Saturday, December 17, 2011

Gold & Silver Stocks, someones buying a few shares...

The spot prices of Gold and Silver have been in a bearish trend over the last several months and especially this last week.  The Gold and Silver miners have followed suit and have dropped as well.  Last Thursday and Friday, some entity is purchasing select Gold and Silver stocks as the volume was double, triple, 4x + the daily average.

Contrarian investors want to get in when others are getting out and want no part of the investment. These types of investors are very successful, Rick Rule comes to mind.  (Maybe James Dines too)

Here are a few of the mining stocks that I noticed with higher than average volume on 12/15-16/2011:  (See green arrow pointing at the last few volume bars)

Alexco Resource

First Majestic Silver

Aurico Gold (Silver too)

Allied Nevada Gold

Richmont Mines

US Gold Corp

Midway Gold Corp

Is it a hedge fund loading up for a swing trade? (Anticipating a run-up into the 1st quarter of 2012?)  Sprott Asset Management?  Tocqueville? Casey Research? One of the Gold/Silver mutual funds like the Fidelity Select Gold Portfolio?  Goldman Sachs?  JPM?

In any case, it looks like someone with fairly deep pockets is speculating on select Gold and Silver miners and that a early 2012 rally may be in their 'crystal ball'...

Disclosure: At the time of this post, the author owns shares long of Alexco Resources.

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