Precious metals are tearing higher on Friday, pushing out of a three-month downtrend in a big way.
The main catalyst, it appears, was a huge breakdown in the U.S. dollar on Thursday after the European Central Bank delivered less monetary policy stimulus than the market was looking for. The result was the largest one-day loss for the greenback since early 2009.
Other factors include broad market turbulence, losses in bonds and crude oil, and growing nervousness about a likely Federal Reserve interest rate hike on Dec. 16 — something that has not happened since 2006.
This is all great news for the gold and silver stocks I recommended back in the middle of November, all of which are surging higher and a poised for continued gains.
Here are the five stocks I suggested:
Gold and Silver Stocks to Buy: Silver Wheaton (SLW)
Silver Wheaton (SLW) shares have punched above their upper Bollinger Band for the first time since early October in a nice upward cross of their 50-day moving average.
This is another uptrend attempt out of a long consolidation range going back to July. With a solid base of support near $12 a share, this is a great entry point.
Edge subscribers are already enjoying a 6% gain in the position first recommended on Nov. 19.
Gold and Silver Stocks to Buy: First Majestic Silver (AG)
First Majestic Silver (AG) shares have lifted up and over their 50-day moving average to test the upper range of the consolidation range going back to July.
By virtue of its low cost basis, the stock is a fast mover: Edge subscribers are already enjoying a 15% gain in the position first recommended on Nov. 19.
On Nov. 16, the company reported a 10% rise in year-over-year revenue and a 28% drop in all-in production costs.
Gold and Silver Stocks to Buy: Goldcorp (GG)
Goldcorp (GG) shares are moving up and out of a tight two-month consolidation range to return to their July-October range. Resistance from its 50-day moving average near $13 is the next hurdle for the company.
Edge subscribers are already enjoying a 2% gain in the position first recommended on Nov. 19.
The company will next report earnings on Feb. 18.
Gold and Silver Stocks to Buy: Barrick Gold (ABX)
Barrick Gold (ABX) shares are breaking up and out of a tight three-month trading pattern, with support offered by their 50-day moving average near $7.50.
Resistance from the post-July consolidation range looms near $8.50, with a breakout putting the 200-day moving average near $9.50 in play — a 19% move from here.
Edge subscribers are already enjoying a 4.5% gain in the position first recommended on Nov. 19.
Gold and Silver Stocks to Buy: Kinross Gold (KGC)
Kinross Gold (KGC) is once again challenging its 200-day moving average, a hurdle that turned the stock back in October, building on a solid short-term uptrend in play since early November.
A break above that would put the March-July range near $2.40 in play, which would be worth around a 15% gain from here.
Edge subscribers are already enjoying a 10.4% gain in the position first recommended on Nov. 19.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
