5 Mining Stocks to Buy Amid the Surge in Silver and Gold

The easy money is on, bringing a beleaguered sector back to life

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5 Mining Stocks to Buy Amid the Surge in Silver and Gold

It’s clear that the cheap money is going to keep flowing under new Federal Reserve chair Janet Yellen, and that in turn has brought life into precious metals and mining stocks.

mine1 5 Mining Stocks to Buy Amid the Surge in Silver and Gold

Although Yellen indicated, in her first appearance in front of Congress since being sworn in on Tuesday, that the taper of the “QE3″ bond-buying program would continue apace — at around $10 billion per meeting — this was offset by a moving of the goalposts on when short-term interest rates would rise from the near 0% perch they’ve been sitting on since 2008.

Yellen said rates wouldn’t move until alternative measures of labor market health, such as long-term unemployment and the number of folks working part-time for economic reasons, improves as well as the overall unemployment rate. That suggests more work is to be done, despite a quicker-than-expected drop in the jobless rate to 6.6% in recent months.

Also, she highlighted the fact that the Fed’s preferred inflation measure (personal consumption expenditures) is just 1.1%, below their 2% target, and that there wouldn’t be impetus to hike rates until inflation hit 2.5% — a level that hasn’t been seen since January 2012.

Investors reacted by pouring into gold and silver and related mining stocks as higher inflation — and the weaker U.S. dollar that will likely accompany it — has brought the beleaguered sector to life. After an initial surge higher in January, which I covered in a number of posts, the group is on the move again.

Here are five mining stocks to buy in response in the coming days:


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/5-mining-stocks-to-buy/.

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