drilling a property in Columbia that has never been drillerd before.

What do you think please comment below!

Junior Resource Stocks Thursday night video

2012-04-29T16:30:12Z

Gold Standard Ventures nice drill hole result out of Nevada. Big potential in the Carlin trend.

Junior mining stocks nightly video

2012-04-24T14:38:47Z

Junior mining stocks nightly video for Monday April 23, 2012

Junior Resource Stocks Nightly Video

2012-04-19T00:15:32Z

Junior Resource Stocks Nightly Video for Wed April 18th

Stocks mentioned: BAR (Balmoral Resources),GTA (GTA Resources and Mining)

More companies getting into the graphite space.

Copper, copper prices, and a copper stock (QRS)

2012-04-17T14:15:29Z

After a very heavy downturn at the end of 2011 which brought Copper prices almost as low as 3$/LB, stronger economic data and an overall reduction of fear in the financial markets have brought prices back near $4/LB. This continues the multi-year bull run that the metal has been experiencing since the financial crisis of 2008/2009, where the metal was trading under $2/LB. Despite lowered growth forecasts for the world economy in 2012, accommodative monetary policy by the Federal Reserve (which has continued to imply a near-zero interest rate policy going into 2014) should sustain the metal making it profitable to mine.

According to a recent report published on March 13^th 2012 by The Economist based on findings of the Comision Chilena del Cobre (Cochilco, the Chilean copper commission), average copper price expectations have risen to $3.7/LB in 2012 and $3.9/LB in 2013 due to recovery in emerging market demand for the metal. Copper output is expected to continue its rapid expansion. Cochilo reported that Chile’s fine copper output reached 5.2m tonnes in 2011, and is expecting roughly 13% growth in the output (to about 5.9m tonnes) in 2013.

There are a variety of ways to invest in the rapid expansion of the increasingly profitable copper industry, including junior miners who offer highly-discounted buying opportunities on potentially profitable mines. These offer riskier alternatives to the likes of enormous miners like Freeport-McMoRan (FCX), which don’t offer much appreciation potential due to their sheer size. Junior miners offer outsized returns with the right investor.

QRS Capital (TSX-V QRS) is one such miner that is traded on the TSX Venture Exchange and led by CEO John Seaman. The market cap is roughly $8.5 million, with 17.7 million actively traded shares out of a total of 18.6 million. The company has three drill-ready mining prospects at the moment, and is consistently looking for more advanced stage exploration projects that can be bought for minimal upfront payments.

The Judith Property is a high-grade silver prospect in Chihuahua, Mexico which has officially begun a diamond drilling program in March. The company had a press release on February 7^th which showed some very encouraging results. QRS has also recently obtained full rights to the Las Leddas Project in Chile, which is in an area that shows geological similarities to the Maricunga District in Chile which has yielded world-class gold deposits like the Barrick/Kinross Cerro Casale project and the Kinross Maricunga project.

The company’s new and potentially most exciting project is Vista Hermosa, which was chosen from 147 other potential assets that were extensively reviewed by management. The Letter of Intent (LOI) was announced on February 14^th. QRS has entered a contract which has allowed the company the opportunity to buy the property after 2 years for $32 million within a 6-month window, with a penalty fee of $500,000 if exploration takes longer than that. The true value of the property will vary on many factors, including the difficulty of extraction (which is predicted to be low), the selling value of the material, transportation, and a host of other problems which may impede progress. Nonetheless, QRS has entered a flexible agreement which could prove enormously profitable if the property meets or exceeds expectations.

The company emphasizes that extraction of the copper ore would be low-cost for a variety of reasons, including proximity (37km) to the major port of Coquimbo and a mineral processing plant only 5 km away. Of a total 2,447m of shallow drilling, two drill results emphasized high potential. SVH-3 showed 5 meters of 1.4% Cu and another 5 meters of 2.2% Cu out of a total 37. DDSVH-16 showed a whole 15 meters of 1% Cu. Only a small fraction of the property has been explored though.

Geologist Hernan Valenzuela, in 2005, estimated that there were roughly 12 million on the property which averaged 1% Cu. Although the estimate isn’t compliant with NI 43-101 (a strict guideline for the release of public information with regards to mining prospects), this implies that there could be as much as $440 million worth of near-surface copper (using a rough calculation with Cochilco’s expected copper prices in 2012). Further exploration will gauge whether or not this historical resource is accurate, although recent drilling has not disappointed. The stock has lost much of the momentum it gained after signing its agreement for the Vista Hermosa project, but has been no reason to suggest that the old price levels shouldn’t be reached later on.

QRS Capital on the TSX venture

-Brian Wilson