Thursday, May 22, 2008

Thursday, May 8, 2008

Huge Up Move in Junior Gold Stocks Soon

Use CDNX as an indicator for junior gold stocks. Juniors are extremely undervalued--similar to late 2002.

Monday, May 5, 2008


Investors continued to pour into precious metals in March, adding a hefty $1.2 billion into the mutual funds and exchange-traded funds that concentrate on the specialty sector.
That brought the total flow of cash into the subsector for the first quarter to $3.6 billion as investors sought safe-haven assets amid the ongoing credit crisis, which brought investment bank Bear Stearns(BSC - Cramer's Take - Stockpickr) to its knees, surviving only after a rescue by JPMorgan Chase(JPM - Cramer's Take - Stockpickr).

But funds that solely held the metal won out over those that owned shares of mining companies by a factor of more than 5 to 2, according to the most recent data from Boston-based company Financial Research Corporation.

Topping the list of winners, as it did every month last quarter, was the streetTracks Gold Shares(GLD - Cramer's Take - Stockpickr) ETF, which solely owns bars of gold bullion, taking in a net $590 million. The other two precious-metals bullion funds, iShares Silver Trust(SLV - Cramer's Take - Stockpickr) and iShares Comex Gold Trust(IAU - Cramer's Take - Stockpickr), added $140 million and $139 million respectively, bringing the total added to the bullion group to $869 million.

That compares with a monthly total of $336 million flowing into all the mutual funds that invest in the stocks of mining companies. The mutual fund taking in the most was the $2.2 billion Fidelity Select Gold(FSAGX - Cramer's Take - Stockpickr), adding $172 million, while investors pulled out $25 million from $1.9 billion Market Vectors Gold Miner(GDX - Cramer's Take - Stockpickr), the fund that lost the most during March.