\u2018We\u2019ve been calling for gold to be above US$2,000 (per ounce) for quite some time now. We\u2019re there, and we think that once you get to US$2,200 it\u2019s going to be kind of a FOMO trade in terms of some of these gold stocks,\u2019 he said. <\/p>\n
\u2018I think the downside risk is retesting that US$1,800 round number \u2026 (but) I just don\u2019t think we\u2019re going to get to the US$1,790, US$1,800 level,\u2019 Feneck continued, adding that he\u2019s confident the metal would hold if it did go there.<\/p>\n
While the gold price is historically high, gold stocks aren\u2019t performing as well as investors would like. <\/p>\n
\u2018I can\u2019t remember even looking at 2016 the disparity between the gold price and mining stocks,\u2019 Feneck said at the Prospectors & Developers Association of Canada (PDAC) convention. He uses the Relative Strength Index (RSI) to evaluate companies, and said right now many gold stocks have RSIs between 27 and 35 \u2014 the 30 level is generally a time to buy. <\/p>\n
\u2018Broadly for the (big-cap gold stocks) I like what i\u2019m seeing. I can\u2019t remember a quarter like this where everyone\u2019s beating (when it comes to results) and yet the prices are so depressed,\u2019 Feneck commented. <\/p>\n
In terms of precious metals stocks he likes, he mentioned Guanajuato Silver Company (TSXV:GSVR,OTCQX:GSVRF), Coeur Mining (NYSE:CDE) and Hecla Mining (NYSE:HL), as well as Silver X Mining (TSXV:AGX,OTCQB:AGXPF) and Aftermath Silver (TSXV:AAG,OTCQX:AAGFF). Feneck is also interested in VR Resources (TSXV:VRR,OTCQB:VRRCF) on the copper side. <\/p>\n
In closing, Feneck emphasized due diligence. \u2018Make phone calls to companies right now. This is the time you want to do your homework. Get any questions answered about what you own and what you\u2019re thinking about owning,\u2019 he said.<\/p>\n
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n \u2018We\u2019ve been calling for gold to be above US$2,000 (per ounce) for quite some time now. We\u2019re there, and we think that once you get to US$2,200 it\u2019s going to be kind of a FOMO trade in terms of some of these gold stocks,\u2019 he said. \u2018I think the downside risk is retesting that US$1,800 […]<\/p>\n","protected":false},"author":0,"featured_media":2148,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/2147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=2147"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/2147\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/2148"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=2147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=2147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=2147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}