Things are getting ugly fast. The Dow Jones Industrial Average is set to close below its 200-week moving average for the first time since 2011. Crude oil traded with a $26-a-barrel handle for the first time since 2003. There are many concerns, from Eurozone “CoCo” bonds to Chinese dollar-denominated debts and Japanese negative interest rates.
But put simply: Faith in the ability of central bankers to levitate markets at will is under threat.
The big winner in all this has been gold and silver, which are getting a big lift as it becomes increasingly clear the Federal Reserve’s decision to raise interest rates in December was a mistake.
The Fed will probably be forced by a softening of non-jobs economic data and market volatility to walk back this rate hike forecast, boosting gold and silver as the dollar weakens and future inflation expectations rebound. Traders are already bidding up the metals and the related mining stocks.
Edge Pro subscribers, for instance, are enjoying a 750% gain in their February Gold Trust SPDR (GLD) $105 calls.
Here are seven precious metals stocks that are blasting higher and would be candidates for new money on a pullback.
Precious Metals Stocks on the Rise: Kinross Gold Corporation (USA) (KGC)
Kinross Gold (KGC) shares have ignited the afterburners and gone vertical, more than doubling from their January low. The stock price has returned to levels last seen in March.
This marks the most significant uptrend rally for the stock since its long, multiyear downtrend started in 2008 and 2009.
KGC is up 60.5% for Edge subscribers since it was recommended back in November.
Precious Metals Stocks on the Rise: Barrick Gold Corporation (USA) (ABX)
Barrick Gold (ABX) shares have continued the uptrend that started last September, resulting in a double from those lows as shares fly away from previous resistance near the 200-day moving average.
The move over the past two weeks has been parabolic, so new investors should wait for a pullback, at least to the 20-day moving average, before moving in.
ABX is up 62.4% for Edge subscribers since it was recommended back in November.
Precious Metals Stocks on the Rise: Goldcorp Inc. (USA) (GG)
Goldcorp (GG) shares have rallied about 50% from their January low, pushing up and over their 200-day moving average for the first time in a year.
The stock’s long-term downtrend started in 2011 and hasn’t visited its 200-week moving average since 2012. That’s my target, which would be worth another 60% gain from here.
GG is up 22.7% for Edge subscribers since it was recommended back in November.
Precious Metals Stocks on the Rise: First Majestic Silver Corp (AG)
First Majestic Silver (AG) shares perked up nicely over their 200-day moving average on Thursday — the first such break of this level since the summer of 2014.
The stock has been in a persistent downtrend since 2012, but should be good for a run at its 200-week moving average near $10 — which would be worth a 134% gain from current levels.
AG is up 27.9% for Edge subscribers since it was recommended back in November.
Precious Metals Stocks on the Rise: Silver Wheaton Corp. (USA) (SLW)
Silver Wheaton (SLW) stock has punched up and over its 200-day moving average for the first time since last February, rising nicely off of a pattern of support near $10 and $11.
Silver has been a little less dynamic than gold over the last two weeks, which explains the more modest rise in SLW compared to some of the gold stocks presented here. But I think the gap will close as investors seek the cheaper exposure to precious metals.
SLW is up 15.5% for Edge subscribers since it was recommended back in November.
Precious Metals Stocks on the Rise: Yamana Gold Inc. (USA) (AUY)
Yamana Gold (AUY) shares have broken up and over resistance from its 200-day moving average for the first time since August 2014. This ends a churning consolidation pattern going back to July.
Shares suffered an epic (catastrophic?) decline from a high over $20 in 2012 to a low of just $1.38 back in January.
For those keeping score at home, that’s a loss of 93%.
But from here, merely a test of the 200-week moving average — not touched since 2013 — would be worth a 200%+ move.
Precious Metals Stocks on the Rise: Coeur Mining Inc (CDE)
The uptrend in Coeur Mining (CDE) is the least developed of the names presented here, and thus is the best candidate for new money if an investor didn’t want to wait for a buying dip in the sector group. A rise to the 200-day moving average, eclipsed since July, would be worth a 21% gain from here.
This would be the first step towards ending a persistent downtrend in CDE shares that’s been in place since 2012, resulting in a drop from a high of $31.97 to a low of $1.62 in January, a 95% decline.