Grandich Looking to Go Shopping for Mining and Exploration Stocks

Source:

Mr. Grandich says shares of most mining and exploration companies are not even close to full valuation when compared to metal prices of the past. He thinks tax-loss selling in this sector could continue in the next week or two, but is looking to do some shopping there himself.

...Mr. Grandich expects the markets will see lighter “holiday-like” trading as the year comes to a close, which he thinks could lead to more exaggerated moves due to a lack of liquidity.

“For the most part, it’s safe to assume we’re not witnessing any earth-shattering changes to longer term directions,” he wrote, adding that December is not typically a good month for stock market bears.

As for gold, he tells readers that they should not expect a bullish outlook on gold from Wall Street because it will likely come at the expense of financial assets. Mr. Grandich also said investors should not be concerned whether the next US$25 or US$50 move for gold prices is up or down, since liquidity will likely dry up going into Christmas.

“Just stay focused on what got us to this price, the fact that fundamental factors remain supportive, and the world still pretty much hates the shining yellow,” he said.Finally, Mr. Grandich says shares of most mining and exploration companies are not even close to full valuation when compared to metal prices of the past. He thinks tax-loss selling in this sector could continue in the next week or two, but is looking to do some shopping there himself.

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