“Following silver peaking in April, most mining companies have taken a significant haircut,” remarked Mike Niehuser, founder of Beacon Rock Research, at Business Insider. “This appears to be from a lack of demand or buying, rather than fundamentals or investors liquidating positions.”
Should gold prices strengthen through the end of the year, “lower stock prices should increase the demand for industry consolidation, acquisitions, stock repurchases or value investors,” added Niehuser. “Major mining companies or the Chinese wanting to secure pipelines of production may set off a rally in 2011.”
Eric Sprott, CEO of Sprott Asset Management, has also made large moves into gold and silver miners and he remains bullish on the outlook for precious metals, writes Scott Rubin for Benzinga.
For more information on gold or silver, visit our precious metals category.
Market Vectors Gold Miners ETF
