Ron Hera took time out today, 3/6/12, to review the latest action in gold and silver as well as the mining stocks. Ron’s unfazed by the latest smack-downs. The first slam-down was certainly sponsored, and the current decline was most likely dollar related. What happens next is really the issue, however, Ron sees tremendous value in a number of mining shares that have been beaten up in the recent market action. According to its latest filings, there’s a company that’s sitting on 6 million ounces.
Ron also explained why the mining sector is not for the faint of heart. There’s a tremendous amount of technical knowledge required to effectively judge a mining company’s prospects. There are also the valuation issues that require the ability to judge how difficult the ore is to get at it, the feasibility of the mine and the management’s ability to tie it all together. Therefore, while the market may usually be efficient, it often misses mining stocks that have great potential.
We’ll check in with Ron next month and see where it’s all heading.
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