Precious metals have been a disaster zone for years — since peaking in 2011, gold is down more than 36% and finished 2013 with its worst annual loss in 32 years — and that has led to a beating in gold stocks as well.
A combination of factors caused the meltdown: The rip-roaring performance in stocks, nonexistent inflationary pressures, fading geopolitical risk, and even the resurrection of a little bi-partisanship in Washington.
I discussed all this in my last post, as well as the prospect for a turnaround in the precious metals — led by tightening supply as unprofitable mines are closed as well as the inevitability that all the fiat currency alchemy being conducted by the major central banks results in higher inflation (if not an outright currency crisis). Just look at the way officials from South Korea are starting to push back against Japan’s yen depreciation strategy.
Last week, I recommended moving into silver as a way to prepare for a possible breakout move as the metal consolidated near its summertime lows. Recommendations included Silver Wheaton (SLW) and Endeavour Silver (EXK) — which are up 5% and 14%, respectively, since that post.
But more gains are coming, as gold mining stocks join what looks to be the first major breakout move in the precious metals since August and the summer of 2012 before that. Here are three additional gold stocks worth considering: