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« Silver, Gold and Uranium Stocks Get Clobbered! | Main | Uranium Conference in Adelaide »
Tuesday
Mar182008

A Tricky time for Metals Bugs

A number of our readers have informed us that they have recently moved out of uranium stocks and are intent on investing in the more glamorous gold and silver sector. We are long time gold and silver bugs but we question the wisdom of this move.

First of all gold is at an all time high at $1000 plus and its recent progress has been explosive, from $650 in September 2007, truly magnificent gains.

The same pretty much applies to silver which is also basking in the limelight.

Uranium stocks have however been beaten to the ground with falls of 60% in some cases. However, these stocks have shown signs that the worst is over and some have climbed back a little.

So, having suffered a loss in one sector is it a smart move to pull out and reinvest in another sector. Well, if the other sector is gold, then you are investing in a sector that is all ready at record highs. Ask yourself, is now the time to be doing this? Are you going to stay with it until gold reaches say, $2000, $5000? or if it corrects on short term profit taking and you suffer another loss will you be on the move again.

As a strategy we should be buying when there is 'blood in the streets' and not when everyone else is clamouring for the stock that you want. The blood is more or less in Uranium Street but that can not be said for the gold sector.

We don't want to deter you from enjoying the success of the gold and silver sector, where we have a considerable holding, but we do question the timing of such a move. Timing is a vital ingredient to your decision making process.

We are observers at the moment and are concerned that a correction in the precious metals and their associated stocks is imminent. So we are not buyers at this time. As for the long term gold has a long way to go. Uranium stocks could remain shaky for the time being as they have taken a battering and need to stabilise before heading north, which they undoubtedly will.

Try to stay calm and allow your thoughts to thoroughly work through the possibilities that are right for you and read as widely as you can.

Whichever way you play it we wish you every success and if you can find the time, do let us know what your thoughts are and how your investments are working out for you.

If you have just taken an interest in the uranium sector and would like to receive our free newsletter regarding uranium and in particular investing in uranium stocks please click this link.

Have a good one.

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Reader Comments (4)

I agree 100% with this assessment. As an investor in the these sectors, I've been fairly successful in buying whichever commodity is beaten down and unpopular. Last year I loaded up on silver, and that worked out pretty well. So far this year I've been buying uranium shares, and I'll likely continue as long as they remain at these bargain prices. I don't think you can make money by buying high. I've tried it, and it's usually a disappointment.

In my opinion, uranium mining shares are the best and most overlooked opportunity out there right now. When they rise and become popular again, I'll stop buying uranium shares and just hold on for the ride. Then I'll look for something else that's beaten down.

March 19, 2008 | Unregistered CommenterDBR

As a RPT investor (former Rampart, now it is called RPT Uranium Corp, http://www.rampartventures.com) for years now I have noticed the news supply has been dried up a lot. In the past AT LEAST once per month I was informed via subscribed newsletters from the Rampart site directly, what was going on and the status of their various projects). If you look at the site now I have noticed the last news item is dated December 14th 2007.... So, I think if to want attract more investors in the Uranium exploration business, at least you can do is provide more information of what is going on and status of your projects. Still I believe that once in the (near?) future this will change and hopefully it will be an profitable investment....

March 19, 2008 | Unregistered CommenterMyKel

It looks like its gold turn today to take it on the chin - down around $38!

Yes, news flow is vital to keep investors both informed and interested we wrote this sometime ago in an attempt to gee them up a little!

http://www.silver-prices.net/miners-it-is-not-good-enough-to-be-good/

March 19, 2008 | Unregistered CommenterUranium Stocks

Your views on Gold are very right although I have read it today only, that is, March 21. I sold off all my Gold Stocks on March 13, 2008 and missed the top by a day only. I will now reenter when Gold goes below $850 or after about 2 months. I think its now time for Dow and Nasdaq stocks to go up excluding all commodity stocks which should correct in the short term. I am swing trading in individual Uranium stocks as per news flow for each and will be long term investor only when there is secular rise in these stocks.

March 21, 2008 | Unregistered CommenterShrikant Malani

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