Since I last profiled gold and silver stocks in early April, stocks in the industry group have slowly been building up a head of steam.
The Market Vectors Gold Miners ETF (NYSEARCA:GDX) has pushed up to levels not seen since early March, up 18% from its recent low. Gold and silver futures have been building a base of support, lifting the ProShares Ultra Silver (ETF) (NYSEARCA:AGQ) position recommended to Edge subscribers.
Materials stocks in general have been lifting on the recent pullback in the U.S. dollar, which is helping the entire commodities complex. Freeport-McMoRan Inc (NYSE:FCX), punching up to early January levels, is an example of this. The May $20 FCX calls recommended last Thursday to Edge Pro subscribers are up 220% as a result.
Now, a number of fast-moving precious metals mining stocks are posting impressive-looking breakouts — setting the stage for big gains. Here are five worth a look.
Breakout Gold and Silver Stocks: Agnico Eagle Mines Ltd (USA) (AEM)
Click to Enlarge Agnico Eagle Mines Ltd (USA) (NYSE:AEM) shares have crossed over their 200-day moving average for the first time since early March — setting the stage for a retest of the February/March high near $35. That would be worth nearly a 10% move from here.
AEM was upgraded back in January by BMO Capital markets on well-regarded management, sound corporate strategy and operations in stable jurisdictions.
Agnico Eagle Mines is set to report results on April 30.
Breakout Gold and Silver Stocks: Gold Fields Limited (ADR) (GFI)
Click to Enlarge Gold Fields Limited (ADR) (NYSE:GFI) gapped higher on Tuesday morning to punch out of a three-month consolidation range in a possible repeat of a similar looking move back in December-January.
A test of the January/February highs would be worth a 33% gain from here.
Shares are ADRs for the South African company listed on the Johannesburg Stock Exchange.
Breakout Gold and Silver Stocks: Goldcorp Inc. (USA) (GG)
Click to Enlarge Goldcorp Inc. (USA) (NYSE:GG) is a little less advanced compared to the other names here, but has still been able to cross above its 50-day moving average for the first time since February.
A return to the 200-day MA would be worth a 10% gain from here.
Goldcorp will report results on April 30.
Breakout Gold and Silver Stocks: Pan American Silver Corp. (USA) (PAAS)
Click to Enlarge Pan American Silver Corp. (USA) (NASDAQ:PAAS) shares look ready to break above a tight three-month trading range to make another run at its 200-day moving average — a level that turned the bulls around back in January and February.
Such a lift should be worth a gain of at least 10%.
PAAS will report results on May 11.
Breakout Gold and Silver Stocks: Silver Wheaton Corp. (USA) (SLW)
Click to Enlarge Silver Wheaton Corp. (USA) (NYSE:SLW) is exploding higher like a coiled spring after fleeing a tight two-month consolidation range within a larger four-month downtrend.
The first stop will be the 200-day moving average but should give way to a test of the January high near $24 — which should be worth about a 17% gain from here.
SLW will report results May 7 after the close.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters.
