Precious metals and mining stocks in an economic crisis

chimpanchu · Jan 14, 2011

heartastack said:

Could we see that kind of performance from Aussie juniors?
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I guess so. But from what I know, Australian Stock market is minuscule compare to the rest of the world market, I think the figure is something like 1% of the total world market. ASX is practically invisible to overseas investors. When PM mania begins, I'm not sure how many overseas investors ASX will attract considering the size of Oz market compare to TMX and AMEX.

There are many Aussies mining shares already taking off to the upside as much as overseas stocks but to get a stock multiplying THOUSANDS of folds you probably need worldwide investors participation. I'm not sure if ASX stocks can take off 3000 folds relying only on 20 million Aussies.

heartastack · Jan 14, 2011

^ Cheers mate, I don't see much talk on this forum about overseas stocks though!

MelbBrad · Jan 14, 2011

chimpanchu said:

hawkeye said:

Stocks going up by 350 times in a year. I would be extremely happy with an average 10 or 20 times my current portfolio. 100 times, I would be ecstatic. 350 times, I would be in intensive care.
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That was during the last gold bullmarket. Many junior mines gone up THOUSANDs folds. Many of these juniors were 10c or 15c (less than penny stock) when the first started and at the end of the bullmarket they were trading at $300-$400 /share.

I believe we will see a repeat performance by many quality juniors. There are many good juniors today that you can still buy under $1.
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Which ones IYHO?

dccpa · Jan 14, 2011

boston said:

History is resplete with examples of 'certain' shares doing outstandingly well in times of crisis, as well as in normal times. In some regards it could be due to the fundamentals of the stock chosen, and at other times it could be attributed to frenzy.

One example that I have been researching recently is the nickel miner Poisedon in the late 1960's - early 1970's. It went from $0.80 to $280 in circa a year. Whilst it could be argued that nickel was in demand because of the Vietman war, and the price increased circa 20%, the primary factor in the rise to $280 was hysteria.

To put that amount of $280 into purchasing power, consider that a Valiant station wagon was circa $1200 at the time!

In all honesty, I expect the same to happen this time around with AG/AU shares with it being not uncommon to see $100+ shares within 5 years. We shall see!
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That is exactly what happened to the PM miners during the 1970s-1980 bull run. This is why I put about 40-45% of my investment money into pm stocks.

chimpanchu · Jan 15, 2011

MelbBrad said:

chimpanchu said:

hawkeye said:

Stocks going up by 350 times in a year. I would be extremely happy with an average 10 or 20 times my current portfolio. 100 times, I would be ecstatic. 350 times, I would be in intensive care.
Click to expand...

That was during the last gold bullmarket. Many junior mines gone up THOUSANDs folds. Many of these juniors were 10c or 15c (less than penny stock) when the first started and at the end of the bullmarket they were trading at $300-$400 /share.

I believe we will see a repeat performance by many quality juniors. There are many good juniors today that you can still buy under $1.
Click to expand...

Which ones IYHO?
Click to expand...

I don't know any Australian juniors. I don't play Oz market.

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Precious metals and mining stocks in an economic crisis

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Precious metals and mining stocks in an economic crisis

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